Agenda item

The Statement of Accounts 2022/23 attached as Appendix 1 and the Letter of Representation attached as Appendix 2 require approval by this Committee following consideration of Ernst and Young’s Completion Report for Those Charged with Governance.

This report sets out some of the main highlights from the financial statements and explains the purpose of the Letter of Representation.

Approval of the accounts and the Letter of Representation is sought to enable the audit opinion to be issued and for the accounts to be published within the statutory backstop date of 13 December 2024.

[10 Minutes]

          Upon the invitation of the Chair, the Group Accountant presented the report to the Committee. The Statement of Accounts for 2022/23 had been prepared in accordance with the Chartered Institute of Public Finance and Accounting Code of Practice for 2022/23. He explained that due to a change requested by Ernst & Young LLP, he had a verbal update in relation to the Statement of Accounts for 2022/23. As the Statement of Accounts for 2021/22 were signed off by Ernst and Young LLP, it was deemed unnecessary to include the restatement wording within the paragraphs and tables. Therefore, some amendments had been made to the published agenda pages contained in Appendix 1 as follows: The word restated had been removed from page 75 (at the end of the narrative in the paragraph referring to the 2021/22); the word restated had been removed from the tables on pages 77, 78, 81, 83, 105, 107, 108, 123, 126, 127 - Grant Receipts in Advance, 140 – Housing Revenue Account, Income and Expenditure, 140 – Movement on the HRA Statement, HRA adjustments between accounting basis; the paragraph at the bottom of the table on page 78 had been removed;  the title on page 80 had been amended to just 2021/22 and the paragraph underneath had been removed; on page 82 the paragraph below Balance Sheet (continued) had been removed; on page 83 the paragraph at the bottom had been removed; on page 139, Prior Period Adjustments had been removed.

These changes had not altered the figures within the Statement of Accounts. The Council’s usable reserves remained at £39.5m at 31 March 2023, and the Council’s net assets increased by £65.4m to £395.3m at 31 March 2023, which was largely due to the increase in Pension Assets.

          Some Members expressed their concern that so many changes had been made to the document at such a late stage, and they felt it difficult to approve the recommendations due to this. It was asked how the changes impacted the Council’s Letter of Representation. The Group Accountant confirmed there was no impact on the Letter of Representation. The Group Head of Finance and Section 151 Officer explained the Letter of Representation was confirmation of the accuracy and completeness of information provided to the auditors. The updated changes did not alter any of the actual figures, and did not materially change the decision required or substantive content of the accounts. A revised version of the Statement of Accounts would be sent to Members.

          One Member believed the business rates (page 103) went into a pool held by West Sussex County Council (WSCC), and was unclear how this affected Arun District Council (ADC). The Group Head of Finance and Section 151 Officer explained that ADC did keep a share of the business rates, and the growth levy went into the pool held by WSCC. Most Councils had to return that money back to central government, however WSCC had been given dispensation to set up the pool and so were able to keep an amount.

The  total expenditure (page 105) appeared to have reduced and it was asked whether this was correct. The Group Head of Finance and Section 151 Officer explained this would be due to technical accounting adjustments and would not be additional money available. He would provide further information on this to Members after the meeting.

          Page 124 showed Officer’s remuneration, and it was asked whether these were new appointments. The Group Head of Finance and Section 151 Officer confirmed those in the finance department were not new positions, and he did not believe the others to be either.

          Page 126 appeared to show that the cost of external audit had reduced. The External Audit Partner explained the final fee for the 2022/23 year had yet to be determined by Public Sector Audit Appointments.

          The Committee Manager confirmed that recommendation a) was to approves the Statement of Accounts 2022/23, contained in Appendix 1, as amended by the Group Accountant during the meeting.

The recommendations were proposed by Councillor O’Neill and seconded by Councillor Oppler.

The Committee

RESOLVED that

a)    It approves the Statement of Accounts 2022/23, contained in Appendix 1, as amended by the Group Accountant during the meeting.

b) It approves the Management Letter of Representation on behalf of the Council as set out in Appendix 2 and authorises the Chair of the Audit and Governance Committee to sign on behalf of the Committee.