Agenda item

To receive the report, which asks the Committee to approve the Statement of Accounts for the financial year 2021-22.

The Committee received the Statement of Accounts, presented by the Chief Finance Officer, which enabled Members to undertake an examination of the Council’s financial accounts for the financial year 2021-22.

It was explained that the audit was still to be concluded as there were two significant matters outstanding, as Members had heard featured in the External Auditors Completion Report.  It was further explained that two minor amendments had been made as part of the ongoing external audit, however both corrections were purely presentational in nature; and a change to the recommendation had been made to the report within the agenda pack.

Members heard that the two elements outstanding related to the current valuation of Selby Business Centre and Council Disclosures around Capital Commitments under Contract.  The assurance letter from the North Yorkshire Pension Fund auditors also remained outstanding, however it had been indicated that this would be received in November 2022.

In respect of the year end value of Selby Business Centre, the Committee noted that an updated valuation of the site had recently been performed, this had led to a revaluation of the asset to £1.11m, a proposed impairment of the asset in year of £1.56m; the audit work to verify the updated value remained ongoing.

Members noted that with regards to Note 14. Commitments under Capital Contracts, the note currently showed £17.5m for modernisations to HRA land & buildings, this figure represented the amount budgeted by the Council for the coming three years for these schemes.  As at 31 March 2022 £632k of this amount was subject to committed agreements with suppliers, but with no formal value attached to the contract in terms of committed spend.  Ongoing discussions were taking place with regards to which value was materially correct to include as a disclosure within the note depending on the treatment.  It was further noted that any change between these values would be self-contained within this note, and presentational only.

The Chief Finance Officer requested that, subject to the resolution of these outstanding matters, within the parameters outlined above as representing the potential change, members delegate authority to her to make any minor amendments which may arise in the accounts in consultation with the Chair of the Committee; and authority to sign the letter of representation contained within the External Auditors Completion Report on completion of the audit.

In relation to earmarked reserves from developer contributions received towards the provision of affordable housing, it was queried why the figure was so high when the spend was time limited.  It was further queried if Selby District Council (SDC) had plans in the pipeline for the monies and if not, would the figure be transferred to North Yorkshire Council (NYC) on vesting day.  It was confirmed that SDC did have plans to acquire a number of properties within the Staynor Hall development in Selby, and that any assets and liabilities that SDC held at the 31 March 2023 would become opening balances for NYC on the 1 April 2023.

A number of queries were raised in relation to the accuracy of the figures contained within the report under officer renumerations and the movements in a number of senior officer posts between the 2020-21 & 2021-22 financial years, and the total value for member allowances in 2021-22 in the disclosure note.  Further details as to the usage of the in-year transfer out of £8,507k from the Special Projects Unallocated Reserve was also requested.

The accountant explained that he would review the figures and circulate a detailed response to the Committee, and Members were assured that any material changes within the accounts would be reported back to the Committee as a whole.

The Committee approved the Statement of Accounts, subject to the completion of the audit.

RESOLVED:

i.              To approve the Statement of Accounts 2021-2022, subject to the completion of the audit.

ii.            To delegate authority to the Chief Finance Officer to make minor amendments to the accounts in consultation with the Chair of the Committee.

iii.            To authorise the Chief Finance Officer to sign the letter of representation as set out in draft in the External Auditors report at item 9 of the agenda.