Agenda item

The Service Director Finance will submit a report presenting the 2016/17 Statement of Accounts, the Councils seventh set of accounts prepared in accordance with International Financial Reporting Standards.

The Service Director Finance submitted a report on the 2016/17 Statement of Accounts, the Council’s seventh set of accounts prepared in accordance with International Financial Reporting Standards (IFRS).

The report indicated that the accounts had been submitted to the External Auditor (KPMG) on the afternoon of 30^th June, 2017 in accordance with the statutory deadline.  In addition, it was noted that there was no longer a requirement to submit them for approval to the Council prior to that deadline.  This was primarily to enable additional time to prepare the accounts under the more complex and time consuming IFRS and to place public bodies on a similar reporting footing with the private sector.

It was noted that the Accounts and Audit Regulations 2015 determined that  from the 2017/18 financial year, the statutory obligations for submitting a set of draft accounts to audit would be brought forward by one month to 31^st May.  Staff within the Finance Directorate had, however, been working towards this deadline by improving and automating processes.

The Council would receive the External Auditor’s report on the accounts prior to the statutory deadline of 30^th September, 2017.

The Summary of Accounts together with the Draft Statement of Accounts 2016/17 were appended to the Director’s report.  The report also outlined the main elements of the requirements of the International Financial Reporting Standards.

The significant work undertaken by the Service Director Finance’s Team in relation to the preparation of the Statement of Accounts was noted and  was commended.

Some Members of the Committee expressed disappointment that the report had not been received in sufficient time to enable them to comment fully.  The Chair stated that any comments mate and this meeting would be accepted as would those submitted to the Service Director Finance following the meeting.

Reference was then made to the following matters:

·         In response to questioning, the Service Director Finance commented on the way in which comparisons could be made with other Authorities and bodies as suggested by the IFRS

·         There was a discussion of the surplus to be transferred into the next financial year.  It was noted that a large proportion of the surplus did not represent spare cash as the majority of the in year surplus was as a consequence of one-off events during the year and scheme/project slippage.  There were no major concerns and a significant amount was earmarked to the Town Centre redevelopment

·         Information in relating to the winding up of the Independent Living at Home (Barnsley) Ltd could be provided. It was noted that the core business for Barnsley clients was being catered for by other providers or in other ways.  The Council was in no worse financial polition

·         Reference was made to the in year schools balances surplus of £3.5m .  it was noted that if schools did not have plans as to how such surpluses could be utilised, they could be clawed back

·         There was a detailed discussion of the Authority’s interests in a number of wholly owned subsidiaries and to the ways in which these were reflected in the Statement of Accounts and Balance Sheets.  The Service Director Finance commented that the requirement of the External Auditor to produce group accounts should address any of the concerns of the Independent Members and particularly in relation to contingent liabilities.  There was, of course, a significant impact on the work of the Service in producing such accounts in the future

·         Details of the increase in liabilities compared to the previous year could be provided together with information about NPS given that there was some confusion regarding the name registered at Company’s House and the possibility that two similarly named companies were registered

·         In relation to the 2016/17 Performance Monitoring Overview, the Service Director Finance stated that he would obtain details of the set of Performance Indicators that had been developed and aligned to priorities within the Corporate Plan.  Arising out of the discussion, it was suggested that Corporate Management Performance could be a topic for discussion at the workshop meeting scheduled for the 1^st November, 2017

·         Reference was made to the increase in the valuation of Council Dwellings compared to 2016.  It was noted that this was largely as a result of the change in the way in which the Authority was required to value social housing properties and it, therefore, showed an unrealistic gain

·         An assurance was given that the Finance Directorate had sufficient staff (and the right calibre of staff) to undertake the work required to produce the Statement of Accounts

·         In response to specific questioning, the Service Director Finance commented upon the reasons for the increase in retirement benefit obligations.  It was noted that arrangements were in place to ensure the pensions deficit was paid within the agreed 25 year timescale.  Arising out of the above, there was a discussion of the implications of the ageing workforce of the Authority on the liabilities of the Pension Scheme

RESOLVED:-

(i)        that the Service Director Finance and his Team be thanked for their hard work and dedication in producing the accounts on time and with reduced resources;

(ii)       that the work that has taken place to prepare the Authority’s Draft 2016/17 Statement of Accounts on an International Financial Reporting Standards basis be noted; and

(iii)      that Members with any additional comments submit them to the Service Director Finance as a matter of urgency; and

(iv)      that the finalised Statement of Accounts 2016/17 be submitted to the next meeting of the Audit Committee to be held on 22^nd September, 2017.