Agenda item
Annual Governance Report - Council Accounts and Pension Fund Accounts
Minutes:
Councillor Abdul Asad declared a general personal interest in the agenda. The declaration was made on the basis that the agenda contained references to Tower Hamlets Homes and Councillor Asad was a member of the Tower Hamlets Homes Board.
Special Circumstances and Reasons for Urgency Agreed.
• The report was unavailable for public inspection within the standard timescales set out in the Authority’s Constitution, because of the continuation of discussions between the Council and its Auditors regarding items of account which it had been anticipated would be completed in time for publication of the agenda for this meeting of the Audit Committee.
• The Corporate Director Resources recommended that committee note the findings of the annual governance report for 2009/10 to allow the auditors to provide their audit opinion by the statutory deadline of 30th September 2010.
Mr Jon Hayes (District Auditor) presented the Annual Governance Report for both the Statement of Accounts and the Pensions Fund.
Mr Hayes reported that, as the audit was continuing there may be further matters to report to the Committee before the opinion is issued. Members were asked to consider the matters raised in the reports.
Mr Hayes asked Members to take note of the adjustments to the statements, and unadjusted mis - statements and requested that the Chair sign the letters of representation on behalf of the Council for both accounts.
In reply to questions about the THH Pensions Fund cost guarantee, (where there was a recommendation that the liability be raised as a provision), Mr Finch (Service Head, Corporate Finance) explained the reasons for including this within the Council’s accounts as per previous years.
There was no reason for treating the two liabilities differently as THH was part of the Council. Besides, making this adjustment would involve an additional charge to the Housing Revenue Account. The accounting treatment of this did not affect the overall General Fund balance. Officers would keep the matter under review.
The Committee stated they were happy for the accounting treatment of the liability to stay the same as per officers’ recommendation, whilst the deficit remained at £1.3 million. However should the figure increase, the Committee requested a further report on this matter.
In relation the fixed asset balance sheet, Officers clarified that the errors related to a small number of properties, but this issue would be rectified during the 2010/11 process.
In response to further questions, Mr Naylor (Corporate Director Resources) explained the steps being taken to address the outstanding queries and the reasons for the delays, due the complexity of the process/the pressures arising from this years budget setting process. However, Officers were on target to resolve the issues.
Officer expressed a commitment to review the lessons learnt and to apply these accordingly in the future when finalising the accounts. The Committee expressed a wish to keep a watchful eye over the key issues.
In reply to questions about the saving targets, Officers referred to the need to identify savings whilst protecting key front line services.
RESOLVED:
1. That the Annual Governance Reports for 2009/10 for both the Statement of Accounts and Pension Fund, in particular the points on page 5 of the respective reports be agreed; and
2. That it be noted that if the auditor identifies any further significant issues, then they will bring them to the attention of the Chair of the Committee. The Chief Finance Officer will also brief members of the committee and, if necessary, prepare a formal report to the next meeting of the committee.
Supporting documents:
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Audit Committee ISA260 report 21 Sept 2010 KM170910 0651am, item 5.
PDF 109 KB
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LB Tower Hamlets annual governance report 2009 10 KM1709100651am, item 5.
PDF 256 KB