Agenda item

To receive the Statutory Statement of Accounts (pre-audit draft) for information

To accept and note the Statement of the Council’s Accounts (subject to audit) for 2020/21

The Cabinet Member for Finance took the opportunity to thank all staff at the Finance Department for their commitment to ensure that the Council's (draft) Accounts Statement had been submitted to Audit Wales, namely the external auditors, before the statutory date (31 May 2021). The Head of the Finance Department reiterated his gratitude to the staff for completing the work while responding to a new challenging statutory timetable amidst the Covid-19 crisis. The IT Service was also thanked for enabling working from home developments. He noted that he had already certified the draft accounts and that it would be good practice to share the accounts with Members to give them an opportunity to question / make observations. The final accounts would be submitted to the Committee for approval on 14/10/21.

In terms of the Main Statements and Notes, it was explained that the Statement had been completed in CIPFA standard form. It appeared clumsy and technically complex and it was highlighted that the pension figures tended to skew the figures. Reference was made to information in Note 38 in order to better understand the situation. The Head of Finance noted that he, along with other Treasurers across the UK, were holding discussions with CIPFA to try to persuade them to abolish the pension figures, which led to a misapprehension of some aspects in the Statement.

The Senior Finance Manager added that six sets of accounts had been completed but it was not possible for them to be audited and approved until the autumn term, as there was a need to ensure that public rights were implemented. Reference was made to the Narrative Report that provided information about the Accounts and on the vision and priorities of Gwynedd, the Financial Strategy and the financial performance measures. Members were guided through the report and details were provided on some elements:

·         Movement in Reserves Statement (page 22 of the agenda), which summarised the Council's financial position for 2020/21 - attention was drawn to the additional information columns:

-        column 1: the Council's general balances had increased by £1.8 million during the year, £7.5 million at the end of March 2020 to £9.4 million by the end of March 2021

-        column 2: referred to an increase of £20 million during the year in reserves, £59 million at the end of March 2020 to £79 million by the end of March 2021

-        column 3 - School balances - an increase of £6.4 million from £4.3 million at the end of March 2020 to £10.8 million by the end of March 2021.

It was highlighted that the main reasons for the increase was the receipt of various substantial grants.

·         New arrangements for this year, jointly with other Councils, related to Covid (page 94), including the Test, Trace and Protect Programme.

Members were reminded that the (draft) accounts were subject to an Audit and a report from the External Auditors (Audit Wales), along with final accounts, would be submitted to the Committee for approval on 14/10/21.

    Gratitude was expressed for the report.

In response to a question regarding the receipt of grants towards specific purposes, which had resulted in a changed position, the Head of Finance Department noted that  some of the grants were for a specific purpose but that many grants did not have a specific purpose and, as a result, had been put aside in the Council's Transformation Fund and the Covid Recovery Fund. There would be an opportunity, in accordance with the usual procedure, to submit applications for the funding.

RESOLVED

To accept and note the Statement of the Council’s Accounts (subject to audit) for 2020 / 21