Agenda item

Paul Brack, Strategic Finance Manager, introduced the item and highlighted that it presented draft revised accounting policies for review and approval by the LGA and Company Boards to comply with the new FRS102 reporting standards.

Approval was also sought for one change in accounting policy to present a true and fair view of the LGA’s consolidated accounts. Public Sector Audit Appointments Ltd (PSAA) was owned by the IDeA, but it was recommended that it not be included in the consolidated accounts as it would add an extra £82m in income and expenditure which would give a false impression of the organisation as a whole. The LGA did not control PSAA, and PKF Littlejohn were also unable to audit the organisation, as they were a supplier to PSAA.

In response to a question it was confirmed that the internal auditors had concluded that PSAA was an independent organisation and acted independently of the LGA, therefore there was no subsidiary relationship and PSAA accounts should not be included in the LGA’s consolidated accounts. PSAA had appointed their own Directors, and their Memorandum of Understanding set out how their money should be spent. The relationship would be reviewed each year to make sure no changes had taken place.

Decision

The IDeA Company Board approved the amended accounting policies for the Improvement and Development Agency.

Action

Strategic Finance Manager to reflect the revised accounting policies in producing the 2015/16 Statutory Accounts. (Paul Brack)