Agenda item

Report No: PAS/WS/19/009

The Committee received Report No: PAS/WS/19/009, which sought members approval of the 2018-2019 Statement of Accounts for the former Forest Heath District Council (Appendix A) and St Edmundsbury Borough Council (Appendix B), in accordance with powers delegated to it under the Council’s Constitution.

It was reported that the statutory requirements for the reporting and approval of the Council’s annual financial statements were set out in the Accounts and Audit Regulations 2015.  The regulations require the Council to submit draft accounts to its external auditors, currently Ernst and Young (EY) by 31 May each year, with member scrutiny approval of the accounts required once the external audit had been concluded by 31 July each year.

The results of EY’s review of the accounts, dated 22 July 2019 were provided in the Annual Results Reports, which were included on the Committee’s agenda (PAS/WS/19/008), along with a verbal update by EY giving their current position as of this evening (25 July 2019).

The attached Statement of Accounts (Appendix A – Forest Heath) and (Appendix B – St Edmundsbury) had been amended, as appropriate, to take on board issues raised by the audit process up to the date of distribution.

EY had confirmed this evening (25 July 2019) that the audit for both Forest Heath District Council and St Edmundsbury Borough Council had not been concluded and they were therefore unable to issue an opinion on the financial statements and value for money conclusion that both councils had made the appropriate arrangements to secure economy, efficiency and effectiveness in the councils use of resources until next week, once all audit work had been completed. 

This meant the Committee was not in a position to sign off the 2018-2019 Statement of Accounts this evening (25 July 2019).  It was proposed that to take account of this, the recommendation be amended, so that the Committee delegates the approval of the accounts to the Chief Finance Officer in consultation with the Chair of the Performance and Audit Scrutiny Committee, in accordance with powers delegated to it under the Council’s Constitution.

The covering report summarised financial highlights in 2018-2019; revenue and expenditure; capital expenditure; usable reserves; pensions fund; annual governance statement; payments to councillors and conclusions.

The Service Manager (Finance and Performance) drew the Committee’s attention to a couple of key areas (financial highlights for 2018-2019): 

1)   Page 31: Both councils had made a surplus (underspend) in 2018-2019; Forest Heath £157k and St Edmundsbury £10k. 

2)   Page 31: Capital expenditure – capital programme spend for Forest Heath was £6.2m, which included expenditure on both the Mildenhall Hub and the West Suffolk Operational Hub; and for St Edmundsbury £17.5m, which included investment in the commercial asset portfolio and expenditure on the West Suffolk Operational Hub

3)   Page 31:  There had been no change to the general fund balances.

The Committee scrutinised the draft accounts in detail and asked questions on audit fees; the loan relating to the Newmarket Leisure Centre; arrears (sundry debtors) and whether these were accumulating; grants and contributions and the performance of properties purchased at 113 High Street and 3 The Avenue, Newmarket, to which responses were provided.

In response to a question raised regarding why there were no figures for Brandon Country Park, members were informed that the Accounts did not list out every asset owned, and that Brandon County Park was was included as part of the overall asset figures.

The Chair on behalf of the Committee wished to convey its thanks and commended the Service Manager (Resources and Performance) on the teams work involved in preparing the accounts.

Councillor Victor Lukaniuk then moved the recommendation, this was duly seconded by Councillor John Smith, and with the vote being unanimous, it was:

          RESOLVED: That

1)   The Chief Finance Officer, in consultation with the Chair of the Performance and Audit Scrutiny Committee, be delegated to approve the 2018-2019 Statement of Accounts for Forest Heath District Council (Appendix A) and St Edmundsbury Borough Council (Appendix B), attached to Report No: PAS/WS/19/009, in accordance with the powers delegated to it under the Council’s Constitution.

2)   Subject to (1) above, the Chair of the Performance and Audit Scrutiny Committee signs the certification for both of the 2018-2019 Statement of Accounts on behalf of the Committee.

3)   The Chief Finance Officer, in consultation with the Cabinet Member for Resources and Performance, be given delegated authority to make any further changes that may be required up to the date of publication, in consultation with the Chair of the Performance and Audit Scrutiny Committee.