Agenda item

The Financial Compliance Report was presented to the Committee for consideration. Specific areas of the report were highlighted.

Members were advised that the Council’s financial procedure rules, which form part of the governance framework within the Constitution, had recently undergone a comprehensive review. As part of this process, enhancements had been implemented alongside updates to procurement arrangements. It was explained that these changes strengthened the Council’s overall control environment and provided a more robust framework for decision-making, reinforcing governance and supporting effective financial management going forward.

The Committee was informed that, in respect of statutory financial reporting, the Council was now largely up to date with required returns. The only outstanding area related to the Whole of Government Accounts. Members were advised that a newly appointed Chief Accountant was now in post and actively progressing the Council’s accounts, with the expectation that attention would subsequently turn to finalising the outstanding Whole of Government Accounts returns. This work was anticipated to bring the Council back into compliance with national reporting requirements.

In relation to the Council’s Financial Stability Plan, Members noted the recent appointment of a permanent Section 151 Officer, which was described as a significant and positive step in providing strategic leadership and direction for the Council’s finance function. Officers also confirmed that further work would be undertaken to review staffing arrangements within the Finance team to ensure sufficient capacity and expertise were in place to support the Council.

Members received an update on the Council’s TechOne financial system. It was reported that ongoing improvement work was being carried out, with notable progress achieved in recent months. Officers explained that a health check of the system had been completed and that a revised project plan was being developed to address remaining issues and ensure that the system was fully fit for purpose, enabling it to effectively support the organisation’s financial processes.

The Committee also considered developments in procurement and financial training. It was reported that procurement training was being delivered across the organisation, which was positively received. In addition, training and compliance requirements had been strengthened in key areas such as purchase card usage, purchase orders and Government Procurement Cards (GPC). Officers emphasised that these measures would continue to be a focus moving forward in order to embed good practice and ensure consistent compliance across the Council.

During the discussion, a Member raised a query regarding the TechOne finance system, noting that it had been a longstanding issue and the main contributing factor to the situation regarding the backlog in the completion of Statements of Accounts faced by the authority over the past few years. It was requested that, following the conclusion of the ongoing review work, a detailed report be presented to a future meeting of the Committee. The purpose of this would be to provide assurance to Members regarding the adequacy of improvements and the overall robustness of the system.

The resolutions as set out in the report were agreed by the Committee.

RESOLVED that

1)    The Committee are assured regarding the position in relation to the auditing of the 2023/24 and 2024/25 Statement of Accounts from an internal perspective.

2)    The Committee are assured in relation to the position for the other Financial indicators set out in this report.

3)    The Committee are assured in relation to the position on the Financial Stability Plan.