Agenda item

This report sets out the Statement of Accounts for approval.

Discussion:

The Chief Finance Officer presented the Council's Statement of Accounts for 2009/2010, which were required under the Accounts and Audit Regulations 2003 (as amended). The Cabinet had considered and approved the actions taken in producing the Statement of Accounts on 29 June 2010 and recommended to the committee that it approve the statements as submitted.

The Chief Finance Officer detailed the contents of the accounts, explaining the contents of the core financial statements and their accompanying notes. The accounts detailed a revenue underspend of £2.207 million for 2009/2010 and reported that capital expenditure for 2009/2010 amounted to £63.40 million. It was also highlighted that available reserves amounted to approximately £16.7 million.

The summary financial positions for both the Housing Revenue Account and Delegated Schools Budget were also reported, as were the principal variations to agreed budgets. The Accounting Manager explained to Members the major changes to the accounts, such as the requirement to include an estimate of the cost of accrued leave and flexitime at the year end.

A revision to Note 5 ‘Officers’ Emoluments’ was tabled at the meeting, which amended the details of senior employee remuneration, as shown on page 20 of the accounts.

Members discussed the contents of the accounts and received clarification on: the use of reserves to reduce the benefits payments overspend and the need for the council to hold euro accounts to receive European grants. Officers were asked to investigate the reported parking services overspend and the Chief Finance Officer undertook, following questions concerning the ‘Accumulated Absences Account’, to provide Members with details of the Council’s annual leave and flexi-time policies. The committee asked that the Briefing Note requested by the Children and Adults Overview and Scrutiny Committee in January 2010, detailing school deficits and subsequent action plans to address these deficits was circulated to all Members of the Audit Committee.

During their discussion Members requested that the draft Statement of Accounts was amended as follows:

·        Note 5 ‘Officers’ Emoluments’ is expanded to set out details of senior employees working in the various types of school within Medway. Officers were requested to write to the governors of schools requesting this information and to highlight within the revised Note 5 those schools that had not provided these details

·        Note 8 ‘Capital Receipts’ is revised to clarify the availability of capital receipts to fund capital expenditure after the pooling arrangements for Housing Revenue Account (HRA) dwellings

·        Note 11 ‘Movement on Fixed Assets’ is expanded to identify which schools are included within the fixed assets set out within the Balance Sheet (page 23 of the accounts).

The Statement of Accounts would now be subject to scrutiny by the external auditors and reported back to Members in September. Interested parties also had the right to inspect the accounts and make representations to the auditor.

Decision:

The Audit Committee approved the draft Statement of Accounts for 2009/2010 subject to:

(a)                     Note 5 ‘Officers’ Emoluments’ (as tabled at the meeting) being expanded to set out details of senior employees working in the various types of school within Medway and highlighting those schools that had failed to provide this information;

(b)                     Note 8 ‘Capital Receipts’ being revised to clarify the availability of capital receipts to fund capital expenditure after the pooling arrangements for Housing Revenue Account (HRA) dwellings;

(c)                     Note 11 ‘Movement on Fixed Assets’ being expanded to identify which schools are included within the fixed assets set out within the Balance Sheet.