Agenda item

Members of the Committee heard from the Financial Services Manager, who presented the Audited Statement of Accounts for 2023-24. It was explained that the accounts had been fully audited and signed off by KPMG. The Manager recalled that the draft accounts had been presented and scrutinised by the Committee in June 2024, since then, KPMG had conducted their first audit of the Council's accounts under the new PSAA contract. It was explained that misstatements which had been found by the Auditors and outlined in their report, had since been corrected for the final version of the accounts. It was highlighted that the finance team had also identified some items during their due diligence of the draft statement, and these, along with some rounding errors and typos, had been corrected. The Manager explained that the accounts were audited within the statutory deadline and would be posted on the Council's website once signed. It was outlined that no events after the reporting period were declared, and no requests to inspect the accounts were received during the statutory period. The Manager continued, adding that that the deadline for preparing the 2024-25 accounts was now 30 June 2025, rather than 31 May 2025 as previously, and the external audit of the accounts was required by 27 February 2026. Questions on the financial statements were invited.

In response to a question from Members about the timing of the final sign-off with KPMG, the Manger confirmed that a draft timetable for completing the preparation of the 2024-25 accounts had been set, with the deadline now at the end of June 2025 rather than the end of May 2025. It was noted that group accounts would be required for the first time for the 2024-25 accounts, as the Council's sub-companies had crossed the reporting threshold. It was explained that the Council was now the full owner of Market Street Renewal Limited, and those accounts together with SureStaff Lincs Limited, and WLDC Staffing Services, would all be grouped together. The Manager highlighted that additional statements with group balances would be included in the statements. Arrangements with KPMG for the audit were being made, considering both KPMG's and internal staff's schedules to ensure that both sides would be able to fully engage with the undertaking in a timely fashion.

An issue was raised by a Member of the Committee regarding an organisational picture chart depicting the senior team in the report, which included a picture of a person without a description. The Financial Services Manager clarified that the person was the Head of Policy and Strategy and it was accepted that a small explanation would have been helpful.

A point of clarification was made by the Chairman regarding the diagram on page 129 of the report pack, which depicted Officers in post at the end of the accounting period (March 2024). The Chairman confirmed that the document was correct for the timing of the accounts, although changes would occur in the following year.

Concerns were expressed by the Committee about the two employment agencies associated with the Council, specifically regarding the lack of detailed information on their transactions, except for information regarding two loans that had been made. It was expressed that more information should have been provided with relation to how the employment agencies were fairing. In response, the S151 Officer explained that detailed information in relation to the two companies was not required in the Statement of Accounts; it was added that the Corporate Policy and Resources Committee was responsible for assessing the business plans and financial performance of the companies, and this information was available to all Members through Modern.gov. The Financial Services Manager added that additional transactional information was provided in note 29 of the report; it was added that business plans were approved at the beginning of each year which set out direction, cash flow, and other financial information. On page 200 of the report pack, the Manager highlighted tables on Surestaff Lincs Limited, WLDC Staffing Services, and Market Street Renewal Limited. The Chairman requested for the relevant documents which were brought to Corporate Policy and Resources Committee to also be forwarded to Governance and Audit Committee Members for ease of access.

A comment was made by the Chairman regarding the Internal Drainage Boards and the rising costs associated with them. It was noted that the Council’s contribution may not be high when compared to other authorities, nevertheless, the costs were increasing. The Chairman added that this was a risk or pressure for many councils, and that lobbying efforts were underway at various levels of local government.

It was noted that voting eligibility depended on Members’ attendance of the Statement of Accounts training. The S151 Officer stated that the following Members of the Committee were eligible to vote: Cllr J Barrett, Cllr S Bunney, Cllr D Dobbie, and Cllr Mrs A Lawrence.

Having been moved, seconded, and voted upon, it was unanimously

RESOLVED that

a)    that the attached Statement of Accounts had been reviewed and there were no concerns arising from the Financial Statements that needed to be brought to the attention of the Council; and

b)    the Statement of Accounts for 2023/24 be approved; and

c)    the Section 151 Officer and the Chairman of the Governance & Audit Committee be permitted to certify the letter of representation to our Auditor, KPMG.