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Agenda item

Accounts 2014/15

Minutes:

The Committee considered the report of the Head of Finance and Resources setting out the audited Report and Financial Statements for the year ended 31 March 2015 for approval prior to submission to the Charity Commission by 31 January 2016.

 

The Senior Finance Manager (Client Accountancy) explained that:

 

·  The audit had been undertaken by UHY Hacker Young who had taken over as external auditors to the Charity from King and Taylor.  The handover had taken place after the close of the financial year and the audit process had taken longer than in previous years as the new auditors had to understand and familiarise themselves with the background to the Charity and gain an understanding of the financial and operational arrangements.  As a result, there had been quite a few queries to resolve not least because the new auditors did not agree with some of the accounting treatments applied in the accounts in previous years.

 

·  The new auditors had indicated that they intended to issue an unmodified audit opinion.  However, there had been some significant changes to the draft accounts submitted to the Committee in September 2015.  It should be stressed that these changes were primarily of a technical nature to ensure that the accounts more accurately reflected the impact of the capital expenditure and funding of the Master Plan work at the Manor Park.  There was no impact on the financial resources of the Charity going forward or on any previous operational decisions made.

 

·  The two main elements to the changes which impacted on the figures for 2013/14 and 2014/15 were as follows:

 

Capital expenditure totalling £963k was originally shown in the Statement of Financial Activities, but the new auditors recommended that this approach was incorrect and that this expenditure should be reflected in the Balance Sheet rather than the Statement of Financial Activities, so capital spend had been taken out of the Statement of Financial Activities and transferred to the Balance Sheet under the Endowment Funds column.

 

Withdrawals from the Charifund investment totalling £506k to fund the Master Plan were also shown in the Statement of Financial Activities, but again the new auditors had recommended that this should be reflected in the Balance Sheet, with the Statement of Financial Activities just reflecting movements in the market value of investments.  These were shown as income and then a revaluation movement on the Statement of Financial Activities, but now the Statement of Financial Activities just showed the movement in market value of the investment with the withdrawal reflected in the Balance Sheet.

 

·  These changes also needed to be reflected in 2013/14, so the comparative figures had been restated.

 

·  The new auditors had also identified that a capital invoice for £50,781 relating to 2014/15 was paid in 2015/16 and not accrued for, so the figures had been adjusted to reflect this.

 

·  The overall effect of the adjustments was that the total funds of the Charity had been increased by just over £900,000 which represented the total capital spend of just over £1m less some sums due to the Council.

 

In response to questions by Members, the Officers confirmed that:

 

·  The current contract for the management of the Cobtree Golf Course would end in September 2016.  The procurement process had begun with the aim of securing long term future investment to ensure the success of the facility.  An update report would be submitted to the next meeting of the Committee.

 

·  A detailed explanation would be sought from the previous auditors regarding the adjustments to the accounts.

 

RESOLVED:

 

1.  That the Annual Report and Financial Statements for the financial year 2014/15 be approved for submission to the Charity Commission.

 

2.  That the Officers be requested to report back to the next meeting with an explanation from the previous auditors regarding the adjustments to the accounts.

 

Supporting documents: