Agenda item

The attached report sets out the findings of the Council’s external auditor following their audit of the Council’s statement of accounts for 2024/25 as well as presenting the final version of the statement of accounts.

Barrie Morris and Katie Whybray representing Grant Thornton, the Council’s External Auditor (EA), and the Assistant Chief Financial Officer presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

At its last meeting the Committee had delegated approval to the sign off the statement of accounts 2024/25 subject to there being no material changes. As a material change had subsequently been identified within the Council’s group accounts as part of the income and expenditure statement, the final external audit finding report, a revised letter of representation and the final statement of accounts 2024/25 were now resubmitted to the Committee for approval. The EA provided a comprehensive summary of the changes. These were highlighted as amended text in the audit findings report for ease of reference. Members were assured that the changes were due to a simple administrative error and had no overall impact. The EA gave an update on the audit fee which had been adjusted down to £533,367. The EA clarified that the public objection received was still under consideration. The Assistant CFO referred to the supplementary papers which gave an update on the changes required to the statement of accounts and provided a revised set of accounts for approval. He confirmed that these were presentational changes and did not affect the financial standing of the Council.

The EA representatives and Assistant CFO responded to questions and comments on the report, including:

• That the EA took a risk-based approach when selecting which assets to test rather than a random sample.
• If further discussion was required around the IT findings report and management response, Members could add an item to the forward plan, noting this would need to be in exempt session.
• The EA prioritised the completion of pension fund audits at an earlier stage. This did sometimes depend on the receipt of information from other parties. The EA was committed to completing audits within required timescales. 
• £4.2 million provision for the Winter Gardens was required to be set aside as a liability pending a decision on the future of the project.
• The majority of dividends referred to in the cash flow statement for operating activities were from BBML.

Members commented on the number of officer remuneration exit packages at the higher end of the cost band in 2024/25 and 2023/25. It was explained that the process by which exit packages were authorised depended on the threshold involved. The numbers were not dissimilar to other local authorities or organisations and may reflect organisational change resulting from the Transformation programme. It was agreed to ask the Head of People and Culture to circulate to committee members details of the six exit packages for the £200,001 cost band and above for 2024/25.

RESOLVED that the Committee:

(a) Notes the audit opinion and findings of the Council’s External Auditor included as Appendix 1 to this report, following the audit of accounts 2024/25;

(b) Approves the final 2024/25 financial statement included at Appendix 3

(c) Approves the signing of the Statement of Responsibilities and the Letter of Representation by the Chair of the Audit & Governance Committee and the S151 Officer.

Voting: For – 6, Against – 0, Abstain – 1