To receive the Annual Governance Statement 2021/22 and Financial Statements 2021/22.

The Deputy Chief Finance Officer (Corporate), PSPS Limited presented Members with the Annual Governance Statement 2021/22 and Financial Statements 2021/22 which were required to be approved by the Committee prior to publishing on the Council's website as per the Accounts and Audit Regulations 2015 and before the statutory deadline of 13 December 2024.

Members were referred to the Audited Financial Statements 2021/22 for the year ended 31 March 2022 that were attached at Appendix A, pages 75 to 210 of the Agenda refer.

Members were invited to put their comments and questions forward.

·         A Member queried whether the scheme listed as ‘Invest’ could be written in full, page 92 of the Agenda refers.  In response, the Deputy Chief Finance Officer (Corporate) confirmed that the wording would be updated to ‘Invest East Lindsey.’

·         In reference to the Paragraph entitled ‘Entities Controlled or Significantly Influenced by the Council’, a Member queried the lack of detail provided under the heading of ‘Invest East Lindsey’, page 153 of the Agenda refers.  In response, the Deputy Chief Finance Officer (Corporate) advised Members that the lack of detail related to the existence of separate group accounts in which further detail was available.

·         A Member requested that more detail was provided under the Invest East Lindsey heading to assist members of the public.  In response, the Deputy Chief Finance Officer (Corporate) advised Members that a statement to refer the reader to the Group Accounts Section would be included to signpost where additional information could be examined, page 170 of the Agenda refers.

·         In reference to Paragraph 4.1 ‘Contingent Liabilities’, a Member queried the aspects that were under-reported, page 176 of the Agenda refers.  In response, the Deputy Chief Finance Officer (Corporate) advised Members that it was the Councils role to disclose whether there were any contingent liabilities that may be arising and there was currently none to disclose in relation to Invest East Lindsey.  The Deputy Chief Finance Officer (Corporate) further advised Members that 51% referred to ELDC’s share of PSPS and was referenced in the group accounts.

·         In relation to the delay in certification of completion of the audit, a Member queried whether the situation had changed, page 182 of the Agenda refers.  In response, the External Audit Manager, Mazars LLP advised Members that the external auditors had a responsibility to formally close the audit and issue a final certificate once all their responsibilities had been discharged and that this had not yet occurred.

·         In reference to ‘Issues raised by Internal Audit 2021/22’, a Member queried whether ongoing monitoring and review was still occurring, page 195 of the Agenda refers. In response, the Deputy Chief Finance Officer (Corporate) advised Members that follow up audits had been undertaken and acted upon with actions implemented in relation to the two red assurance reports on Procurement and ICT project management.

·         In relation to Note 33 – Related Parties – Members, the Chairman queried the accuracy of the number of Members disclosed as being elected Members of county, town and parish councils, page 152 of the Agenda refers.  In response, the Deputy Chief Finance Officer (Corporate) provided Members with clarification that the disclosures were provided from Members Related Party Transaction Forms and not their Councillor Register of Interests Forms.

·         A Member commented that improvement was needed for keeping Members Register of Interests forms up to date.  In response, the Chairman reiterated that the notes to the accounts related to Related Party Transaction Form declarations.

There were no further questions or comments.

Following which it was,

RESOLVED

·         That the Annual Governance Statement 2021/22 and the Financial Statements 2021/22 and the Letter of Representation be approved;

·         That the Letter of Representation be signed by the Deputy Chief Executive (Corporate Development) and Section 151 Officer and be presented to Mazars LLP, External Auditors.