Report of: The Group Finance Director

Purpose of the report: To submit the Council’s draft Statement of Accounts and Letter of Representations to the Committee to obtain delegated authority for approval and authorisation.

Recommendation(s): That the Committee resolves to:

1.    Approve the latest 2024/25 Statement of Accounts as agreed by the Group Finance Director and authorise the Chair of the Committee to sign the Accounts incorporating any further changes arising from the ongoing audit.

2.    Agree that a Letter of Representations for 2024/25 incorporating any statements required by the external auditor arising from the ongoing audit be signed and issued by the Group Finance Director and the Chair of the Audit & Governance Committee to enable the external auditor’s opinion to be issued (paragraphs 14 to 15).

The Audit and Governance Committee resolved to:

1.    Approve the latest 2024/25 Statement of Accounts as agreed by the Group Finance Director and authorise the Chair of the Committee to sign the Accounts incorporating any further changes arising from the ongoing audit.

2.    Agree that a Letter of Representations for 2024/25 incorporating any statements required by the external auditor arising from the ongoing audit be signed and issued by the Group Finance Director and the Chair of the Audit & Governance Committee to enable the external auditor’s opinion to be issued (paragraphs 14 to 15).

The Group Finance Director had submitted a report to outline the council’s draft Statement of Accounts and Letter of Representations to the Committee and to obtain delegated authority for approval and authorisation. The Financial Accounting Manager was present to respond to questions. 

The Financial Accounting Manager provided a comprehensive summary of the report and informed the Committee that the summary of accounts remains subject to change pending the final audit results. The Financial Accounting Manager highlighted several points within the report including changes to the audit requirements resulting in increased capacity needs on both ends, fixed asset suspension, the cyber-attack, and understaffing. The Committee also heard the planned steps which would be taken to move the council out of a disclaimed position. 

The Chair sought to confirm whether a loss of £4.5m had been made following the disposal of fixed assets and specifically queried the nature of these. The Financial Accounting Manager informed the Committee that there was a net loss in the accounts for the disposal of fixed assets due to the normal receipts being netted down by the incorporation of an accounting adjustment relating to the adoption of a new leasing standard (IFRS 16) for 2024/25 whereby a number of assets were written out of the balance sheet and then recognised as leases. 

The Chair also queried the council’s contract with Fusion Leisure and requested an update on the present position. The Group Finance Director confirmed that discussions with Fusion are still ongoing, and they are in the process of paying off their outstanding debt to the council.  

The Chair, in reference to previous discussions regarding registered housing providers, requested further comment in relation to the lobbying that the council has committed to, and the reception this has received. The Group Director noted that the response has not been favourable and provided a narrative description of the relevant government consultation process and ongoing work with the housing team which is seeking to convert non-registered providers in Oxford. The Committee were heard that this is of concern in the future budgets, however, were assured that some loss is offset by recovery of overpaid housing benefits. 

Councillor Harley, in relation to paragraph 7 on page 177, sought clarification on the timeframe mentioned, and asked what the impacts of local government reorganisation may be this. The Financial Accounting Manager clarified that the report referred to the previous financial years from 2023 up to the present and noted that the impacts of LGR could not be speculated on at this stage. It was noted that the process will be determined by national level decisions and may local authorities will experience the changes.  

The Chair proposed, and Councillor Smith seconded, both recommendations.  

The Audit and Governance Committee resolved to:

1.    Approve the latest 2024/25 Statement of Accounts as agreed by the Group Finance Director and authorise the Chair of the Committee to sign the Accounts incorporating any further changes arising from the ongoing audit.

2.    Agree that a Letter of Representations for 2024/25 incorporating any statements required by the external auditor arising from the ongoing audit be signed and issued by the Group Finance Director and the Chair of the Audit & Governance Committee to enable the external auditor’s opinion to be issued (paragraphs 14 to 15).