Issue - decisions

The committee received a report from the Principal Accountant (Technical & Financial Accounting) regarding the Statement of Accounts for the year ended 31 March 2015.

The Principal Accountant (Technical & Financial Accounting) circulated an A4 sheet which detailed changes to the accounts since the Civic Affairs agenda had been published and also a further A4 sheet which explained the accounting for the CCLA Property Fund.

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

i.        In relation to the changes made to the accounts since the publication of the agenda, confirmed that the fourth item on the A4 update sheet which detailed changes to the accounts did not affect the level of General Fund reserves.  However, it did reduce earmarked reserves as the amount was now included as a provision on the Council’s balance sheet.

ii.       The overall opening valuation in the accounts had not changed in relation to Clay Farm; what had changed was the split between the land which was to be retained and the value for the land which was to be sold.  There was a specific clause with the s106 agreement which detailed how the affordable housing land should be valued.  Once the land was built on, the land would be re-valued.

iii.      The Council purchased units in the CCLA Property Fund at the offer price.  This reflected the legal and professional fees incurred by the CCLA on investing the money in property.  When the property was valued for accounting purposes the Code of Practice on Local Authority Accounting mandated that the bid price was used and this was why there was an unrealised loss on p223 of the report.  It was not unusual to have an unrealised loss.

Resolved (unanimously) to:

i.             Note the contents of the draft Statement of Accounts presented at Appendix 1 and approve the accounting policies and treatments on which they are prepared.