Agenda item

Warwickshire County Council Statement of Accounts 2020/21

Minutes:

NOTE – The business of the day was conducted in an order different to that set out on the agenda. In accordance with convention these minutes retain the order on the agenda.  

 

Andy Felton (Assistant Director, Finance) introduced the report explaining that efforts had been made to simplify the accounts. Virginia Rennie (Strategy and Commissioning Manager, Strategic Finance) illustrated this by stating that consideration is frequently given to what is material to the account. Related party transactions are a case in point.  

 

With reference to page 24 of the document pack Councillor Bill Gifford highlighted a significant increase in reported borrowing (to be repaid from revenue resources). In 2020/21 this was £1.7m. In 2022/23 this will be £107.9m. Councillor Gifford stated that the report does not make it clear why this figure had gone up adding that it should be made clear to the public. It was agreed that the diagram would have been improved by the addition of some commentary. A similar point was made by the Chair concerning the diagram on page 26. In this instance the forecast increase in reserves merit some explanation. On the subject of reserves, Councillor Sarah Feeney asked why available reserves have increased. The committee was informed that as part of the Reserves Strategy an assessment of the risks concluded that there was not the need to hold as much in reserve as was the case. As a consequence, funds were released to become available to use.  

 

Concerning the table on page 71 of the document pack Councillor Chris Kettle questioned why significant adjustments had been required following approval by Cabinet. He asked whether reports to Cabinet should reflect these changes. In reply the committee was informed that the quarterly reports to Cabinet focus on how Council Tax is spentThe further adjustments in the Statement of Accounts are purely year end accounting adjustments for things like asset revaluations at the 31 March of each year. Andy Felton observed that revenue implications of mainly balance sheet movements reflected in the Statement of Accounts would not give Members a sensible understanding of service costs against Council Tax if included in the quarterly monitoring reports, also these figures are only calculated at year end. 

 

Turning to page 85 of the document pack Councillor Bill Gifford expressed some concern over the change of definition of assets held (i.e. move from short term to long term). In reply the committee was informed that it had been necessary to take a view concerning the uncertainties caused largely by the Pandemic.  

 

Concluding this item Rob Powell (Strategic Director for Resources) reminded the committee that the accounts are prepared under the CIPFA code. The Council has no control over this and has to comply, or risk a qualified external audit opinionAs a consequence, the Council cannot make changes to monitoring or accounting practice. 

 

Resolved:

 

That the Audit and Standards Committee notes the 2020/21 Statement of accounts and recommends them to Council for approval.