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

The Deputy Chief Finance Officer (Corporate), PSPS Limited presented Members with the Annual Governance Statement 2023/24 and Financial Statements 2023/24 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 by the backstop date of 28^th February 2025, pages 7 to 124 of the Agenda refer.

Members were reminded that the Draft Annual Governance Statement and the Unaudited 2023/24 Financial Statements had been considered by the Committee on 27^th November 2024.

Members were further advised that KPMG were issuing a disclaimed audit opinion due to being unable to undertake a full external audit and that assurances would be rebuilt over multiple audit cycles.

Members were invited to put their comments and questions forward.

• A Member queried the number of additional cycles that the Council would have disclaimed audit opinions before it returned to full audit confidence.  In response, James Boyle - External Audit Director, KPMG advised Members that insight into local audit reset and recovery phases had been highlighted in the ISA 260 or Year End report for Agenda Item 5, and that risk assessment work for 2024-25 was well underway, pages 177 to 179 of the Agenda refer.

Members were further advised that disclaimed audit opinions would take a few years to rectify, and that East Lindsey District Council was being prioritised in the external audit processes undertaken across the Partnership for 2024-25.  The External Audit Director, KPMG assured Members that good progress to building back assurance was expected by the end of 2025.

• In reference to the statement which noted that the Financial Statements presented in Appendix 1 were currently being subject to a final verification by the external auditors, a Member queried whether the final verification had been concluded, page 4 of the Agenda refers.  In response, the Deputy Chief Finance Officer (Corporate), PSPS Limited advised Members that final processes were underway with the intension for sign off to occur in advance of the backstop date.

• In reference to the actions proposed to improve governance arrangements, a Member requested assurance on the progress of the actions for the alignment of the Councils’ Constitutions and a relaunch of the Member Development Group across the Partnership, page 112 of the Agenda refers.  In response, John Medler, Assistant Director (Governance) and Monitoring Officer advised Members that both work programmes were underway and that additional consideration was needed on the way in which the work on the Constitution was progressed following the announcements on local government reorganisation.

Members were further advised that both topics had not been finalised and that a Partnership Membership Development Group was under discussion with the relevant Portfolio Holders of each Council to determine whether a joint approach would be moved forward.

• A Member stressed that it was important to continue with alignment of the Councils’ Constitutions irrespective of local government reorganisation.

• A Member requested further clarification on the proposed scope of the Membership Development Group.  In response, the Assistant Director (Governance) and Monitoring Officer advised Members that the full scope of the group had not been formally agreed and that proposals would examine creating a separate group that would examine wider Member development across the organisation.

Members were further advised that ELDC currently operated an approach of bringing forward training through Committees or through group budgets which the Group Leader had access to for individual Members and that training was complemented by corporate training and induction programmes.

There were no further questions or comments.

Following which it was,

RESOLVED

•      That the Annual Governance Statement 2023/24 and the Financial Statements 2023/24 and the Letter of Representation be approved;

•      That any necessary amendments prior to the official signing of the Financial Statements be made by the Section 151 Officer;

•      That the Letter of Representation be signed by the Deputy Chief Executive (Corporate Development) and Section 151 Officer on behalf of the Committee once received from KPMG, External Auditors.