Agenda item

The Committee considered the report of the Head of Finance and Customer Services setting out the un-audited Statement of Accounts for 2010/11 which had been produced in accordance with International Financial Reporting Standards (IFRS).  It was noted that:-

·  Under the Accounts and Audit Regulations 2011, there was no longer a requirement for Members to approve the Statement of Accounts prior to it being submitted for external audit.  Instead, the Statement had to be signed by the Director of Regeneration and Communities, as the responsible financial officer, by 30 June and then approved by the Audit Committee by 30 September following external audit.  Notwithstanding these revised arrangements, it was considered appropriate to provide an early opportunity for Members to review the Statement and ask questions.

·  It was the first time that the Statement had been produced in accordance with the requirements of IFRS.  Previously, the Statement was produced under UK GAAP (Generally Accepted Accounting Practice).  One of the main differences was that the length of the Statement had increased to some 100 pages.  This was due to the increased level of disclosure required by IFRS.

·  Key messages from the Statement of Accounts included:-

§  The value of Long Term Assets had increased by £4.2m, reflecting, in the main, the value of works undertaken as part of major capital projects at the Museum and the Leisure Centre.

§  Current Assets had increased by £5.4m due to a combination of factors.  Year end investments held were £12.3m higher than the previous year, but this was offset by a reduction in Short Term Debtors (£4.4m) and Assets Held for Sale (£2.6m).

§  Current Liabilities had increased by £6.8m, the most significant element of which was an increase of £5.9m in Short Term Creditors.

§  Long Term Liabilities had decreased by £31.9m, the major element of which was a £33.9m decrease in the Pension Reserve deficit which now stood at £30.3m.

§  The Usable Capital Receipts Reserve had reduced by a further £0.4m to £1.5m.  The sale of the Armstrong Road Depot had generated a receipt of £3.2m, but along with previously accumulated receipts this was utilised to finance the Capital Programme for 2010/11.

The Committee asked a number of questions of the Officers relating to the possibility of producing a condensed version of the Statement of Accounts for public consumption; the use of the word “salaries” in relation to Members’ Allowances; the possible deletion of the word “other” on page 59 of the Accounts; the liabilities incurred in relation to Officers made redundant as part of various structural changes and how they were accounted for; the implications of the possible reform of business rates; the basis of the reduction in the net pensions liability, the Pension Fund’s investments and the representation of District Council interests on the Pension Fund Committee; the calculation of depreciation; the position with regard to contingent assets and the allowance made in the Accounts (if any); and the reconciliation of Portfolio Holder income and expenditure to the cost of services in the Comprehensive Income and Expenditure Statement.

Having considered the replies to its questions, the Committee:-

RESOLVED:  That the un-audited Statement of Accounts for 2010/11, which has been produced in accordance with International Financial Reporting Standards, be noted.