Agenda item

Colleen Warren, Financial Services Manager:

a)    presented the Statement of Accounts for the financial year ended 31 March 2021.

b)    reported that the Statement of Accounts for 2020/21 provided a comprehensive picture of the Council’s financial circumstances and were compiled to demonstrate probity and stewardship of public funds.

c)    reported that the Council was statutorily required to publish its Statement of Accounts for 2020/21 with an audit opinion and certificate by no later than 30 November 2021. This date had been extended from the ordinary deadline of 31July as a result of Covid-19.

d)    noted that the Statement of Accounts for 2021/2 were still subject to final verification by external audit . The audit of accounts was being finalised by Mazars, who had commented the audit in July. Should any material changes be necessary as a result of this final external audit work, these would be reported back to a meeting of this committee by the Chief Finance Officer.

e)    reported that the Council must make the Statement of Accounts available for public inspection for 10 working days. Following notification from the Council’s external auditors, this ran from 2 August 2021 until 13 August 2021 and the external auditor was available to answer questions during this period. It was reported that no questions had been asked.

f)      advised that during the completion of the external audit there were five misstatements above the threshold level of £49k, of these two misstatements had been amended in the final version of the Statement of Accounts.

g)    reported that the Council was required to provide a documented annual review of the effectiveness of its governance arrangements which sat alongside the Statement of Accounts, known as the Annual Governance Statement. The overall level of assurance provided in 2020/21 was substantial and was in line with the Council’s Code of Corporate Governance.

h)    presented the following aspects of the Statement of Accounts:

·       the Comprehensive Income and Expenditure Statement;

·       the Balance Sheet;

·       general balances;

·       earmarked reserves;

·       liquidity;

·       debtors;

·       creditors;

·       non-current assets;

·       pensions;

·       officer remuneration;

·       borrowing;

·       investments.

i)      invited members’ questions and comments.

Question: Referred to page 61 of the report and asked for an update on the mayoral car.

Response: In the current climate there was less of a need for a mayoral car, therefore temporary transport had been hired. Earmarked reserves had been released from the budget, however £27k had been left in the fund which would be enough to purchase a new vehicle if necessary. A review of the mayoral car would take place shortly.

Question: Referred to the assessment of car parks and asked if the 60 year life related to all car parks in the City.

Response: 60 years was the average life of the of all if the car parks in the City which had been estimated by the valuers.

Question: Referred to page 88 of the report and asked for clarification on the sale of PPE.

Response: PPE was in relation to property plant equipment, a glossary of abbreviations would be included in the report.

Question: Referred to the longevity of Council Staff once retired and asked if this was based on national statistics.

Response: The information had been provided by Lincolnshire Pensions therefore it was based on local statistics.

Question: Referred to the table at paragraph 4.2.2 of the officers report and asked if the figure of £0.075m for the HRA balances was incorrect.

Response: This would be updated to the correct figure of £0.75m.

Question: Referred to paragraph 4.2.5 of the report and asked for more information on debtors.

Response: This was in relation to the collection fund. The City of Lincoln Council acted as the billing authority for Business Rates and Council Tax which were both in a deficit. The debtor was due to the County Council owing money, the full deficit had to be shown in the City Council accounts however, the deficit was shared between the Lincoln City Council, Lincolnshire County Council, Lincolnshire Police and the Government.

RESOLVED that

1.    the final Statement of Accounts 2020/21 be noted, noting that the external audit was substantially complete.

2.    any further changes to the Statement of Accounts, arising from the conclusion of the external audit be delegated to the Chief Finance Officer who would report any changes to the Chair of Audit Committee.