Issue - meetings

The Committee heard from the Interim Financial Services Manager who introduced the report. It was confirmed that any comments arising from the review were to be referred to the Council’s Section 151 Officer, the Interim Financial Services Manager, and the Council’s External Auditors, KPMG. The Committee was reminded of its responsibility for approving the Statement of Accounts and any material amendments recommended by the External Auditors.

It was noted that, in accordance with the Council’s constitution, Members would receive specific training on the Statement of Accounts prior to the November 2025 Committee meeting, at which the final audited accounts were scheduled to be presented for approval. It was highlighted that the accounts had been prepared in line with the International Financial Reporting Standards-based Code of Practice and local authority accounting requirements. The accounts had been published on the Council’s website and submitted to the Auditors by the statutory deadline of 30 June 2025.

The Manager reported that KPMG had commenced their audit on 28 July 2025, with the process expected to last five weeks. Their findings were scheduled to be presented to the Committee in November 2025. Clarification was provided regarding the presentation of figures within the accounts, with positive values representing expenditure and negative values (indicated by brackets or minus signs) representing income.

Attention was drawn to the primary statements, which showed an improved balance sheet position of £50.9 million for 2024–25, compared to £42.4 million for 2023–24. It was stated that the improvement of £8.5 million was attributed primarily to increases in long-term asset values, reflected in the revaluation reserve and capital adjustment accounts. The Manager explained that a reduction in the pension fund liability from £10.4 million to £9.8 million had also contributed to the improved position.

The Manager continued, adding that the General Fund Working Balance Reserve had increased to £4.478 million, in line with planned targets and within prudent levels. Earmarked reserves totalled £19.6 million, bringing the overall reserve position to just over £24 million. It was stated that the Council had achieved of a budget surplus for 2024–25. It was also noted that £3.07 million in capital grants remained held at the balance sheet date for schemes scheduled for delivery in 2025–26.

Lastly, it was highlighted that Comprehensive Income and Expenditure Statement showed an accounting surplus on services of £6.339 million, compared to £2.519 million in the 2023-2024. Despite the technical nature of the document, the key message conveyed was that the Council maintained strong reserve levels and a robust medium-term financial strategy, confirming its status as a going concern with no material uncertainty at the time of reporting. The Manager concluded by giving thanks to the Finance Team for their efforts in producing the accounts within the required timeframe.

A Committee Member raised a technical question regarding the calculation of the minimum threshold for the General Fund Balance. The Section 151 Officer responded that the threshold was determined annually by the Council. It was explained that the reserve served as an emergency fund,  ...  view the full minutes text for item 18