Issue - meetings

(a)       That the draft Statement of Accounts 2015/16 (including the Annual Governance Statement), be noted; and

(b)       That Members note the ability to discuss any aspect of the Statement of Accounts with officers or the Wales Audit Office throughout July, August and September prior to the final audited version being brought back to the Committee for recommendation to Council for final approval on 26 September 2016.

The Corporate Finance Manager presented the Statement of Accounts 2015/16 (subject to audit) for information only at this stage.  The final audited accounts would be submitted to the Committee on 26 September for approval and recommendation to County Council on the same day, prior to the statutory publishing deadline of 30 September.

A presentation was given covering the following areas:

·         Purpose and Background

·         Action Plan Update

·         Governance Group

·         Changes to Statement of Accounts for 2015/16

·         Links to Budget Monitoring Report

·         Headline Figures

·         Timeline and Next Steps

The Committee was advised that no comments had been raised by the Clwyd Pension Fund Committee on the draft accounts for the Clwyd Pension Fund.

The Finance Manager - Technical Accountancy referred to the updated action plan for issues raised during the audit of the 2014/15 accounts.  Most actions had been completed with significant progress made on the three outstanding.  The work of the Accounts Governance Group had helped to oversee and support the preparation of the accounts at a strategic level.  The Chief Executive said that this approach was viewed as a good model in helping to raise ownership of the accounts and to fast-track any issues arising.

Councillor Glyn Banks asked whether a different financial arrangement could have been made alongside other councils to exit the Housing Revenue Account subsidy.  It was explained that all 11 stock-retaining councils in Wales had signed the voluntary agreement as a group which included a requirement to borrow from the Public Works Loan Board (PWLB) at pre agreed rates.  This was a complex agreement made in advance of the legislation, with all of the councils paying the same rate.  Councillor Banks referred to the loan period ending in three years’ time and asked whether an arrangement could be made at the end of the loan period to help cover the debt.  It was explained that the Council would need to make total pre-determined interest payments for the first five years of the agreement.  After the five year period ended, the best approach would be considered as part of wider Treasury Management activity with repayment and re-financing options being considered.  In response to a further question, the Finance Manager provided clarification on the beacon valuation technique used for council housing stock, valued at market value with an adjustment factor to reflect that properties would be owned in perpetuity for rent to social housing tenants.

On borrowing, Councillor Arnold Woolley asked if a ‘sinking fund’ could be considered and how the Council intended to repay borrowing and interest in the future.  He was advised that the Welsh Government anticipated that councils would acquire some debt to finance the provision of long-term capital assets each year, supported through revenue funding within the Settlement to service the cost of debt.  Borrowing was only undertaken to fund long-term capital assets.  The borrowing cost was spread over the life of the asset so to match the benefits of the use of the asset with the costs in future periods.  The central loans  ...  view the full minutes text for item 6