Agenda item

The Director of Finance submits a report which gives details of the requirement of the Committee to approve the audited final Statutory Statement of Accounts for the year 2014-15.

The Committee is recommended to approve the accounts.

Details of the Statement of Accounts will be circulated to Members of the Committee as soon as they are available.

The Director of Finance presented the statement of accounts to the Audit and Risk Committee, which presented the City Council’s financial performance for the financial year 2014-15, in line with the Accounts and Audit (England) Regulations 2011. The regulations also required the Audit & Risk Committee to approve a letter of management representation. As noted on the agenda, supporting information containing details of the final accounts and briefing note had been distributed to Members, published on the Council’s website and was available at the meeting. 

Members were updated with details of minor amendments following consideration of the draft statement of accounts at the Audit and Risk Committee meeting on 12^th August 2015. Members were informed the accounts had been prepared in accordance with the Code of Practice on Local Authority Accounting in the UK.

Members were recommended to note the External Auditors’ ISA 260 report to those charged with governance and approve the letter of representation as previously presented, and adopt the audited accounts for the year ended 31^st March 2015.

Members were asked to note there had been no substantial changes in the accounting standards or the Council’s accounting policies during the 2014-15 financial year, although some clarifications had been made surrounding the Council’s policy on accounting for schools’ assets.

Members were asked to note one adjustment  at the suggestion of Council officers, that a sum of £34million had been moved to the ‘Budget Strategy – Managed Reserves Fund’, leaving the General Fund balance at £15million, which was the minimum prudent level as determined by the Director of Finance.

Officers reported there was an amendment to the Comprehensive Income and Expenditure Statement (CIES) which related to the value of land and buildings assets in respect of schools and leisure centres. Finance officers had worked closely with the Council’s valuer to prepare revaluation estimates, which resulted in an uplift in asset value of the Council’s schools and leisure centres totalling £76million. The 2015-16 and future programmes of asset valuations would be planned to ensure no further adjustments were required outside of the normal process.

Members were asked to note a change made by Government with regards to social housing rents, which would have an impact on the Council’s budget position going forward, but did not affect the current position presented in the accounts.

In response to questions, Members were informed that schools transferring to academy status under legislation would have an impact on the Council’s assets. The school and school site would cease to be shown on the Council’s balance sheet although the Council may retain the ultimate legal title. Each individual school transfer would be looked at on a case-by-case basis, and some schools might have other services on site. Councillors asked that the Director of Finance provide further information on the transfers of Ellesmere School and New College to academy status, as there were separate projects on each school site.

The Chair thanked officers for the report.

RESOLVED:

that:

1.    the Audit and Risk Committee note the auditors’ ISA 260 Report to those charged with Governance and the recommendations contained within it;

2.    adopt the audited accounts for the year ended 31^st March 2015;

3.    approve the letter of representation submitted by the Director of Finance;

4.    the Director of Finance provide for Members further information on the transfers of Ellesmere School and New College to academy status, which had separate projects on each site.