Agenda item

Report number: PAS/WS/23/019

The Cabinet Member for Resources presented report number PAS/WS/23/019, which was the draft set of accounts for the financial year ending 31 March 2023.

Regulations required that accounts should be submitted to the council’s external auditors, Ernst and Young by the 31 May each year with a view that a final set of accounts could be scrutinised following the audit.

However, given that the current timetable for external audit was that it would not being auditing the accounts until November 2023 at the earliest, these were being brought to the Committee as a draft set of unaudited accounts in order for the Committee to have sight of them in a timely manner.

The headlines from the draft accounts for 2022 to 2023 was that as well as a budgeted use of the General Fund of £0.475m to offset ongoing Covid income recovery there was a further budget deficit of £0.57m being driven by inflationary pressures on fuel; utilities and supplies and services.  There was also a £1.3m pressure from the local government pay award.  However, following these impacts, the General Fund still finished the year at the targeted level of £5m.

The narrative report set out on pages 55 to 63 provided a full summary of all major items contained within the draft accounts.  Following the decision made on the Western Way Development, a narrative would be included in the draft accounts.

The Director (Resources and Property) then drew the Committee’s attention to the Balance Sheet, set out on page 73, and made specific reference to the long-term assess; current assets; and long-term liabilities.

The Committee scrutinised the draft accounts in detail and asked a number of questions to which comprehensive responses were provided.  In particular discussions were held on the meaning of baseline funding; the councils five-year asset management plan in relation to leisure facilities and managing financial risks and understanding those risks.

In response to a question raised on whether the £5m was reflective of the council’s reserve levels, the Committee was informed that the council’s minimum policy level was £5m which related to the general fund.  Along side this amount, was also the earmarked reserves.

It was suggested that under the section “Overview of the financial year 2022 to 2023” that comparatives and projections for the following year should be included.  In response the Committee were informed that the accounts were predominately backwards looking and followed a set format, but officers would consider more comparative information in the narrative. 

In response to a question raised regarding the Bury St Edmunds leisure centre, the Committee was advised that provision was in the budget and that would drive what the council would spend.  The council had an investment plan to not borrow for longer than the life expectancy of any building. 

At the conclusion of the discussion, it was suggested that the statement of accounts should include paragraph numbers to make it easier to read and navigate the statement of accounts. 

There being no decision required the Committee noted the Draft Statement of Accounts for 2022 to 2023, subject to the inclusion of paragraph numbers within the final set of accounts.