Top

Top

Agenda Item No. 7

 

The Vale of Glamorgan Council

 

Audit Committee: 21 November 2016

 

Report of the Managing Director

 

Welsh Church Act Estate Trust Accounts 2015/16 - Reporting to Those Charged with Governance

 

Purpose of the Report

  1. To present those charged with governance the unaudited Welsh Church Act Accounts 2015/16 as recommended by the Council's external auditors Wales Audit Office.

Recommendation

  1. That the unaudited Welsh Church Act Accounts 2015/16 are noted.

Reason for the Recommendation

  1. To ensure that the Members of the Audit Committee as those charged with governance have been notified of the Welsh Church Act Trust Accounts 2015/16.

Background

  1. The Charities (Accounts & Reports) Regulations 2008 require that the Annual Report and Accounts should be approved by the Trustees as a body in accordance with their normal administrative procedures.
  2. The accounts were reported to Welsh Church Act Trust Committee on 3rd October 2016 and it was recommended:

That the Annual Report and Accounts 2015/16, as set out at Appendix A to this report be approved, and that the Chairman be authorised to sign the same on behalf of trustees.

  1. The Council as managing trustee of the Welsh Church Act are responsible for the preparation of the accounts and therefore it has been recommended by Wales Audit Office that the unaudited accounts are reported to Audit Committee as those charged with governance.
  2. Given the level of income and assets of the Trust an independent examination of the accounts will be carried out by Wales Audit Office. The examination will need to be finalised and reported to the Charity Commission by the end of January 2017.

Relevant Issues and Options

  1. The Annual Report and Accounts for the year ended 31st March 2016 is set out at Appendix A to this report.
  2. There has been a new Charities Statement of Recommended Practice (SORP) introduced for the 2015/16 accounts which has changed the format and terminology used in the main statements. The new SORP also introduces the requirement for a cashflow statement. A policy on reserves has also been introduced for the 2015/16 accounts.
  3. The main features of the report when compared to the previous year, are as follows:

Statement of Financial Activities

 

There was a deficit of 17k which is an increase from a deficit of £5k in 2014/15. This is due to a reduction in investment (£6k) and rental income (£6k) in 2015/16 and a slight increase in grant making activity (£8k) in year. There was a reduction in expenditure on repairs and maintenance in 2015/16 of £8k.

 

Balance Sheet

 

There was a reduction in the value of Investment Properties following the sale of Southerndown £450k, and an increase in the value of Investments (£693k) mainly due to the investment of the proceeds from the sale of Southerndown.

The value of the fund at year end was £4.803M an increase of £225k on the previous year. This was mainly due to the profit made on the disposal of Southerndown £316k which was partly offset by the reduction in the value of investments £68k. The fund was also reduced by £17k for the deficit on the revenue account

Resource Implications (Financial and Employment)

  1. As stated in the body of the report.

Sustainability and Climate Change Implications

  1. None as a direct consequence of this report.

Legal Implications (to Include Human Rights Implications)

  1. This report is submitted in accordance with the statutory requirements of the Charities Acts' 1993 and 2011 and the Charities (Accounts and Reports) Regulations 2008.

Crime and Disorder Implications

  1. None as a direct consequence of this report.

Equal Opportunities Implications (to include Welsh Language issues)

  1. None as a direct consequence of this report.

Corporate/Service Objectives

  1. Reliable Financial Statements assist the Council in managing its assets more efficiently and thereby promotes the achievement of the Council's aims in respect of Community Leadership.

Policy Framework and Budget

  1. The proposals in this report are in accordance with the policy framework and budget.

Consultation (including Ward Member Consultation)

  1. None.

Relevant Scrutiny Committee

  1. Corporate Performance and Resources

Background Papers

Welsh Church Act Committee 3rd October 2016 Minute 403.

Contact Officer

Head of Finance & Section 151 Officer

Directorate of Resources

Officers Consulted

Engagement Lead - Wales Audit Office

Responsible Officer:

Rob Thomas - Managing Director

 

Share on facebook Like us on Facebook