Agenda item

Joint Report of the Treasurer to the Joint Committee / Corporate Director: Resources and the Corporate Director of Neighbourhood Services.

The Head of Finance - Financial Services noted a letter had been received from the Department of Communities and Local Government (DCLG) in December 2014, which noted changes to Audit requirements for Joint Committees from 2015/16 onwards (for copy see file of minutes).

Councillors were reminded that prior to 2010/11 the Joint Committee was required to produce a fully CODE/SORP compliant Statement of Account, under the Accounts and Audit Regulations 2003.  Members recalled that in 2011, revisions made by the DCLG meant that the Central Durham Crematorium Joint Committee was classified as a “Small Body” and therefore was not required to produce a fully CODE/SORP compliant set of accounts, rather simply to produce a simpler “Small Bodies Annual Return”.  It was added than the Joint Committee had previously agreed to continue to produce the Statement of Accounts in line with current CIPFA codes, beyond the level required for a Small Bodies Return, to further evidence the financial position of the Joint Committee.

The Head of Finance - Financial Services explained that the letter from DCLG set out that, from 1 April 2015, Joint Committees would be no longer required to have their accounts audited but they could continue to do so if they wished.

Members noted that it was proposed that for the financial year 2014/15 that the production of a full Statement of Accounts be discontinued and that it was proposed that the Statutory Annual Return would be supplemented with Balance Sheet information instead, the first such report would be presented for Members’ consideration at the meeting in June 2015.  It was added that the Service Level Agreement (SLA) for support services would have an appropriate reduction in finance staff time in relation to producing the accounts.

The Joint Committee noted that it was proposed that the use of External Auditors be continued, to provide additional assurance, and Officers were awaiting guidance from the National Audit Office in respect of the process for appointing External Auditors under the new provisions.  The costs of External Audit were circa £2,000.   

Resolved:

(i)              That the changes to Audit Requirements that come into effect from 1 April 2015 be noted.

(ii)             That the discontinuation of the full Statement of Accounts element for the 2014/15 financial year be agreed.

(iii)           That the continued separate audit arrangements following the 2014/15 audit, in order to ensure a continued effective financial and governance framework be agreed, based upon the continued preparation of the Small Bodies Annual Return and reporting of the Balance Sheet information within a supporting outturn report in June each year.

(iv)           That the publication of Audit Appointment guidance in forthcoming weeks be noted and that the appointment of an independent External Auditor in line with that guidance be agreed.