To provide an update on progress made against the 2024/25 statutory accounts workplan and present the accounting policies and estimates which inform the financial statements.

The Director of Finance (DOF) introduced the report the purpose of which was to provide an update on progress made against the 2024/25 statutory accounts workplan and present the accounting policies and estimates which informed the financial statements. The following principal points were noted.

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 10 June for approval.

2.     Attention was drawn to appendix 2, the accounting estimates and judgements that are made in the preparation for those statements. They are subject to robust audit procedures and no changes had been made in making those estimates and judgements in this financial year.

3.     Attention was drawn to appendix 1, the Accounting Policies 2024/25 which are included in the statutory accounts. Improvements had been made to these in previous years to provide a narrative explanation relative against each note so that the user of the accounts can look at the referenced numbers and understand the accounting policy that had been applied within the same page to experience a more user-friendly experience.

4.     Changes to the accounting policies include the implementation of IFRS 16. This is a new accounting standard effective 1 April 2024 impacting the accounting treatment for leases/right of use assets, with an associated impact on the accounting treatment for Public Finance Initiatives (PFI).

In response to committee questions, it was noted in terms of risk of misstatement the DOF was confident the auditors would be satisfied.

Resolved

The committee deemed the arrangements for the preparation of the 2024/25 statutory accounts as satisfactory; and approved the accounting policies.