Agenda item

Prior to the Officer’s presentation, a copy of the report was circulated to ensure the correct version of the report and recommendation was considered by Members.

Members heard from the Financial Services Manager (Deputy 151 Officer) that the draft Statement of Accounts for 2023/24 had been prepared and the Governance and Audit Committee were responsible for approving the report. Members would be provided with training prior to the meeting on 24 September 2024, when the final audited accounts would be brought to Committee. The draft Statement of Accounts was published on the Council’s website on 31 May 2024 and the audit of the accounts was due to be completed in September. The report highlighted the positive use of Council expenditure throughout the year and key projects being delivered in the Levelling Up Fund. Notably, the Council was holding £3.6m of Capital Grants for schemes to be delivered during 2024/25. The general fund had been reduced to £3.28m and there was an increase in earmarked reverses. The Council had a robust Medium-Term financial strategy and there were no material uncertainties.

The Financial Services Manager (Deputy 151 Officer) concluded his report and thanked the finance team for their dedication and hard work, especially during March and April to meet the 31 May deadline.

Members expressed concern regarding the length of the statement of accounts document, which had doubled in size from the previous year’s Statement of Accounts. Members asked the rationale for this and if this was due to CIPFA and regulatory guidance. Members made comment to the specialist knowledge required to understand the financial detail in the Statement of accounts report and their role on the Committee approving the report. The Section 151 Officer confirmed that the report was produced in line with CIPFA guidance, and the report included more photographs as previously requested by members and included the Council’s Annual Governance Statement. She explained to Members that their role was not to have specialist knowledge of the accounts, but to scrutinise the governance arrangements in place and KPMG were to advise Members and provide assurance. Members would have a private meeting with KPMG, the Council’s external auditors, prior to the September meeting.

The External Auditor, KPMG explained to Members that their role was to gather assurance from various sources on financial processes used to produce the Statement of Accounts. The External Auditor would produce reports detailing any risks and errors identified in the Statement of Accounts, as well as any control deficiencies and other observations to inform Members to help with their decision-making. The External Auditors also had the power to contact the Chairman of the Governance and Audit Committee with any concerns, and they had the opportunity to hold meetings with Members bi-annually, in addition to attending Committee meetings.

Members suggested that version variations of the Statement of Accounts be produced so that everyone had the opportunity to read and understand the report. Members questioned the decrease in Pension liability and asked for clarification from Officers. The Financial Services Manager (Deputy S151 Officer) explained that the reduction in liability was the biggest movement on the Council’s balance sheet. It was anticipated that investment returns, the GILTs market and economic climate had led to changes in liability assumptions. The next review of the Pension Fund could see payment adjustments being made and any changes would be updated to the Governance and Audit Committee.

Members asked for assurance regarding the collection of council tax and any monies owed to the Council. The Section 151 Officer explained that there was concern with the decline in the collection rate of council tax, and that there could be a serious financial implication for West Lindsey, Lincolnshire County Council, and the police. There was a revised implementation plan to improve performance in this area. A report would be brought back to the Governance and Audit Committee, as well as the Overview and Scrutiny Committee and Corporate, Policy and Resources Committee.

The Chairman read aloud the recommendation for Members and announced there would be mandatory training for Members before the September Committee Meeting on the Statement of Accounts. The Chairman suggested a working group consisting of a few Committee Members to review the Statement of Accounts.

RESOLVED that the attached Unaudited Statement of Accounts 2023/24 be pre-scrutinised by Members and any comments referred to the Section 151 Officer and the Council’s external auditors, KPMG.