Agenda and minutes

Statutory Accounts Committee
Monday, 29 June 2009 7:00 pm

Venue: York House, Richmond Road, Twickenham

Contact: Louise Hall, Democratic Services Officer, 020 8891 7813, Email: louise.hall@richmond.gov.uk 

Items
No. Item

11.

APOLOGIES

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    Minutes:

    Apologies were received from Councillor Cardy.

     

    Following his announcement at the Full Council Meeting on 16 June 2009 that he had would not accept the place allocated to him on this Committee, Councillor Cranfield-Adams did not attend.

12.

DECLARATIONS OF INTEREST pdf icon PDF 22 KB

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    Members are asked to declare any interests in matters for consideration at the meeting.

    Minutes:

    Councillor Samuel declared a personal non prejudicial interest in the Richmond Theatre as a representative of the London Borough of Richmond upon Thames Council on the Board.

13.

MINUTES OF THE PREVIOUS MEETING

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    To approve the minutes of the meeting held on

    Minutes:

    The Minutes of the meeting held on 28 September 2008 be received and approved and the Chair be authorised to sign them.

14.

REPRESENTATIONS FROM MEMBERS OF THE PUBLIC (IF ANY)

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    Minutes:

    None.

15.

STATEMENT OF ACCOUNTS 2008/09 AND RELATED MATTERS pdf icon PDF 52 KB

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    The report:

    ·  Describes the key figures published in the Statement of Accounts for 2008/09,

    ·  Summarises the accounting and presentational changes that have been made in accordance with the latest Statement of Recommended Practice (SORP) for local authority accounts,

    ·  Proposes a de minimis level for matters such as uncorrected misstatements to be included in the Auditor’s report to the Committee on the audit of the Council’s accounts, and

    ·  Explains how the changes in governance arrangements for the Pension Fund impact upon the approval and audit of the Pension Fund and Council’s accounts.

     

    Report of the Director of Finance and Corporate Services attached.

     

    Appendix A is being circulated separately.

     

    Additional documents:

    Minutes:

    The Committee considered a report of the Director of Finance and Corporate Services containing the full Statement of Accounts for the London Borough of Richmond upon Thames 2008/09 and seeking approval of those accounts.

     

    The Committee received information from officers concerning changes from the 2007/08 statement and the key figures contained within the 2008/09 statement, in particular officers referred to the following:

     

      (i)  The Pensions Fund

    The Pension Fund accounts were now approved by the pensions fund committee but were included as part of the full Statement of Accounts for completeness.

      (ii)  Fair Value for Pension Fund Investment Assets

    Financial Reporting Standards (FRSs) had previously introduced fair value as the basis for recognising the value of financial instruments.  Both the Pensions SORP and local authority SORP had now adopted this as the basis on which Pension Fund investment assets should be recognised from 2008/09.  The impact of this change was that assets were now shown at a slightly lower value than previously, and this reduced the overall value of the Pensions Fund balance.

    (iii)  Gains and losses on disposal of assets

    The 2006 SORP had introduced a number of changes including the introduction of the Income and Expenditure Account (I&E Account) and also required the gain or loss on disposal of assets to be included in this I&E Account.  These were reversed in the Statement of Movement on the General Fund Balance (SMGFB) to have no effect on the General Fund.

    Previous guidance on this matter required assets to be re-valued at the time of disposal so that any notional ‘gains’ that arose because local authority assets were not valued each year were not taken as actual gains in the I&E Account. In practice most disposals would be valued the same as the sale price so that losses would only be shown in the I&E Account to reflect disposal costs.

    From 2008/09 this guidance had been changed and it was no longer appropriate to notionally revalue assets at the time of disposal and gains or losses over the carrying book value would now be shown in the I&E Accounts. These changes were, however, reversed out later in the statement and therefore the change is presentational only.

    (iv)  Key figures and movement throughout the year

    The committee considered and noted the key figures referred to by officers as follows:

    ·  Fixed Assets

    ·  Investments

    ·  Debtors

    ·  Creditors

    ·  Long Term Borrowing

    ·  Pension Scheme Liability

    ·  Usable Capital Receipts

    ·  Earmarked and General Reserves

    ·  Schools Reserves

     

    A number of individual questions on the accounts were asked by Members and responded to by officers. Cllr Samuel noted that he would be raising a number of points of detail in a separate meeting with the Director of Finance and Corporate Services.

     

    It was RESOLVED that the Statement of Accounts 2008/09 be approved.

 

Updated: 4 April 2014