Agenda item

To receive a report completing the processes for publishing the Council’s unaudited Statement of Accounts for 2025/26.

The Committee received a report (a copy of which is appended in the Minute Book) completing the processes for publishing the Council’s unaudited Statement of Accounts for 2025/26.

The Head of Finance introduced the report, noting that the Council had delivered a strong outturn which reflected continued prudent financial management in what remained a challenging and uncertain environment. The Executive Councillor for Finance and Resources echoed the comments made by the Head of Finance and thanked Officers for their work in producing the documents.

In response to questions from the Committee, the Executive Councillor for Finance and Resources advised that there had been a new internal audit provision over the previous 14 months who had done a lot of work looking at areas where extra reassurance was requested. Furthermore, it was important to know internal audit were looking at areas where there was work to be done to improve, to ensure the Council was doing what it should be doing.

The Head of Internal Audit, Dan Harris of RSM advised that they had not concluded through their work that any fraudulent activity had occurred and had not identified any fraud through the 2025/26 internal audit program. RSM had agreed a comprehensive program of work as a result of a prior year where there had not been enough work, therefore they had delivered more audits than they might have expected to do. Some areas had not been reviewed in recent years, and some areas were being looked at that through legislation had not been looked at before. He was satisfied that the key messages through his opinion had flowed through to the Annual Governance Statement.

In response to questions from the Committee, the Head of Finance advised that significant work had been done regarding IFRS 16, which was an area that she had brought some expertise to the Council. She was not aware that the Auditors had concerns with professional valuers Wilkes, Head and Eves’ (WHE) methodology of valuations. Significant work had taken place with WHE to ensure those valuations were accurate and that new requirements had been met and complied with.

A question from the Committee was raised around the sum currently left for Community Infrastructure Levy applications, an answer to which would be circulated following the meeting.

In response to a question from the Committee, the Corporate Director – Finance and Resources advised that the figure in the Local Government Reorganisation (LGR) reserves was to fund additional resources that may be needed internally, as there was a large amount of work necessary, particularly around the alignment of accounts. Until a decision was made by the Government, it was uncertain which route the Council would take and what resources would be needed to support other services that would be required as a result.

Whereupon, it was

RESOLVED

that the Committee

(1)  considered and approved the Annual Governance Statement (Appendix 1);

(2)  considered and approved the unaudited Statement of Accounts for 2025/26 (Appendix 2); and

(3)  considered and approved the Notice of Publication (Appendix 3).