Issue - meetings

To note the draft statement of accounts, introduced and presented by the chief accountant.  These accounts will be approved for audit by the chief finance officer/section 151 officer.  TO FOLLOW ONCE AGREED BY THE CHIEF FINANCE OFFICER

The committee considered the draft statement of accounts for 2010/11.  The committee noted that this year, there was a change to the regulations regarding sign-off of the draft accounts.  The section 151 officer was required to sign off the draft accounts, not the committee.  However, the committee would be required to approve the final accounts in September. 

The section 151 officer reported that he had signed-off the draft statement of accounts at the end of June.  The draft was now before the committee to give councillors a chance to consider the accounts prior to formally approving the final version in the autumn. 

The chief accountant explained the key points.  The committee noted that the Cabinet was due to consider the revenue outturn report for 2010/11 in September but this might be available in draft form in August.  The committee asked to be sent a draft copy in August, if possible. 

In answer to a question, the chief accountant reported that the large reduction in the council’s pension liability was due to Oxfordshire County Council employing a new actuary to value the Oxfordshire local government pension fund and each council’s liability.  The new actuary took a more optimistic view than the previous actuary.  The head of finance assured the committee that the council should not see the same level of variances in the future. 

The committee also noted the latest position in the council’s long-term investment in the Icelandic bank, Landsbanki.  The council’s had been awarded priority investor status and this had survived a legal appeal.  The council should recover 95 per cent of the investment.  A second claim would be made for lost interest. 

With regard to the council’s long-term debtors in the balance sheet, the committee asked that the final version of the accounts contained a fuller explanation of what this item included.  The director agreed to investigate this and advise the committee outside of the meeting. 

The committee also asked about an item in the accounts that set aside an amount to defend a legal challenge by a third party.  The officers explained that it was good accounting practice to allocate funds in case the council lost the legal challenge.  The officers agreed to update the committee at a future meeting. 

RESOLVED: To timetable a review of the draft statement of accounts in August, taking into account the committee’s suggested clarification regarding long-term debtors, and ask that copies of the draft revenue outturn variance report to the Cabinet are circulated to the committee in August also.