To receive a verbal update from the Executive Director – Resources.
(This item will contain exempt information as defined in Paragraph 3 (information relating to the financial or business affairs of any particular person – including the authority holding that information) of Schedule 12A to the Local Government Act 1972, as amended).
Minutes:
Councillor Tim Leaver, Cabinet Member for Finance and Performance together with the Executive Director, Resources provided a verbal update on the position of the statement of accounts for 2019/20, 2020/21 and 2021/22.
The Committee were advised that discussions had taken place with the these included discussion with Public Sector Sustainability Association (“PSSA”), and that officers are considering that options are available to resolve this ongoing issue.
The Executive Director for Resources advised that she had spoken to the Chief Executive of PSAA and expressed the Council’s dissatisfaction with the situation. The PSSA had responded to say that they wanted to cooperate with the Council and had agreed to attend a future meeting of the Committee. The Executive Director confirmed that the Finance Team had addressed the majority of the issues identified in the independent review undertaken by CIPFA to strengthen the finance resilience and governance in the Council and had responded to all issues raised by BDO. The delay now rested with BDO.
Members reiterated their concerns regarding the current position of the accounts which was detrimental to the confidence the public had in the Council. Members asked whether, since the audit of the Pension Fund had been completed, the accounts for the Pension Fund should be signed off.
The Executive Director, Finance explained that this was a sector issue and LBE was not alone in finding itself in the current position. There were 51 local authorities who had outstanding audits for 2019/20. The unresolved national technical issue relating to infrastructure assets valuations was impacting on other Government departments such as the Treasury. CIPFA also recognised that this is a national issue.
The Committee remained of the view that a meeting be sought with the audit partner(s) responsible for the Council’s outstanding audit or, failing that, a BDO representative to attend to be held to account for not fulfilling the contractual arrangements. This delay materially affected the Council. Members also suggested that this issue be raised with the local MP or ministers.
The Cabinet Member for Finance and Performance stated that the current situation was totally unacceptable. The Cabinet Member commented that the Council would continue to use the excellent internal audit services and the General Purposes Committee to maintain and build the confidence of residents, to add robustness to the financial management in and across the organisation and the Borough. The Council continued to strive to resolve the issues with BDO to strengthen and build resilience for future audits.
The Committee and the Cabinet Member for Finance and Performance thanked the finance team for their work in pursuing the matter to secure a resolution for the Council.
AGREED that:
3. The Council pursue a resolution to the close of the accounts for 2019/20 and 2020/21, and for the preparation of the draft accounts for 2021/22;