Agenda and minutes

Councillor Samuel Gardiner  -  personal reasons

Councillor Sajid Mohammed  -  personal reasons

Councillor Eunice Regan  -  personal reasons

None

To confirm the minutes of the meeting held on 29 November 2025

The Minutes of the meeting held on 29 November 2024 were confirmed as a true record and were signed by the Chair.

To note.

The Chair presented the Committee’s Work Programme. The following points were highlighted:

a)  There may need to be further amendments to the business planned for the Committee’s March meeting, due to the large number of items currently scheduled. CIPFA is reviewing the Council’s Financial Improvement Plan (FIP) to consolidate some actions and close others, and is on target to finish this work by the end of March, so this could be a potential area of interest for the Committee.

The Committee noted the Work Programme.

To note

The Chair presented the Committee’s Recommendation Tracker.

The Committee noted the Recommendation Tracker.

Report of the External Auditor

Andrew Smith and Mary Wrenn, representing the Council’s External Auditors (Grant Thornton), presented the External Auditor’s Audit Findings Report for 2023/24. The following information was highlighted:

a)  The draft accounts were published in December 2024, ahead of the backstop date in February 2025. However, the Audit Opinion to be given will be a ‘disclaimed opinion’ for the 2023/24 financial year due to it not being possible for the audit to be fully completed. A new ledger system has been put in place for the 2023/24 accounts to shows the underlying transactions and the reports that Grant Thornton have seen support the Council’s financial statements. This has given the External Auditors confidence as the audit process for 2024/25 progresses.

b)  Although testing has not been done on the opening balances, work has been done with the Council’s Finance team to pick out samples and ensure the process is clear, and there have been no issues with extracting transaction breakdowns. Historic issues such as the use pf management override control is still reported in the Audit Opinion. As part of the 2024/25 audit, the External Auditors will need assurance from the Council that those issues have been resolved and that solutions are working effectively. A statutory recommendation was issued in February 2024 and this forms part of the Audit Opinion for 2023/24.

The following points were raised in discussion:

c)  The Committee asked what historical issues were most affecting the audited accounts. The historical issues have been well documented, and Grant Thornton now needs assurance that the appropriate safeguards and controls have been put in place and that the Council is complying with those controls. The report sets out a historical position, but a great deal of improvement work has been done to rectify the issues identified. The Finance Improvement Plan (FIP) is well advanced, which CIPFA have been reviewing and is satisfied that the Council is on track. The Commissioners are also comfortable with the Council’s direction of travel and financial management. The Section 151 Officer is satisfied to sign off the 2023/24 accounts as a true and fair view of the financial position of the Council, in accordance with the CIPFA code of practice and standards.

d)  The Committee asked how many Local Authorities were being issued with disclaimed opinions for 2023/24. The Council’s External Auditors estimated that in the region of 40% of the sector would be receiving disclaimed opinions, and members agreed that the sector needed significant reform. The Executive Member for Finances and Resources provided the Committee with assurance that since issues with management override controls were identified, substantial governance work has been done over every single expenditure recharged to the Housing Revenue Account (HRA). Furthermore, a Spend Control process was implemented during the course of 2023/24 on every transaction.

e)  The Committee discussed the risks identified in respect of the operational management of the Council’s Risk Register (and that the Audit Committee did not always have timely sight of it), risk analysis and how the Council  ...  view the full minutes text for item 68.

Report of the Interim Corporate Director of Finance and Resources.

Glen Hammons, Interim Assistant Director of Technical Finance, presented a report which brought the 2023/24 accounts to the Committee for approval. The following information was highlighted:

a)  At its meetings in September and November 2024, the Committee approved the accounts for the four outstanding financial years, 2019/20 to 2022/23, and Audit Opinions were issued ahead of the backstop dates. The backstop date for the 2023/24 accounts is 28 February 2025. The 2023/24 accounts were issued for public inspection on 23 December 2024 for 30 days, and no questions were raised or objections received. The accounts have been subject to external audit and have been prepared using the CIPFA code and by an experienced team of Local Government accountants. The Council’s Section 151 Officer has considered these accounts to be a true and fair reflection of the position.

b)  The Committee is also asked to approve the Annual Governance Statement 2023/24 and the Management Representation Letter for 2023/24. The approval of these accounts now means that the Council is up to date with its accounts, and work has commenced on the closedown and production of the 2024/25 accounts. The report also provides the Committee with an update on the audit findings recommendations from the Audit Findings report for 2019/20. A number of these have been implemented and reflected in the 2023/24 accounts.

