Issue - meetings

This report provides an update on the status of the draft statement of accounts for 2024/25 and sets out the timeframes for reissuing the accounts for publication and public inspection.

The report provides an overview of the reasons for revisions to the draft accounts published in June 2025.

Recommendation

To note that the Director of Finance, or the Head of Finance under delegation from the Director of Finance, will authorise for reissue a draft Statement of Accounts 2024/25 for public inspection by 26 September 2025, and a period of public inspection will commence on 29 September 2025.

The Chief Accountant introduced the report.

The Committee discussed the Council’s financial status. Key points included the ongoing annual deficit against the robust reserve of around £5 million, which provides financial stability in the short term. The budget monitoring reports indicate that the current deficit is within expected ranges and manageable. Concerns were raised about the risks associated with fair funding reforms by the government, but these are not expected to cause significant financial difficulty due to sufficient reserves. A significant issue discussed is the delay in external auditors signing off accounts from 2020 to 2023, attributed to both national audit challenges and a specific local accounting treatment related to the South Oxhey project. Despite these delays, the Council has a recovery plan in place. The discussion also touched on the medium to long-term financial outlook, highlighting a projected increase in deficits by 2027-2028, though these forecasts do not yet account for potential increases in fees, charges or tax base growth. The external auditor cautioned that sustaining ongoing deficits is not viable indefinitely, implying the need for future cuts or revenue adjustments. However, historical trends show the Council has successfully managed to reverse projected deficits at year end.

The conversation moved onto the current status of pension liabilities and the officer confirmed that the liabilities are less than the fair value of assets as of 31 March, indicating a positive position. However, it was clarified that it is a snapshot and can fluctuate. Overall, there is no immediate risk to the pension fund’s stability according to the current assessments.

The Committee noted that the Director of Finance, or the Head of Finance under delegation from the Director of Finance, will authorise for reissue a draft Statement of Accounts 2024/25 for public inspection by 26 September 2025, and a period of public inspection will commence on 29 September 2025.

RESOLVED:

To note that the Director of Finance, or the Head of Finance under delegation from the Director of Finance, will authorise for reissue a draft Statement of Accounts 2024/25 for public inspection by 26 September 2025, and a period of public inspection will commence on 29 September 2025.