Agenda item

To present the Joint-Committee’s pre-audited final accounts for the financial year ended 31 March, 2014.

Submitted for the consideration of the Joint Committee – the Report by Gwynedd Council’s Head of Finance incorporating a report on the income and revenue expenditure of the Joint Committee for 2013/14 along with the statement of the accounts in a statutory format which have been certified but not audited.

The Senior Finance Manager of Gwynedd Council noted that there were specific reporting requirements regarding the accounts and the audit of the accounts of joint committees as outlined in the body of the report.  He said that the documents were split into two as follows–

•           Income Accounts and Revenue Expenditure for 2013/14 along with a commentary on the main variances between the budget and the actual expenditure.  The Officer reported that the Joint Committee’s net underspend for 2013/14 was a £110,805.  When this sum is added to the reserve balance of the Joint Committee on 31 March 2013, i.e. £166,351 the total reserve balance is £277,156 at the end of March 2014.

The Members of the Joint Committee considered the information presented and asked questions regarding the expenditure under some headings including the increase in postage costs.  It was asked whether funding was available from the balances to improve office arrangements.  The Officers responded that effort has been made to modernise the office systems and that reducing postage costs was a priority.  On the other hand, confidentiality requirements must be borne in mind when circulating information and the medium used to do that along with the fact that some agencies conduct their business through paperwork.  In addition, although a plan is in place to reduce the Joint Committee’s balances, difficulties were experienced in the recruitment of individuals to specialists’ posts.  Therefore, efforts were made within the operational framework to relax the employment patterns to recruit staff when the need arises and to reduce the balances.  On the other hand, the Joint Committee could face cuts to its annual budget in the future meaning that it will have to plan for the longer term on a reduced financial basis.

Gwynedd Council’s Senior Finance Manager said that the joint Committee’s balances were one-off funding and that any permanent commitments should be made against the permanent budget.  The situation whereby the Joint Committee holds the equivalent of a quarter of its turnover of £1m in reserves is something to keep an eye upon although there could be specific reasons for that.

Gwynedd Council's Head of Education said that having reserves gave the Joint Committee flexibility and financial assurance that it can attract suitable individuals to its employ and also provide assistance in order to ensure that children have support as the need arises.

•           A statement of the accounts in statutory format certified but not audited.

Gwynedd Council’ Senior Finance Manager reported that the statement had been formulated and presented on the statutory standard format.  The accounts will be audited by the Wales Audit Office and the Appointed Auditor will produce an ISA260 report outlining the main findings of the Wales Audit Office which will be presented to the meeting of the Joint Committee in September along with the audited accounts.  There are several sections to the accounts including explanatory notes regarding the accounting policies.

It was resolved –

•           To accept the Income Accounts and Revenue Expenditure for 2013/14 and to note its contents.

•           To accept the Statement of Accounts for 2013/14 (pre audit) and to note its contents.