Agenda item

To receive the statutory statement of accounts (subject to audit draft) for information.

DECISION:

·        To accept and note the Council's Statement of Accounts (subject to audit).

The Assistant Head of Finance - Accounting and Pensions explained that the accounts had been completed and released for audit by Audit Wales, the Council's external auditors, since the end of June. It was noted that the statutory timescale for the audit of the accounts was the end of September, so it was Audit Wales’s intention to complete the audits so that the final accounts could be approved at the Committee on 29 September 2026.

The contents of the report were described, explaining that five sets of accounts for 2025/26, were being completed. 

1.       Cyngor Gwynedd  

2.       Gwynedd Pension Fund  

3.      GwE (substantially sized joint committee and therefore Full Statements had been prepared) 

4.      Gwynedd Harbours (which had already been submitted to the 21 May 2026 Committee)  

5.       North Wales Corporate Joint Committee  

Members were reminded that the year-end financial position for 2025/26 had been submitted to the Committee on 21 May 2026 in the form of a simple out-turn, but that the Statement of Accounts, which was for external and governance purposes, had to be completed in the CIPFA standard format. It was now a lengthy and technically complex document.

Reference was made to the Narrative Report that provided information about the Accounts and on the vision and priorities of Gwynedd, the Financial Strategy and the financial performance measures. Members were guided through the report, and details were provided on some of the elements: 

·       Summary of capital expenditure.⁠ There was expenditure of £84 million during the year compared to £85 million in the previous year. 

·       The main financial statements included an Income and Expenditure Statement, Balance Sheet, Cash-flow, etc. 

·       Movement in Reserves Statement which was an important statement and summarised the Council's financial position. It was highlighted that the Council's general balances were £14.5 million at the end of March 2026 – up £6.6 million from £7.9 million at the end of March 2025 due to the Statutory Finance Officer's opinion that the Council's General Balances needed to be increased so that they represented 2.5% of the authority's gross revenue expenditure, transferring an amount from the Financial Strategy Fund.

·       That Reserves highlighted an increase in the £111 million funds at the end of March 2025 to £112 million by the end of March 2026.

·       School Balances where there was a steady reduction in school balances which had fallen from £8.5 million at the end of March 2024, to £8.3 million by the end of March 2025, to £7.1 million by the end of March 2026, which now highlighted a picture that was nearer to pre-Covid balance levels.⁠ It was explained that this was the general picture in Wales as school balances had been high due to a number of grants provided in light of Covid. 

·       Earmarked Reserves including an analysis of the £112 million reserves - capital reserves, the Council Plan/Transformation reserve, supporting the financial strategy reserve and the Council's Tax Premium reserve.

·       Reference was made to Note 15 - Property, Plant and Equipment which presented a breakdown by category of land and buildings, vehicles, plant and equipment, etc. Capital Commitments included schemes such as the work on Ysgol Ein Harglwyddes, Bangor, Canolfan Dolfeurig and capital works on a development at Coed Mawr Bangor and on Parc Eryri Industrial/ Business Units in Penrhyndeudraeth.

·       Note 22 Provisions relating to Waste Sites and insurance claims, Note 30 relating to Officers' Remuneration, and Note 32 details of Grant Income received (over £154 million in 2025/26 compared to £207 million in 2024/25, highlighting the Levelling Up Fund, which was £82 million in 2024/25, but reduced to £37 million in 2025/26, which had had a significant impact on the grant figures and on the figures in the accounts).

·        Note 36 - details of Exit Packages for the last two years.

·        Note 39 - Contingent Liabilities such as landfill sites and insurance with reference to a liability in education.

·        Note 43 - details of Cyngor Gwynedd's participation in Joint Operations and Joint Committees.

·        Appendix B - The Tithe Fund and the FMG Morgan Trust Fund.

Members expressed their thanks for the report and the Department for completing the accounts, albeit complex, in such a timely and tidy manner.

In response to a question about the meaning of the term 'unusable reserves' (Note 23) and what examples could be presented, it was noted that these reserves could not be used to fund the Council's expenditure, but to maintain and manage technical accounting processes required to comply with the requirements of CIPFA.

In response to a question regarding an approved expenditure commitment of £2 million for the upgrade of the Council's mandates due to a significant lack of investment in the past and why the figure had not been recognised in the accounts, it was noted that the amount had been included in Note 15 – Property, Plant and Equipment due to the need to follow the standard format.

In response to a question about the increase in capital reserves from £26 million to £36 million and whether this was a normal situation, it was noted that substantial grants had been received including to complete school maintenance which as a result highlighted a slippage in Council expenditure and therefore an increase in the relevant fund. It was added that the Housing and Property Department had also received significant grants with the same impact on their funds.

In response to a question as to why the Financial Strategy Support Fund had reduced, the Head of Finance stated that this was because £6.6 million had been transferred to the general reserves because he considered that, as a Statutory Finance Officer, it was necessary to increase the Council's General Balances to represent 2.5% of the authority's gross revenue expenditure.

RESOLVED:

·        To accept and note the Council's Statement of Accounts (subject to audit).