Issue - meetings

To receive an update on the Council’s Draft Annual Statement of Accounts 2023-24.

(Agenda republished on 10 June 2024 to include the Draft Statement of Accounts)

Ahead of the report being presented to the Committee, the Chair clarified that in accordance with good practice the draft Statement of Accounts 2023-24 were being presented to members for initial consideration and feedback in advance of their main audit which was scheduled to commence on 24 June 2024.

Ben Ainsworth, Head of Finance was then invited to introduce the report presenting the Council’s draft Statement of Accounts 2023-24 following their initial publication.  In considering the report the Committee noted the following key points:

·             The accounts had been published a month earlier than 2022-23 to reflect the earlier statutory deadline for publication on 31 May 2024.  Whilst publication had been slightly delayed beyond the statutory deadline due to additional general fund valuations which had needed to be undertaken compared to recent years, the finance team was commended for their efforts given the shortened timescale for production of the accounts, which had created challenges across the sector.

·             There remained a small amount of work to be completed connected with the valuations, but this was not expected to have a material impact on the final accounts and principally involved the movement of funds between unusable reserves.  It was not anticipated this would have an impact on the planned audit schedule.

·             The inclusion within the Draft Statement of Accounts of a detailed narrative outlining the background, financial context, Medium Term Financial Strategy, Council’s strategic vision and summary of financial performance as an introduction to the core Accounting Statements which set out the Council’s income and expenditure for the year as well as its financial position at 31 March 2024 in compliance with the requirements of the CIPFA Code of Practice on Local Authority Accounting.

·             In focussing on the summary of financial performance, attention was drawn to:

o      the Revenue General Fund Outturn position 2023-24 which whilst reporting a breakeven position had included a transfer from corporate contingency to cover overspends in Resident Services (£11.2m mainly relating to additional pressure in terms of homelessness) and demand led pressures in both the Children and Young People and Care, Health and Wellbeing services with other services showing small underspends;

o      The Core Accounting Statements, with an outline provided of the current position in relation to the Balance Sheet, Movement in Reserves Statement and Earmarked Reserve statements.

o      The Council’s Reserves Strategy which provided the operational framework within which the Council’s reserves were managed and monitored by the Corporate Director of Finance & Resources and Chief Executive including an assessment of the optimum level of general reserves to be held and which recognised the importance of holding adequate reserves to meet the net financial impact of risks facing the Council to ensure the authority was able to continue operating in a financially resilient and sustainable manner.

In response to the update provided the Committee highlighted comments on a number of issues, with the following responses provided:

·             Whilst noting the robust nature of the Balance Sheet further details were sought on the main changes and movements included within the  ...  view the full minutes text for item 10