Purpose of Report
1. To update
councillors on progress being made towards the completion of the
2021/22 statement of accounts, and to present revised statements of
accounting policies for approval.
Strategic Objectives
2. Managing
the finances of the authorities effectively will help to ensure
that resources are available to deliver their services and meet the
councils’ strategic objectives.
Background
3. The
statement of accounts for both councils for 2021/22 are required to
be completed and signed off for audit by the head of finance by 31
July and audited accounts are to be approved by this committee for
publication by 30 November. This report brings to the
attention of the committee some of the key issues for this
year’s closedown.
4. The
statutory deadlines for approving draft accounts, and completion of
the external audit introduced for the 2017/18 Year End close proved
to be extremely challenging for both councils and audit firms.
Nationally for the 2020/21 Year End only nine per cent of councils
met the 30 September 2021 deadline. For the 2021/22 accounts
this deadline has now been extended to 30 November.
5. The CIPFA
Code of Practice on Local Authority Accounting in the United
Kingdom (the Code) changes for 2021/22 are considered minor and
there are no accounting policies which require amendment as a
result of changes in the Code. The accounting policies applied in
the preparation of the 2020/21 Statement of Accounts remain
appropriate for the preparation of 2021/22 Statement of
Accounts. These are shown in Appendix 1 (South Oxfordshire
DC) and Appendix 2 (Vale of White Horse DC).
6. CIPFA
issued an exceptional consultation on 3 February 2022 on two time
limited changes to the Code to help alleviate delays to the
publication of audited financial statements. These were an
adaptation to allow local authorities to pause professional
valuations for operational property, plant and equipment for a
period of up to two years, and a delay in the implementation of the
new IFRS 16 standard for Leases to the 2023/24 Code.
7. Both
councils responded to the consultation, and the response to the
consultation (which was the same for both councils) is attached at
Appendix 3. Until the outcome of the consultation is known, we will
continue to prepare for the accounts on the basis of the 2021/22
Code as it currently stands. Policies will be reviewed and
amendments proposed, if necessary.
Preparations for financial year
end
8. The
strategic finance department has a challenging timetable in place
which aims for completion of both councils’ financial
statements by 30 June 2022, one month ahead of the deadline. This
will ensure that the production of financial statements will not
overlap with the 2023/24 budget setting process which will start in
the early summer of 2021.
9. The
strategic finance department is now at full establishment. Training
has also been undertaken during the year on complex areas such as
collection fund accounting to improve understanding and aid timely
completion of the statements.
10. Most information required for the
completion of the statements comes from internal sources.
Other key information is required from Capita to prepare the
collection fund, Oxfordshire County Council for the pension fund
valuation data, and from councils’ property valuers Lambert
Smith Hampton
Climate and Ecological Impact Implications
11. There are no direct implications
arising from this report.
Financial Implications
12. There are no direct financial
implications arising from this report.
Legal Implications
13. Approval of the amended statement of
accounts by the committee fulfils the requirements of the Accounts
and Audit (England) Regulations 2015.
Risks
14.
None.
Other Implications
15. None
Conclusion
16.The
2021/22 final accounts are being prepared in accordance with the
statutory guidelines with a target completion date of 30 June 2022
for the draft and 30 November for the audited accounts.
17. Draft 2021/22 accounting policies
are attached and require approval by the committee.
