Agenda item

The report of the Head of Finance

The Strategic Director of Resources presented the report.

A discussion was had about the nature of the backlog. The Strategic Director of Resources reiterated previous communications on the matter, and said he would share them with the new Member of the Committee. He then concisely set out the specific technical problems which had hampered the 2021/22 accounts, and the culmination of structural issues which had hampered local authorities and the audit sector nationally.

In response to a Member, the Strategic Director of Resources clarified that Mazars would be present in December to give opinions on the 2021/22 and 20222/23 accounts in December. These would be modified or disclaimer opinions as opposed to qualified or unqualified.

The representative from Mazars added that the formal opinions on the accounts were always given at the end of the sign off process. They were still awaiting some guidance on how to give opinions on the backlogged accounts matter from central Government. Further guidance would be set out for Members at the meeting on 9 December 2024.

A discussion was had about the implications of voting for the recommendations of the report. The Strategic Director of Resources advised that by putting the Statement of Accounts before the Committee he was formally endorsing them as ‘a true and fair’ view which had followed appropriate codes of practice. The Statement of Accounts presented to the Committee in the report were effectively a draft and unaudited set of accounts; if they weren’t signed off they would be presented again in December with the Mazars opinion. This was in keeping with the ‘backstop’ process as set out by Government to rebuild assurances.

A discussion was had about the 2022/23 Statement of Accounts. The Strategic Director of Resources advised that the Finance Team was currently finalising the 2022/23 accounts and their publication was imminent; the Committee would have sight of them ahead of the December meeting.

Members discussed deferring the vote until December committee. A Member voiced a range of concerns he had with voting for the recommendations, such as there being no input from Mazars, no Statement of Going Concern and no Value for Money opinion. He was also concerned with the staff turnover since 2021/22, including that the current Section 151 Officer had not been in place for the period, and recent internal audit reports had highlighted concerns regarding the finance systems and processes, which had received limited assurance.

The representative from Mazars advised that deferral would reduce the time available to issue the disclaimer opinion ahead of the crucial 13 December 2024 deadline. Nevertheless, he emphasised that it was for the committee to decide how to proceed.

Councillor R Sutton moved a motion to defer approving the recommendations within the report; it was not seconded.

The Chair summed up the discussion, concluding that the Committee should keep this process of moving forwards. Most Members concurred.

The representative from Mazars noted added that the rebuilding assurance phase, with new auditors, would begin after the 2021/22 and 2022/23 Statement of Accounts backlog was resolved. The national audit system was being reset and assurances would be forthcoming.

It was moved by Councillor JG Simmons, seconded by Councillor A Barker, and

RESOLVED THAT:

1. The annual Statement of Accounts 2021/22 be approved.
2. The Chair of the Committee be authorised to sign the Statement of Accounts 2021/22.
3. Authority be delegated to the Committee Chair and the Section 151 Officer to approve any minor non-material amendments, as agreed with the external auditors, to the Statement of Accounts 2021/22 on behalf of the Committee.