Agenda item

To consider the draft pre-audit statement of accounts for the financial year ended 31 March 2024, included at Annex B.

Members considered a report that presented for information the draft 2023/24 Statement of Accounts before they were audited.

The Principal Accountant thanked her team for their support in preparing the statement and she noted that the accounts had been available for public inspection for a period of 30 working days from 10 June until 19 July 2024.

It was noted that the:

·        narrative report explained the main information included in the accounts, provided an overview of the council as at 31 March 2024, and provided further information about the most significant matters reported in the accounts, along with an analysis of the pressures and risks that may impact on future financial performance.

·        Statement of Accounts summarised the council’s transactions for the 2023/24 financial year and its position at the year-end of 31 March 2024.

During a detailed discussion Members questions were answered and officers noted that:

·        In order to accommodate the audit backlog, the Ministry of Housing, Communities and Local Government (MHCLG) had set the publication date for the draft accounts to 30 June for the next five years.

·        Executive regularly received finance and performance reports and would receive the next update on 12 September 2024.

·        The continuation of the cost control measures and the additional growth placed in the budget as well as ongoing monitoring would support the approved budget, but this was still an enormous challenge due to incorporating £14m worth of savings in this financial year.

·        Reserves were closely monitored and unexpected costs and contingencies were built into the budget each year.

·        Work was ongoing with individual schools to ensure they retained balanced budgets, maintained adequate reserves and had proposals in place to reduce any deficit.

·        Officers would be keen to contribute to any review implemented by the government to reform business rates. The impact this would have on York was yet to be identified.

·        Assurances from the auditors of the North Yorkshire Pension Fund (Deloittes) were still outstanding and once received Forvis Mazars, who were the council’s external auditors, would be able to complete the 22/23 audit. 

·        The major projects highlighted within the statement were monitored and officers currently had no concerns with the funding allocated so far.

·        The valuation of Allerton Waste was calculated using the depreciation replacement cost method and North Yorkshire Council had led on the new valuation commission.

It was confirmed that a separate narrative would be shared with the committee regarding:

·        The higher depreciation charges (£1.1m) within the Housing Revenue Account (HRA).

·        The variations between the income and net expenditure total figures across 22/23 and 23/24 in the Comprehensive Income and Expenditure Statement.

·        The miscellaneous amounts set aside from the General Fund balances in earmarked reserves.

·        The deployment of the Dedicated Schools Grant receivable for 2023/24, particularly the carry forward of £6.639m within the individual schools budget.

Officers agreed to update the terminology used in Annex A to include the Mayor of York and North Yorkshire office and they also agreed to consider including an explanatory note in the statement that described how many of the authority’s other employees received a salary more than £50,000 due to the annual pay award.

Members noted that Forvis Mazars were expected to issue a report and opinion by the end of November 2024, and should they have any concerns with the accounts, they would be identified and brought to this committee’s attention. It was also acknowledged that further training on the accounts could be provided to Members earlier and continue throughout the year.

Officers were thanked for the comprehensive work undertaken to produce the Statement of Accounts.

Resolved: That the draft pre-audit statement of accounts, for the financial year ended 31 March 2024, be noted.

Reason: To ensure that, in line with best practice, Members have had the opportunity to review the draft pre-audit Statement of Accounts.