Agenda item

This report provides the Governance and Audit Committee with the opportunity to review the draft version of the 2021/22 Statement of Accounts.

The Assistant Director of Finance presented the report to the Committee.  A draft copy of the 2021/22 Statement of Accounts was now available for review by the Governance and Audit Committee prior to the completion of the audit process.  In accordance with the Accounts and Audit (Amendment) Regulations 2022, the statutory deadline for completing the 2021/22 audit and publishing the final accounts was 30 November 2022.

The proposed public inspection period was to begin on 2 August 2022 and continue until 12 September 2022.  During this time members of the public could exercise their right to inspect the accounts.  A notice to that effect was published on the Council’s website.  Following completion of the audit, the final accounts were to be presented to this Committee together with the audit opinion.

Members were asked to ensure that the Annual Governance Statement for 2021/22 was an open and transparent reflection of the governance arrangements for that financial year.  The AGS formed part of the annual accounts and was reviewed by External Audit. 

Group Accounts would be prepared to reflect the Council’s relationship with Gravitas Ltd and LeisureSK Ltd on receipt of the draft financial statements for LeisureSK Ltd.  Due to materiality thresholds, it was not a requirement to include the other Council owned companies in the group accounts.

As the audit progressed there may be further amendments which were to be incorporated into the accounts.  The Committee would be informed of any changes when the final accounts were presented for their approval.

Members raised the following points during discussion:

·            Why does the Governance and Audit Committee not receive detailed accounts of the SK Companies for scrutiny?

·            Why are the accounts for EnvironmentSK Ltd not available on the Companies House website?

·            What will happen to the loan that EnvironmentSK Ltd are responsible for paying if they cease to exist?

·            Did the Chairman need to disclose an interest as a Director of EnvironmentSK Ltd?

The Chairman reported that no interest was required to be declared in the general consideration of the Council’s statement of accounts as a Director of EnvironmentSK Ltd.  He confirmed, however, should any specific discussion on the accounts of EnvironmentSK Ltd arise he would declare an interest and not take part in those discussions.

The Assistant Director of Finance confirmed that all SK Companies accounts were available for public view on Companies House website.  The Companies Committee would then consider the accounts at a future meeting.  The Officer informed Members that the accounts for EnvironmentSK Ltd would be uploaded onto the website by 29 July 2022 in accordance with statutory regulations.

The Chief Finance Officer informed the Committee that the Cabinet had made no decisions on the future of EnvironmentSK Ltd and had chosen to consider the market.  The procurement and marketing process was due to start imminently.

The Vice-Chairman asked for clarification on the Annual Governance Statement and referred to the areas of focus that were to be considered soon:

·            The report confirmed plans to undertake a 6-month assessment of the Peer Review.  Who would be consulted and was it to be published with results against targets?

·            What format was the action plan to take to respond to the recent scrutiny review?

·            Which companies were to be part of the planned review and which Committee would receive it?

The Chief Finance Officer confirmed that the Annual Governance Statement was part of a draft document and the final document would return to the Governance and Audit Committee for approval.  Progress on the Peer Review was to be considered in September 2022 before returning to Cabinet later in the year.    InvestSK Ltd had dissolved and Gravitas Housing Ltd was expected to provide a closing report once all sales were completed.  The Council had commenced a grounds maintenance procurement process; the outcome of which would have an impact on the future of the company.   LeisureSK would be undertaking a review with particular reference to the management fee and pressures in terms of inflation and utility costs.

Information on the scrutiny review action plan was referred to the Assistant Director of Governance to confirm with Members as soon as possible.

ACTION:

That the Assistant Director of Governance confirmed what format the action plan would undertake and when it would be brought before the Governance and Audit Committee.

AGREED:

That the Governance and Audit Committee:

a)    Have reviewed the draft Statement of Accounts 2021/22 prior to the commencement of the external audit.

(Councillor Baxter requested that his abstention from the vote be recorded)