Agenda item

Statement of Accounts (Audited)

Report of the Interim Director of Finance



The Committee received a report of the Director of Finance and Commercial Services which communicated any relevant matters arising from the external audit of the 2021/22 Statement of Accounts



The Director of Finance and Commercial Services, Tony Kirkham  explained that the Council had been working with external audit to identify issues raised as part of their audit. Responses to that audit could be found in the report along with a final set of accounts which were recommended to the Committee to approve.



Claire Sharratt explained that these accounts close the cycle of the 2021/22 year and report in full the Council’s position for that year. The accounts have been subject to external audit which were now almost concluded and recommended to the Committee for approval. Once approval is given, the Chair of the Committee, along with the Section 151 Officer will sign the accounts and the letter of representation. 



Claire Sharratt gave thanks to everyone involved in the complect process of dealing with the Council’s accounts.



Ruth Matheson explained that the unaudited Statement of Accounts were presented to the Committee in July 2022. Since then, 4 main areas had changed in the report which was presented at the meeting. These were: -


  • Highways PFI refinance gain – The Department for Transport (DfT) share was presented as deferred revenue.  As the DfT’s share was effectively their grant funding in advance, an audit adjustment was agreed to amend the balance sheet from 100% deferred revenue, to instead show 50% deferred revenue and 50% grant received in advance.
  • Highways Infrastructure Assets - How these assets are accounted for is an ongoing sector-wide issue. As an interim measure, Government issued a statutory instrument with temporary provisions, alongside additional Code guidance from CIPFA.  As a result, we have been able to write off £138.7m under the statutory instrument. The value of Infrastructure assets in the draft accounts was £773.5m and has now reduced to £634.8m.
  • Dwellings Housing Prince Index - This adjustment reflects the movement in the index from the unaudited accounts last May, to the most recent HPI figures for 21/22 in February - the difference, a downwards movement of £20.4m in the value of assets has been adjusted in the accounts (£1,545.2m down to £1,524.8m).
  • Council Tax Prepayments - In the unaudited accounts, Council Tax prepayments were incorrectly netted off against debtors, and instead should be recognised as a creditor.  An adjustment of £3.9m was made to increase debtors and to increase creditors to correct the presentation



Following the report, there was no questions or comments from the Committee.



The Chair gave his thanks to all the Officers involved in this piece of work.



RESOLVED: That the Committee (1) approves the Statement of Accounts for 2021/22 as set out in the appendix, subject to the finalisation of the audit requiring no further changes; (2) notes in accordance with The Accounts and Audit Regulations 2015, the Chair of the Audit and Standards Committee will sign the Statement of Accounts for 2021/22 on conclusion of the audit by Ernst & Young LLP (EY); and (3) notes the Letter of Management Representations to be submitted to the External Auditor is on the basis set out in the report and this will be signed by the Director of Finance and Commercial Services and the Chair of Audit and Standards Committee.



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