Agenda item

To receive the update from the Head of Finance.

To update councillors on progress being made towards the completion of the 2023/24 statement of accounts, and to present revised statements of accounting policies for approval.

Recommendations:

(a)      To note progress on completing the 2023/24 Statement of Accounts.

(b)      To note forthcoming accounting requirements, issued but not yet adopted, relating to IFRS16 Leases.

(c)      To approve revised statements of accounting policies as shown in Appendix one (South Oxfordshire) and Appendix two (Vale of White Horse) to apply in production of the 2023/24 Statement of Accounts.

The committee received the update on the progress of the Statement of Accounts, presented by the head of finance. He informed members that the government had consulted on the implementation of a backstop date for publication of audited accounts, up to and including 2022/23 accounts, of 30 September 2024. He also reminder members that all accounts up to and including the 2021/22 accounts for both councils had been audited and published.

On the 2022/23 accounts, the head of finance indicated that the draft accounts had been published on the council’s website and EY had begun auditing them and would come to the next committee meeting with a progress update. He noted that EY would likely provide their opinion on what could be completed by 30 September 2024, and what was not audited would likely be disclaimed.

The committee then receive the report on the 2023/24 accounts, which would be audited by the new external auditors, Bishop Fleming, the head of finance noted that the draft deadline for the publication of draft accounts remained the 31 May 2024. He confirmed to the committee that the council would aspire to meet the deadline but would not publish the accounts until they had been thoroughly checked. The head of finance also indicated that there had been little substantive changes as regards to accounting requirements between the 2022/23 and 2023/24 accounts.

Looking ahead to the 2024/25 accounts, the head of finance highlighted that there would be a new leasing standard that would apply. Although he did not believe it would have a material impact on the councils, he noted that compliance with the standard would further increase the work of the councils’ strategic finance team, and the external auditors. In response to a request for clarity around this change and about what leases the councils had, the head of finance indicated that the policy change would mean they would need to report on leases the councils had directly and also implicit leases in contractual arrangements, which could include waste vehicles used by the waste contractor. Although this would create additional work for the councils, the head of finance informed the members that they had recruited three additional resources to assist with both financial and management accounting, so the councils were in a better position.

The committee discussed the deadlines for the audits and the potential issues that could arise through the handover process from EY to Bishop Fleming. In particular, members discussed how much additional work Bishop Fleming might need to do should EY disclaim parts of their audit in order to meet the government deadline. The committee maintained concerns about the audit deadlines and potential disclaiming some of the more material items in the accounts, such as valuations of property and pension liabilities, in which there can be an element of subjectivity.

The committee, satisfied with the update and the need to approve the revised statement of accounting policies for 2023/24 accounts, agreed to the recommendations.

Vale of White Horse District Council RESOLVED: to

(a)      Note the progress on completing the 2023/24 Statement of Accounts;

(b)      Note the forthcoming accounting requirements, issued but not yet adopted, relating to IFRS16 Leases; and

(c)      Approve the revised statements of accounting policies as shown in Appendix two to the head of finance’s report to apply in production of the 2023/24 Statement of Accounts.

South Oxfordshire District Council RESOLVED: to

(a)      Note the progress on completing the 2023/24 Statement of Accounts;

(b)      Note the forthcoming accounting requirements, issued but not yet adopted, relating to IFRS16 Leases; and

(c)      Approves the revised statements of accounting policies as shown in Appendix one to the head of finance’s report to apply in production of the 2023/24 Statement of Accounts.