Minutes:
The Committee received a presentation from the Assistant Finance Manager, Corporate Finance regarding the challenge of accounting for Transport Infrastructure Assets (for copy of slides see file of Minutes).
The Assistant Finance Manager, Corporate Finance highlighted the following points:-
Change in Accounting Practice
Rationale for Change
Context – including the value of the transport infrastructure assets
External Audit Interest
Members were assured that work was underway to address the changes required and were informed of the huge impact that this would have on workloads and the balance sheet.
On answering a question from Councillor C Carr, the Assistant Finance Manager, Corporate Finance explained that indicative rates had been received from CIPFA and that land value rates had changed. This would be mapped in future years.
Mr T Hoban agreed that this would be a huge task and asked if a measured timeline could be reported back to Committee to give assurances that progress was on track. The Assistant Finance Manager, Corporate Finance explained that Highways colleagues were well prepared and already carrying out a lot of additional work. He suggested that a joint presentation with Finance and Highways teams be brought to the Committee.
Ms Banks, Mazars commented that a number of workshops had been held with Highways staff.
Members agreed to the proposal to receive a joint presentation and as they had concerns about the difference in the valuation methods for the Statement of Accounts and the Whole of Government Accounts. The Assistant Finance Manager, Corporate Finance advised that an explanation would be shown on the balance sheet year on year.
Members thanked the Assistant Finance Manager, Corporate Finance for a clear and concise presentation.
Resolved:
That the presentation be noted.