Agenda item
Audit Draft Statement of Accounts 2010/11 - to follow
Minutes:
The Committee considered a report of the Corporate Director (Resources), circulated separately in a supplemental agenda pack, which presented the Authority’s draft Statement of Accounts for the financial year ending 31st March 2011, prior to audit.
Peter Hayday, Interim Service Head - Financial Services Risk & Accountability, introduced the report and highlighted a number of key points. He apologised to the Committee for the late circulation of the report, which had arisen because of continuing work to finalise the treatment of items impacted by changes in recommended practice. Despite this the Corporate Director wished the Committee to have the opportunity to comment on the draft Statement of Accounts prior to submission to the auditors, in line with CIPFA best practice.
Members of the Committee welcomed this opportunity and the Corporate Director (Resources) confirmed that the Statement of Accounts would come back to the Committee for further consideration after submission for audit. There would be a five-week period from early July during which the accounts would be published but Members’ questions and comments would be welcomed at any point after the meeting and for the coming two months.
In response to questions from Members of the Committee, Mr Hayday provided further information as follows:-
- The information included in the report on the Pensions Liability represented a ‘snapshot’ at a particular point in time. Members sought further information on the factors influencing the movement of this liability and the officers undertook to report back on this in more detail. Further information would also be included in the Medium Term Financial Plan report to the August Cabinet meeting.
- In relation to Capital Spending, the contribution from developers through section 106 funds was driven by specific schemes and the balance of funding between grants, contributions and prudential borrowing would vary from year to year. Over recent years substantial Government funding had been provided through the Decent Homes and Building Schools for the Future initiatives.
- The figure for ‘provision for bad debts’ shown on page 83 related only to the Council Tax/NNDR Collection Fund. Council wide, the provision was approximately £50m. There were a number of factors influencing the level of this provision and officers would provide further information on this. The Council did not readily write off debts but rather sought to pursue collection where possible and economic.
- Decisions regarding earmarked reserves were taken as part of the Budget making process and via Executive decision-making mid-year and as part of this there was a challenge process to ascertain that reserves brought forward from year to year are still required for the purpose indicated.
- Any costs arising from the merger of Children’s and Adults’ Services were expected to be limited in the current financial year and resources could be available from general reserves if necessary. Once a new Corporate Director was appointed a more fundamental review would be carried out which may require the use of some resources on an ‘invest to save’ basis.
- The information regarding the Housing Revenue Account was set out in a separate section from page 77 of the report. This would be a key area of attention in the coming year as the Government sought to change the way that Housing provision is financed.
- The Pension Fund accounts would also be reported to the Pensions Committee and would be the subject of separate Audit comments.
RESOLVED
That the Committee note the draft Statement of Accounts for the financial year ending 31st March 2011.
Supporting documents:
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Audit Committee Accounts report for agenda 28 June 2011 (2), item 7.3
PDF 107 KB
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2010-11 Statement of Accounts (2), item 7.3
PDF 559 KB