Financial Information FAQs
Why are the accounts produced?
The main purpose 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 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?
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.
Why is there a separate 'Housing Revenue Account'
All local authorities that manage their own housing have to set up a Housing Revenue Account (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 we have to pay the government from the housing rents, are all kept completely separate from the income and expenditure on other services that are financed from the Council Tax and Revenue Support Grant from government.
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 we begin to prepare the next budget.
Who prepares the accounts?
The accounts are prepared by our own staff working in the Accounts team.
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 May, and the final, audited accounts are published on completion of the audit process.
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.
- External Audit - External Audit (currently Grant Thornton UK LLP) appoint independent qualified auditors to audit the accounts. They review the accounts themselves and also our procedures and systems for producing the accounts and controlling our finances. If they are satisfied they issue an “unqualified opinion” of the accounts.
In addition, our Internal Audit team operate throughout the year, checking and testing the systems and processes upon which we rely 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.
How do I know if the audit of the accounts found any problems?
On completion of the external audit process 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 'Audit Findings Report' from the auditors setting out any matters of concern.
A notice is placed on the website advising the public of the conclusion of the audit
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 by the ational Audit Office called Local authority accounts: A guide to your rights.
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 email finance@dover.go.uk.