Chair of the Governance Committee to report the recommendations of the Governance Committee held on 9 January 2024 (to follow).

Council considered a report by the Chief Financial Officer (circulated previously) regarding the Statement of Accounts for 2022/23.

The Director of Resources and Deputy Chief Executive advised that:

·       Draft Statement of Accounts for year ended 31 March 2023 which were signed by the Chief Financial Officer on 8th June 2023.

·       The target date for published, audited accounts was 30 September.  Last year the target date was extended to 30 November 2023. 

·       Due to national resource pressures a significant number of audits have not been carried out across the sector.  The Council was one of only a small number of Local Authorities to have had their 2022/23 accounts audited.

·       External Audit of Accounts (Grant Thornton) audit of financial statements had taken place through October – December 2023 and being concluded through January 2024.

·       Audit Findings Report was presented to Governance Committee on 9 January 2024.  An Unqualified Opinion on Financial Statements was reported and there were seven recommendations (one high, three medium and three low) following the Key Findings which had been accepted by management and responses had been built into the Action Plan.

·       The Narrative Report (pages 28 to 38 of the accounts) sets out the challenges we face, how we aim to meet those challenges (Medium Term Financial Plan) and reviewed the last financial year 2022-23.

·       Review of year ended 31 March 2023.  Quarter 3 reported as at December 2022 a small net surplus of £19,000.  Favourable variances seen in last quarter since last reported position; most notably additional income from planning fees, a reduction in the Temporary Accommodation additional cost pressure that was forecast, additional interest receivable on our investments and additional Business Rates and Government Grant income. The final outturn position achieved a net budget surplus of (£693,000); this was (£604,000) in previous year.  The detailed main variances including adverse and favourable were included on the table on pages 32 and 33 of the accounts.

·       The proposals and options for balances of £693,000 to be placed into earmarked reserves were detailed on page 34 of the accounts.

·       Green Lanes Shopping Centre - Members approved in June 2021 to proceed with the acquisition of Green Lanes Shopping Centre; which the Council completed the purchase in November 2021. The financial modelling demonstrated that revenue income generated from the centre would cover both the repayment of the loan and asset management costs and would return a contribution to the Council which could be used towards mitigating future risks on income volatility, investment back into the centre and the overarching council budget.  The financial outturn for the Centre produced a net return (income less costs) for the 2021/22 year of (£243,600) due to minimal borrowing costs for last financial year as these commenced in 2022/23. The 2022/23 trading position produced a net return of (£291,000), including borrowing costs. This was a positive return for the Council and was in line with the original forecasting. 

·       The general fund reserve balance as at 31 March 2023 was £1.238m. The earmarked reserves of £11.134m  ...  view the full minutes text for item 87