Issue - meetings

To review and agree the Accounting Policies for inclusion in the Financial Statements 2025/26 (report of the Director of Finance (Section 151 Officer) enclosed).

Consideration was given to the report of the Director of Finance (Section 151 Officer) which asked members to review and agree the Accounting Policies for inclusion in the Financial Statements 2025/26.

The Head of Finance Delivery – Technical and Corporate (PSPS) introduced the report and highlighted the following main points:

• The policies set out the rules and practices followed in the preparation of the financial statements in accordance with accounting standards and which would be set out within Note 1 of the 2025/26 Statement of Accounts;
• One substantive change for 2025/26 related to the valuation of Property, Plant and Equipment at point 19 (highlighted in red) which had arisen from amendments to the CIPFA Code of Practice. The Council would move to a five?year rolling valuation programme, with 20 per cent of applicable assets valued each year and the remaining 80 per cent indexed using appropriate indices. Council dwellings would continue to be valued annually;
• All other accounting policies remained unchanged from the previous financial year; and
• Any further minor changes identified during the year?end or audit process would be discussed with the Section 151 Officer and reflected where appropriate.

Members considered the report and made the following comments:

• Members queried why council dwellings were excluded from the five?year rolling valuation cycle applicable to other land and buildings, and whether the annual valuation process remained sufficiently resourced and independently reviewed.
  • The Head of Finance Delivery – Technical and Corporate (PSPS) explained that council dwellings represented a significant balance sheet value and were permitted under the Code to continue to be revalued annually. Assurance was given that the valuation process was adequately resourced, with regular engagement with the internal valuer, ongoing monitoring of progress, and internal review built into the process.

• Members referred to the Termination Benefits at point 7 of Note 1 – Accounting Policies, and asked for clarification on the accounting treatment of pension benefits, specifically the distinction between the amounts charged to the accounts and those calculated under accounting standards.
  • The Head of Finance Delivery – Technical and Corporate (PSPS)  explained that the General Fund and Housing Revenue Account reflected cash contributions paid to the pension fund, whereas the full accounting entries took account of benefits earned, future obligations and actuarial assumptions, which could fluctuate.

AGREED:

That following consideration by the Governance and Audit Committee, the Accounting Policies for 2025/26 at appendix 1 be agreed.