Issue - meetings

The Committee agreed the Statement of Accounts 2020/21 at its last meeting and agreed that the Chairman sign them, but also then sign any final version if there were only minor amendments. Small changes were eventually made to note 43, as set out below. The Committee is asked to note that the Chairman has signed the final version of the statement of accounts that includes the changes shown in bold italic type below:

Extract from Note 43 - Assumptions made about the future and other sources of estimation uncertainty

The external valuer instructed by the Council adopts various estimation techniques to arrive at their valuations. The Authority changed its valuer in 2020/21, and a different technique applied by the new valuer in relation to school assets has had a significant impact on the Council’s balance sheet. Bruton Knowles have applied a ‘Modern Equivalent Asset’ (MEA) approach, whereby for Depreciated Replacement Cost (DRC) valuations (such as for schools), the valuation is based on the cost to construct an asset with equivalent service potential rather than a like-for-like replacement of the existing structure which was the approach adopted in the prior year by the Council’s previous external valuer. Additionally, Bruton Knowles have distinguished between ‘developed’ and ‘undeveloped’ land in their school valuations, whereas the previous valuer adopted a ‘blended’ approach in the prior year.’

25.1     The Committee noted the minor amendment that had been made to the final version Statement of Accounts 2020/21 since they had agreed the accounts at the September meeting.

Report by the Director of Finance and Support Services.

The Committee is asked to approve the Statement of Accounts for 2020/21 for West Sussex County Council and the West Sussex Pension Fund, for signing by the Chairman of the Committee.

21.1     The Committee considered a report by the Director of Finance and Support Services (copy appended to the signed minutes).

21.2     Mrs Chuter, Financial Reporting Manager, introduced the report and explained that an updated copy of the County Council Financial Statements had been circulated following changes as part of the ongoing audit work (copy appended to the signed minutes).

21.3     Mrs Chuter explained the changes to the updated statements which included additional disclosures relating to the change in approach for school valuations on the balance sheet; and an additional contingent liability in relation to a breach of the Teachers’ Pension Regulations.

21.4     Mrs Chuter explained that the usual deadline for financial statements was July, but following the Redmond Review there was temporary two year revision of the deadline to September.  It was confirmed that risk registers for the statements continued to be reviewed during the course of the audit.

21.5     The Committee made comments including those that follow.

•    Thanked the officers and the auditors for their work on the statements and the audit, particularly under the difficult circumstances as a result of the Covid-19 pandemic and changing guidance.

•    Commented on the assumptions and estimates made for the statements and how they were presented in the reports.  – Mrs Thompson felt that the County Council assumptions and judgements were comprehensively outlined within the statement and were of a high quality when compared to other council’s statements.

•    Queried the considered exposure for the changes for contingent liabilities and if this could be a material risk.  – Mrs Chuter explained that this was in the hands of the Teachers’ Pension and that the work had not begun yet.  Mr Mathers added that the included disclosure was correct based on the level of work progression.

•    Asked if the Committee would be able to approve the statements, given that there were elements of work outstanding.  – Mrs Chuter explained that the statements would be agreed in their current state, subject to any further changes.  The Committee could delegate authority to the Chairman for final approval if changes were minor in nature.  If changes were major an urgent meeting of the Committee would be convened.  The Chairman confirmed that details of any changes would be communicated to the Committee.  The Committee agreed to delegate final approval to the Chairman, subject to any minor changes.

21.6     Resolved – That the Committee approves the Statement of Accounts for 2020/21 for West Sussex County Council and the West Sussex Pension Fund, for signing by the Chairman of the Committee.  The Committee also agrees to delegate final approval to the Chairman following completion of outstanding elements of the statements, subject to the changes being minor.