Issue - meetings

Members considered the Audited Statement of Accounts for 2021/2022. An introduction was provided by the Section 151 Officer, who was pleased to advise that the Statement of Accounts 2021/22, had received an unqualified audit opinion. The Statements reflected the Authority’s financial activity for the year up to 31 March 2022.

Prior to opening the debate, and at the request of the Chairman, the Monitoring Officer confirmed all present had undertaken the required training in accordance with the Constitution.

In opening, Members congratulated Officers on the presentation of the report and commented on the positive impact the Council’s Community Grant Scheme had on local communities and in levering in match funding.

Lengthy questioning ensued and explanation was requested and received regarding the details of note 11 on page 131 of the agenda pack, regarding the corrections listed. The Section 151 Officer explained the movement in earmarked reserves had been recategorized for consistency into three types of reserves as required by the newly instated statement of recommended practice. Members were assured that it was a requirement to classify, and provide competitors contingency and risk service investments.

In responding to further questions in respect of the Council owned companies and joint ventures, the S151 Officer advised as to why these companies were only referenced in a disclosure note to the Accounts.  This was primarily due to them not being material in size.  Officers outlined how materiality was defined and Members were reminded where Business Plans and accounts for such ventures were reported to.

Members were keen to ensure there was a route by which subsidiary companies were reviewed to ensure they still met their objectives, were fit for purpose, served a need and were still the appropriate mechanism. Furthermore, there should be transparency around any such review. Members were assured that the Monitoring Officer could consider reviews and future audits into West Lindsey District Council's subsidiary companies and it was suggested these should be considered for inclusion in the Annual Audit Plan. 

Members also learned the decreased received money was due to the decline in Covid-related activity provided by the Authority.

In responding to a question which sought clarity of what the service investment fund was used for and how it was replenished, Members ascertained such funds were used for IT upgrades, IT replacement programmes, and new systems such as the new finance system introduced in year. Service Investment Funds were generally funded by a combination of under spends in a year, where something had been budgeted to take place in one year, but the actual renewal took place in the following year, creating a special ear marked reserve for it, or any surplus in grant funding that wasn't expected. Earmarked reserves were created either from an underspend or where there was a known future liability.

Members further sought clarity as to whether service investment, involved investment in training.  In responding the Section 151 Officer advised that earmarked reserves could be used, for invest to save projects, these may be capital investments or  ...  view the full minutes text for item 35