The Leader of the Council introduced a report by the Interim Director of Resources on the Statement of Accounts which presented the overall financial position of the Council at 31 March 2013, in accordance with prescribed guidance – the Code of Practice on Local Authority accounting in the United Kingdom (the Code).  This was updated annually and specified the accounting principles and practices required to prepare a Statement of Accounts which presented a true and fair view of the financial position.

The Council’s Constitution allocated responsibility for the approval of the Statement of Accounts to the Audit and Risk Management Committee (ARMC). Members were informed that the draft Statement for 2012/13 had been published on 28 June 2013 and had then been subject to audit. Grant Thornton, the Council’s External Auditors, had presented their findings, within the Audit Findings Report (AFR) to the ARMC at its meeting on 18 September 2013. The Statement of Accounts 2012/13 had then been published on 30 September 2013 – the statutory deadline for publication.

The Statement of Accounts included the Merseyside Pension Fund (MPF) accounts as Wirral Council was the Administering Authority for MPF. As the MPF received a separate AFR this had been considered by the Pensions Committee at its meeting on 16 September 2013 and the ARMC at its meeting on 18 September 2013, as part of the Accounts approving process.

The Cabinet noted that the amendments to the financial statements requested by the Auditor were detailed in the AFR. One item identified was not adjusted in 2012/13 but would be in 2013/14. This related to land at Bidston Moss valued at £1.2 million which was no longer owned by the Council. This was being adjusted in the 2013/14 Statement of Accounts as it had no impact on the level of financial resources available to the Council.

The financial position of the Council was, therefore, as reported to the Cabinet on 13 June 2013 and the year-end balances of £17.2 million which was in excess of the £13.6 million requirement and close to the target figure for General Fund balances of £17.7 million for 2014/15.

The Audit Opinion had been issued on 30 September 2012. This had assured that the financial statements gave a true and fair view of the financial position of the Council at 31 March 2013 and of its expenditure and income for the year and that they had been properly prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2012/13.

Besides commenting on the Financial Statements, Grant Thornton had also reported on ‘Matters by exception’. The Cabinet noted that Grant Thornton had reported an adverse conclusion on the Councils’ arrangements for securing economy, efficiency and effectiveness in the use of resources for the year ended 31 March 2013.

The Financial Resilience Report expanded on these issues and whilst there had been an adverse (red) rating Grant Thornton had recognised the progress made by the Council during 2012/13 with the direction of travel being rated as ‘amber’. Members were asked to bear in mind that the conclusion was based on the arrangements that were in place throughout the full year.

The Annual Governance Statement (AGS) was the subject of a separate report on the Cabinet’s agenda and, although not required to be included in the Statement of Accounts, had been included as it showed how the Council had ensured the effectiveness of its systems for ensuring that it operated legally and that public money was properly used and accounted for. The agreed AGS had been included within the Statement of Accounts published on 30 September 2013.

RESOLVED: That

(1)  the Statement Of Accounts 2012/13 and the Audit Report issued by Grant Thornton be noted; and

(2)  progress on delivering the actions identified in the Audit Findings Report be monitored by the Audit and Risk Management Committee.