Issue - meetings

Members of the Committee heard from the Interim Financial Services Manager who introduced the report. It was explained that the report set out the accounting policies to be used in preparing the 2024-2025 accounts, the actuary assumptions supplied by the pension actuary, Barnett Waddingham, and an outline of the materiality levels applied when compiling the accounts. It was highlighted that authorities were required to publish their draft accounts by 30 June 2025 and their audited accounts by the backstop date of 27 February 2026. The Manager noted that it was hoped the audit of accounts would be completed in the autumn of 2025, with the timetable set to meet the deadline and audit dates agreed with External Auditors, as detailed in section 7 of the report.

The Manager continued, explaining that the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice guidance notes for 2024-2025 had recently been released, with changes from 2023-2024 outlined in section 2 of the report. It was stated that major changes around the accounting for leases were not expected to have a significant impact on the accounts.

The Manager noted that materiality levels had yet to be supplied by External Auditors, with previous year's levels outlined in section 5. It was confirmed that once supplied, a decision could be made on whether the Council was required to do group accounts. The accounting policies proposed at appendix 1, it was explained, had been reviewed, with the exception of lease accounting, and were similar to the previous year. It was noted that the actuary assumptions supplied by Barnett Waddingham, at appendix 2, were based on market conditions as of 31 January 2025, with changes in interest rates and inflation potentially impacting the valuation. Finally, the Manager explained that a risk assessment associated with closing the Council's accounts and producing the financial statements was attached at appendix 3.

The Chairman welcomed the Interim Financial Services Manager to the Committee, alongside welcoming the Interim S151 Officer in his new capacity as Director of Finance and Assets.

A Member of the Committee praised the explanations provided in the reports for their educational value.

In response to a question regarding the security of pensions in light of potential new government policies, the Interim S151 Officer reassured the Committee, explaining that recipients and contributors would receive their expected benefits regardless of changes. However, he continued, changes in legislation, guidance, and policy could impact local funds' investment strategies, potentially leading to deficits and requiring employer contributions to be reviewed as part of the triennial review process. It was added that the merging of funds into mega funds and comparisons with other countries were mentioned, with the impact yet to be seen.

With regard to pension concerns, a Member of the Committee noted that recent accounts showed significant swings in the balance sheet due to valuation results, which it was said were beyond the Council's control. It was suggested that the Committee should not overly concern itself with these changes, as they  ...  view the full minutes text for item 135