Agenda item

To consider a report by the Chief Finance Officer (copy enclosed) on the Statement of Accounts 2014/15.

 

A report by the Chief Finance Officer (CFO) had been circulated previously.

 

Councillor J. Thompson-Hill and the CFO introduced the report.  It was explained that the Council had a statutory duty to produce a Statement of Accounts (SA) which complied with approved accounting standards.  The audited accounts had to be formally approved by Elected Members on behalf of the Council.

 

The Finance Assurance Manager (FAM) provided background detail pertaining to the process and confirmed that the financial statements for 2014/15 had been approved, subject to audit, by the CFO on the 25^th June, 2015.  The draft accounts had been presented to the Committee on the 23^rd July, 2015 as agreed at its meeting in May.

 

The Accounts and Audit Regulations require that the Council formally approves the audited accounts, containing the external auditor’s opinion, by the end of September.

The SA had been produced in compliance with the International Financial Reporting Standards (IFRS).  The Chartered Institute of Public Finance and Accountancy (CIPFA) produced the IFRS based Code of Practice on Local Authority Accounting, and the Council had produced the 2014/15 Accounts in compliance with the Code Accounting Standards.  The Accounts included an unqualified audit opinion and audit certificate. 

 

Details of the International Financial Reporting Standards had been included in the report.  The Accounts would be made available for audit as required and had been open to public inspection.  They had been audited by the WAO who had presented an overview of their findings and assessment of the process in the report to the Committee.

 

The audit process resulted in some technical adjustments and other corrections and amendments, and details had been presented in the Auditor’s report.

 

The FAM provided a summary of SA and the following areas were highlighted:-

 

·         Page 21 – Transfers to and from Reserves.

·         Page 80 – Members Allowances.

·         Page 83 - Explanatory Foreward.

·         Page 84 - Final Revenue Outturn and the £1.3m underspend.

·         Page 85 - Capital Summary.

·         Pages 94, 95 – Movement of Revenue.

·         Page 97 – Income and Expenditure Account.

·         Page 99, 100 – Balance Sheet.

·         Page 143 – Usable Reserves.

·         Page -

·             Page 155 – Reconciliation of Service Block Income and Expenditure    and Work undertaken with Welsh Government.

·         Page 160 – Members Allowances.

·         Page 161, 164 – Officers’ Remuneration and Exit Packages.

 

The WAO Representative (AV) referred to Appendix 2, “Audit of Financial Statements, Denbighshire County Council 2014/15”, and invited Members attention to the Contents table on Page 239 of the report, which included some of the issues to be reported prior to their approval, particular reference was made to:-

 

-                  the Auditor General intention to issue an unqualified audit report on the Council’s Financial Statements.

-                  the opinion that the accounting statements and related notes give a true and fair view of the financial position of Denbighshire County Council as at the 31^st March 2015, and of its income and expenditure for the year then ended.  That they had been properly prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2014-15.

-                  the Status of the Audit and details pertaining to areas of work which had been outstanding but had now been completed.

-                  details of the proposed Audit Report, as set out in Appendix 2.

-                  significant issues arising from the audit and the provision of assurance that the process had been open and transparent.

-                  the draft financial statements having been prepared to a good standard.

-                  confirmation that identified misstatements had all been adjusted and corrected.

-                  an expression of appreciation was extended to staff who had been cooperative and helpful.

-                  details of the four recommendations, particular reference being made to the valuation process of the Authority’s fixed assets, and the amount of reserves and provisions.

-                  confirmation of the independence of the WAO Audit team.

 

The Chair expressed his appreciation for the work undertaken by the CFO and his officers, and the Wales Audit Office.

 

In response to a question from Mr P. Whitham, the WAO Representative provided details of possible future timescales in relation to the reference made to earlier closure of Local Authority accounts in future years.

 

RESOLVED – that Corporate Governance Committee:-

 

(a)            the Statement of Accounts 2014/15, Appendix 1 to the report, be approved

(b)            the Chair and Chief Finance Officer sign the Accounts and the Letter of Representation.

       (RW, SG to Action)