Agenda item

To receive the report, which asks the Committee to approve the Statement of Accounts for the financial year 2020-21.

The Committee received the Statement of Accounts, presented by the Chief Finance Officer.  It was explained that the audit was still to be concluded as there were two matters outstanding, as Members had heard featured in the External Auditors Completion Report.  It was further explained that some minor amendments and a change to the recommendation had been made to the report within the agenda pack.

The Chief Finance Officer highlighted that in view of the outstanding Pension Fund and Information Technology responses the audit was not complete and requested that Members delegate authority to her to make any minor amendments which may arise in the accounts in consultation with the Chair of the Committee; and authority to sign the letter of representation contained within the agenda pack on completion of the audit.

The Committee’s attention was drawn to appendix B which set out key movements between the financial years of 2019-20 and 2020-21 and identified key changes. 

The accountant briefly explained the minor amendments within the report, but assured Members that the changes did not impact on any of the figures within the accounts.

In response to a query regarding what data required verification in relation to property, plant and equipment, the Partner, Mazars explained that assurance was requested when working with property valuations as to whether the assertions featured were fairly stated, and sight of the underlying evidence was required.   

In relation to investment interest, the Chair queried why the Council only showed the income generated as 1% of the overall total income, and further queried what sort of investments the Council held, and whether the investments could be diversified.  It was explained that the bank interest rate was at a record low, and that the investment strategy employed by the Council was approved by Members at Full Council each year.  It was further explained that North Yorkshire County Council invested money on Selby Council’s behalf, the majority being with banking organisations which were low risk; there were no future plans in place to diversify.

The Chair queried if sundry debt arrears were recovered and what process was in place if the monies could not be recovered.  The Chief Finance Officer explained that all debtors were pursued to the full effect, however this year had been challenging due to the pandemic, although officers continued to progress.  Once all avenues had been exhausted to recover the debt then a “write off” would be considered, but only as a last resort.

In response to a query regarding why the spend to save reserve had led to a substantial balance at the end of March 2021, it was confirmed that this was a relatively small reserve which had been in the earmarked reserves for a number of years; the monies had come from transformational type savings and been carried forward year on year.  The Chief Finance Officer stated that she was not aware of the specific origins, however examples could be circulated to the Committee. 

The Chair queried if the reduction in the Members allowance and expenses was due to the pandemic, and if so, would the amounts revert back to the figures in 2019-20, the Chief Finance Officer advised Members that an increase in expenses was to be expected as physical committee meetings resumed, and stated that an analysis of the allowance and expenses figures could be provided for their information. 

The Committee approved the Statement of Accounts, subject to the completion of the audit.

RESOLVED:

i.                 To approve the Statement of Accounts 2020-2021, subject to the completion of the audit.

ii.               To delegate authority to the Chief Finance Officer to make minor amendments to the accounts in consultation with the Chair of the Committee.

iii.              To authorise the Chief Finance Officer to sign the letter of representation as set out in draft in the External Auditors report at item 7 of the agenda.