Issue - meetings

Financial Statements 2019/20 Accounting Policy

Meeting: 12/03/2020 - Governance and Audit Committee (Item 46)

46 Financial Statements 2019/20 Accounting Policies pdf icon PDF 91 KB

To review and agree the Accounting Policies for inclusion in the Financial Statements 2019/20 (report of the Executive Director Commercialisation (S106) enclosed).

 

Additional documents:

Minutes:

Consideration was given to the report of the Executive Director Commercialisation (S151) which asked the Committee to review and agree the Accounting Policies for inclusion in the Financial Statement 2019/20.

 

Within the Financial Statements, the Council disclosed the accounting policies it had applied to all material balances and transactions.  Unless there were major changes to accounting rules and regulations, accounting policies did not change significantly between years, which enabled the Statements to be comparable from one year to the next.

 

The report presented the proposed accounting policies to be adopted for the 2019/20 financial year.  The policies were prepared in line with CIPFA’s Code of Practice on Local Authority Accounting 2019/20 (the Code).

 

It was good practice to consider and agree the accounting policies in advance of the production and approval of the draft accounts, and the report formed an  annual review by the Governance and Audit Committee.

 

The majority of the accounting policies detailed within Appendix A to the report had not changed from 2018/19, the only change being:

 

·         Note 15. Investment Property – updated to clarify that assets were only moved into or out of the Investment Property classifications when there was evidence of a change of use.

 

Members considered the report, and the following issues were raised:

 

·         Was the Authority in a position to react quickly, due to the current period of volatility.

o   The Strategic Finance and Compliance Manager advised that the Authority had no investments in stocks and shares, all were cash investments with some liquid deposits, and a spread of investments.

 

·         Did the Authority have sufficient resilience if there was a drop in interest rates?

o   The Strategic Finance and Compliance Manager advised that profiling of this scenario was being undertaken, and that mitigation would be to look to lend money to other authorities, as this provided a better rate of interest.

 

·         Members asked if the accounting policy was produced every year and officers responded that it was, and this year with only a small change.  It was requested that, in future years, if there was only a small change, that this be identified. 

 

AGREED:

 

That the Accounting Policies for 2019/20, attached as Appendix A to the report, be agreed.