Frequently Asked Questions|

10 Most Frequently Asked Questions

These Frequently Asked Questions have been assembled to provide the reader of Dover District Council’s Accounts with further explanation and guidance.

1. Why are the accounts produced?

The main purpose of a local authority’s accounts is to provide electors, residents, those who use the Council’s services, Councillors, employees and other interested parties with information about the authority’s finances. They should provide information on issues such as:

• What did services cost in the year of the accounts?
• Where did the money come from?
• What were the authority’s assets and liabilities at the year end?

2. The accounts appear to be very complex. Can’t they be simplified?

Every effort is made to use plain language, and the explanatory forward to the accounts is intended to give the reader a simple explanation of the more significant features of the accounts.

However, the accounts have to comply with local government legislation and regulations, general accounting practice and the “Statement of Recommended Practice” which ensures consistency between local authorities.

Compliance with all these requirements can make the accounts complex. Therefore the Council also produces:

• An “Outturn Report” – this is produced at the same time as the accounts and provides an easy to read narrative of the more significant issues.
• Summarised Accounts – these provide a simple, short summary of the accounts. They are included in the Council’s Annual Report and also the Council’s web site.

3. Why is there a separate “Housing Revenue Account”

All local authorities that manage their own housing have to set up a Housing Revenue Account (or “HRA”).

The HRA is a “ringfenced” account. The purpose is to ensure that the income from housing rents, and the expenditure required to maintain the housing, and the subsidy that the Council has to pay the government from the housing rents, are all kept completely separate from the income and expenditure on other services which are financed from the Council Tax and Revenue Support Grant from government.

4. What is the connection between the accounts and the budget?

Although they may appear to be completely separate, the accounts and the budget complement each other and are both parts of a continuous process of financial management and control.

These links are demonstrated by the fact that the accounts include a brief comparison with performance against the budget, and they are also taken into account when the Council begins to prepare the next budget.

5. Who prepares the accounts?

The accounts are prepared by the Council’s own staff working in the Finance and ICT Division.

6. When are the accounts prepared?

Accounts are produced annually. The financial year (for all local authorities) runs from April to March. The draft accounts are then published by the end of June, and the final, audited accounts are published by the end of September.

7. What checks are made to ensure the accounts are correct?

The draft accounts presented to Governance Committee at the end of June are prepared by trained, qualified staff. However, at this point they will not have been subject to independent checks to assure the reader of their accuracy.

The checks and challenges to the draft accounts are:

• Governance Committee – The Governance Committee comprises Councillors who are not members of the Cabinet. The Governance Committee’s role includes approval of the accounts. It acts independently to assure itself that the accounts have been produced on a proper basis.
• Audit Commission – The Audit Commission appoint independent qualified auditors to audit the accounts. They review the accounts themselves and also the Council’s procedures and systems for producing the accounts and controlling its finances. If they are satisfied they issue an “unqualified opinion” of the accounts.

In addition, the Council’s Internal Audit team operate throughout the year checking and testing the systems and processes upon which the Council relies in order to produce the accounts. The Internal Audit team are Council employees, but their task is to act independently of the rest of the Council and their work provides part of the assurance required by the Governance Committee.

8. How do I know if the audit of the accounts found any problems?

In September the Governance Committee receive:

• The final accounts, including the auditors certificate and an explanation of any changes made since the draft accounts were published in June.
• An “Annual Governance Report” from the auditors setting out any matters of concern.

An advert is also placed in local newspapers advising the public of the conclusion of the audit.

9. Do I have the opportunity to look at the accounts?

Yes. Every year an advert is placed in local papers notifying people of the period during which thay can inspect the accounts. This year the period is from 9 th July 2008 to 6 th August 2008. At the end of that period there is a day when the auditor will be available in case members of the public wish to ask questions or raise an issue. This year that day is 7 th August 2008.

10. What happens if I think there is something wrong with the accounts?

Members of the public can object to the accounts. This is explained in more detail in a booklet published in July 2006 by the Audit Commission called “Councils’ Accounts Your rights : England”. Copies can be obtained from the Audit Commission – their website is www.audit-commission.gov.uk.

Were these notes helpful?

If you have any comments on the accounts, the summary of accounts, these FAQs, or some questions of your own please write to :

Helen Lamb,
Finance and ICT Division,
Dover District Council,
White Cliffs Business Park, Dover,
Kent, CT16 3PJ

Or e-mail finance@dover.gov.uk