Issue - meetings

Members considered a report reviewing accounting policies, actuary assumptions and materiality levels that would be used for the preparation of the 2019/20 accounts. 

The main points were highlighted:

·         There had been no major changes from 2018/19 to the accounting policies;

·         There had been several changes to the CIPFA Code of Practice:

o   An explanation of code approach;

o   An update to reflect 2018 International Accounting Standards Board Conceptual Framework Module 2 Section A;

o   Closure of Carbon Reduction Commitment Scheme;

o   Apprenticeship Levy – payments received in the Council’s digital apprenticeship service account were considered to be a government grant for accounting purposes;

o   Prepayment features with negative compensation;

o   Lender option borrower option clauses;

o   Group accounts scope clarification.

WLDC were fully compliant with all of these changes;

·         There was a significant accounting change in 2020/2021 relating to leases, which must be accounted for on the Council balance sheet;

·         The tri-ennial valuation would be concluded on 31 March 2020; the previous report was from 2016, so it was anticipated there would be a sizeable change in the asset and liability measurement this year for the Statement of Accounts;

·         There were no known proposals that the Authority were taking forward which would impact on the actuary assumptions;

·         An adjustment had been requested for the McCloud judgement; in December 2018, the Court of Appeal held the transitional protection offered to members of public sector pension schemes who were closer to retirement age gave rise to unlawful discrimination, as younger members were not eligible to receive it. This is known as the ‘McCloud Judgment’.

The pensions liability would need to be increased; two reports had been requested, with one being based on estimates to the end of April 2020 to allow the Finance team to shut the accounts within the statutory deadline, with the other report produced at the end of May 2020;

·         External Audit had set the materiality level (the level at which a discrepancy or omission had occurred for example) at £850,000; WLDC set their own materiality level at a different level.  The triviality level was set at £26,000;

·         The 2019/2020 Closedown Risk Register contained two medium risks and one high risk (Brexit);

·         A restatement of the accounts from 2018/19 had been required due to the omission of a correct valuation for the Guildhall, which led to an overstatement of the total expenditure in the Comprehensive Income and Expenditure Statement.  As a further consequence the surplus on the Provision of Services was understated.

A full review of all of the Authority’s land and buildings had been carried out, and the valuers were happy with the restatement.

Members then asked questions of officers present and also provided comment.  Further information was provided:

·         Brexit and now Covid-19 were having an effect on the economy; the situation with Brexit would take several years, whereas it was hoped that Covid-19 would be short term;

·         Elements of accounting variations were carried out on a ‘direct replacement cost’.  The cost of  ...  view the full minutes text for item 46