Agenda item

Report of the Chief Executive (enclosed)

The Chief Executive advised the Committee that Gordon Whitehead (Principal Financial Accountant) was retiring and was attending his last Committee meeting.

The Chief Executive thanked Mr Whitehead for all his efforts over a number of years, adding that he had a specific skill in relation to the technical aspects of accountancy work and was a great person to work with.

The Chair and the Committee also thanked Mr Whitehead for his contribution and support to the Committee and extended best wishes for the future.

The Chief Executive presented a report seeking approval of the Audited Statement of Accounts for 2011/12, following the Audit Committee’s initial endorsement of the Accounts at its meeting on 28 June 2012.

No material errors or significant weaknesses of internal control had been identified and a positive report had been received on the quality of the accounts and its supported workings. It was highlighted that it was a positive report with regard to the work done on producing the Statement of Accounts and Value for Money conclusion for the Council.

The Committee also received the Audit Commission’s Annual Governance Report which summarised the Commission’s substantially complete audit of the Council’s 2011/12 Statement of Accounts and the authority’s value for money arrangements.

The Audit Commission reported that the Councils accounts had been prepared to a good standard and were supported by good quality papers with officers responding helpfully to their audit queries in a timely way.

The key messages were that the Auditor intended to issue an unqualified opinion on the Statements and an unqualified Value for Money conclusion.

The Council had again achieved significant efficiency savings whilst delivering well against its performance targets. Good progress had also been made in securing the required levels of savings for 2012/13 and identifying actions needed to deliver additional savings in 2013/14.

It was acknowledged that the Council faced considerable uncertainty over the next few years from the impact of economic conditions on the demand for the services that it provides, central driven around welfare reform and NNDR changes.

The key challenge for the Council would be to ensure the continued identification and delivery of significant financial savings whilst also meeting local service needs, although it was considered that its response to the current financial climate, together with its track record, indicated that the authority was well placed to meet this challenge.

Following consideration and approval by this Committee, the Statement would be signed off by the Chair, be re-certified by the Chief Financial Officer and be published by 30 September 2012.

Members asked a number of questions in relation to the Statement of Accounts that resulted in additional information being provided by officers at the meeting that included:

·         An increase in the authority’s pension liability had resulted in a reduction of the total reserves from the year previous.

·         The reduction in the salary for the Head of Human Resources and Organisational Development had been due to maternity arrangements.

·         The initial investment rate of 5.81% for Landsbanki would stay the same.

·         The valuation of Astley Hall and its assets.

Members were directed to the Capital Outturn report for further information relating to the Capital Spend and Financing Summary.

Councillor Berry requested further information on the amortisation periods of the Council’s significant intangible assets.

The Committee also requested additional information in relation to the costs of the Councils major contracts, for example the authorities refuse collection, to be included within the Statement at future meetings.

RESOLVED

1.    That the Governance Report be noted.

2.    That the audited Statement of Accounts for 2011/12 be approved.

3.    That the Letter of representation approved for signature by the Chair of Governance Committee and the Chief Executive.