Agenda item

Dewi A Morgan (Statutory Finance Officer) and Sian Pugh (Host Authority Assistant Head of Finance) to present the report.

To accept and note the Ambition Board's Draft Statement of Accounts (subject to audit) for 2023/24.

The report was presented by the Statutory Finance Officer.

RESOLVED

To accept and note the Ambition Board's Draft Statement of Accounts (subject to audit) for 2023/24.

REASONS FOR THE DECISION

The Board is not statutorily required to approve the draft version of the Joint-Committee's Statement of Accounts, but we consider that presenting the draft statement for information to be good practice to be followed.

The Board will need to approve the final version following receipt of the Audit Wales report, and the submission of the draft now was an opportunity for Board members to consider the content and enquire the financial officers about the content. This was an opportunity for Members to equip themselves with relevant information to consider relevant risks, and other matters that would be subject to audit, in their context. ⁠

DISCUSSION

Members were reminded that the information presented in the report had already been shared in an alternative form at a board meeting on 17 May this year when considering the Ambition Board's Revenue and Capital Out-turn position for 2023/24, and Members were reminded of the decisions made. It was stressed that the information presented in this Report was consistent with that information. ⁠

It was explained that the Report presented technical issues relating to accounting conventions. Reference was made to the various sections of the Departments detailing on capital expenditure, fund balances and total grants received up to 31 March 2024. ⁠

It was confirmed that the value of the pension assets continued to exceed the value of the commitments. It was elaborated that there was a net asset position of £404,000 at the end of the financial year. This was recognised as a decrease from the previous year where the net asset position of pensions assets was £572,000. It was explained that there was a reduction this year as actuary prices used UK corporate bonds. It was noted that the yield of the corporate bonds has been high as a result of high interest and high inflation, resulting in higher accounting discount rates which placed a significantly lower value on the asset as a result of high interest and inflation of pension additions. The value of the asset on the balance sheet was confirmed and shown as £0 as directed by the actuary. ⁠ ⁠ ⁠ ⁠ ⁠

It was reported that the Statutory Finance Officer signed the Statement on 21 June 2024 and testified that he considered it had been prepared in accordance with the code of practice laid down by the CIPFA Code of Practice on Accounting for Local Authorities. It was believed that the statement presented a true and fair picture of the financial position of the Ambition Board as of 31 March 2024 as well as the income and expenditure of the Joint-Committee for the year that ended on that date. ⁠

It was stressed that the Statement was currently being reviewed by Audit Wales and the Ambition Board's external auditors. It was elaborated that the final accounts as well as the auditors' report would be submitted to the Joint-Committee during the autumn. ⁠

It was considered that the level of reserves had doubled in recent years to fund an interest income fund. It was explained that this money would be spent in the future if interest rates remain high and should the need to borrow arises as the grant monies received was not sufficient to meet the expenditure needs. It was noted that this fund would be used to fund those interest rates. Plans to spend the reserves in the coming years were highlighted, such as funding the employment of Portfolio Office officers. It was emphasised that officers were keeping a constant eye on the funds and the situation but the Board at this time was considered to be in a comfortable position. ⁠ ⁠ ⁠ ⁠

It was explained that the Joint-Committee was not statutorily required to approve the draft version of the accounts but submitting the draft Statement was considered to be good practice.