Agenda item - 2015/16 financial statements and annual governance statement

Report of the Executive Director, Finance & Resources (copy to follow).

That the Audit & Standards Committee:

1)    Notes the findings of EY in their Audit Results Report (ARR). The ARR is a separate item on this agenda.

2)    Notes the outcome of the ongoing work on the valuation of property, plant and equipment and any related misstatement / adjustment to the 2015/16 accounts (paragraph 3.19 and Appendix 4).

3)    Notes the results of the public inspection of the accounts (Section 9).

4)    Approves the Letter of Representation on behalf of the council (Appendix 1).

5)    Approves the audited Statement of Accounts for 2015/16.

6)    Note the Annual Governance Statement (Appendix 5).

29.1      The Committee considered a report of the Executive Director, Finance & Resources that that provided information about the audit of the council’s 2015/16 Statement of Accounts and recommended approval of the 2015/16 audited accounts and the Letter of Representation on behalf of the council. The report also provided information about the Annual Governance Statement.

29.2      Councillor Druitt asked if there was opportunity to redirect lender option borrower option (LOBO) loans to a better arrangement for the council.

29.3      The Assistant Director- Finance stated that finance officers were always looking for restructuring opportunities but with regard to its existing LOBO loans, the council would have to pay an exit penalty to terminate the loan early that would equate to approximately the same amount as fulfilling the loan to maturity. This was the same as all other types of loans that the council held.

29.4      Councillor Taylor asked whether any decline in interest rate, partially related to the current fortunes of Deutsche Bank and declining exchange rates would present unfavourable risk to the council.

29.5      The Assistant Director, Finance stated that he believed it unlikely and that Deutsche Bank was registered in the UK and that transactions were in sterling but would confirm the position to Members subsequent to the meeting.

29.6      The Head of Internal Audit informed Members that there were minor changes to the Annual Governance Statement as attached at Appendix 5. These were approved by the Chief Executive and the Leader of the Council prior to their signature, and these minor amendments would be reflected in the published Annual Governance Statement on the council website.

29.7      RESOLVED- That the Audit & Standards Committee:

1)        Notes the findings of Ernst & Young in their Audit Results Report (ARR). The ARR is a separate item on this agenda.

2)        Notes the outcome of the ongoing work on the valuation of property, plant and equipment and any related misstatement / adjustment to the 2015/16 accounts (paragraph 3.19 and Appendix 4).

3)        Notes the results of the public inspection of the accounts (Section 9).

4)        Approves the Letter of Representation on behalf of the council (Appendix 1).

5)        Approves the audited Statement of Accounts for 2015/16.

6)        Note the Annual Governance Statement (Appendix 5).