Agenda item

Presentation by the             GO Shared Services Finance Team

(Statement of accounts are available electronically on the website http://www.cheltenham.gov.uk/site/scripts/download_info.php?fileID=3775 and a hard copy is in the Members’ room)

The Director of Resources introduced Sarah Didcote from the GO Shared Services Finance Team, who made a short presentation highlighting key matters contained within the audited financial statements 2013/14 (attached at Appendix 1).  She talked through the slides and made the following points;

Slide 3 - There had been no changes to the legal framework for some years.

Slide 4 – CIPFA was the main code followed (previously the SORP) and this slide set out the main changes to ‘The Code’ since last year.  A member training session on local government finance had recently been held which outlined these changes to members.

Slide 5 – This slide offered some performance management background. It was highlighted that an effort had been made, this year, to de-clutter the accounts. 

Slide 6 – The Audit Committee are responsible for signing off the accounts.  The Annual Governance Statement had been approved by the Committee at the June meeting and the Auditors Opinion was set out in the ISA 260 (Agenda Item 6).

Slide 7 – The financial highlights had been listed under Directorate headings which members would be more familiar with.

Slide 8 – An under-spend of £489,998 had been reported in the July outturn report.  Ear-marked reserves had reduced mainly because of the reduced reserves for the Art Gallery & Museum refurbishment. 

Slide 12 –The surplus on management accounts was shown as £490k but this was reversed out in the movement of reserves statement.  This had no impact on council tax.

The following responses were given to member questions;

·         There was no impact on the Council’s net worth as a result of the revaluation of assets because the increase was simply a paper increase.  It was important to note that many organisations did not have anywhere near the number of assets as this Council and that the private sector could well communicate such increases as an increase in profits. 

·         The last valuation of the Council’s assets had taken place during the dip in recession, with the recent revaluation having been undertaken during a period of recovery, which could account for the increase.

·         UBICO produced a set of accounts which were considered by it’s Board and in turn audited by Grant Thornton (a different team to those that audit the Council’s accounts).  Members had never held a position of Director of Ubico. The question being raised at the moment related to the role of Observer.  Andrew North was the Cheltenham Director and as a teckal company, the Leader was the Shareholder representative.  The Leader had agreed to give further consideration to the Observer issue.   

·         Despite the formation of the Trust, CBC assets (Town Hall, etc) would remain CBC assets and any decisions relating to disposal would therefore, remain decisions of the council. 

·         The potential Municipal Mutual Insurance (MMI) liability was a longstanding one.  The Council had a stake in MMI and when MMI had ceased, there had been a run off of assets.  As a result of this there was a potential for exposure to liability and members were assured that the position was being closely monitored. 

·         The variation of figures from 2012/13 and 2013/14 for the taxation of non-specific grant income was due to a change to funding arrangements.

Upon a vote it was unanimously

RESOLVED that the audited statement of accounts for 2013-14 be approved and signed by the Chairman of the Audit Committee.