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Agenda item

Final Statement of Accounts 2019/20

Minutes:

The Accounts were published on 6 July 2020 by the Head of Finance and added to the Council’s website at that time. This was just over three weeks after the statutory deadline of 15 June 2020, however this was due to carrying out the closing of accounts and preparation of the financial statements during lockdown due to the Covid-19 pandemic, which caused increased complications and difficulties.  The Accounts were available for public scrutiny, as required by the Accounts and Audit (Wales) Regulations 2014 (as amended), for a 20 working day period ending 28 August 2020.

 

Although the current situation of working remotely was not ideal for both ourselves and Audit Wales, our auditors had reviewed the draft 2019/20 Statement of Accounts in detail, and a number of required changes were identified. Audit Wales’ accompanying report showed a summary of the agreed changes. Appendix A presented the revised Accounts which members were invited to review and subsequently approve in accordance with the Council’s standing orders. Representatives from Audit Wales and finance staff would be available to clarify any points arising from the audit changes and the content of the Accounts as required.

 

The Assistant Head of Finance thanked the team and Audit Wales for their hard work putting together the statement of accounts.

 

The Chair also thanked all those involved for their hard work and effort.

 

Discussions included the following:

 

·         In response to the Chair’s query, it was confirmed that the Audit Committee was authorised under the Terms of reference to approve the Statement of Accounts.  Therefore, the Committee was requested to receive and approve the Council’s Annual Statement of Accounts in accordance with the Accounts and Audit Regulations.

·         Consistency with the style of the narrative report was raised by the Chair and recommended that a house-style should be used.  The Finance team had forwarded the narrative report to colleagues with non-financial background for feedback and updated accordingly prior to the draft accounts being published.

 

The Chair referred to the capital slippage in the capital programme, for example in 2019, there was a total slippage of £8.5M, this had been slipping year on year, the Chair asked how could this be managed.  The Head of Finance advised the Committee that they had recently completed a re-profile of the capital programme as Finance also brought up the same issues and the organisation had to be realistic on the level of spend. The Finance team were continuously re-phasing the programme spending the profile correctly.  There was a challenge in the service areas as well as with Norse and again the re-profile was undertaken to prevent the re-slippage as shown in previous years.

 

·         The Chair referred to p122 of the pack advising that the explanation for usable reserves borrowing for Friars Walk could have been made clearer.

The Chair also referred to p117 Financial Performance, the narrative report gave a better picture for readers to understand the content and how did this link with the core statements including the Comprehensive Income & Expenditure Statement (CIES)

 

·         The Assistant Head of Finance advised that the accounting statements were complex in nature and there were a number of technical accounting adjustments made within the core statements.  The Expenditure Funding Analysis looked to provide a reconciliation between the impact on the general fund and the CIES. It was however a useful view point on comparatives year on year, and to challenge specific points.

·         The Chair mentioned the funding analysis surplus of £1.8M and how did this link to the overall general fund being balanced. It was advised that there was not a direct link from this surplus to the general fund balance as the £1.8m was agreed by Cabinet to be taken to a specific earmarked reserve, therefore no change in the general fund balance.

·         Clarification was provided by officers to the Chair on whether the uncleared payments balance within the cash flow note.

·         Finally, the Chair was of the opinion that there was too much information in wording below the provisions note and suggested that the Finance team put a clearer working table layout in future. Audit Wales pointed out that this was a requirement by the Code, and Council officers agreed but the wording would be reviewed next financial year.

 

 

 Agreed:

·         The Committee reviewed the content of the 2019/20 Accounts and Audit Wales’ Financial Statements (ISA260) report on the 2019/20 Accounts and commented as appropriate.

·         The Committee authorised the Head of Finance to adopt and sign the Accounts 2019/20, in accordance with the Accounts and Audit (Wales) Regulations 2014 (as amended).

·         The Committee authorised the Head of Finance and Chair of Audit Committee to sign the letter of representation.

 

Supporting documents: