SUMMARY/PURPOSE

1. This report is to formally notify the Committee of material amendments made to the Council’s statement of accounts subsequent to their approval by the Council at the meeting held on 29 July 2005, as required by the Accounts and Audit Regulations 2003.

BACKGROUND

2. Regulation 18(4) of the Accounts and Audit Regulations 2003 states ‘If as a result of the auditor’s report any material amendment is required to the statement of accounts, the responsible financial officer shall report such amendment to the relevant body or the committee of that body which approved the accounts as soon as reasonably practicable.’

3. At the meeting of this Committee on 25 October 2005, the Audit Commission report on the 2004/05 Financial Statements identified in paragraph 8 that capital expenditure totalling £5,021,448 had been charged directly to the Fixed Asset Restatement Account, as a result of which correcting entries had to be made to charge £3,506,239 to Fixed Assets accounts and the remaining £1,515,209 to Service Revenue accounts. Following a brief explanation of the nature of the adjustments, it was noted that they related to the presentation of figures in the accounts, and that there was no impact on the Council’s net revenue account, capital resources or Council Tax requirement.

4. Following discussion with the Council’s external auditor, he has agreed that despite the fact it was the Council which approved the accounts in July 2005, it is appropriate that this report should be made to the Audit Committee.

OUTCOME OF CONSULTATIONS

5. No consultation process undertaken.

FINANCIAL IMPLICATIONS

6. There are no significant financial implications arising from this report.

LEGAL IMPLICATIONS

7. The report is necessary to comply fully with the requirements of Regulation 18(4) of the Accounts and Audit Regulations 2003.

OPTIONS

1. The Committee is asked to note that material adjustments were made to the accounts, as advised in paragraph 8 the Audit Commission report on the 2004/05 Financial Statements which was presented to the Committee on 25 October 2005. The adjustments are a matter of record and no further action is necessary.

RECOMMENDATIONS

8. Option 1 – to note that material adjustments were made to the accounts.

BACKGROUND PAPERS

9. Account and Audit Regulations 2003

Letter from the Audit Commission November 2005

ADDITIONAL INFORMATION

10. None

APPENDICES ATTACHED

11. None

Contact Point : Stuart Fraser, ( 823657, email: [email protected]

PAUL WILKINSON

Assistant Chief Executive and Chief Financial Officer