To receive a report from the Deputy Chief Finance Officer (Corporate).

Christine Marshall, Section 151 Officer presented a report on the Financial Statements and Accounting Policies.  The purpose of the report was to review and approve the Accounting Policies for inclusion in the Financial Statements for 2022/23.

The Section 151 Officer advised that unless there were any major changes to accounting rules and regulations, accounting policies did not change significantly.  The report presented the proposed accounting policies to be adopted for the 2021/23 financial year.  The policies were prepared in line with CIPFA’s Code of Practice.

Members were advised that the 2022/23 unaudited Financial Statements needed to be completed by 31 May 2023, (31 July for 2021/22 unaudited Financial Statements) and would be presented to Audit and Governance Committee when complete which would be very challenging.  The accounting policies would be included within the Statements, and any minor changes made during the Statements production process would be agreed with the S151 Officer and highlighted to the Committee on this date.

It was noted that no formal consultation has been undertaken, but the Committee had the opportunity to review the accounting policies and propose amendments prior to the publication of the unaudited Financial Statements, in line with 31 May 2023 deadline.  A wider consultation regarding the 31 May deadline for the unaudited Finance Statements closed on 2 March 2023 and the Council was awaiting the outcome of this, which could result in the deadline being extended for a further year.

Members were further advised that work was underway in unison with the auditors around some perceptual changes to accounting treatments.  It was highlighted that this did not affect the bottom line but was more technical treatment as to how the information was presented and some of the terminology that might be used in the accounts.

Members were invited to put forward their comments and questions:

·     A Member queried whether there were any significant changes to the accounting policies from previous years.  The Section 151 Officer advised that she was not aware of any in particular, it was more how the information was presented.

·       With regards to Policy No. 6 Business Improvement Districts, page 71 of the Agenda refers, the Section 151 Officer clarified that although the scheme was wound up in August 2022, it was included as it was relevant to the 2022/23 accounting year.

·       In relation to Policy No. 7 – The Local Government Pension Scheme, page 72 of the Agenda refers, and a query in relation to the discount rate of liabilities at 2.6% for 2021/22, the Section 151 Officer confirmed that the rate varied each year.

·       In relation to Policy No. 24 – Reserves, page 83 of the Agenda refers, a Member commented that the Council seemed to be in a very strong position and queried whether the level of reserves was at the right level.  The Section 151 Officer referred Members to the Towns Fund Projects and advised that in 2023/24 large withdrawals would be made to support these projects and also moving into 2024/25 to support the Council’s programme, therefore there would be a point when the levels would significantly drop.  However, there may be other plans that came in to replenish reserves over a period of time but advised caution over windfall payments that could not be relied upon as a permanent solution.

·       In relation to Policy No. 11 – Heritage Assets, page 76 of the Agenda refers, a Member highlighted that Westgate Fields and land for the Arts Trail had been missed off being recorded on the land sites.

No further comments or questions were received.

The recommendations within the report were duly proposed and seconded.

Following which it was,

RESOLVED:

·       That following review by the Audit and Governance Committee, the Accounting Policies for 2022/23 at Appendix A be approved.

·       That the land sites in Policy No. 11 – Heritage Assets be updated.