Agenda item

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

A report by the Chief Accountant (CA), which provided an overview of the draft Statement of Accounts 2015/16 and the process underpinning it, had been circulated previously.

Councillor J. Thompson-Hill introduced the report.  The Corporate Governance Committee (CGC) had been delegated responsibility to approve the audited accounts which would be presented on 28th September 2016.  Presenting the draft Accounts provided an early indication of the Council’s financial position and could highlight issues in the accounts or the process prior to the accounts being audited. 

The Council had a statutory duty to produce a Statement of Accounts that complied with approved accounting standards.  The audited Accounts had to be formally approved by Members on behalf of the Council and this role had been delegated to the CGC.  The draft Accounts had been finalised and signed by the Head of Finance on the 21^st June.   The draft Accounts had been made available for audit as required and would be open to public inspection from the 11^th July to the 5^th August.

Given the role of the CGC in approving the final accounts, it was beneficial to provide an update and overview at draft stage for consideration before submitting the final accounts in September.  The publication of the Statement of Accounts underpinned the financial stewardship and governance of the Council and therefore supported all Council services and priorities.

The Council’s procedures and processes underpinning the production of the accounts were regularly reviewed by the Wales Audit Office.  Professional opinions were drawn from numerous other disciplines beyond finance, such as Legal, Property Valuation, HR and Pensions.  The Statement of Accounts was a key element of the Council’s governance framework and it was important to provide an assurance that the Accounts had been produced in compliance with the relevant standards, and that the process underpinning their production was robust.  The Council would be in breach of its statutory duty if it could not approve the accounts by 30th September, 2016. 

The Chief Accountant provided a detailed summary of Appendix 1, Statement of accounts 2015/16 and the following areas were highlighted:-

·                     Details were provided of the Final Revenue Outturn, particular reference being made to theunderspend of £1.1m, Earmarked Balances – Services, Transfers to Budget Mitigation Reserve and School Balances.

·                     Review of the year – Capital Expenditure.  Housing Stock Business Plan.

·                     PFI Project Agreement.

·                     Movement in Reserves Statement.

·                     Related Parties.

As a former member of the Board, Councillor M.L. Holland provided details of the background pertaining to Clwydfro Limited.

Councillor E.A. Jones highlighted the possible impact and implications arising as a result of Brexit in relation to grant funding streams.  The CFO made reference to the uncertainty at the present time but provided confirmation that the grant funding streams were being examined and monitored.  The Committee agreed that the CFO circulate available documentation relating to the impact emanating from Brexit to all Elected Members. 

In reply to a question from Councillor M.L. Holland, confirmation was provided that reference to the pension deficit had been included in the Accounts.

Mr P. Whitham invited attention to the Governance Improvement Action Plan and the reference made to the poor response to the Residents Survey, and a significant decline in Member attendance at Scrutiny Committee meetings.  Mr Whitham suggested that these matters might be included on the Risk Register.  The explained that notwithstanding the response level the Residents Survey had been deemed as valid.  It was confirmed that the Survey was not a statutory requirement.  However, it had been perceived as part of the broader engagement structure to seek the views of residents within the County, which could impact and influence future Policies, the Corporate Plan and the future direction of the Council.  The Chair referred to the Action Plan pertaining to the Residents Survey, and the HLHRDS agreed to ensure that its progress was examined and pursued.

Reference was made by Mr P. Whitham to the Action Plan.  He explained he was pleased to note the continuing rollout and approval of the new Procurement Strategy and Contract Procedure Rules (CPRs).  However, he questioned were there other areas or items of comparable significance which might require inclusion in the Action Plan.  The officers outlined the process undertaken, and it was explained that the inclusion of items had been based on the assessment undertaken by the HIA.  The WAO Representative outlined the WAO’s remit in respect of the Statement of Accounts, which included an examination of the process utilised when compiling the Accounts.    

During the ensuing discussion the Chair thanked the officers for the work undertaken in producing the Draft Statement of Accounts, and it was:-

RESOLVED – that the Corporate Governance Committee receives the report and notes the position as presented in the draft Accounts, Appendix 1 to the report.

    (RW, SG to Action)