To provide an update on progress made against the 2023/24 statutory accounts workplan and present the accounting policies and estimates which inform the financial statements.

The Head of Strategic Finance (HSF) introduced the report, the principal points were highlighted:

1.     The council is on target to produce the draft statement of accounts by the statutory deadline of 31 May and to be brought before the committee on 11 June for approval.

2.     Following a review, there are no changes proposed to the accounting policies to be applied in 2023/24.

3.     Attention was drawn to “appendix 2 Accounting Estimates” which includes areas where accounting estimates and judgments are applied. It was noted that these are closely aligned to the significant audit risks that were included in the external auditor's draft audit plan and identifies the source data that is used to make those estimates and judgments.

In response to committee questions, it was noted;

I.         The HSF explained the different classifications of land and building assets and confirmed the Shire Hall would be classified as “assets under construction” which are those assets where work is being carried out. Each year the council provides detailed information to the valuers and they use that data to inform their valuation carrying out impairment reviews as part of their work which takes place annually.

II.         Revaluation of assets is always undertaken on 31 March each year. It would then be considered which category of land and building assets that a particular item would fall into. Transferring between categories would depend on completion certificates etc. that will be reviewed to determine whether it can legitimately move between one category to another. External audits review any reclassifications as part of their audit testing.

III.         Public sector authorities are not taxpaying bodies, they have a statutory deadline to publish the draft accounts by the 31st of May following each financial year end. In order to produce those draft statements and to finalise and agree the outturn position it is reported to Cabinet as a quarter 4 report. The other statutory requirement is for an external audit which has a statutory deadline of 30th of September to receive an audit opinion and supporting working papers to enable the audit testing process to take place.

Resolved

That the committee has reviewed and confirmed that;

a) the arrangements for the preparation of the 2023/24 statutory accounts, including management arrangements to identify and evaluate accounting estimates, are satisfactory; and

b) the accounting policies which inform the preparation of the 2023/24 statutory accounts are approved.