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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 27/06/2006
DRAFT STATEMENT OF ACCOUNTS 2005/2006



Summary & Purpose
The purpose of this report is for the Executive to approve the Draft Statement of Accounts for the year ended 31 March 2006.

APPENDIX D

WAVERLEY BOROUGH COUNCIL

EXECUTIVE – 27th JUNE 2006

Title:

DRAFT STATEMENT OF ACCOUNTS 2005/2006

[Wards Affected: N/A]

Summary and Purpose

The purpose of this report is for the Executive to approve the Draft Statement of Accounts for the year ended 31 March 2006.
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Environmental implications:

There are no direct environmental implications arising from this report.

Social/community implications:

There are no direct social/community implications arising from this report.

E-Government implications:

The Statement of Accounts for the year ended 31st March 2006 will be published on Waverley’s website following the completion of the audit.

Resource and legal implications:

There are no direct resource implications resulting from the 2005/2006 Statement of Accounts. However, the Capital and Revenue Outturn Reports for 2005/2006 which are reported elsewhere on the agenda set out the impact of the actual expenditure and income in the year on Waverley’s balances.
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Introduction

1. The Accounts and Audit Regulations set out the requirements for the production and publication of the annual Statement of Accounts. These Regulations, as revised in 2003, incorporate a requirement for the Draft Statement of Accounts to be approved by a resolution of a committee of the relevant body by the 30th June.

2. The Director of Finance retains responsibility for the preparation of the Statement of Accounts and is required to certify their fair presentation. The Members’ role in approval is to demonstrate their ownership of the Statement of Accounts and their confidence in both the responsible financial officer and the process by which the accounting records are maintained and the Statement of Accounts prepared.


Draft Statement of Accounts

3. The Draft Statement of Accounts for 2005/2006 is attached at Annexe 1. The outturn position will be incorporated in the Medium Term Financial Strategy checkpoint report to the July meeting of the Executive.

4. The audit of the Council’s accounts for 2005/2006 by the Audit Commission is due to commence in August and therefore the Draft Statement of Accounts is prepared on a subject to audit basis. If any material amendment to the Draft Statement of Accounts is required, this will be reported to Members as soon as possible.

5. The Outturn reports, included on this agenda, provide a detailed analysis of the actual position against the budgets for 2005/2006. The Foreword to the Accounts included in Annexe 1 highlights the key issues and shows the headline figures.

6. The notes to the various financial statements are intended to help Members to understand and interpret the financial position at the year-end. In summary, Waverley has finished the year in an improved financial position, managing spending within budget on all of Waverley’s main accounts and maintaining balances above the levels agreed in the Financial Strategy. Reserves are at a prudent level and slightly ahead of projections. Cash-flow has been managed effectively during the year and the overall amount of cash investments at the end of the year is up on the previous year by 4million.

7. Turning to the balance sheet, Waverley’s Housing Assets were subject to their 5-yearly comprehensive revaluation by the District Valuer which brought the values in line with current market factors, resulting in a reduction in book value overall.

8. The interim actuarial valuation on Waverley’s pension scheme continues to show a significant deficit, up on 2004/2005’s balance to 27million.

Recommendation

It is recommended that the Draft Statement of Accounts for the financial year ended 31st March 2006 be recommended to the Council for approval.
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Background Papers (DoF)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.
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CONTACT OFFICER:

Name: Graeme Clark Telephone: 01483 523236
E-mail: grclark@waverley.gov.uk


Comms/exec/2006-07/060