Agenda item

To receive the Financial Statements 2014/15.

The Group Finance Service Manager and the Director of Finance and Resources took the Committee through the key points of the Financial Statements 2014/15.

During the discussion of this item the following points were made:

·         Councillor Grandison expressed disappointment that the Financial Statements had followed the agenda.  The Group Finance Service Manager explained that the audit had begun later than in previous years and that also some small amendments had been required which had had to be checked and rechecked.  Members were reminded that the WISER system and the new ERP system had been implemented mid-year, which had had an impact.  The Director of Finance and Resources commented that the Council also had Group Accounts which further complicated the production of the financial statements.  He went on to praise the team for the work that they had undertaken.

·         In response to a Member question regarding the Committee viewing the statements at draft stage, it was noted that the draft financial statement had been on the Council’s website since 1 July.  It was agreed that this could be better communicated to Members in future.  The Director of Finance and Resources suggested that he meet with the Chairman of the Audit Committee in between the production of the draft and final financial statements for sign off, to discuss any issues.

·         Councillor Rowland stated that it would be beneficial for the Committee to receive further training on reading the accounts.

·         The Director of Finance and Resources commented that the Council’s financial systems were robust and the value for money assessment positive.  There were no unadjusted errors to report. However, the financial climate remained particularly challenging. 

·         The useable capital receipts reserve as at 31 March 2015 stood at £8.5m and the useable grants and contributions reserve stood at £14m.  A further £20.9m was held under capital grants receipts in advance as these grants and contributions had conditions attached to them which dictated how they should be spent.

·         It was the fifth year that the Council had produced Group Accounts and there were now seven Group Companies.

·         Long Term Investments had reduced to £3k at 31 March 2015 compared to £1.953m at 31 March 2014. 

·         Councillor Smith questioned whether All Saints School should have been included on the Council’s balance sheet in the previous financial year.  The Group Finance Service Manager explained that CIPFA and the Department for Education had produced advice concerning councils reviewing voluntary aided schools in their area to determine if they should be included on the council’s balance sheet.

·         In response to a Member question regarding budget monitoring and the Group Accounts, it was clarified that the Executive undertook the budget monitoring role.

·         It was noted that 5 years was used as the average life for software, although 20 years would be used for the Council’s new ERP (Enterprise Resource Planning) system.  Councillor Smith queried the 20 year commitment to the Enterprise Resource Planning system and was informed that the system would be upgraded during this period.

·         The Group Finance Service Manager indicated that a prior period adjustment was not required for Note 15.

·         Councillor Smith requested that the table relating to be depreciation set out on p118 of the agenda be presented more clearly in future.

·         The Committee discussed Note 43 Events after the balance sheet date.  Councillor Lee questioned the statement ‘The Statement of Accounts was authorised for issue by the Director of Finance and Resources (S151 Officer) on 30 June 2015. Events taking place after this date are not reflected in the financial statements or notes.’

·         The Group Finance Service Manager explained the provision for accumulating absences.

RESOLVED: That the financial statements and letter of representation for 2014/15 be approved.