Agenda item

A report by the Service Director of Finance is attached.

The Committee considered the report of the Service Director of Finance on the Council’s Statement of Accounts 2011/12.

The report detailed the process and requirements for the production and publication of the annual Statement of Accounts and how the draft Statement was required to be certified by the Chief Finance Officer then subject to external independent scrutiny by the Council’s appointed auditors – KPMG.

Michael Hudson, Service Director of Finance, explained that there were over a 100 pages relating the Statement of Accounts which also contained the accounts relating to the Pension Fund.  The format of the accounts was in line with the requirements of the International Financial Report Standards (IFRS). 

The Service Director acknowledged the efforts of his team and thanked them for their excellent work, in particular for preparing an easy to understand explanatory foreword. He also thanked KPMG for their comments on the quality of the accounts and supporting paperwork. He was pleased to announce that through the team and KPMG’s endeavours, Wiltshire Council was now one of the first in the South West to sign off their accounts.

Members of the Audit Committee raised a number of issues over the presentation of the accounts which officers responded to in particular the following issues were raised:

·         The savings on termination costs of £8,309,000 for 2010/11, detailed on page 93 of the report, had all been made within the 2011/12.

·         The Governments recent announcement that they would hold a consultation about allowing homeowners and businesses, for a three-year period, to be able to build larger extensions without planning permission than they can at present would be looked at by the Council at the appropriate time.  However the Development Control budget was currently in excess of income target.

·         The reasons for an increase in long term borrowing and a reduction in net assets, page 82 of the report, were explained and included the Housing Revenue Account self financing loan, schools transferring to academy status, the revaluation of council dwellings and reclassification/reallocation of how they are shown in the accounts.

·         Matthew Tiller, Chief Accountant spoke about the cost of holiday entitlements, page 98 of the report, and explained that these were technical accounting adjustments. The purpose of these was to make accounts comparable internationally.

·         Reasons for a reduction in short term investments were explained.

The Leader of the Council, Councillor Jane Scott, thanked all officers involved in the preparation of the accounts for producing an easy to understand guide and congratulated them for achieving a balanced budget.  The Leader suggested that an Executive Summary should be prepared for publication on the Council’s website and distribution to libraries, Area Boards and Town and Parish Councils. 

Resolved

a)    That the draft Statement of Accounts for 2011/12 be received

b)   That the Audit Committee Chairman be authorised to sign the letter of the Statement of Responsibilities for the Statement of Accounts

c)    That all Council Officers and officers from KPMG be thanked for the excellent work in preparing the Statement of Accounts for 2011/12

d)   That the Service Director of Finance be asked to liaise with the Service Director of Communications on the production of an Executive Summary of the Statement of Accounts for 2011/12 for publication on the Council’s website and distribution to Libraries, Area Boards and Town and Parish Councils