Agenda item

The Head of Finance, HR and Business Support, Neighbourhood Services, presented this report which sought approval of the Small Bodies in England Annual Return and supporting Statement of Accounts, copies of which had been circulated (for copy see file of minutes).  

The Annual Return would be subject to external audit by the Joint Committee’s appointed external auditors, with the audit due to commence on 29 July 2011.

The Annual Return and Statement of Accounts had been prepared considering the requirements of the 2010/2011 ‘Code of Practice on Local Authority Accounting in Great Britain’ as updated and published by the Chartered Institute of Public Finance and Accountancy.

Members were reminded that quarterly budgetary control reports had been considered throughout the year and a provisional outturn report had been presented to Members in April 2011.  Details of the final outturn position as incorporated into the Statement of Accounts had been circulated with the papers.

It was reported that there were five Core Statements within the Statement of Accounts that provided fundamental information on the financial activities of the Joint Committee, as follows:-

• The Movement in Reserves Statement
• The Comprehensive Income and Expenditure Statement
• The Balance Sheet
• The Cash Flow Statement
• The Annual Governance Statement.

The report further set out details of the materiality levels proposed / included within the Statement of Accounts as a result of the conversion from UK GAAP (SORP) to International Financial Reporting Standards (IFRS) compliant Financial Statements.

The conversion therefore required additional materiality levels to be considered and approved by the Joint Committee. Details were provided on potential materiality levels and comparisons.

Following discussion with the Treasurer to the Joint Committee, it was proposed that the Joint Committee approve an adjustment materiality level, for the conversion form the 2009/10 SORP compliant Statement of Accounts to the 2010/11 IFRS complaints Statement of Accounts, at 1.0%.

An exception to the above is that in relation to the componentisation of Assets. Therefore it was further proposed that the materiality level when considering the requirement for componentisation of plant, property and equipment be set at £450,000, with an individual component part being equal to, or greater than 20% of the assets total value.

The Head of Finance, HR and Business Support, Neighbourhood Services then went on report on the final outturn position, together with comparative data against the provisional outturn report considered 27^th April 2011, and details of any variances were also included within the report.

Councillor Holland raised a query with regard to the rates of interest that were currently applied to the Crematorium’s investments. In response the Head of Finance, HR & Business Support explained that the Crematorium invested in line with Durham County Council’s Treasury Management Policy.

Resolved:

• That Members’ agree an adjustment to the materiality leve of 1% for the conversion from 2009/2010 SORP Compliance to the IFRS Code of Compliance for inclusion within the Statement account and annual return.
• That Members’ note and approve a Componentisation materiality level of £450,000 with an individual component parts being equal to, or greater than 20% of the asset value.
• That Members’ of the Joint Committee note the April 2010 to March 2011 Income and Expenditure within the Revenue Financial Monitoring Report and subsequent year balance of reserves.
• That Members’ approve the Annual Return and Statement of Accounts for the year ended 31 March 2011.
• That the Chair and Treasurer sign the Annual Return and Statement of Accounts.