Issue - meetings

To consider the attached report and the Statutory Statement of Accounts 2015/16 being submitted to the Audit and Governance Committee on 19 September 2016.

The Chairman of the Audit and Governance Committee will report orally on that Committee’s consideration of and recommendations regarding the Statutory Statement of Accounts 2015/16.

Councillor J Knapman, Chairman of the Audit and Governance Committee.

Councillor J Knapman advised that the Statutory Statement of Accounts for 2015/16 had been considered by the Audit and Governance Committee and were recommended to Council.

Councillor G Mohindra, Finance Portfolio Holder.

Councillor G Mohindra submitted the report regarding the Statutory Statement of Accounts for 2015/16.

Report as first moved ADOPTED

            RESOLVED:

That the Statutory Statement of Accounts for 2015/16 be adopted.

(Director of Resources) To consider the attached report (AGC-008-2016/17).

The Director of Resources presented the Statutory Statement of Accounts for 2015/16, an addendum sheet containing two notes for events after the Balance Sheet date, and the restatement of the Balance Sheet as at 1 April 2014.

The Director reminded the Committee that one of its key roles was scrutinising the annual Statutory Statement of Accounts. All Members of the Council would have the opportunity to debate the Accounts at the Council meeting scheduled for 27 September 2016 and part of that debate would be to consider the recommendation of this Committee. There had been no substantial changes to the annual Statutory Statement of Accounts for 2015/16. The format of the accounts and the disclosure notes within them were very similar to those for 2014/15. Also, following the significant changes to the system of local authority finance in 2013/14, 2015/16 had been a year of consolidation with no other significant changes.

The Director stated that there were three decisions made which required a major element of judgement. The first of these was that the pension liability for the Council had reduced from £69.929million to £66.981million, due to a £1.57million increase in the value of the scheme’s assets and a reduction of £1.378million in the projected liabilities. £66.981million was the extent of the Council’s liability if the pension fund was to close on 31 March 2016, and did not mean that this amount would have to be paid to the pension fund in the near future.

The second of these was asset valuations. Property, Plant and Equipment had a value of just under £700million in the Balance Sheet, an increase of £101million during the year. £99million of this increase related to Council Dwellings and Garages, which had been valued by the District Valuer. Investment Properties had a value of £63million in the Balance Sheet, and had risen by £9million for Industrial Estates and £11million for commercial properties; these properties had been valued by Deloitte LLP. The External Auditors were satisfied that the asset values had not been materially misstated.

The third of these was the provision for Business Rates Appeals. This had risen from £3.26million to £3.57million and had been calculated with the assistance of an external firm of rating experts. The Valuation Office had made some progress in settling appeals, but there were still over 400 appeals outstanding for the District, including some of the largest non-domestic premises in the District. It was highlighted that one outstanding appeal was for a property with a rateable value of £5.83million.

The Director reported that, during the year, the Council had reviewed some of its asset categories due to new accounting arrangements relating to the Highways Network Asset. It was found that some of the assets held under the headings of Infrastructure, Community Assets and Assets under Construction were either transport related and belonged to Essex County Council, or were related to the former waste disposal site at Bobbingworth which was now a park. Consequently, a retrospective restatement had been made to the  ...  view the full minutes text for item 21