Agenda item

Members were presented with the 2008/09 Statement of Accounts as required by the Accounts and Audit Regulations 2003 and were asked to approve the annual report of the Pension Fund.

The Corporate Accounting Manager provided Members with a paper which detailed adjustments which were required to the Accounts.

Issues raised and comments made included:

• Intangible assets – the depreciation life was for 5 years. These assets did not number that many and were software licences for IT equipment. Officers would provide Members with details on why the procedure for intangible assets was different to tangible assets. 
• PFI Contract – The Council had entered into a PFI contract for the construction and facilities management of Barnhill Community High School and there was around 15 years left on the contract
• Local Authority Housing HRA – Reduction in contribution of housing capital receipts to Government pool caused by “Rights to Buy” dropping because of the economic climate. There had been a movement in the value of the fixed assets
• Long Term Contracts – Reference was made to the contract the Council had with Virgin Media for broadband which was not included in this section. Officers would investigate this.
• Officer Emoluments – The Chairman referred to a possible discrepancy with last year but was informed that these numbers were the same as the audited figures
• Members and Chief Officers – The Auditors were asked to check the information on Member and officers declarations to ensure the information in the Statement of Accounts was correct
• Valuation of Fixed Assets Carried at Current Value – This had been caused due to changes regarding Fixed Asset revaluations and impairments. Previously they were posted to the Fixed Asset Reserve Account with nil impact on the Income and Expenditure Account. Revaluation gains were now posted to a Revaluation Reserve and can be reversed at a future date if the asset was later impaired due to movement in market prices. Members were informed that the evaluation of Council dwellings was undertaken every five years and the next one would be 2010
• Debtors – There had been a fall in the outstanding debtors figure from £61.7m to £41.7m which was due to substantial write-offs of historic National Non Domestic Rate debt

• Investment Income – Concern was expressed at the £28,100,000 figure for “Other” as this did not present a true and fair view and it was agreed that an explanation note be added at the bottom of the page of the accounts
• Significant Governance Issues – It was noted that a number of control issues had been identified following a review of the effectiveness of the system of internal control 
• Notes to Housing Revenue Account – Rent Arrears. Officers to include comparative figures from last year.

Members reviewed the Pension Fund Annual Report. They noted this was the first year they had received the report as a separate document, and considered that they did not have sufficient oversight of the pension scheme to approve the Pension Fund Annual Report.

Resolved-

1.      That approval be given to the 2008/09 Statement of Accounts for the financial year ended 31 March 2009, with the amendments suggested, and the Chairman be asked to sign and date the Statement of Accounts to formally complete the Council’s approval of the accounts.

2.   That the Annual Report for the pension fund for the financial year ended 31 March 2009 be noted.

3.  That officers be thanked for all the effort and hard work which had gone into producing the Statement of Accounts.