Agenda item

The Committee considered the Annual Statutory Financial Statements for the year ended 31 March 2022.

In the ensuing debate, the following points were made:

·         Chris Bird indicated that there had been very few changes to the draft Accounts reported to the July Committee meeting, none of which were material in nature

·         In response to a query, Terry Tobin confirmed that the Statutory Instrument relating to the accounting treatment of Infrastructure assets would be considered by parliament today. There was then a 21-day resting period before it could be enacted. Mark Stocks added that he hoped to provide an audit opinion on the Accounts in January, the exact timing depended on when the CIPFA guidance paper was released. He emphasised that the Council was in a good position to have its accounts signed off at that point. Other councils were in a worse position and likely to receive greater external audit scrutiny as a result. Michael Hudson added that in some cases, the delay had been caused by other external audit companies being behind schedule with their audit work

·         Michael Hudson indicated that a report would be brought to a future Committee meeting outlining the Council’s approach to the valuation of infrastructure assets following the confirmation of statutory override and the subsequent CIPFA guidance paper

·         In response to a query about the amount of work that would be needed to meet statutory requirements for the valuation of infrastructure assets, Michael Hudson explained that it was important that any information brought forward was accurate and included an understanding of the correct application of asset lives. The Council would need to consult an expert valuer and establish how the valuation compared to the CIPFA guidance. It should noted that there was no requirement to backdate this information. Terry Tobin added that the statutory override would ease the burden for the Council but there were still elements of infrastructure that would need to be assessed for depreciation. However, the work would become more straightforward each subsequent year as assumptions were brought forward

·         A concern was expressed that the additional work associated with the valuation of infrastructure assets had no value to the accounting process and did not represent good VFM given the cost of the work involved. Mark Stocks indicated that this work would not be resource intensive for a couple of years

·         In response to a query, Michael Hudson confirmed that general reserves had been kept at a relatively consistent level over the last ten years

·         Michael Hudson thanked and congratulated Rachael Hart and Julie Tramner (who had left the Council) and Chris Bird and the accounts team including Jake Dudley and Phil Morgan for their tremendous achievement in completing the accounts. The Chairman echoed those thoughts on behalf of the Committee.

RESOLVED that:

a)    The latest draft of the Final Accounts Pack, including the Statement of Accounts for the financial year ended 31 March 2022, be noted;

b)   The listed amendments from the Draft Accounts Pack published in July 2022 be noted;

c)    The Chairman, in consultation with the Vice-Chairman of the Committee be authorised to approve the Final Accounts Pack, including the Statement of Accounts for the financial year ended 31 March 2022, at a later date subject to receipt of the Audit Opinion;

d)   If c) above cannot be followed through and instead a special meeting of the Committee be convened to sign off the Statement of Accounts; and

e)    The Chief Financial Officer be authorised to sign the Letters of Representation on behalf of the County Council.