Agenda item

The position on the returns of legislative requirements and deliverables was provided. The Council had submitted the majority of the returns within timeframes. The two outstanding returns were the 2021/22 Revenue Outturn and Capital Outturn reports to the Government, as this was the last year that these returns had to be done based on actuals and estimates could not be used. Significant work was ongoing by the Council’s Tax advisors PS Tax for the Council to return to normal VAT reporting.

The Committee was informed that the Council was in a stable financial position, with relatively strong level of reserves, with the Council now having better knowledge of its true financial position following the completion of draft accounts for years up to and including 2023-24.

The Committee was updated on the position in the delivery of the Council’s Statement of Accounts. The Committee was reminded that for its 2020/21 and 2021/22 Accounts, the Council had received “disclaimer opinions” as accepted at the meeting of this Committee on 10^th December 2024. For 2022/23 Accounts the Committee accepted the “disclaimer opinion” on 10^th December, pending conclusion of public consultation. This “disclaimer opinion” had now been issued and was published on the Council’s website.

The draft 2023-24 Accounts were presented to the Committee at Appendix A to the report. It was explained that the draft 2023-24 Accounts were provided for public consultation on the 17^th January 2025 which was one day after the “backstop date” requirement. The Council had received this week a letter from the Secretary of State, requesting that the Council explain the reasons for missing the deadline. It was clarified that the Council had already been in contact with the Government to clarify the reasons why the submission was made the following day after the “backstop date” and to resolve the situation. The circumstances of this situation were also discussed with the Leader of the Council.

The Council was in discussion with the new External Auditor, Ernst and Young, on the actual programme, pending the onboarding process being completed. All parties were aware of the backstop date of the 28^th February 2025, which was the statutory deadline for completion of public consultation on the 2023/24 Accounts. It was stated that as the onboarding checks were not completed yet, the External Auditor would not be able to submit an audit opinion before the 28^th February “backstop date”. Regarding the onboarding checks, Members were updated that all but two onboarding forms had now been returned.

During the discussion, the Assistant Director Finance and Customer Services confirmed that the onboarding process with the new External Auditor could not begin until all onboarding forms had been completed and returned to the auditor, as Members and Officers submitted information on any conflicts of interest in these forms.

It was noted that the forms were issued in November but that on average across local authorities, such onboarding process with the auditors took six months to complete. Some Members queried whether anything could be done to speed up the process of completing the returns, and it was stated that officers had been on hand to assist Members with completing any outstanding forms at the full Council meeting on 27^th January.

Regarding the 2024/25 Accounts, the plan for preparation of those accounts was in place. Once 2023/24 Accounts work had been concluded, the work on 2024/25 would commence and the Council would be back to normal timeline for submission of its statements of accounts.

Members debated whether it would be appropriate to revert to four Committee meetings per year, as per the wording in report recommendation three. During discussion, it was raised that the Council had just approved the appointment of a new Deputy Chief Executive Section 151 Officer on 27^th January. Furthermore, the 2023-24 Accounts were now out for public consultation and this consultation had to be completed by the statutory backstop deadline of 28^th February 2025. The onboarding process was also currently being conducted with the Council’s new External Auditor, Ernst and Young. Most Members were of the opinion it would not be appropriate to reduce the number of meetings until the onboarding process with the External Auditor had been completed and the new Deputy Chief Executive and Section 151 Officer had sufficient time in post to fully consider the Council’s position.

The amendment to recommendation 3 of the report was proposed in that the Committee remain at six meetings per year at this time until the factors listed in the preamble above had been resolved and it was recommended that the matter be revisited at the first meeting of the Committee in the new municipal year. The amendment was proposed and seconded and on being put to the vote agreed.

The remaining resolutions were agreed as listed in the report.

RESOLVED that

1)    The Committee note that the 2022/23 Accounts, following delegated approval, have been signed off.

2)    The Committee note the position in relation to the delivery of the 2023/24 Accounts.

3)    The delivery of receipt of “Disclaimer Opinions” from the External Auditor for the 2020/21 and 2021/22 Accounts, as approved at the Committee meeting on 10^th December, the subsequent “Disclaimer Opinion” of the 2022-23 Accounts on the 22^nd January and the provision of the 2023-24 Account for Public Consultation by the 17^th January 2025 be noted.

4)    There remain six Audit, Governance and Standards Committee meetings per year until the matter is revisited at the first meeting of the Committee in the new municipal year.

5)    The ongoing process for inducting the Council’s new External Auditor, Ernst and Young, be noted.