Agenda item

Prior to introducing the report, the Chairman highlighted there had been a training session for Committee Members ahead of the meeting and reiterated that those who had been unable to attend would not be able to vote on the item. The Committee then heard from the Financial Services Manager who presented the 2024/25 Statement of Accounts for scrutiny and approval.

It was explained that the audited Statements of Accounts 2024/25 had been prepared in accordance with proper accounting practices and the requirements of International Financial Reporting Standards (IFRS). This was intended to provide for comparable accounts across all accounting boundaries, public and private, national and international. The Actual Outturn for 2024/25 reported a surplus of £2.057m, of which £0.931m related to budget provision for projects which had approval for carry forward as they spanned financial years. This left a £1.126m surplus which had been transferred to reserves. Members heard that Capital Investment in the year totalled £17.398m.

In respect of Usable Reserves, the Council remained in a healthy position with balances detailed as follows:

·         General Fund working balance total £4.478m, (£3.402m 2023/24)

·         General Fund Earmarked reserves total £19.558m, (£20.047m 2023/24)

·         Capital receipts total £1.480m (£1.460m 2023/24)

·         Capital Grants unapplied £3.070m (£3.577m 2023/24)

A number of financial performance ratios were contained within the report which illustrated that the Council remained in a healthy financial position.

Members were advised that there were two material misstatements identified during the audit which had been corrected by officers. The statements were a classification adjustment to correctly categorise the balance from short-term deposit to cash at bank with an amount of adjustment of £0.5m and a classification adjustment to correctly classify accrued interest on short-term investment from cash and cash equivalents to trade and other receivables, the amount of the adjustment being £0.986m.

The Financial Services Manager explained that whilst the Statement of Accounts was available for inspection by the electorate from 27 June to 7 August 2025, no such requests were made. The Committee Members were asked to review the Statement of Accounts and confirm there were no concerns to be brought to the attention of Council; also to approve the Statement of Accounts for 2024/25; and to permit the Section 151 Officer and the Chairman of the Committee to certify the letter of representation to KPMG.

On inviting comments from the Committee, the Chairman noted a discrepancy between a section of narrative report and contents of the table detailing the combined income and expenditure. It was confirmed that the narrative was yet to be updated, the figures contained within the table were accurate and, subject to Member agreement, the narrative would be updated prior to publication. This was accepted by the Chairman and Committee Members. It was also noted that any other identified typographical errors would also be corrected.

The subsequent discussion factored in the understandability of the report and contents, with Members expressing a wish for an enhanced approach to Member involvement with the Statement of Accounts reporting, prior to it being presented at the Committee meeting. The Chairman confirmed such discussions had been held with Officers, and the approach would be reviewed ahead of the 2025/26 accounts being presented.

In response to a question regarding the balance of earmarked reserves and the prudence of maintaining reserves versus using funds, the Section 151 Officer explained the governance process for such reserves, highlighting that an annual report was presented to the Corporate Policy and Resources Committee for review. He also emphasised the importance of striking a balance between spending and holding monies in reserve, noting there was continuous open dialogue between himself as Section 151 Officer, the Administration Group, and ultimately through the policy committees.

With no further comments or questions, the Chairman read aloud the recommendations contained within the report and repeated only those who had been present at the training would be able to vote. Having been proposed, seconded, and voted upon, it was

            RESOLVED that

a)    the Statement of Accounts 2024/25 had been reviewed, and it be confirmed there were no concerns arising from the Financial Statements to be brought to the attention of the Council; and

b)    the Statement of Accounts for 2024/25 be approved; and

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