The Governance and Audit Committee of Leicester Council was scheduled to discuss the council's statutory statement of accounts and annual governance statement for the 2024/25 financial year. The committee was also due to receive an update from the external auditors, Grant Thornton, regarding their annual report for 2024/25.

Statutory Statement of Accounts and Annual Governance Statement 2024/25

The Director of Finance, Amy Oliver, was scheduled to present the council's statutory statement of accounts and annual governance statement for the 2024/25 financial year. This report would have detailed the council's financial performance and position as of 31 March 2025. The agenda indicated that the committee would be asked to approve these statements.

The report also included an update from the external auditor, Grant Thornton, detailing their audit work and any recommendations arising from it. The committee was recommended to note the auditor's ISA 260 Report (Audit Findings Report) and the recommendations contained within it.

The agenda documents highlighted that the statutory accounts are prepared in accordance with the Code of Practice on Local Authority Accounting in the UK and that the council must publish its audited statement of accounts by 28 February 2026, with future deadlines becoming progressively earlier in subsequent years. The report noted that delays in the completion of the audit were due to the implementation of IFRS 16, a standard relating to leases, which had impacted other local government bodies as well. The Director of Finance had already taken action to improve the process for final accounts.

The Annual Governance Statement, if approved, would be signed by the Chief Operating Officer and City Mayor and published alongside the Statement of Accounts. This statement assures the public that the council operates lawfully, with due regard to proper standards of behaviour, and safeguards public funds. Its format is largely dictated by the CIPFA/SOLACE framework 'Delivering Good Governance in Local Government'.

A Letter of Representation, to be signed by the Director of Finance (s151 officer) and approved by the Governance & Audit Committee, was also scheduled for approval. This letter provides assurance to the external auditors regarding the information in the Statement of Accounts and affirms the council's primary responsibility for its content.

External Audit Annual Report 2024/25

The external auditors, Grant Thornton, were scheduled to present their Annual Report for 2024/25. This report would have detailed their audit findings, including observations significant to those charged with governance concerning the financial reporting process. The report would also confirm the auditor's independence.

The agenda indicated that the committee was recommended to note this report. The report itself, spanning numerous pages, covered headlines and the status of the audit, materiality, an overview of significant and other risks identified, other findings including significant matters and key judgements, information technology assessments, communication requirements, audit adjustments, value for money commentary, and independence considerations. It also detailed the fees for audit and non-audit services provided by Grant Thornton.

The report highlighted that the audit work was substantially complete, with an anticipated unqualified financial statements audit opinion, including a significant weakness in the Council's arrangements for securing economy, efficiency and effectiveness in its use of resources. The auditors noted delays in the audit completion due to the council's draft accounts not accounting for the implementation of IFRS 16 and identified errors in testing, leading to additional work and fee variations. The report also stated that significant weaknesses were identified in the Council's arrangements for securing economy, efficiency and effectiveness in its use of resources, with detailed findings set out in the value for money arrangements section of the report.

The report also mentioned that the audit certificate would be delayed until confirmation was received from the National Audit Office (NAO) regarding the group audit (Whole of Government Accounts).

The agenda also included standard items such as apologies for absence, declarations of interest, and the minutes of the previous meeting held on 26 January 2026, which members were to be asked to confirm as a correct record. There was also a placeholder for any other urgent business.