Agenda item

Report number CFM384 of the Strategic Director and Corporate Finance Manager.         (Enclosure)

Decision:

The Governance and Audit Committee

1.    Approves the revised Statement of Accounts 2015/16 as per appendix 1 of report number CFM384 and as amended by the addendum circulated at the meeting

2.    Notes the commentary on the outcome of audit work

3.    Approves the publication of the summary of accounts on the Council’s website

4.    Approves the signing of the Letter of Representation

The Financial Accountant Team Leader introduced report number CFM384 which presented the Council’s Statement of Accounts 2015/16. It covered requirements of the Account and Audit (England) Regulations 2015, Section 21(2) of the Local Government Act 2003, the revised Statement of Accounts and commentary on the outcome of the audit of the Statement of Accounts. An addendum was also circulated to members at the meeting. Members were reminded that the draft Accounts were presented to the Committee at its meeting on 28 July 2016.

During discussion on the Statement of Accounts, one member asked a question about the way Section 106 Agreements were recorded; they were shown in the accounts amongst grants and contributions that had yet to be recognised as income. They were recorded in this way as the release of the funding was triggered by thresholds within developments and payable for specific activities. Failure to deliver the output by the deadline would mean that the funding was lost. Members were reassured that a register was kept of all Section 106 Agreements, which included their expiry dates. Proactive monitoring of trigger points and expiry dates to ensure monies were released and spent.

The actuarial gains and losses shown on the Comprehensive Income and Expenditure Statement were also subject to discussion. Assumptions were made on a 3-yearly basis and 2015/16 fell at the end of that period. The changes reflected the differences between the financial and demographic assumptions made in 2013/14 and the position at year end in 2015/16.  Officers explained that the estimates would be more accurate for the 2016/17 as it would be the start of a new 3-year cycle. Members also noted that the Council had benefited after the last review from making a lump sum payment and it was suggested that a similar opportunity might be available following the next review.

A question was raised about whether any of the leases where the Council was an interested party had break clauses that could impact valuations.

Some discussion ensued on the proposed change of wording for the Annual Governance Statement (AGS) that was detailed in the addendum. An explanation was given that much of the wording in the AGS was based on a generic template and it was felt that the revised wording better reflected the governance position of the Council, particularly when taking account of the comments raised in the Annual Governance Report.

13:38 – Councillor Lee entered the meeting

The three recommendations listed in report number CFM384 were proposed, seconded and on being put to the vote, were agreed.

13:39-13:55 – the meeting adjourned

Following the adjournment, it was proposed and seconded that the Letter of Representation be signed. On being put to the vote, the Committee approved the signing of the document.