The report of the Executive Director of Resources (Section 151 Officer) is to follow.

Contact: James Walton (01743) 258915

The Committee received the report of the Executive Director of Resources (Section 151 Officer) – copy attached to the signed Minutes – which sets out the audited Statement of Accounts for 2020/21 and 2021/22, and detailed any amendments made to the Draft Statement of Accounts during the audit process.

The Executive Director of Resources (Section 151 Officer) reported that the 2020/21 and 2021/22 accounts were both yet to be signed off.  The Assistant Director of Finance and Technology (Deputy Section 151 Officer) informed Members that a lot of work had been done by the finance and accounting team along with really good support from the External Audit team and was moving forward steadily with only a couple of points to be resolved.

The Head of Finance, Management and Reporting explained that work was ongoing with External Audit around the infrastructure assets as the relevant regulations had been issued quite late in January so the implications of this then had to be worked through.  External Audit now had the Council’s documentation around its proposals and how these were being fed into the accounts.  External Audit had asked a few questions around that and there were just a few bits that needed to be signed off.

In response to a query in relation to West Mercia Energy, the Executive Director of Resources (Section 151 Officer) explained that this was a Joint Committee owned by four local authorities including Shropshire Council with approximately 30 external clients.  The Joint Committee had a long-term arrangement with a gas and electricity provider and the contract was renewed on the open market every 3 or 4 years.  Based on an assessment of volumes for all their customers, West Mercia Energy bought that energy on the market and because of how the procurement worked, were able to release it back into the market or buy more depending upon the market at that particular point in time.  This had the advantage that much of the 2021/22 and 2022/23 electricity had already been pre-purchased before the increases.  Obviously, they would not keep buying ahead and eventually would have to buy at the higher level.  Some external clients wished to buy in on fixed term contacts and the cost would depend on when somebody signed up to their contract.  All this was used to manage the way energy was procured by West Mercia Energy. 

Finally, the Engagement Lead responded to a number of queries in relation to pfi contracts. 

RESOLVED:

1.    to approve the 2020/21 Statement of Accounts and 2021/22 Statement of Accounts and that the Chairman of the Audit Committee signs them (in accordance with the requirements of the Accounts and Audit Regulations 2015).

2.    to agree that the Executive Director of Resources be authorised to make any minor adjustments to the 2020/21 and 2021/22 Statement of Accounts prior to publication on the Council’s website.

3.    to agree that the Executive Director of Resources and the Chairman of the Audit Committee sign the letter of representation in relation to the 2020/21 and 2021/22 financial statements on behalf of the Council and send to the External Auditor.