Agenda item

PRE AUDIT STATEMENT OF ACCOUNTS

The Corporate Director: Finance & Operations took the committee through the Statement of Accounts.

He drew attention to the full evaluation of buildings and council houses; and explained how the council housing is valued using beacon groups.

He felt members needed to note the considerable increase in assets under construction, which has gone up by £11m due to the number of significant projects being undertaken by the Council.

JD also drew attention to Business Rates Appeals and the fact that DBC now get to retain a proportion of the rates collected. However there has been a considerable increase in appeals up to April 2015. The appeals take a good deal of time and can often be for considerable amounts.

The Chairman thanked the Corporate Director for his report and asked that those thanks be extended to R Baker: Group Manager – Financial Services and A Keyte (Accountant) for their work in producing these accounts.

The members noted the line dealing with External Audit costs which referred to an earlier year. S Bladen explained that this was a refund on the fees which could not be assessed until after the audit of last year's accounts. He explained that this was due to the ease of last year's audit due to quality of the accounts submitted.

The members noted the line dealing with External Audit costs which referred to an earlier year. S Bladen explained that this was a refund on the fees which could not be assessed until after the audit of last year's accounts. He explained that this was because work on the certification of claims and returns had taken less time than had been planned.

Councillor W Wyatt-Lowe was surprised by the assumption on page 12 of a reduction in the anticipated age of pensioners, as it flies in the face of all the evidence. He asked if we ever questioned these figures. JD understood the councillor’s point but added that the figure is provided to Herts County Council by actuaries and consequently is the figure that has to be incorporated in the accounts. Councillor Tindall offered to speak with the County Council regarding this.

Councillor Brown asked if the accounts incorporate an estimate of how many council houses are empty and costing us money? JD explained that Housing would be able to provide figures on 'voids' and their impact on the HRA.

Councillor Douris went back to the issue of the revaluation of the Housing Stock and the issues this had caused DBC in the past with the process for establishing the values being questioned by the external auditors.

JD pointed out that unlike previous occasions when the valuation was arrived at via a desktop exercise, this year there is to be an actual site visit to instances of the relevant property groups to establish actual values. The External Auditor went on to say that this is a risk identified in their audit plan and they will do work around the figure provided.

Councillor Douris sought some assurance that External Audit are broadly comfortable with the values arrived at this year. The External Auditor felt it would not be possible to say at this time as he did not wish to pre-judge this year's audit.

The Chair said he is hopeful as DBC are carrying on with a process agreed from previous years with the internal and external auditors.

Resolved:

1.    That the Statement of Accounts 2014/15 be noted and, members being provide with the assurance that they needed, the Statement be approved on behalf of the Council; and

2.    That the Annual Governance Statement included in the Accounts be approved.