Agenda item

The Committee were presented with the Unaudited Statement of Accounts for Scrutiny. The Accounts had been approved for issue by the S151 Officer on 11 July 2021 to the Auditor, Mazars, prior to the statutory deadline of 31 July 2022 for consideration and review. These were to be published on 25 July and available until 5 September for public inspection.

The Committee was responsible for the approval of the Statement of Accounts and any material amendments of the accounts recommended by the external auditors.

The Audited Statement of Accounts would therefore be presented to the Committee again on 29 November 2022 after the audit process. The Unaudited Statement of Accounts for 2021/22 had been prepared under the International Financial Reporting Standards based Code of Practice on Local Authority Accounting (the Code). Members noted that extended deadlines again applied as they had the previous year, with the unaudited accounts having to be published on or before 31 July 2022. Audited accounts must be published by 30 November 2022.

Members of the Governance and Audit Committee would be provided with specific training on the Statement of Accounts, as required by the Constitution, a few days prior to the relevant Committee Meeting.

Debate ensued, and Members referenced the balance sheets. Arising from comments that the financial situation was not as strong, Members sought assurance as to whether collection rates would remain high.

Further assurance was sought that the External Auditors would meet the target given last year's experience.

In responding, the Section 151 Officer advised she was liaising closely with the External Auditors, holding more regular meetings, and of the roles, she had to ensure Audit queries, working papers and other queries were responded to and provided quickly. The Officer also stressed that there were controls in place when such issues arose, and these were summarised to the Committee. Regarding collection rate security, Council Tax Rebate, Energy Support Schemes and a large number of residents on direct debits provided some level of protection. Members were advised that a report was due for consideration at the next Corporate Policy and Resources Committee setting out the financial pressures.

Responding to a query on the acceptable level of depleting reserves, the Section 151 Officer indicated reserves were currently in excess of twice the minimum level and that the current status of the Council would see the Authority through to 2023/24 in the worst-case scenario, using the uncertainty of Central Government funding, but through to 2025/26 on earmarked reserves.

In explaining the planned dip in business rates, Members learnt that a re-basing exercise was expected and how this affected income temporarily for the year in which the re-basing was conducted.

Regarding the pension liability, the Section 151 Officer stated that the liability was based on a theoretical position of having to pay all the pensions at once. The Officer asserted that the chances of doing so were low. Members heard that if there were a huge reduction in the value of investments, there would likely be an increase in pension liability. The Officer also stated that she could not confirm whether the Government would assist with pension liabilities.

In answering a set of questions on fair valuations, Members heard the valuation cost reflected the price the asset would achieve but did not include costs of sale. Fair valuations were sought from a variety of organisations dependent on the asset being valued, but all were subject to national regulation and professional code of practice. Additionally, all valuations received accreditation from the Auditor.

On a query about cash-flow reductions in the current accounts, the Section 151 Officer explained that these were short-term deposits in order to gain interest on the value of the money.

In responding to Members' comments regarding budget smoothing, and previous practices, the new Section 151 Officer indicated her biggest objective was to demystify local government finances and accounting and to increase understandability and accountability.

Having been moved and, seconded, on being put to the vote it was unanimously

RESOLVED that having had the opportunity to review the Unaudited Statement of Accounts there are no comments from the Committee which need to be referred to the Section 151 Officer for subsequent discussion with the Council’s External Auditors, Mazars.