To receive the Draft Financial Statements including Annual Governance Statement 2023/24.

N.B This item was brought forward at the Chairman’s discretion.

The Deputy Chief Finance Officer (Corporate), PSPS Limited presented Members with the Draft Financial Statements including Annual Governance Statement 2023/24.

Members were referred to the Draft Financial Statements 2023/24 for the year ended 31 March 2024 that were attached at Appendix A, pages 193 to 310 of the Agenda refer.

Members were invited to put their comments and questions forward.

N.B Councillor Stef Bristow returned to the Meeting at 10.36am.

·         In reference to the going concern assessment for Invest East Lindsey, a Member queried whether there was doubt on the assessment of Invest East Lindsey’s ability to continue and whether there was historic documentation available to explain what the going concern assessment related to, page 289 of the Agenda refers.   In response, the Deputy Chief Finance Officer (Corporate), PSPS Limited advised Members that the wording on page 289 had been extracted from Invest East Lindsey’s financial statements and that historic documentation was available.

The Section 151 Officer further advised Members that the availability of historic information on Invest East Lindsey was related to its governance arrangements rather than performance.

·         The Chairman reminded Members that a scrutiny panel report had been presented to the Committee in June 2024 which had focused on Invest East Lindsey’s performance.

·         In relation to the report implications checklist, a Member queried who was responsible for drawing conclusions, page 189 to 190 of the Agenda refers.  In response, the Chairman explained to Members that the checklist was part of the standard report format that was brought forward to Committees.

The Section 151 Officer explained to Members that the report implications were a statement of fact and therefore had limited implications.  Members were further advised that a more detailed report that considered the wider implications would be presented to the Executive Board.

·         A Member further queried whether decisions on implications were made by an individual officer and whether there were guidelines.  In response, the Section 151 Officer clarified that guidelines were in place and that the report author was responsible for determining the implications of a report.

The Assistant Director, Governance and Monitoring Officer assured Members that all reports were submitted through the Section 151 Officer or the Monitoring Officer who would consider the implications before the report was presented to the authority.

·         In reference to the Repairs and Maintenance Reserve, a Member queried the requirement of a further fund use for capital purposes for the 3G Pitch in Louth, page 204 and 207 of the Agenda refers.   In response, the Deputy Chief Finance Officer (Corporate), PSPS Limited advised Members that further clarification would be obtained.

·         In reference to the legal and appeals reserve, a Member requested clarification on whether the Kenwick Road/Legbourne Road Flood Alleviation scheme was still operating and receiving funding, page 207 of the Agenda refers. 

·         In reference to the Public Sector Hub, a Member queried whether spending had been included for additional solar panels, page 204 of the Agenda refers.

In response to Members’ queries, the Deputy Chief Finance Officer (Corporate), PSPS Limited advised the Committee that further clarification would be obtained.

·         In reference to Landsites in the Council’s ownership, a Member considered that Westgate Fields in Louth should be included in the list, page 222 of the Agenda refers.

·         In reference to the Efficiencies Requirement, a Member requested further clarification, page 203 of the Agenda refers.   In response, the Section 151 Officer advised Members that the efficiencies requirement was built in to reflect the pressures of the Internal Drainage Board’s (IDB’s) Levies as there was no external funding available to support the cost.  Members were further advised that the IDB pressures had been separately identified for 2024/25 and that the efficiencies target continued to be reported and monitored in the quarterly reports presented to the Executive Board.

·         The Chairman commented that the year needed amending in the paragraph in relation to the Risk Strategy aligned across the Partnership Councils, page 101 of the Agenda refers.

There were no further questions or comments.

Following which it was,

RESOLVED

·         That the Draft Annual Governance Statement 2023/24 be approved and that the unaudited Financial Statements 2023/24 be noted as part of its governance role;

·         That the Section 151 Officer make any necessary amendments prior to the formal approval of the Accounts for audit.