Issue - meetings

Draft Statement of Accounts 2021/22

Meeting: 27/07/2022 - Governance and Audit Committee (Item 19)

19 Draft Statement of Accounts 2021/22 pdf icon PDF 96 KB

Additional documents:


(a)       That the draft Statement of Accounts 2021/22 (which includes the Annual Governance Statement) be noted; and


(b)       That Members note the opportunity to discuss any aspect of the draft Statement of Accounts with officers or Audit Wales from July to August, prior to the final audited version being brought back to the Committee for final approval in November 2022.


The Corporate Finance Manager and Strategic Finance Manager presented the Draft Statement of Accounts 2021/22 (subject to audit) for information only at this stage.  These comprised the Group accounts and its wholly owned subsidiaries, along with the Annual Governance Statement as reviewed at the previous meeting.  There would again be an open consultation period during the Summer for Members to raise any aspect of the accounts with officers prior to the Committee receiving the final audited version for approval.


A joint presentation covered the following:


·         Purpose and Background of the Accounts

·         Contents and Overview

·         Responsibility for the Accounts

·         Links to Budget Monitoring

·         Changes to the Statement of Accounts for 2021/22

·         Key Issues and Impacts

·         COVID-19 Emergency Grant Funding

·         Headlines - Council Fund (Revenue), Revenue Reserves, Significant Movements, Capital and Housing Revenue Account (HRA)

·         Accounts Governance Group

·         Timeline and Next Steps


It was confirmed that the draft accounts had been completed and submitted within the deadline which had been extended by Welsh Government (WG) in recognition of the impact of the pandemic.  The deadline for submitting the final audited accounts had been extended to 30 November 2022.


Mike Whiteley highlighted a potential risk in the capacity of Audit Wales to meet the Committee’s deadline to approve the final audited accounts at its meeting on 28 September 2022.  Given the extended framework set by WG and the outstanding guidance on asset valuations awaited from the Chartered Institute of Public Finance and Accountancy (CIPFA), he sought the Committee’s view on the final accounts being submitted for approval at the November meeting or that date being brought forward to enable the accounts to be signed off by the Auditor General for Wales within the revised deadline.


When asked by Councillor Glyn Banks about financial contributions to Theatr Clwyd, the Corporate Finance Manager advised that these formed part of Central & Corporate Financing elements of Revenue Budget Monitoring.  Following clarification by the Chief Officer (Governance) on reporting arrangements of external partner organisations, it was agreed that officers would review wording in the final accounts to clearly differentiate arrangements for Theatr Clwyd as opposed to NEW Homes and Newydd which were wholly owned subsidiaries of the Council.  Councillor Banks shared a note in which he suggested a brief explanation under the section on Associated Companies within the document.


In response to questions from Councillor Andrew Parkhurst on the increase in unearmarked reserves, the Corporate Finance Manager provided background on the base level of reserves maintained to protect against unforeseen circumstances, in addition to contingency reserves which were currently at a higher level than usual due to late notification of grants from WG.  He spoke about the importance of protecting reserves to deal with unknown impacts of pay awards and inflationary increases.  On comparing reserve levels with other councils, he referenced the published Audit Wales review of financial sustainability which included comparison of reserve levels across Wales.


In referring to the complexity of Hardship Grant Funding and the regional role of the Council during the pandemic, Councillor Paul  ...  view the full minutes text for item 19