Decision details

The committee was asked to approve the county council's Statement of Accounts for 2012/13, as presented by Gill Kilpatrick, county treasurer and George Graham, deputy county treasurer.

Regulations governing the process and delegated authority from the county council required the chair of the committee to sign off the accounts once they were approved by the committee.

The committee was informed that the Statement of Accounts had been prepared in accordance with the Accounting Code of Practice issued by the Chartered Institute of Public Finance and Accountancy (CIPFA).

A number of accounting adjustments agreed with the external auditor and shown in their Audit Findings report at Item 6 of the agenda were reflected within the statement.

The committee was taken through the main components and key issues of the statement. This included the disclosure note on senior officers remuneration which had been amended from the draft accounts published on the 28 June 2013.

Lengthy discussion was had on the overall remuneration paid to the county council's former executive director, transformation/ chief executive officer of One Connect Ltd.  The county treasurer explained why it was necessary for the disclosure note to be amended in accordance with the Accounting Code of Practice and explained that the authorisation for these payments was currently under review.  It was confirmed that the executive director, transformation was an employee of the County Council and that his appointment, via a secondment from the County Council to the post of chief executive officer with OCL did not create a formal employer/employee relationship with either OCL or BT. The Council's External Auditor confirmed that in her view the amendment to the disclosure note was appropriate.

It was agreed that the committee would receive a report on the outcome of the review of the authorisation and governance of the remuneration payments at a future meeting.

Councillor Schofield queried whether the headings on the ‘Comparative year’ table on page 192 of the agenda papers should refer to the years 2011 and 2012. It was acknowledged that this was the case and it was agreed that the appropriate amendments would be made to the final Statement of Accounts

The Lancashire County Pension Fund accounts were also included with the accounts as well as a separate item on the agenda.

Resolved:  i)  That subject to minor amendments to the narrative on the page 192 of the agenda papers as now reported, the Lancashire County Council Statement of Accounts for 2012/13 be approved and signed by the chair of the committee.

  ii)  That a report on the authorisation and governance of the remuneration payments to the former executive director, transformation/ chief executive of One Connect Ltd be brought back to the Committee.