Agenda item

To consider the report

Following consideration of the officer report and discussion, the Executive noted the current position in reporting the outturn position for the Somerset authorities for the 2022/23 financial year and the timetable for completion outlined in paragraph 20 of the report. 

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

REASON FOR DECISION: As set out in the officer report

UPDATE - the Outturn Position across all Legacy Somerset Authorities for 2022/23 - Agenda Item 6

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited the Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, to introduce the report.

The Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, introduced the report, highlighting: the remaining outstanding audits and the continued work on the five predecessor Councils Statement of Accounts to report the overall position of Somerset Council for 2022/23; the challenging national external audit situation, with some Local Authority outstanding audit opinions dating back to 2016/2017/2018; that 48% of all authorities had published their draft accounts for 2022/23; and that the report updates the Executive on the current status as of 21 July 2023, with the final position expected to be reported at the Executive meeting in September 2023. Cllr Leyshon further: thanked Council officers   for the considerable work on the Statement of Accounts; highlighted the national position on finances, including the continued rise in inflation and interest rates, the impact for Local Authorities and households of years of very low rates, the ability to build houses across Somerset, the demand on social care continues to grow in complexity; noted the all member briefing CiPFA session to be held 24 August 2023, with the CiPFA CEO, Rob Whiteman; and informed Members of the work on the risk statement which will form part of the budget setting process along with the continued challenge through the first years of Somerset Council.

The Executive Director, Resources and Corporate Services, Jason Vaughan, further added to the above points, highlighting: the importance of all Statement of Accounts being completed for each authority to give as accurate a picture as possible of the outturn position, and that risk will remain until all the accounts are signed off by the  external auditors confirming that there are no corrections required that will impact on capital, revenue, or reserves; outlined the main reasons why the Statement of Accounts did not meet the Government deadline, including that the Statement of Accounts submission was brought forward from 31 July 2023 to 31 May for 2022/23; outlined the current publication position of the five legacy councils; that Nationally there is a significant backlog on the auditing of local government accounts with over 1,000 still outstanding; the final outturn, reserves, capital receipts position and the capital programme to be reported to the September Executive; the current year budget monitoring work including 8 August 2023 Scrutiny Committee – Corporate and Resources consideration, seeking feedback and comments on actions to increase financial control and parameters on the forecasted overspend; the work on a revised timetable to align Scrutiny Committee and Executive dates.

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited comments from other Members present, questions and points raised included: the affect, impact and contribution of the closure of the Audit Commission on the current external auditing issues; the issues that could affect the September publication of Somerset Council outturn position; the background work, preparatory work and extra resources used to complete the Statement of Accounts work; the opportunity for budget monitoring position review by all Scrutiny Committees.

The Executive preceded to vote on the recommendations, which were agreed unanimously.

The Executive noted the current position in reporting the outturn position for the Somerset authorities for the 2022/23 financial year and the timetable for completion outlined in paragraph 20 of the report.?

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report.

REASON FOR DECISION: As set out in the officer report.