Final accounts

Report: 11
Date: 20 September 2001
By: Treasurer

Summary

The report sets out proposed arrangements for approval of the Final Accounts for 2000/01.

A. Recommendations

1. That the Authority delegate approval of the Final Accounts for 2000/01 to the Finance Planning and Best Value Committee at its meeting on 4 October 2001.

B. Supporting information

2. The Accounts and Audit Regulations 1996 require local authorities to approve their Final Accounts for the year ending 31 March by the following 30 September, prior to the external auditor providing his opinion. These regulations apply to the Metropolitan Police accounts for the first time from 2000/01.

3. There are a number of unusual features in relation to the production of the MPA’s accounts for 2000/01, as follows:

• This is the first time that the Metropolitan Police accounts are being produced on a local government accruals basis, rather than the previous simpler cash basis.
• The accounts are for a nine month period rather than the usual twelve months.
• In the opening position the finances of the MPS have had to be separated from those of the Inner London Magistrates Courts Service (ILMCS) and the Inner London Probation Service (ILPS) which all came under the responsibility of the Receiver.
• The Authority is well aware of the current deficiency in terms of professional financial skills and capacity within the MPS.

4. It had been my intention to bring the Final Accounts for approval to this meeting of the Authority. However because of the peculiar difficulties relating to this opening year of the Authority it has not proved possible to have a set of statements of accounts, including accounting policies, revenue account and notes, balance sheet and notes, and other required statements, in a form that I was prepared to sign and recommend in time for circulation with the meeting’s agenda.

5. The Audit Panel will be receiving a draft statement of accounts on 19 September for detailed scrutiny. Their views would have been conveyed orally to the Authority the following day if my original plan had been achieved.

6. However, the Accounts and Audit Regulations allow for the final accounts to be approved by a committee on behalf of the Authority. I am therefore requesting the Authority to agree to delegate approval of the accounts for 2000/01 exceptionally to the Finance Planning and Best Value Committee which is meeting on 4 October 2001. I have discussed this arrangement with the District Auditor and, given the exceptional circumstances of the Authority’s first year, he has indicated that he is not minded to challenge the fact that the approval deadline has been missed by four days. The accounts will of course be publicly available as soon as they are circulated to the Committee members which will be before 30 September.

C. Financial implications

None.

D. Background papers

None.

E. Contact details

The author of this report is Peter Martin, MPA.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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