Agenda item

Financial Monitoring Report - Provisional Outturn at 31 March 2010.

The Head of Finance, HR and Business Support, Paul Darby, reminded Members that the Audit Commission had been critical of the year end final accounts closure process (for the last financial year) and the fact that the accounts were not approved by the Joint Committee until July.

It was noted that the previous year end had been problematic due to staff shortages and lack of experienced staff being left at the former City Council following LGR, which was compounded by the fact that a new External Audit Team was involved also. Members were asked to note that with regards to the production of the 2009/10 accounts, a detailed closure timetable had been prepared and that the process was running extremely smoothly. The Statement of Accounts would be completed in time to be reported to the Joint Committee and the end of June 2010. 

In advance of Members’ consideration of the 2009/10 Statement of Accounts, the Head of Finance, HR and Business Support referred Members to the report, which set out details of the provisional revenue outturn position at 31 March. It was stressed that this was provisional, but would be fully finalised in the coming weeks, however, the revenue accounts were now substantially closed, with the capital account / balance sheet accounts in the process of being finalised.  Members were asked to note that the year end surplus quoted in the report was approximately £130,000 more than the base budget and that it was proposed that this surplus would transfer to the earmarked reserve for the new cremator equipment.

The Head of Finance, HR and Business Support noted that the provisional outturn included provision for the audit fee based on previous years however, as there had been additional work on the audit process last year, which would (resulting from the External Auditors risk process) necessitate more detailed testing work again this year, the fee was £11,000.  Members noted that this would mean that the total reserves balance that would be reported in the Statement of Accounts in June would be approximately £736,000, rather than £741,735, as quoted in the report.

The Accountant, Spennymoor Town Council noted figures regarding the earmarked reserves set out at point 9.6 of the report referred to £642,670.  The Head of Finance, HR and Business Support noted that this was a typological error within the report and apologised.  Members were referred to the table set out earlier in the report, which included the correct £741,735 figure, which, as explained, would reduce in the Statement of Accounts to approximately £736,000 as a result of extra provision being made for the External Audit fee.

The Accountant, Spennymoor Town Council also asked if there were any reasons for an approximate 13% under spend on employees.  The Head of Finance, HR and Business Support explained that this was due to several factors; the pay award in 2009/10 was less than the budgeted increase, contingency costs in terms of pandemic flu had not been incurred, less than anticipated sickness absence cover costs, and the fact that the Treasurer and Clerk to the Joint Committee did not take a payment for their services to the Joint Committee. It was noted that a fuller explanation would be disclosed in the report in future.

The Accountant, Spennymoor Town Council asked if there was any information regarding the ability to access cremation records online.  The Head of Finance, HR and Business Support noted that there was allocation within the 2010/11 budget for implementation of an online records system and noted that the Superintendent and Registrar was liaising with the Bereavement Services Manager, Graham Harrison regarding the coordination of this matter.

Resolved:

(a)       That Members note the April 2009 to March 2010 (Provisional) Revenue Spend Financial Monitoring Report and associated forecast outturn position for 2009/10.

(b)       That the Joint Committee approve the transfer of surplus funds to the earmarked Major Capital Works Reserves as part of the preparation of the Statement of Accounts 2009/10.