Agenda item

Report from the Section 151 Officer attached

2024/2025 Draft Accounts attached

The Director of Finance presented a report introducing the Draft Statement of Accounts.

The report explained that in accordance with the Accounts and Audit Regulations 2015 (as amended) the Unaudited Draft 2024/25 Statement of Accounts were signed by the Director of Finance (S151 Officer) on Tuesday 14 October 2025 much later than the 30 June deadline. This was due to the delay in receiving the information required for the valuation of the council’s non-current assets. A delay notice was published on the Council website.

The Draft 2024-25 Annual Governance Statement was also published on the same day, so that the council was able to commence the 30-working day period for the Exercise of Public Rights from Thursday 16 October 2025 and this will end on Wednesday 26 November 2025.

The Accounts and Audit (Amendment) Regulations 2024 came into force on the 30 September 2024, this legislated the statutory backstop dates, including the 2024/25 Statement of Accounts of Friday 27 February 2026. To comply with the backstop date legislation the Council must publish accountability statements on the website by this backstop date, accountability statements need to include:

·         The Statement of Accounts together with the Audit Opinion and any certificate.

·         The Annual Governance Statement.

·         The Narrative Statement (the Council includes this within the Statement of Accounts)

Whilst there is no longer a requirement for those charged with governance to approve the Unaudited Draft Statement of Accounts and Draft Annual Governance Statement, Audit Committee are asked to consider and note the Unaudited Draft 2024/25 Statement of Accounts (Appendix 1) and Draft 2024/25 Annual Governance Statement (Appendix 2).

Those present were given the opportunity to make comments and the following points were raised:

·         Councillor Hook referred to the previous years’ accounts document where the Council’s income had been set out and asked if this could be included again as she had found this information useful.

·         Councillor Moss referred to the Annual Governance Statement section of the Draft Accounts which included the Head of Audit Opinion of Limited Assurance and stated that as there were a large number of limited assurance audits should the AGS and statement include this more prominently to reflect the seriousness.

·         Councillor Bernstein referred to the joint venture with Bruntwood and the recorded loss and asked whether this was being looked at, this was confirmed.

·         Mr Webster, Independent Member referred to the 23/24 statement of accounts and the figure of 4.8m that had been restated and asked why this was.

The S.151 Officer explained that this related to reconciliation work from the 24/25 outturn in relation Health and Adult Social Care which had impacted on the 23/24 accounts so required restating. It was explained that this had been reported through the Overview and Scrutiny Committee and the Cabinet.

·         Councillor Moss referred to income and expenditure statements comparing 24/25 to the previous year and the increase in gross expenditure in Health and Adult Care and Children’s and Young People and reduction in income and asked if there was an explanation.

The Assistant Director of Finance explained that a number of schools had academized during this time which meant a reduction in the DSG Grant. There had also been increases in both adults and children’s social care demand.

·         Councillor Gartside referred to the reduction in reserves that was set out within the report.

The S.151 Officer confirmed that the usable reserves had reduced due to the £10m gap forecast.

·         It was asked where the Council was up to in relation to Zero Based Budgeting.

The S.151 Officer explained that a list of priorities had been produced and was due to be presented at the December Cabinet. All work was on track. It was explained that the Fair Funding Review was underway and the Council would receive a final settlement in December.

·         Mr Thomas, Independent Member referred to external providers in relation to the accounts process such as the LGPS and asked how their work was monitored and challenged if needed and how they could be held to account.

The S.151 Officer explained that he next tri-annual pension valuation was coming up and valuation actuaries would be undertaking the work required. The S.151 Officer reported that would be attending a GM Treasurers meeting at the end of the week when an update on this would be provided. It was also reported that contract management would be a key development going forward and the Council would need to make sure that they are happy with future contracts and expectations.

It was agreed:

That the Unaudited Draft 2024/25 Statement of Accounts be noted.