Issue - meetings

To receive a report from the Deputy Chief Executive (S151) presenting the draft version of the annual Statement of Accounts and Governance Statement for 2024/2025.

The Committee had before it, and NOTED, a report * from the Deputy Chief Executive (S151) presenting the draft version of the annual Statement of Accounts to Members which had been published on the website and presented for external audit.

The Committee were provided with a presentation which provided a high level introduction to understanding the Financial Statements and the Annual Governance Statement. It also included pertinent points with regard to the role and function of the Audit Committee in discharging its duty with regard to the annual accounts. It also referenced, timeframes, key accounting policies and the annual audit.

Discussion took place regarding:

·       Figures in the draft accounts in relation to Property Services and Public Health areas. It was explained that there had been a significant underspend in these areas due to maintenance plans having slipped and some large unbudgeted S106 receipts. However, these monies would be transferred to reserves until those projects were ready to be delivered.

·       The level of reserves had increased. It had been a very good year in terms of Business Rates collection. This ‘smoothing reserve’ provided the Council with a helpful buffer should the Government change the rules regarding Business Rates in the future.

·       The Social Housing Rents Error showed a loss in the draft accounts of £1.8m which had been well recorded. It was confirmed that this did not include the officer costs of the team appointed to manage the action plan in relation to this. At the moment these costs were able to be managed within budget.

·       The way vehicle leases were required to be shown had changed therefore this looked very different from last year.

·       It was confirmed that the Council held a detailed Assets Register and assets were required to be valued externally every year so that the correct values were recorded.

·       There appeared to be quite a big swing in the provision of services figure in the cash flow statement. The Deputy Chief Executive (S151 Officer) stated that he could append detailed information on this to the final accounts brought before the Committee at their next meeting.

·       It had been a good year as far as the accounts were concerned in that there had been no key changes, the Council had not taken on new business and there had been an underspend on the General Fund.  There had been close to budget monitoring reports given to the Cabinet which had allowed the Council to build up of reserves. This was against a backdrop of uncertainties and challenges ahead with regard to Government funding and LGR.

Note: * Report previously circulated.