Agenda item

To receive any public questions, statements or petitions submitted in accordance with the Constitution. Further information on the requirements for submitting these is available to view at the following link:-

https://democracy.bcpcouncil.gov.uk/ieListMeetings.aspx?CommitteeID=151&Info=1&bcr=1

The deadline for the submission of public questions is midday on Friday 23 February 2025 [midday 3 clear working days before the meeting].

The deadline for the submission of a statement is midday on Wednesday 26 February 2025 [midday the working day before the meeting].

The deadline for the submission of a petition is Thursday 13 February 2025 [10 working days before the meeting].

Public Issues received from Mr Philip Gatrell in relation to Agenda Item 8 – Statement of Accounts 2023/24

Public Question:

SUBJECT

Accounting for the Council’s IT and other equipment comprising laptop computers, mobile tablet computing devices including iPads, smart phones including iPhones and basic cellular phones.

BACKGROUND

An earlier year’s response to my Section 26 Local Audit and Accountability Act 2014 request stated the above items were not treated as fixed assets because they were below de minimis capitalisation thresholds.

The overdue 2023/24 response to my associated request for the essential inventory states “not a document that exists” -  implying such equipment is now capitalised.

QUESTION IN INTEGRAL ELEMENTS

• Are the above defined items recorded individually as fixed assets in the accounting records (Oracle Fusion or otherwise) including details of their users and what is their cumulative acquisition cost at 31 March 2024?
• What by description, total number and acquisition cost were such items not capitalised but written off to revenue in 2023/24?
• What is the resale policy regarding all such equipment disposals?

Response provide by the Chair:

• No. Individual records of these asset are not kept as part of accounting records. Details of IT and other equipment are held within the asset management system managed by IT services. The acquisition cost for 2023/24 capitalised was £888,304.80.
• Zero
• BCP Council does not directly resell equipment to BCP Employees. All equipment disposals are managed through our contract with an IT Asset Disposal provider, ensuring sustainability and compliance with General Data Protection Regulation (GDPR) and Waste Electrical and Electronic Equipment (WEEE) Regulations.

Public Statement 1:

FIXED ASSETS ADJUSTMENTS AFFECTING 2023/24

NOT DISCLOSED AS RESTATED IN SUCCESSIVE STATEMENTS OF ACCOUNTS

Final 2021/22 altered by Reduction in Final 2022/23

Other Land and Buildings:    £7,685,000

Vehicles, Plant, Equipment:  £25,000

Final 2022/23 altered by Increase in Revised Draft 2023/24  January 27 2025

Other Land and Buildings:   £14,162,000

Notwithstanding any incomplete audit work, these examples reflect unacceptable departures from conventional practice. Including -

•        Prior year figures altered only within the columnar fixed assets notes. Although the comparative summary notes extracting infrastructure assets misleadingly match the prior year’s balance sheet figures. Consequently alterations are neither flagged nor explained.

•        Discrepancies when net book value figures brought forward disagree with the comparative carried forward figures for the prior year shown within the same columnar note.

•        Miscasts due to failure to round certain £ k figures consistently thus generating unnecessary reconciliation differences.

•        31 March 2024 Group balance sheet headers incorrectly state sequentially “31/03/22” and “31/03/23” not “31/03/23” and “31/03/24”.

Public Statement 2:

Agency Recruited Officers: Contravention of the “Status Determination Statement” Off-Payroll Rules

This matter also falls within the external auditor’s remit when considering Council’s compliance with the law and potential liabilities.

In 2024 I identified and notified Officers regarding the breach which cannot be underestimated. It is underscored by the Chancellor’s statement on increasing vigilance and penalties concerning a recognised area of systemic abuse.

The Council’s Officers have acknowledged consistent failure to execute the correct processes. It is however impossible for the Council to know with certainty whether all agencies in a “chain” have complied with the Rules.

Meaning that automatically tax and national insurance due fall as a liability on the Council at escalating interest rates. With the risk of additional severe penalties determined by non-disclosure and deemed level of culpability.

The Council’s appropriate Officers have doubtless now ensured full disclosure to HMRC.