Issue - meetings

The Azets representative introduced the report, which presented the culmination of all audit work for the 2024/25 financial year and outlined the matters that had to be reported before approval of the Statement of Accounts. Members were informed that the statutory backstop date of 27 February 2026 would be met for the first time in several years, bringing the Council’s accounts fully up to date. However, due to the national backlog, the audit opinion for 2024/25 would be disclaimed, meaning a clean opinion was not yet possible.

Members’ attention was drawn to key points, including the Council’s position to begin a three?year programme to return to clean audit opinions, a summary of Value for Money arrangements, limited targeted work on financial statements, and the start of the “build back” process reviewing reserves across the disclaimed period.

The plan going forward was to undertake a full in?year audit for 2025/26, continue the build?back work beginning with property, plant and equipment movements, and combine this with reserves analysis to rebuild assurance in the General Fund and help lift the disclaimer in future years.

The Chair and Members thanked the Azets representatives for their work, which had enabled the Council to meet the statutory deadline. Members asked questions about disparities in the 2023/24 comparator figures and the value of disclaimed accounts. They were told the discrepancies reflected the catch?up process and that disclaimed accounts provided no assurance due to historical missing information, though value remained in meeting statutory deadlines.

Members also heard that three years of build?back work would be required to achieve clean accounts again, potentially coinciding with Local Government Reorganisation, at which point East Herts Council would no longer exist in its current form. It was noted that disclaimed accounts were common across the county, but each Chief Financial Officer would be responsible for producing clean accounts at the point of LGR.

Finally, Members were updated on the Finance Department restructure, which had been approved by the Leadership Team and would be implemented over the coming months, increasing capacity and reflecting lessons learned about timely access to information.

It was moved by Councillor Connolly and seconded by Councillor Deering that that the recommendations, as detailed, be approved.

After being put to the meeting and a vote taken, this motion was declared CARRIED.

RESOLVED – that (A) the external auditor’s Completion Report for 2024/25 be received and commented on, and;

B) that the 2024/25 Statement of Accounts be approved.