Agenda item

Revision to Accounts and Audit Regulations – Charge in Definition of Small and Relevant Body.

The Head of Finance, HR and Business Support presented a Report updating Members on the recent revisions and consolidations of the Accounts and Audit Regulations 2003, setting out the impact on the Central Durham Crematorium Joint Committee as a result (for copy, see file of minutes). 

Members were reminded that until recently, the threshold for full application of the Statement of Recommended Practice (SORP) accounting and accounts reporting had been £1 Million and as a consequence, the Joint Committee had noted and agreed measures to enable compliance with the SORP requirements including the application of the new International Financial Reporting Standards (IFRS).  Councillors noted that the threshold had now been raised to £6.5 Million, and accordingly, the Central Durham Crematorium Joint Committee would not be subject to the full SORP requirements and would now be classified as a “Smaller Relevant Body” and that  an “Annual Return ” would need to be prepared, with the costs incurred from the external audit process being  a fixed fee.  The Joint Committee noted that this would reduce the external audit fee from around £15,000 to £3,000. The Head of Finance, HR and Business Support noted that he had spoken to the Treasurer to the Joint Committee, Don McLure as regards the impact for the Joint Committee and as the Statement of Accounts had already been prepared to the more rigorous SORP requirement it was felt it would be appropriate to still prepare a fully compliant Statement of Accounts, and re-consider the position next year.   The “Annual Return” would still be completed in line with the “Small Bodies” requirements.

Resolved:

(a)         That the Members of the Central Durham Crematorium Joint                                         Committee note the revision and consolidation of the Accounts and                            Audit Regulations 2003 with regards the definition of Smaller Relevant                      Body.

(b)         That the Members of the Central Durham Crematorium Joint                                         Committee note the change in reporting requirements and approve the                      Treasurer’s proposal to prepare Financial Statements to further                          evidence the accuracy of the Annual Return information.

(c)         That the Members of the Central Durham Crematorium Joint                                         Committee note the reduction in Audit costs as a result of the change                         in the Audit status of the Central Durham Crematorium Joint                                           Committee.