To receive an update on 2020/21 Statement of Accounts.
Minutes:
Members were updated on the 2020/21 Statement of Accounts.
During the discussion of this item, the following points were made:
· Helen Thompson commented that it would have been a challenge to have the audit completed for the committee meeting given that the 2019/20 audit had been signed off in August. Members were informed that the areas of work were well underway. There was work to complete across all areas of the audit, particularly the valuation of Property, Plant and Equipment investment properties and the IAS 19 Pension Liabilities, which would continue into December and January.
· The Assistant Director Finance highlighted that whilst budget setting had commenced early it had run on into the period. The delay in signing the previous accounts had meant a delay in beginning the accounts.
· Members were informed that 91% of local authorities had not met the deadline for signing their accounts. Some had also not signed off their 2019/20 accounts. It was hoped that the signed set of accounts would be brought to the February Committee meeting.
· Councillor Sargeant questioned whether the Committee would review a draft set of accounts before they were signed off. It was noted that a draft set of accounts was published on the website. It was anticipated that the Committee would have early sight of the draft accounts. Helen Thompson added that the accounts needed to come to the Committee in February for approval. The Audit Results Report would help inform it.
· Councillor Sargeant sought an update on where EY and the Council were with regards to valuation work. Helen Thompson stated that they were better progressed at this stage of the audit. Conversations had been had with the valuations team, the sample selected, and information provided from the Council’s valuers to the EY team or the EY Real Estate Team which was looking at a number of assets. The Real Estate Team continued to be under pressure.
· Councillor Gee questioned whether the valuation of property and pensions was holding up the audit. Helen Thompson commented that the audit started in October and that there was a lot of work to complete.
· Councillor Gee went on to state that the latest version of the accounts on the website was dated 30 July. The Assistant Director Finance confirmed that this was the version that had been available for inspection by the public.
· Councillor Gee went on state that the existing version of the accounts stated that adjustments still needed to be made in August 2021 for revaluation of Council dwellings and approximately 60 other assets. Adjustments were also needed for assets held for sale, including sale of residential properties related to Elms Field redevelopment and one HRA property. Councillor Gee questioned the nature of the adjustments, how much they were, whether they were reducing income and whether they were realised or unrealised. The Assistant Director Finance agreed to provide this information following the meeting. Councillor Gee asked that this include those amounts which would hit the income and expenditure account.
· Councillor Gee sought clarification as to whether realised losses were taken against income available for services. The Assistant Director Finance indicated that it depended on the nature of the loss. If it was a downward valuation, then it would be written through the income and expenditure into a valuation reserve. The revaluation reserve would be brought down to a point where if it went below its original holding value, it was then charged to the income and expenditure account.
RESOLVED: That the update on the 2020/21 Statement of Accounts be noted.