Agenda and minutes

To receive any apologies for absence.

Apologies were received from Cllr R Roberts who was substituted by Cllr Mrs F J Colthorpe.

Cllr J Downes attended the meeting online.

To receive any questions from members of the public and replies thereto.

The following questions were asked by members of the public:

Barry Warren

My questions relate to item 6 on your agenda:

At the Cabinet meeting on the 16^th February 2024 I asked a number of questions relating to finance.  The Leader made a response which commenced with this sentence:

“When this administration took control of the Council in May last year, it inherited the significant financial mess that had been left by the previous administrations.”

On page 62 of your papers at paragraph 3.19 the Deputy Chief Executive (S151 Officer) in the first paragraph of his Conclusion writes:

Overall 2022/23 should be considered a successful year with the outturn position for the General Fund and Housing Revenue Account delivered close to, or within, budget.  The Council’s performance was strong with the vast majority of our performance targets achieved, despite the significant financial pressures and strain on resources experienced. This achievement should be celebrated.

Question 1

There appears to be a direct conflict between the Deputy Chief Executive, S151 Officer, and the Leader of the Council. Can you advise which statement is correct please?

Question 2

If the Audit Committee approve the FINAL version of the annual Statement of Accounts and formally sign the two documents as recommended in Section 1 on page 25 of your papers, will this signify that Audit Committee support the view expressed by the Deputy Chief Executive, S151 Officer in his Conclusion and celebrate the achievement?

Question 3

On page 152 of the Draft Accounts (page 184 in your bundle) you will see the salary of the 3 Rivers Managing Director was £80,862 for 2022/23. That Director has resigned and been replaced - please will you tell me what is the salary being paid to the current Managing Director?

Nick Quinn

Concerning Agenda Item 7 – Audit Findings:

Issued late, with the Grant Thornton Audit Findings Report, is a Supplementary “Post Audit Adjustments” paper.

You will see on page 42, of the supplementary papers, it states that “To achieve the “soft close” all of the assets held by the company will need sold or transferred to Mid Devon District Council by the end of March 2024”.

My questions are about these transactions - which, by now, will have taken place.

“St George’s Court is being sold to the Council for £8.15 Million”.

Question 1

Did the Council Pay £8.15M for this or was this Asset Transferred at this value to satisfy an outstanding loan amount?

Response from the Deputy Chief Executive (S151 Officer)

The £8.15m was the negotiated sales/purchase price agreed between the Council’s Housing Revenue Account and 3Rivers

“Knowle Lane, Cullompton, will be sold to the Council at book value of £3.66 Million”.

Question 2

Considering the amount paid for the land in 2019, and the value ascribed to it in the Large Housing Sites Options Report presented to Cabinet in August 2023, the amount of £3.66 Million seems very high indeed. It is said to be  ...  view the full minutes text for item 81.

To record any interests on agenda matters.

No interests were declared under this item.

To consider whether to approve the minutes as a correct record of the meeting held on 26 March 2024.

The minutes of the meeting held on 26 March 2024 were confirmed as a true and accurate record and SIGNED by the Chairman.

To receive any announcements that the Chairman may wish to make.

The Chairman had no announcements to make.

To receive a report from the Deputy Chief Executive (S151) presenting the draft final version of the Annual Statement of Accounts and Governance Statement to members, highlighting any areas which have been amended since the draft accounts were published on the website and presented for external audit in July, and considered by Audit Committee in August and December 2023.

The Committee had before it a report * from the Deputy Chief Executive (S151) presenting the draft final version of the annual Statement of Accounts and Governance Statement to Members, highlighting the areas which had been amended since the draft accounts were published on the website and presented for external audit in July and considered by the Audit Committee in August and December 2023.

The following was highlighted within the report:

·         The net overall balance on the General Fund at the end of March 2023 was an overspend of £190k.

·         The key variances from budget were listed within the report.

·         The General Reserve balance remained above the recommended amount.

·         The delay in signing off the accounts had been due to some outstanding elements in relation to the group accounts, however, the subsequent independent audit had resulted in no material findings.

·         The audit had resulted in a clean, unqualified opinion which was reflective of the hard work undertaken by officers throughout the organisation.

·         Adjustments had been made to reflect comments and findings made by the external auditors. This included a whole new section 2 contained within the Annual Governance Statement (AGS).

·         The final draft accounts and AGS presented to the Committee this evening represented a true and fair summary of the Council’s net worth as at 31^st March 2023.

It was RESOLVED that:

i)             The Statement of Accounts for 2022/2023 (noting the findings made by the external auditor, Grant Thornton) be approved;

ii)            The Annual Governance Statement be approved.

iii)           The Letter of Representation be signed.

(Proposed by the Chairman)

Reasons for the decision

Good financial management and administration underpinned the entire document.

It was a statutory requirement to follow the Code of Practice on Local Authority Accounting in the United Kingdom (the Code) when producing the Statement of Accounts.

The Section 151 Officer was responsible for the administration of the financial affairs of the Council. Adhering to the Code mitigated the risk of receiving a qualified set of accounts. The Finance Team had also reviewed its overall calculations/workings against the CIPFA published Disclosure Checklist for 2022/23 and entered into detailed discussions with the appointed Audit Manager prior to and during the completion of the accounts.

The financial resources of the Council impacted directly on its ability to deliver the Corporate Plan. The Statement of Accounts indicated how the Council’s resources had been used to support the delivery of budgetary decisions.

Note: * Report previously circulated.

To receive Grant Thornton’s Audit Findings Report for 2022/2023 (report to follow).

The Committee had before it, and NOTED, a report * from Grant Thornton providing their audit findings having assessed the Council’s financial accounts for 2022/2023.

The following was highlighted within their report:

·       Their findings report updated their final position having audited the outstanding elements from the group financial statements.

·       Page 3 of their report set out the key headlines.

·       Their overall opinion was unqualified with the Committee’s attention being drawn to one small ‘Emphasis of Matter’ in relation to 3Rivers no longer being a ‘going concern’.

·       Other small errors had been noted and adjusted for, outside of that, all work had now been completed.

·       Their audit fees had been set by the Public Sector Audit Appointments (PSAA).

·       Julie Masci stated that as this would be her last audit and meeting with the Council she wished to thank officers and the Committee for their support over recent years.

Note: * Report previously circulated.