To approve the accounting policies to be used during the 2014/15 closedown. 

43.1           The report of the Finance and Asset Management Group Manager, circulated at Pages No. 32-51, set out the main changes in accounting policies under the Code of Practice on Local Authority Accounting in the United Kingdom 2014/15.  The Committee was asked to approve the accounting policies to be used during the 2014/15 closedown.

43.2           Members were advised that the Council was required to produce an annual Statement of Accounts, prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2014/15.  The accounting policies governed the accounting treatment used to close the final accounts which the Committee was asked to approve each September.  A full list of the accounting policies was attached at Appendix 1 to the report, with the main changes highlighted in yellow, and outlined in the report at Page No. 33, Paragraph 2.0.  The changes were relatively minor for Tewkesbury Borough Council with the main impact being at County level.  Members were informed that there had been a slight amendment to the policy for depreciation on vehicles, plant, furniture and equipment, set out at Page No. 47, from 3-5 years to ‘percentage of the value of each class of assets in the Balance Sheet, as advised by a suitably qualified officer’ which effectively meant that they could be assessed on a case by case basis, rather than being restricted to 3-5 years.  An additional sentence had been added at Page No. 35 to provide clarification on the definition of cash: ‘cash is represented by cash in hand deposits with financial institutions repayable without penalty on notice of not more than 24 hours’.  This was simply to distinguish cash from cash equivalents.  With regard to the amendment at Page No. 36 in respect of post-employment benefits, Members were advised that, until the actuary report was received, it was not possible to confirm the rate at which liabilities would be discounted.  In order to make the accounts more ‘user-friendly’ some policies which were not relevant to Tewkesbury Borough Council had been removed e.g. foreign currency translation, borrowing and restructuring of debt plus acquisitions and discontinued operations.  The Chartered Institute for Public Finance and Accountancy (CIPFA) had already indicated the changes which would come into effect under the 2015/16 Code and it was noted that the main ones which would impact upon the Council were in relation to Heritage Assets and the International Financial Reporting Standards (IFRS) Fair Value Measurement.  Further explanation would be provided on those changes when the Statement of Accounts was considered by the Committee in September.

43.3           In response to a query regarding the markdown in respect of vehicles, plant, furniture and equipment, the Finance Manager advised that, rather than being a fixed percentage, consideration could be given to the lifetime of the asset, for example, a computer was likely to have a shorter life than grounds maintenance machinery.  A Member noted that the local government pension scheme was administered by Gloucestershire County Council and overseen by a County Pension Committee and he questioned whether there was Borough Council representation on that Committee.  The Finance and Asset Management Group Manager explained that Tewkesbury Borough Council was a member of the countywide pension scheme and he attended its AGM and was able to input via the Chief Finance Officer, however, there was no direct membership or oversight of the Committee.

43.4           It was

RESOLVED          That the accounting policies to be used during the 2014/15 closedown be APPOVED.