Agenda and draft minutes

To appoint a person to preside over the element of the meeting which will be held jointly with the Audit Committee.

It was RESOLVED that Cllr Jeannette Thomas be appointed to preside over the joint element of the meeting.

Apologies for absence were received from Councillors Robert Boyle, Tom Plater and Tom Wren.

Cllr Roopchand declared, for transparency, that, as of November 2024she was employed by the Association of Business Recovery Professionals, whose membership included the Council’s external auditor, Azets Audit Services Limited.

The Chair invited the Director of Finance to present their report.

The Director introduced the Statement of Accounts to the Committees and delivered an update on the financial accounts for 2024/25.  He reported that the audit had now concluded and confirmed that there were no amendments to the General Fund or Housing Revenue Account balances as presented to Cabinet at outturn.

A number of issues were brought to the Members attention including:

·         A £2.1 million credit loss allowance provision had been recognised in relation to the Queensway LLP lease arrangement. It was noted that this position had already been reflected within the Council’s Medium Term Financial Strategy (MTFS), and an earmarked reserve had been established to support the LLP.

·         Current Assets increased by £24 million, with short?term debtors rising by £7.2 million over the year. Long?term liabilities increased by £15.5 million overall, while other usable reserves increased by £14 million.

·         The Capital Receipts Reserve increased by £2 million, comprising various capital receipts during the year. Significant receipts included Shephall View (£4.5 million) and Right to Buy sales (£6 million).

·         Earmarked General Fund Reserves increased by £2.2 million, while earmarked HRA Reserves decreased by £3.5 million. Unusable reserves increased by £9 million, primarily due to capital transactions, including net unrealised asset revaluation losses of £13 million and a £2.4 million movement in the pension reserve.

Members received a reconciliation of the Comprehensive Income and Expenditure Statement (CIES) with the Council’s budget monitoring framework, providing clarity on how the statutory accounts align with the in?year financial reporting.

The Director confirmed that the statutory backstop date for publishing the audited 2025/26 Statement of Accounts was 31 January 2027. He outlined the key areas where Azets required further assurance before issuing an unqualified audit opinion, with full details provided in the report.

The Chair thanked the Director and invited Paul Grady – Audit Partner, Azets to present to the Committee.

Members were advised that they had completed their value for money work with detailed findings reported in the Auditor’s Annual Report in November 2025.  No significant weaknesses had been identified in the Council’s arrangements and Azets were satisfied that the Council had made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.

The audit had progressed well and had substantially achieved the objectives for 2024/25. No adjustments had been identified to the Council’s financial statements that would impact the reported financial outturn. Paul Grady advised the Committee that the quality of the accounts and the evidence provided was good. Council management had been responsive and helpful in facilitating the audit, which had enabled the auditors to progress their work effectively.

The auditors reported that, due to the challenges of undertaking an audit where the previous three years had been disclaimed as a result of the local authority backstop, it had not been possible to regain full assurance. They confirmed that there had not been sufficient time to complete the work required to support an unmodified audit opinion  ...  view the full minutes text for item 3.

To consider any Part 1 business accepted by the Chair as urgent.

There was no Urgent Part I Business.

To consider the following motions –

1.  That under Section 100(A) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as described in paragraphs1 – 7 of Part 1 of Schedule 12A of the Act as amended by Local Government (Access to Information) (Variation) Order 2006.

2.  That Members consider the reasons for the following reports being in Part II and determine whether or not maintaining the exemption from disclosure of the information contained therein outweighs the public interest in disclosure.

Not required.

To consider any Part II business accepted by the Chair as urgent.

There was no Urgent Part II Business.