Issue - meetings

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

The Committee received the report on the proposed Accounting Policies for the 2025/26 financial year, presented by the Head of Finance Delivery – Technical and Corporate (PSPS Ltd), which set out the accounting policies to be applied in the preparation of the Council’s Statement of Accounts, in accordance with the CIPFA Code of Practice on Local Authority Accounting in the United Kingdom.

Members were advised that the purpose of presenting the accounting policies at this stage was to support good governance by allowing early consideration of any changes prior to the closure of accounts. It was explained that the majority of the Council’s accounting policies remained unchanged from previous years, ensuring consistency in financial reporting.

The Committee was informed that the principal change for 2025/26 related to the valuation of Property, Plant and Equipment. Recent amendments to the CIPFA Code now permitted local authorities to adopt a rolling five?year valuation programme, supported by annual indexation in the intervening years, rather than undertaking full revaluations of asset classes on a single valuation date. Officers explained that the Council proposed to adopt this approach, valuing approximately 20% of eligible assets each year to ensure all relevant assets were revalued within the five?year cycle.

During discussion, Members sought clarification on the rationale for adopting the rolling valuation approach. The Head of Finance Delivery  explained that the new methodology was considered more efficient and proportionate, spreading valuation activity more evenly across years and reducing the operational burden associated with undertaking large?scale revaluations at a single point in time, while remaining fully compliant with accounting standards. Members asked whether the change had any implications for audit assurance or governance and were advised that the proposed approach was explicitly provided for within the CIPFA Code and would continue to be subject to appropriate audit scrutiny through both internal and external audit processes.

The Committee discussed recent legislative changes affecting access to the Local Government Pension Scheme for councillors. Members sought clarification on whether councillors would now be eligible to join the scheme and how any such changes would be implemented. The Head of Finance Delivery advised that the detailed position was still being confirmed, with further guidance awaited. The Service Director – Legal and Governance (Monitoring Officer) explained that regulations permitting councillor access had been brought forward by Government, with commencement dates set nationally, but that administrative arrangements and guidance were still being finalised in conjunction with pension administrators. Members were informed that further information would be communicated once the position had been fully clarified.

The Committee also noted minor drafting matters within the report, including references within the appendices, which officers acknowledged and confirmed would be addressed as part of final account preparation.

Overall, the Committee was satisfied that the proposed accounting policies were appropriate, compliant with professional standards and presented at a suitable stage to support transparency and effective oversight.

The recommendations were proposed by Councillor Andy Izard and seconded by Councillor Jonathan Noble.

Resolved:

That the Accounting Policies for 2025/26  ...  view the full minutes text for item 61