To consider Report CFO/062/20 of the Director of Finance, concerning the audited 2019/20 Statement of Accounts for approval and request that they be authorised for issue.

Members considered Report CFO/062/20 of the Director of Finance, concerning the audited 2019/20 Statement of Accounts for approval and request that they be authorised for issue.

Members were advised that the Authority is required to prepare a set of financial statements in a format that is set out under the relevant Accounting Codes and Standards. They were informed that the Statement of Accounts, attached to the report at Appendix A, presents the required Authority core financial statements for 2019/20, having regard to the various codes and regulations.

It was highlighted to Members that the Statement of Accounts must be approved by the Authority, before 30^th November 2020.

Members were informed that the Authority’s External Auditors – Grant Thornton, have issued an unqualified opinion on the Statement of Accounts, which confirms that the Statement represents a true and fair view of the financial position of the Authority and its income and expenditure for 2019/20; and that the Statement has been prepared in accordance with the required code and regulations.

Paragraphs 12 to 15 within the report, were highlighted to Members, which provide some background to the four core financial statements; and summarise the 2019/20 movements and explains any significant changes to the previous year’s figures.

Members were informed that paragraph 14 of the report, outlines the Balance Sheet movements between 2018/19 and 2019/20; and in particular, the movements on the Authority’s assets and liabilities.

It was highlighted to Members that the Code and Regulations, require a number of notional accounting entries and adjustments, that are significant in value, to be included within the Statement of Accounts, such as a depreciation charge. Members were advised that these are notional in nature, therefore they do not form part of the costs that must be funded by the Authority’s approved general fund budget.

Members attention was drawn to the table on page 45 of the report, which outlines how the 2019/20 neutral general fund outturn position, as reported to the Policy & Resources Committee on 30^th July 2020, becomes a £4.535m adverse variance under the Statement of Accounts code and regulations.

Members were assured that in relation to the reported outturn position for the revenue, capital and reserve budgets, there has been no change to that reported to the Policy & Resources Committee previously.

Members were advised that they are requested to approve the Letter of Representation, attached as Appendix B to the report, which simply states that the Treasurer and the Chair of the Committee, are not aware of anything that would alter the information contained within the Statement of Accounts.

Members were advised that in relation to the recommendations contained within the report, (a) should now read “the audited Statement of Accounts 2019/20…” rather than “the unaudited Statement of Accounts…” as this work is now complete.

Members Resolved that:

a)     the audited Statement of Accounts 2019/20 attached as Appendix A to this report, be approved and authorised for issue, and

b)     the letter of representation in relation to the 2019/20 accounts, attached as Appendix B, be approved.