# Executive Audited Accounts 2013/14 Item No:  5

## 

Report by: 
David Sanni Job title: 
Head of Financial Accounting Date: 
20 November 2014 David Sanni Contact Officer: Telephone: 
020 7934 9704 
Email: 
david.sanni@londoncouncils.gov.uk 

 
 
Summary This report details the changes to London Councils' statutory financial accounts arising from the external audit undertaken by PricewaterhouseCoopers (PwC) and compares the results to the preaudited position reported to the Executive at their meeting held on 9 September 2014.  
 

## Recommendations The Executive Are Asked:

- 
To note the changes between the pre-audited and audited 
financial outturn for 2013/14 for each of London Councils' three 
committees; and 
- 
To formally adopt each of the three statutory accounts attached at 
Appendices A to C. 

## Audited Accounts 2013/14 Introduction

1. At their meeting on 9 September 2014, the Executive were informed of the provisional pre–
audited consolidated financial outturn of London Councils for the year ended 31 March 2014. 
The external auditors, PwC have completed their work on the financial accounts and have issued unqualified opinions on all three accounts. This report summarises the differences identified between the pre audited and audited figures and provides members with a brief explanation of the changes. 
 
2. The Accounts and Audit Regulations, which govern the publication of the annual statutory 
accounts by local authorities, have been amended so that with effect from the 2010/11 financial year, there is no longer a statutory requirement for members to approve the preaudited statutory accounts by 30 June each year. Instead, member approval and sign off of the accounts will coincide with the presentation of the annual Audit Report by the external 
auditors by the statutory deadline of 30 September each year. London Councils' Audit 
Committee approved the audited statutory accounts at their meeting on 26 September 2014. 

## Audited Accounts

3. The audited statutory accounts are included at appendices A to C of this report. Table 1 
below gives a summary of the movements in the net surplus or deficit for the year (including the transfer to/from reserves) between the pre-audited and audited accounts for each of the 
three accounts.  

 
Table 1 - Movement in the Comprehensive Income and Expenditure Statement 
position between pre-audited and audited accounts 2013/14 Net Surplus.  
Accounts 
Pre-Audited (£000) 
Audited (£000) 
Difference (£000) 
Joint Committee 
(1,856) 
(1,857) 
(1) 
Grants Committee 
(223) 
(223) 
- 
TEC 
(1,369) 
(171) 
1,198 
Total 
(3,448) 
(2,251) 
1,197 

 4. The reason for the movements are as follows: 
- 
Joint Committee - an increase in the pre-audited surplus of £1,000 due to the 
correction of a rounding difference. 
 
- 
TEC - the decrease of £1.198 million in the pre-audited surplus is attributable to PwC's recommendation to include a liability in the TEC accounts in relation to the 
income received in connection with the POPLA contract up to 31 March 2014. 5. Table 2 below gives a summary of the movements in the balances (excluding the Pension 
and Accumulated Absences Reserves) as at 31 March 2014 between the pre-audited outturn 
and audited accounts for each of the three funding streams.  
 

Table 2 - Movement in balances between pre-audited and audited reserves 2013/14  
Accounts 
Pre-Audited (£000) 
Audited (£000) 
Difference (£000) 
Joint Committee 
6,051 
6,051 
- 
Grants Committee 
1,950 
1,950 
- 
TEC 
4,884 
3,686 
(1,198) 
Total 
12,885 
11,687 
(1,198) 

 6. The difference between the decrease in the revenue surplus and the decrease in reserves is 
due to the correction of the rounding difference. 

## Annual Governance Statement

7. London Councils was required to include an Annual Governance Statement (AGS) in its 
statutory accounts for the 2013/14 accounting period in order to meet the requirement of the 
Accounts and Audit Regulations (2011). The AGS was approved by London Councils Audit 
Committee at their meeting on 15 July 2014. PwC have completed their review of the AGS 
and concluded that it complies with the requirements of the regulation. 

## Financial Implications For London Councils The Financial Implications Are Incorporated Into The Report Legal Implications For London Councils None Equalities Implications For London Councils None

Appendices 
 
Appendix A -  Consolidated Statement of Accounts of London Councils Joint Committee for 
2013/14 
Appendix B -  Statement of Accounts of London Councils Grants Committee for 2013/14 
Appendix C -  Statement of Accounts of London Councils Transport and Environment 
Committee for 2013/14 
 
Background Papers 
 
Final Accounts working files 2013/14 
London Councils' Executive Report on Pre-Audited Final Accounts 2013/14 of 9 September 2014