Agenda and minutes

There were no declarations of interest.

To receive communications from the Chairman.

There were no Chairman’s announcements.

The following item contains exempt information as defined in the following paragraph of Part 1, Schedule 12A of Local Government Act 1972.

3– Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Members are reminded that whilst the following item has been marked as exempt, it is for the meeting to decide whether or not to consider it in private or in public. In making the decision, members should balance the interests of individuals or the Council itself in having access to the information. In considering their discretion members should also be mindful of the advice of Council Officers.

Should Members decide not to make a decision in public, they are recommended to resolve as follows:

“That under Section 100A of the Local Government Act 1972, the public and press be excluded from the meeting for the following item of business on the grounds that, if the public and press were present, it would be likely that exempt information falling under the provisions of Schedule 12A, Part I, Paragraph 3 would be disclosed to them, and that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.”

The Chairman advised the Committee that as the report was public, it was not necessary to exclude the press and public.

** Please note that whilst it had been anticipated that this report and appendices would be restricted, they are public **

** Please note that this report will follow as discussions are on-going with the External Auditor **

Report of Director of Resources

The Director of Resources/Section 151 Officer submitted a report which sought approval of the Statement of Accounts and Letter of Representation for the financial year 2014-15.

The Chairman reminded the Committee that at their meeting of 23 September they had determined they could not sign off the accounts and had delegated authority to the Head of Finance and Procurement, in consultation with the Chairman, to continue discussions with Ernst and Young, the council’s external auditor, and the Department for Communities and Local Government (DCLG) with a view to the accounts being signed off by the statutory deadline of 30 September 2015. It subsequently emerged that delegated authority could not be granted to an officer to approve the Statement of Accounts and it had therefore been necessary to call the special meeting of the Committee.

In introducing the report, the Director of Resources/Section 151 Officer gave a detailed overview of the issue that had arisen at the 23 September Accounts, Audit and Risk Committee which had resulted in the Committee’s decision not to approve the accounts at that time. The Director of Resources explained that as part of their audit of the Statement of Accounts 2014-15, Ernst Young, the council’s external auditor, had highlighted an accrual that had been raised for approximately £1.5m.

The debtor was raised in 2011-12 and related to the NNDR3 (a return which certified the level of business rates the Council had collected on behalf of the Government) that had been submitted and audited for the financial year 2011-12. The return had been incorrectly completed and as a result, the council had overpaid £1.5m to the Government more than it should have. A debtor had therefore been raised in the general ledger to reflect that this amount was owed to the Council by the Government. This debtor accrual was still in the accounts in 2014-15 as the overpaid amount had not been reimbursed by the DCLG.

The Committee was advised that when considering the 2014-15 audited accounts, the external auditor had asked the Section 151 Officer to consider if he would be impairing any of the outstanding debt owed. The Director of Resources/Section 151 Officer explained that after careful consideration, he had felt it was premature to do so.

Prior to the 23 September meeting, the external auditor had been aware of the Director of Resources/Section 151 Officers’ approval of the accounts and was comfortable with the approach being taken. At the meeting however, the Director of Ernst Young had arrived late and not been aware of the position of the external audit team. He had given his view on the outstanding debtor advising the Committee the accounts should not be approved. The Committee had consequently determined not to approve the accounts and to delegate authority for their approval to the Head of Finance and Procurement, in consultation with the Chairman, which it had subsequently transpired was not possible.

The Director of Resources/Section 151 Officer advised the Committee that since that meeting there had been further  ...  view the full minutes text for item 31.