Charles Oakley, Head of Finance (Accountancy and Audit)
Ward Implications:
Reports covers whole Borough
1
Summary
1.1
The final accounts for 2006/07 are presented for approval along with the external auditors report at appendix 1. The accounts have been signed by the Head of Finance and the Statement of Internal Control has been signed by the Chief Executive and Leader. The audit opinion which is shown at pages 10 to 12 will be signed once the accounts have been approved. In order to meet the statutory deadline for publishing the accounts, the final signed version of the statement of accounts will be posted on the internet on Friday 29 September 2007. The final signed version of the statement of accounts, after approval from this meeting, will be sent to Members as soon as they are available.
2
Recommendations
2.1
To agree the accounts
2.2
To receive the report on the accounts from our External Auditors.
3
Report
3.1
The final accounts are complete and the external audit opinion is included in the accounts, however this can not be signed before the statement of accounts are approved by the Council. The opinion not only encompasses the direct work on accounts but takes into consideration the arrangements for securing economy, efficiency and effectiveness in the Council’s use of resources.
3.2
Draft accounts were presented to Council 28th June 2007.
3.3
The main change to the accounts since June is the effect of the revaluation of the Council houses by the Valuation Office, which resulted in a 7.5% increase. This has the effect of increasing the value of the Council Dwellings, shown in the top half of the balance sheet under fixed assets, and increasing the value of Fixed Asset Restatement Account in the bottom half of the balance sheet which represents the movement arising on the revaluation of fixed assets. The change is also reflected within the Statement of Recognised Gains and Losses where any surplus or deficit arising from the revaluation of fixed assets is recorded.
3.4
Note 1 to the Core Statements (pages 25 - 26) has been expended to include a table which details the movement from the 2005/06 Consolidated Revenue Account to the 2005/06 comparatives within the Income and Expenditure Account. The Post Balance Sheet Events Note to the Core Statements (Note 23; page 423) has been updated to include reference to the proposed Local Government Reorganisation within Northumberland.
3.5
The auditors have identified a small number of adjustments which do not affect the cash position of the authority or balances. Inevitably with the advanced deadlines, the need for adjustments will occur. The aim is to keep these within an acceptable tolerance and this has been achieved. This report is being written before the authority has sight of the Deloittes report and so further guidance may be needed at the meeting. Should there be any substantial issues, then Members may wish to request attendance of the auditors at a future meeting of Council.
3.6
The Statement on Internal Control was taken separately to Policy Committee on 5th September 2007 to meet with external audit recommendations. The only change to the statement is the expansion of issue/action (a) to include reference to data quality.
4
Implications
4.1
Comments from the Council’s Section 151 Officer
Comments are included in the main body of the report.
4.2
Comments from the Council’s Monitoring Officer
None arising directly from this report
4.3
Comments from the Head of Paid Service
None arising directly from this report
4.4
Local Agenda 21
None arising directly from this report
4.5
Equality
None arising directly from this report
4.6
Crime and Disorder
None arising directly from this report
5
Report Author
5.1
Charles Oakley, Head of Finance (Accountancy and Audit), (01289) 301730, Email cro@berwick-upon-tweed.gov.uk
