Venue: The Bowls Club Room, Watton Sports Centre, Dereham Road, Watton
Contact: Member Services 01362 656870
To receive apologies for absence.
An apology for absence was received from Mr. M. Fanthorpe.
Draft Statement of Accounts (Agenda Item 5)
Report of the Chief Accountant.
The Chief Accountant presented the report and the draft Statements of Accounts, which had been prepared in accordance with the Accounts and Audit Regulations and in accordance with proper practices issued by The Chartered Institute of Public Finance and Accountancy (CIPFA) in its Code of Practice on Local Authority Accounting in the United Kingdom: A Statement of Recommended Practice (SORP).
It was noted that there had been a number of further changes to the SORP this year, which primarily affected the accounting treatment of fixed assets, with the revaluation reserve and capital adjustment account replacing the fixed assets restatement account and the capital financing account.
The Committee made a detailed examination of the Statements of Accounts, during which the following matters were discussed:
A correction to the heading in the Table of Contents to read “Statements of Accounts” was noted.
In the Explanatory Foreword (pages 1-5), it was explained that there had been no effect on last year’s figures as a result of the accountancy regulatory changes.
It was felt that it would be helpful if the note on the Collection Fund (page 1) was expanded to clarify the relationship with Council Tax. It was noted that town and parish precepts were included within the Collection Fund.
Clarification was sought on the difference between the “Original” and “Probable” figures contained in the Income & Expenditure Account (page 3). It was explained that the Original figures related to the budget as approved by the Council at the start of the year at the time of setting of the Council Tax for 2007-08. The Probable figures were those as revised during the year within the scope of the budget and those amendments were incorporated into the budget for 2008-09 approved by the Council in February and March 2008. This information provided a useful comparison with the previous year but it was noted that it was not an “audited” item as such.
A member thought it was notable that the final outturn figures were very close to the original budget forecast.
So far as the item on loss on disposal of fixed assets was concerned, it was explained that this included assets transferred to housing associations to provide additional benefits to the community (Note 2, page 16). Members suggested that this note should be expanded to emphasise the community benefit realised from such disposals.
It was further explained that the use of the reserves from the Budget were subject to approval during the year but any under spend in a budget at the end of a year (for example, on hired services) would be returned to the General Fund for the next year, when budgets would be reset. Grants were not affected by the year end cut-off and the Council Tax precept set at the start of a year could not be changed.
In summary, the information showed that the Council looked at what it thought it would spend and what had changed and demonstrated that it was managing its budget. However, ... view the full minutes text for item 29.
To note the arrangements for the next meeting to be held on 24 September 2008, in the Anglia Room, Conference Suite, Elizabeth House, Dereham.
The arrangements for the next meeting on 24 September 2008 were noted.