Issue - meetings

(A report by Russell Stone, Director of Finance (S151 Officer))

The Committee received the audited Financial Statements for 2024/25, presented by the Head of Finance Delivery, PSPSL. The report sought formal approval for publication and outlined key changes since the draft version considered in July. The Audited Financial Statements 2024/25 were attached as Appendix 1 within the report. Members were reminded that the Accounts and Audit Regulations required the statements to be approved and published by 27^th February 2026.

The audited statements incorporated adjustments identified during the external audit process, including:

·         Two valuation corrections:

• Garfits Lane Playing Field – land value per acre assumption overstated by £1.485m.
• PRSA Athletics Track – inflationary uplift error resulting in an overstatement of £1.249m.

·         Disclosure amendments – Updates to the Related Parties note and Officers’ Remuneration note to ensure compliance with the CIPFA Code of Practice.

·         Minor presentational changes – To improve clarity and meet statutory requirements.

Officers confirmed that final checks with KPMG were ongoing and requested delegated authority for minor amendments prior to official sign-off. The Committee was assured that these adjustments did not affect the overall financial position or the unqualified audit opinion.

Members welcomed the clarity of the report and raised several points for further explanation:

·         Members queried the nature of the valuation errors and whether additional controls would be introduced to prevent recurrence. Officers confirmed that enhanced review processes and validation of floor areas were being implemented.

·         A Member requested a breakdown of the proportion of expenditure on salaries and pensions. Officers undertook to provide a written response.

·         Clarification was sought on the total amount of government funding received under the Boston Partnership initiative. Officers agreed to confirm this outside the meeting.

·         Members asked for comparative figures and trends. Officers undertook to report these at the next meeting.

·         Questions were raised about the reduction in property fund returns. Officers explained that this reflected market conditions and lower yields, while overall returns remained positive when income was considered.

·         Members queried the disclosure of peppercorn leases and the increase in debt impairment. Officers confirmed these were linked to the implementation of IFRS 16 and arrears analysis.

The Committee noted the importance of maintaining robust processes for year-end accruals and valuation checks, particularly given the complexity of accounting standards.

The recommendations were proposed by Councillor Anton Dani and seconded by Councillor Suzanne Welberry.

Resolved:

1.    That the audited Financial Statements for 2024/25 be approved for publication;

2.    That delegated authority be given to the S151 Officer, in consultation with the Chairman, to approve any amendments prior to official sign-off; and

3.    That the S151 Officer be authorised to approve the Letter of Representation on behalf of the Committee.