Issue - items at meetings - Annual Statement of Accounts 2010/11 Progress Update
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Annual Statement of Accounts 2010/11 Progress Update
Meeting: 05/04/2011 - Audit Committee (Item 70)
Annual Statement of Accounts 2010/11 Progress Update & International Financial Reporting Standards (IFRS) Verbal Update
Decision:
RESOLVED- That the Annual Statement of Accounts 2010/11 Progress Update and IFRS update be noted by the Committee.
Minutes:
70.1 The Committee considered a verbal report of the Acting Head of Financial Services which gave a progress update on the Annual Statement of Accounts for 2010/11 and International Financial Reporting Standards (IFRS). The report provided a brief review of the 2009/10 audit and progress on completing the 2010/11 Statement of Accounts, including the impact IFRS would have to the presentation of the accounts. The report also summarised the main issues and risks associated with the move to IFRS and changes to the accounts and audit regulations in 2011.
70.2 Councillor Watkins queried if both parties could include the same asset on their respective balance sheets giving the example of photocopiers used by the Council on its premises.
70.3 The Acting Head of Financial Services responded that this possible but unlikely to ever be the case.
70.4 Councillor Kitcat asked that if any assets were to be added to the Balance Sheet as a result of IFRS accounting changes, the Council would depreciate its value.
70.5 The Acting Head of Financial Services responded that this would be the case. The Director of Finance supplemented that this would be a notional charge that would serve as an accounting entry only.
70.6 Councillor Kitcat asked if software had been developed for analysis of accounts under IFRS.
70.7 The Acting Head of Financial Services clarified that he was unaware of such software in existence but hoped this would be forthcoming as it would aid comparison.
70.8 The District Auditor praised the presentation for its quality and clarity and complemented the work of officers at the Council who had adapted to the IFRS very well.
70.9 The Director of Finance highlighted the phenomenal amount of work involved for the authority in moving to IFRS and commended the work of officers thus far, specifically those in the Property and Estates Management department whose workload had been particularly strenuous.
70.10 Councillor Randall asked if the work undertaken to adapt to IFRS had been of overall benefit.
70.11 Councillor Young answered that from a Members perspective, the accounts would become more complicated but more detailed, thorough and explanatory. The Director of Finance added that IFRS would primarily be of benefit for asset information and decision-making.
70.12 The Director of Finance highlighted to the Committee that Members no longer had to approve the unaudited accounts by 30 June as had previously been the case. They therefore had a choice to either; bring the accounts unaudited in June as normal but for noting only, approve just the final audited accounts on 30 September or receive an informal briefing on the accounts in advance of the 30 September deadline.
70.13 The Chairman suggested the decision be made by the Chairman after the local elections in May 2011.
70.14 Councillor Watkins asked if there would be substantial changes made to the accounts from June to September.
70.15 The Director of Finance replied that she hoped not although there were inevitably adjustments in that period as had been the case in previous years. A key aspect of the approval by the Committee was to consider any unadjusted misstatements.
70.16 Councillor Watkins stated his belief that the unaudited accounts be brought to the meeting in June to maintain the open decision-making process.
70.17 The Chairman noted that he also believed it best to present the unaudited accounts in June but the decision would be left with the Chair of the Audit Committee subsequent to the upcoming local elections.
70.18 RESOLVED- That the Annual Statement of Accounts 2010/11 Progress Update and IFRS update be noted by the Committee.