The Graduate Accounting Trainee presented the report and provided members with an overview of the accounts and noted the following changes from the previous year:

-       A decrease in employees expenditure, although similar running costs had been recorded

-       An increase in expenditure on capital projects

-       Total income of £724,000, of which £674,000 were from fees

-       An increase in sundry debtors due to income due from IdVerde

-       An increase in interest on the Common Fund Balance

-       The addition of the new beams had led to a revised property valuation of £1.466m this has also revised future depreciation charges in 2022-23 estimates

-       Employee  costs were similar to the previous year

In response to member questions, the graduate accounting trainee advised that the loan repayment was in relation to a loan taken out with both Merton and Sutton Councils by the Board. This was taken out approximately 7 years prior to set out a new section of the Cemetery, however the land was contaminated due to rubbish within the ground

The Treasurer to the Board advised that in previous years Merton had sent accounts for formal sign-off by external audit, however it had been noted that Bandon Hill Cemetery Board in Sutton/Croydon had used internal audit to sign-off their accounts. The Audit Service is currently a joint service which covers Sutton and Merton and there had been issues with the external audit from Internal Audit signing off the accounts. It was therefore recommended within the report that the accounts were signed off internally by internal audit, in line with the practice at Sutton. A wet signature was still required by the Chair who would be signing the accounts at this minute. External Audit had been informed of the proposed change.

In response to further questions, the Treasurer to the Board advised that consultancy costs were held each year in the event that these were required however they were not always used.

The graduate accounting trainee gave an overview of the risk register, noting that whilst the risk register had listed a potential risk of reduced income due to the pandemic, the income had in fact increased during 2021/22 as the installation of the new beams had increased capacity. The graduate accounting trainee gave an overview of the risks and mitigations being put in place as outlined within the register.

In response to further questions, officers advised that Merton officers attend weekly meetings with IdVerde alongside monthly contract monitoring meetings.

Councillor Williscroft raised concern around the condition of the toilets and the Treasurer to the Board advised that there were no works scheduled for the upcoming year and therefore there were no funds budgeted for this work. Members agreed that they wanted to set aside up to £100,000 within the budget to allow for potential works and improvements, once assessments had been undertaken of the work required. It was noted that £30,000 had been spent on the toilets in 2017 and Planning permission had been previously agreed in 2014 for a new building but this had never been progressed further and the design of the building was based on in-house service provision. 

RESOLVED:

A. That the Board received and approved the Draft Abstract of Accounts for 2021-22

B. That the Board approved the use of Merton’s Internal Audit to formally sign off the Board’s Accounts for this and future financial years

C. That the Board approved the Annual Audit Return for 2021-22 (Appendix E), if required

D. That the Board approved the revised revenue estimates for 2022/23 in Appendix I

E. That the Board Reviewed and Agreed the Risk Register as at June 2022 in Appendix J.

F. That the Board agreed to amend the 2022/23 budget to include up to £100,000 for works required to the toilets on site (Appendix I)