Agenda item

To submit the Statement of Accounts, in the ‘statutory’ format, duly certified, but subject to audit.

DECISION:

To accept and note GwE's Statement of Accounts (subject to audit) for 2023/24.

The Statement of Accounts was presented by the Assistant Head of Finance, Cyngor Gwynedd. She explained that the Accounts and Audit (Wales) (Amendment) Regulations 2014 require all Joint Committees to prepare year-end accounts, and as GwE's turnover exceeds £2.5 million, that a statement of accounts must be prepared

in accordance with the CIPFA code for the Joint Committee.

It was confirmed that the accounts had been completed and released since the end of June for audit by Auditors Wales with a 'post-audit' version to be presented at the Joint Committee meeting in November.

Attention was drawn to the Narrative Report presenting information regarding the Accounts Financial Strategy and Financial Performance. Reference was made to an overspend of £77K and when reporting on the end of year financial position for 2023/24 at the May meeting 2024, the Committee was reminded that the £77K arose mainly from over expenditure on the staffing budget, however that it was funded from reserves.

It was reported that the main financial statements include the Income and Expenditure Statement, Balance Sheet, Cash flow, whilst the Movement in Reserves Statement summarises GwE's financial position, and this statement marries the income and expenditure position with the balance sheet position and includes information about both usable and unusable reserves. It was noted that usable reserves i.e. GwE reserves have fallen by £477k by the end of March 2024 leaving a balance of £677 thousand.

Attention was drawn to:

Note 10 - Transfer to/from Usable Reserves - further analysis of GwE general fund and Newly Qualified Teachers (NQT) fund. It was noted that £77K had been used to fund overspend over the year and £400k used from the NQT fund.

Note 15 - Unusable Reserves - that the pensions reserve is £0 for 2023/24 to comply with accounting requirements which was previously unprecedented but more common recently and exists due to current market conditions and inflation which has been high. It was added that the same was true in Gwynedd's Accounts and those of other councils.

Note 17 - Officers' Remuneration inflation means that there are more in the salary bands in 2023/24 compared to 2022/23. It was noted that 64 Senior Officers received a salary of between £60,000 and £150,000 in 2023/24 in comparison with 38 the previous year.

Note 19 - Grant Income received, comparison over two years noting that there has been a reduction of three quarter of a million in the grants by 2023/24 in comparison with the previous year. ⁠

Note 22 - Pension Costs - a movement in Pension figures due to current market conditions.

The Joint Committee was asked to note and accept the Statement of GwE Accounts (subject to audit).

In response to a question about a substantial leap in the number of other employees receiving more than £60,000 (17 in 2022/23 to 43 in 2023/24), it was noted that this was due to high inflation and pay award and that this was in accordance with defined requirements.

During the subsequent discussion, Members commented as follows:

·       That there was a considerable reduction in GwE reserves given that there will be a high dependency and demand on reserves during the transitional period

·       Reduction in grants leading to use of reserves

In response to a question why the pensions reserve is £0 for 2023/24 and whether this was an accounting or actual entry, it was noted that the statement complies with accounting requirements and although an unprecedented statement in the past, that it is now more common recently, and therefore exists due to current market conditions and high inflation.

The Officers were thanked for completing the accounts

IT WAS DECIDED:

To accept and note GwE's Statement of Accounts (subject to audit) for 2023/24