Issue - meetings

(a)       That the final version of the Statement of Accounts 2012/13 be recommended to County Council, noting that the Committee support the management decision not to adjust the uncorrected understatement of £899K;

(b)       That the reports from the Wales Audit Office be noted;

(c)        That the Letter of Representation - Flintshire County Council and Letter of Representation - Clwyd Pension Fund be recommended to County Council; and

(d)       That the Committee note the reassurance for further work to be undertaken on asset management.

The Head of Finance introduced the Statement of Accounts for 2012/13, together with the Wales Audit Office (WAO) reports in connection with the audit of the financial statements and Letters of Representation for Flintshire County Council and Clwyd Pension Fund.

Since the draft version of the accounts had been presented to the Committee in July 2013, drop-in sessions were arranged for all Members in September 2013 to answer any queries from Members.  There was a statutory duty for the accounts to be considered and approved before the end of the month deadline, during which time the audit officially continued for post balance sheet events and the like, but had now been substantially completed.  The Head of Finance said that in collating the accounts in a prescribed format from across an organisation such as this, it was inevitable that issues would be raised.  It was also important to remember that the document related to the accounting treatment and classification of assets and liabilities within the accounts.  She advised that the final accounts included changes agreed by WAO during the course of the audit and that these had been discussed with officers with appropriate actions put in place to amend processes where necessary.  The liquidation of AD Waste which had been finalised over the last fortnight had resulted in complex accounting entries being made to bring the assets and liabilities from that company fully into Flintshire’s balance sheet in line with accounting policies.  She thanked the officer team for their work in preparing the accounts within the deadline and invited WAO colleagues to present their findings.

Audit of Financial Statements Report for Flintshire County Council 2012/13

Mr. J. Herniman of WAO spoke of the complex task and time dedicated to producing local government accounts, including some areas requiring technical discussion on the treatment of issues within the accounts and inevitable adjustments which were normal practice.  He advised of the intention to issue an unqualified (clean) opinion on the financial statements.  Whilst reporting on the corrected misstatements identified, which had been agreed with management, he advised that the issue with balancing entries in the accounts had been resolved.

Mr. P. Williams asked why the prior period adjustment of £12.752m on non current assets had not been recognised previously.  Mr. Herniman explained that this had been identified through a sample check in the audit where the issue had been incorrectly treated in the accounts for 2011/12 and 2012/13.  Mr. Williams referred to the £13.8m adjustment for non-enhancing capital expenditure and the impact on depreciation which would require regular review of assets to ensure there was no repeat.

The Chief Executive advised Members on the outcome of the final liquidation of the assets and liabilities of AD Waste which had fallen late in the accounting period due to the legal process.  The changes were a reflection of fact on liquidation and had not occurred due to any new decision by the Council on the close of the company; liquidation was simply a closing legal process.  ...  view the full minutes text for item 37