Decision details

Approval for the Chair of Civic Affairs to sign the Statement of Accounts and Letter of Management Representation on behalf of the Committee following presentation of the audited accounts and the report of the external auditors.

The committee received a report from the Principal Accountant (Technical & Financial Accounting) regarding the external audit conclusions and approval of the statement of accounts.

In response to members’ questions the Principal Accountant (Technical & Financial Accounting) and the Director of Ernst and Young said the following:

i.             In relation to note 34 what constitutes a financial instrument is laid down in accounting standards and CIPFA guidance. In relation note 34, the financial instruments were specifically categorised and were specific to an asset when over classification was looked at.

ii.            Not all debtors and creditors were defined as financial instruments.

iii.           Some items that were included as financial instruments in the disclosure note in the draft accounts should not have been, for example deferred receipts in respect of housing redevelopment schemes.  The restatement had no impact on the core financial statements. 

iv.          Closing systems had been good, and the issues in respect of budgetary forecasting had no impact on closing the accounts.  This was addressed in the audit letter last year.

v.           The Principal Accountant (Technical & Financial Accounting) had prepared a good set of working papers.  When substantial knowledge was held by one individual this did represent a key person dependency but as closing the accounts was specialist in nature this was not uncommon. The Head of Finance added that the future development of a Finance shared service could help to address these concerns.

vi.          Business rate appeals for doctor’s surgeries had been settled in excess of those amounts previously envisaged in the draft accounts.

vii.         Compared to other Councils, the City Council’s accounts in terms of robustness and quality were in the upper quartile.

Resolved (unanimously) to:

i.             Receive the audit findings presented by Ernst and Young.

ii.            Approve the Statement of Accounts for the year ending 31 March 2015.

iii.           Authorise the Chair of the meeting to sign the Letter of Representation and Statement of Accounts for the financial year ending 31 March 2015 on behalf of the Council.