Issue - meetings

To review and agree the Accounting Policies for inclusion in the Financial Statements 2024/25 (report of Deputy Chief Executive – Corporate Development (S151) enclosed).

Consideration was given to the report of the Deputy Chief Executive – Corporate Development (S151) which asked the Governance and Audit Committee to review and agree the Accounting Policies for inclusion in the Financial Statements 2024/25.

The Deputy Chief Finance Officer - Corporate (PSPS) and the Finance Manager – Corporate (PSPS) attended for this item.

The Deputy Chief Finance Officer - Corporate (PSPS) introduced the report and highlighted the following main points:

• That Accounting Policies were the specific principles and practices applied by the council in the production and presentation of the financial statements;
• It was considered good practice for the Governance and Audit Committee to consider and agree the Accounting Policies in advance of the production of the draft accounts;
• The proposed Accounting Policies for the 2024/25 financial year were at Appendix 1 and these had been prepared in line with the CIFA code on local authority accounting for 2024/25;
• The Accounting Policies did not change significantly each year unless major changes to accounting rules and regulations had taken place.
  • Paragraph 2.1 of the covering report outlined one substantial change with the Code of Practice in 2024/25 following the introduction of a new accounting standard ‘IFRS 16 Leases’. The impact of this standard on the Financial Statements was considered minimal; and
  • As outlined at Paragraph 6 of the Accounting Policies, a Business Improvement District (BID) had been set up during 2024/25 for which the council acted as a billing authority under the scheme with income being passed to the BID. In accordance with the CIPFA code of practice, no income or expenditure relating to the BID would be included in the council accounts.
• The draft Accounting Policies would be reviewed upon receipt of the template accounting policies from external treasury advisors; and
• The 2024/25 unaudited Financial Statements needed to be  completed by the statutory deadline of 30 June 2025 and would be presented to the Governance and Audit Committee upon completion.

Members considered the report and made the following comments:

• Members requested that should minor changes to the Accounting Policies come forward to the committee, that these be highlighted within the document for ease of identification.

• Members queried Note 7 in respect of remeasurements comprising ‘contributions paid to the Lincolnshire County Council pension fund’.
  • The Deputy Chief Finance Officer – Corporate(PSPS) responded that the payments to Lincolnshire County Council were primary contributions to the pension fund at 23.8% and secondary contributions which funded the deficit payment. Such payments were not allowed to be funded from the General Fund but were accounted for via transactions/adjustments from the pension reserve. Information on this area would be requested to be added to the June pension training to enhance member understanding. 

• Members referred to Note 8 of the Accounting Policies and requested an explanation regarding ‘indicative conditions that arose after the reporting period’.
  • The Deputy Chief Finance Officer – Corporate(PSPS) responded that:
    • This could occur where transactions of material value had taken place following the balance sheet date, but prior to the audit  ...  view the full minutes text for item 66