Agenda item

6.1

The Committee considered a report of the Director of Finance and Commercial Services, Philip Gregory. The purpose of the report was to provide Members of the Audit and Standards Committee with a summary of the 2023/24 Unaudited Statement of Accounts and explain the core statements and a number of the key notes to the accounts.

6.2

Ruth Matheson, Finance Manager, explained that the Council’s 2023/24 Unaudited Statement of Accounts were authorised by the Director of Finance and Commercial Services (Section 151 Officer) on 31 May 2024 and brought to the Audit and Standards Committee on 20 June 2024 for Members to note. The draft set of accounts were now subject to external audit by KPMG. Members of the Committee were requested to view the full Statement of Accounts 2023/24 in order to prepare for full approval by the Committee. The statutory deadline of 30 September 2024 was dependent on expected legislation changes. Support would be provided to Member of the Committee via officers and an independent training officer to ensure they are able to question, challenge and understand the accounts. 

6.3

Members of the Committee made comments and asked questions and the following responses were provided: -

·        There were approximately 900 uncompleted audits across the local government sector. The audit contract at Sheffield City Council had recently been awarded to KPMG, who were on track to begin the audit process in July 2024. There had been a delay in incorporating draft legislation due to the general election, and this had the potential to delay accounting for the previous contactors (EY), and therefore impact KPMG for the 2023-24 accounts due to the opening balances. However the legislation also made provision for the auditors to disclaim or provide a limitation of scope to enable them to catch up. KPMG had already begun looking at previous accounts to give them assurance.

·        Appendix 7 (Housing Revenue Account) of the report showed that there had been a decrease of £27.5m in depreciation, impairment and revaluation losses/(gains) of HRA non current assets, and it was agreed a detailed explanation would be provided. There were also lower arrears and lower uncollected debt compared with the previous year.

·        Officers agreed to provide further detail to Members of the Committee on ‘Appeals Provision’ and ‘Renewable Energy Disregarded’, as referred to on page 59 of the report.

·        ‘Usable’ reserves were also known as ‘cashbacked’ reserves, and were set aside for future liabilities and to manage contractual fluctuations. ‘Unusable’ reserves were accounting reserves i.e. a paper reserve identified in order to balance the balance sheet, and were not yet realisable reserves.

·        Reference was made to written questions that had been submitted by James Brackley (Independent Co-Opted Member) in his absence, and officers advised that a written response would be provided to these.

6.4

RESOLVED: That the Audit and Standards Committee notes the core statements and the key notes to the Unaudited Statement of Accounts for 2023/24.