Agenda item

The Committee considered a report of the Corporate Director of Resources which presented the Statement of Accounts for the year ended 31 March 2020 (for copy see file of Minutes).

The Finance Manager - Revenues, Pensions and Technical Accounting noted that as a consequence of COViD-19 the deadlines associated with the Statement of Accounts had been extended such that the deadline for the Council to publish its draft accounts was 31 August 2020, not 31 May, and the deadline for publication of its final, audited accounts had moved from 31 July to 30 November 2020.  She explained the key points as set out within the report relating to the five core statements, the general reserves and the earmarked reserves.  She noted the Statement of Accounts was available for inspection by the public from 29 June 2020 until 7 August 2020, in line with the revised regulations and the External Auditors, Mazars were anticipating completing their audit by the end of August 2020. 

Accordingly, it was expected that the final statement of accounts for 2019/20 would be presented for approval at the Audit Committee meeting planned for September 2020.

In response to a query from Councillor J Shuttleworth relating to Durham County Cricket Club, the Finance Manager - Revenues, Pensions and Technical Accounting noted that their financial year ended at a different point to the Council and reminded Members of the redeemable preference shares held with the company and noted over 2019/20 the Cricket Club had repaid the Council around £301,000, reducing the value of preference shares held on the balance sheet.  Councillor J Shuttleworth noted that if the Club were making a loss this would in turn mean the Council was less likely to receive the rest of the money back and asked if the issue should be noted within the risk register.  The Corporate Director of Resources noted that from the Council’s position it was positive to see the payments being made and, as payments were being made in line with the payment plan, he felt some comfort in the paying down of the shares.

In response to a query from Mr I Rudd in respect of setting out the COViD-19 within a revised budgetand his thoughts of setting out as a variance, the Finance Manager - Revenues, Pensions and Technical Accounting noted that grant payment of £18.5 million was received on 27 March 2020 and as £1million was allocated within the 19/20 year for COViD-19, an earmarked reserve was created for the remaining £17.5 million for future years.

Mr C Robinson asked as regards the schools fund and the Council being liability holder and any material liability.  The Corporate Director of Resources noted that the position with schools’ reserves was set out within the accounts and budget monitoring reports and he noted there had been no changes since the last discussions at Committee on the matter. 

Resolved:

That the Statement of Accounts for the County Council for the financial year ended 31 March 2020 be noted.