The following points were raised in discussion:

c)  The Committee agreed that the approval of these accounts, alongside the years from 2019/20 onwards, was a great achievement and a step forward for the Council. Members asked whether the lack of objections to the Council’s accounts signified increased confidence from the public in the Council’s financial management, and suggested amendments to the narrative to reflect the latest position in terms the Spend Control process as part of the post-balance sheet update.

d)  The Executive Member for Finance and Resources clarified the current position in respect of the Spend Control process. Spend Control responsibilities had now been devolved to Corporate Directors who apply them where deemed appropriate. This process will remain in place until at least the end of the current financial year.

Resolved:

1)  To approve the Statement of Accounts 2023/24, the Annual Governance Statement 2023/24 and the Management Representation Letter 2023/24.

2)  To note the Council’s progress towards implementing the recommendations identified in the Audit Findings Report 2019/20.

3)  To take assurance from the progress, indicative timeline and associated risks for publishing the draft Statement of Accounts for the financial year 2024/25 to meet the proposed national backstop dates.

4)  To request amendments to the narrative position in the Statement of Accounts to reflect the latest position on the Spend Control process as part of the post-balance sheet update, to be agreed by the Chair.

Report of the Interim Director of Finance and Resources

Glenn Hammons, Interim Assistant Director of Technical Finance, presented a report to outline the draft Treasury Management Strategy and Capital Strategy 2025/26, and provide the opportunity for the Committee to review and put forward any comments on the proposed Strategies ahead of them being considered for approval by Full Council at its meeting on 3 March 2025 as part of the wider Council Budget decision. The following information was highlighted:

a)  The Treasury Management Strategy incorporates the Council’s Investment Strategy for investing its surplus cash resources, its Debt Strategy and its Prudential Indicators. The Treasury Management Strategy has been refreshed to incorporate the latest financial position posed within the Budget.

b)  The Capital Strategy provides the financial framework for the Council’s capital investment and financing decisions. This has also been refreshed to reflect the latest figures and forecasts in terms of the Capital Programme, which will also be considered by Full Council in March. The Capital Strategy continues with the Voluntary Debt Reduction Policy that the Council is following and means there is no new borrowing being undertaken to finance its Capital Investment Programme. The Capital Strategy also continues with the prioritised use of capital receipts towards repaying the Council’s Exceptional Financial Support.

c)  From a Capital Strategy perspective, during the next financial year it is anticipated that there will be a full review of projects that are currently classified as pipeline schemes. There will also be a review of governance arrangements that surround the Capital Programme with a view to strengthening these, particularly in regards to alignment of the arrangements at the East Midlands Combined County Authority.

The following points were raised in discussion:

d)  The Committee asked how the Council is adapting to the uncertain economic environment both nationally and internationally. The latest forecasts are that interest rates will be reducing over the course of the next 12 months. The impacts of this have been factored into the returns on the Council’s Treasury Management investments and also reflected in reduced returns in the Treasury Management budget. To maximise returns, where the Council has certainty over its cash levels, it is looking to invest those for longer periods of up to 12 months to secure better rates. The Strategy also sets out set criteria around who the Council is able to invest with, which includes highly-rated financial institutions to protect the security of the cash investments. The Council is assessing the forecasts on a daily basis.

e)  The Committee queried the reference to minimising carbon footprint by disposing of buildings with poor energy ratings within the Capital Strategy, as that this would reduce the Councils carbon footprint, but would not be reducing carbon emissions within the City overall.

f)  The Committee asked about the scope within the Capital Strategy for ‘invest to save’. It was explained that there is reference in the Strategy to ‘invest to save’ and that if proposals emerged then the Council would consider this if appropriate – but the first priority must be to  ...  view the full minutes text for item 70.

To consider excluding the public from the meeting during consideration of the remaining item(s) in accordance with Section 100A(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighs the public interest in disclosing the information

The Committee resolved to exclude the public from the meeting during consideration of the remaining agenda items in accordance with Section 100A(4) of the Local Government Act 1972 on the basis that, having regard to all the circumstances, the public interest in maintaining the exemption outweighed the public interest in disclosing the information, as defined in Paragraph(s) 3 of Part 1 of Schedule 12A to the Act.

To confirm the exempt minutes of the meeting held on 29 November 2024

The Exempt Minutes of the meeting held on 29 November 2024 were confirmed as a true record and were signed by the Chair.

Report of the Interim Corporate Director of Finance and Resources

Elaine Simpson, Head of East Midlands Shared Services (EMSS), presented a report that provided the Committee with an update on the people, customer, operational and technological priorities and performance for EMSS for 2023/24.

The Committee noted the report.

To note

The Chair presented the Committee’s Exempt Recommendation Tracker.

The Committee noted the Exempt Recommendation Tracker.