Agenda item

The Committee considered a report of the Interim Corporate Director, Resources which presented the Statement of Accounts for the year ended 31 March 2016 (for copy see file of Minutes).

The Finance Manager for Revenue/Capital, Resources advised Members that once approved the accounts would be published on the Council’s website and that some amendments had been made to the accounts in collaboration with the External Auditor. 

Councillor O Temple thanked officers for providing a written response to his previous questions.  He asked if the Chair and Vice Chair of Audit Committee should consider whether this Committee should be involved in tracking the legal costs associated with employment tribunal claims.  He was concerned that there was no way of tracking and felt that costs were invisible.

The Interim Corporate Director of Resources informed the Committee that there were specific codes used to track legal costs and that awards were charged to the individual service.  He assured the Committee that there was corporate oversight and monitoring of legal costs and that they were controlled within the management of the authority.

Councillor Temple said that there was no way for Members to track this and although he agreed that tracking did take place, evidenced by the unqualified opinion given by External Audit, he felt that there was no clear member oversight or understanding of it.  He felt that it should fall to this committee and asked that the Chair and Vice Chair consider looking at it.

The Interim Corporate Director of Resources advised that these costs were not budgeted for but were reported as part of the budget as an overspend and said that if the costs were significant they would be picked up.

Mr Waddell, Mazars confirmed that there were a number of legal expense accounts and that they would look at the undisclosed liabilities and each would have a degree of materiality.

Councillor C Carr agreed that when the payment was to be significant then it should be brought to the Committee’s attention but did not see how it affected the accounts.

The Interim Corporate Director of Resources said that any significant liability would be disclosed in a note in the accounts.

The Chairman agreed that any significant costs should be brought to the Committee’s attention if it was an exception.

Referring to earmarked reserves, Mr C Robinson asked if they were spent in a particular way and asked how they were used. 

The Interim Corporate Director of Resources advised that any transfers out were applied to fund any budget expenditure in the accounts and would go into the funding expenditure for individual services.

The Finance Manager for Revenue/Capital, Resources advised that the quarterly Cabinet report would contain more information on the use of reserves and transfers.

Mr D Beavis referred to the underspend and reprofiling of the capital expenditure and asked if this had an impact further down the line.  He was advised that there were a number of reasons for delays including planning delays, compulsory purchase orders, procurement, external grant funding and European funding.  This would have an impact as improvements would not be carried out when originally planned.

The Chairman thanked officers for their hard work during the year to produce the accounts.

Mr Waddell advised that this was his final year with Mazars and that he would introduce his replacement at the next meeting.

Resolved:

That the statement of accounts for the County Council for the financial year ended 31 March 2016 be approved.