Agenda item

To present the report of the Head of Function (Resources)/Section 151 Officer.

The report of the Head of Function (Resources)/Section 151 outlining a proposed amendment to the 2018/19 accounts approval process was presented for the Committee’s consideration.

The Head of Function (Resources)/Section 151 Officer reported that changes to the statutory timetable for the publication of the draft and final Financial Statements under the Accounts and Audit (Wales) Regulation as amended by the Accounts and Audit (Wales) (Amendment) Regulations 2018 mean that for the 2018/19 and 2019/20 financial years the draft financial statements must be signed and published by 15 June (as opposed to 30 June in previous years) and the final audited financial statements must considered, approved and published by 15 September (as opposed to 30 September previously). This is in preparation for the 2020/21 financial year and beyond when the date for the publication of the draft accounts is further brought forwards to 31 May with the audited accounts to be published by 31 July. The timetable at 2.2 of the report sets out the key dates in the accounts preparation, publication and committee approval process as they applied to the 2017/18 financial year and as they will apply following the changes, to 2018/19, 2019/20 and then 2020/21 onwards. The revised timetable will be very challenging, and in particular completing the draft final accounts by 14 May, only 6 weeks after the end of the financial year, will be extremely difficult for the staff concerned. In addition, completion by mid-May could compromise the accuracy and quality of the draft financial statements and could result in a greater level of external audit work and subsequent post-audit adjustments.

The Officer said that in light of the shortened timetable for the completion of the draft financial statements and the practical difficulties it will bring, and given that the Accounts and Audit Regulations (Wales) 2014 and the associated CIPFA Code of Practice do not require formal approval of the draft financial statements by a Committee of the Council before they are published and presented for audit,  it is proposed that the draft financial statements are signed by the Section 151 Officer (the responsible Financial Officer) and presented for audit before they are considered by the Audit and Governance Committee. The proposed change would allow additional time for the completion of the draft financial statements. With reference to the Council’s committees calendar, a meeting of the Audit and Governance Committee has been scheduled in the calendar for both June and July, 2019 with the June meeting being for the express purpose of approving the 2018/19 draft financial statements. In light of the proposal that the draft financial statements be signed by the Section 151 Officer before they are brought to the Committee, the draft statements could instead be presented to the Committee’s July meeting. 

The Committee in supporting the change and revised timetable proposed by the Section 151 Officer, noted the amendments to the statutory timeframe with reservations believing that the changes put Finance Departments under pressure to prepare and complete the draft financial statements in an unrealistically tight timescale with possible implications for the accuracy and quality of the financial statements.

It was resolved –

•           To approve the change in the timetable and allow the Section 151 Officer to sign the draft financial statements prior to their consideration by the Audit and Governance Committee.

•           To agree that the 2018/19 draft financial statements be presented to the Audit and Governance Committee meeting scheduled for July, 2019.

NO ADDITIONAL ACTION WAS PROPOSED