Agenda item

This is a briefing for Members.  No papers are provided for this item.

The Head of Financial Management gave a presentation on the draft Accounts for 2022/23 assisted by the Corporate Finance Manager and the Head of Audit & Assurance. 

The presentation gave a brief overview of the key components.  The Narrative Report was the executive summary to assist the reader with details of financial and non-financial performance and looked forward and backward. 

The Comprehensive Income and Expenditure Statement (CIES) summarised the resources generated and consumed in providing services and managing the Council during the year.

The Movement in Reserves Statement showed the movement in different reserves held by the authority, both usable and unusable. 

The Balance Sheet showed the assets and liabilities as a whole as at 31^st March. 

The Cash Flow Statement summarised the inflow and outflows of cash from external transactions for capital and revenue and reconciled with the cash and cash equivalents figure in the Balance Sheet. 

The Collection Fund showed transactions in relation to tax payers of Council Tax and Business Rates and its distribution to preceptors. 

The Group Accounts helped reflect the overall picture of Council activities including its Group entities. 

The Annual Governance Statement (AGS) is a management statement and describes the Council’s governance arrangements. It is signed by the Council’s Chief Executive and Leader of the Council.  It includes ‘significant’ reportable issues and for the 2022/23 financial year these were recorded as: 1. Financial Challenge (inflationary pressures), 2. Children Services increase in service demand and costs.  A Local Code of Corporate Governance has been adopted by the Council and this helps carry out the governance review resulting in the AGS. The Local Code is to be reviewed and updated during this financial year and would be presented to the Committee in 2024.

The Head of Financial Management informed the meeting that the audit was still in progress with Beth Bowers (Grant Thornton) present to give an update later on the agenda.  He was not currently aware of any material changes required to the accounts.  The accounts and external audit findings report should come to Committee on 22^nd November 2023 for approval.

During questions the following points arose:

·  The delay with the audit (Councillor George Leach) was as a result of the local audit market not being in the best state, capacity issues for the External Auditor Grant Thornton, the scope and level of work had increased by 50%, regulation had upped expectations.  There had also been an impact from the pandemic and working from home.

·  In respect of the DSG safety valve payment (Councillor Lucy Hodge) it was explained there was significant pressure on SEND and care plans in the authority causing the overspend and the deficit on the Dedicated School Grant (DSG).

·  The DSG (Councillor David Biddleston) safety valve recovery plan would be revisited as a result.

·  With reference to national press reports on fraudulent payments during Covid (John Barker), it was explained in the national context that this was Covid loans to businesses.  BANES support was grant funding to small businesses and Internal Audit work carried out did not identify any significant fraudulent activity.  The Section 151 Officer confirmed that BANES had passed all the assurance tests and there was no recovery of funds for BANES.

·  In relation to the purchase of the Old Bath Post Office (Councillor David Biddleston), It was planned for the Fashion Museum funded through WECA RIF grant linked to generating economic benefits as part of the Milsom Quarter Master Plan.

·  The negative reserve if it is unusable was it based on statement requirements (Councillor Malcom Treby).  It was explained that unusable reserves are established for specific accounting purposes so that these technical accounting adjustments don’t impact on service provision or the taxpayer.

RESOLVED that the presentation on the accounts be noted.