In the last 7 days (since Saturday 22 June 2024), the council has held the following meetings:

Audit Committee - Friday 28 June 2024

The Audit Committee met to discuss various financial matters, including updates on the Statement of Accounts, the Annual Governance Statement (AGS), and the Financial Improvement Plan (FIP). The Committee also reviewed the Auditor’s Annual Report, which highlighted significant weaknesses and made recommendations for improvement.

Statement of Accounts Progress Update

The Committee received an update on the progress of the Statement of Accounts for the years 2019/20 through to 2023/24. Draft accounts for 2019/20 and 2020/21 are complete, and progress is being made on the 2021/22 accounts, which are expected in draft format after April. The 2022/23 accounts are also progressing. Concerns were raised about the external sign-off timelines for the 2019/20 accounts, but Grant Thornton, the council's external auditors, aim to complete the work by the end of April.

Finance regularly reviews capacity and skills and bring them in if needed to work to the indicative timelines.

Annual Governance Statement

The Committee received a report on the AGS, a document required by the Accounts and Audit Regulations 2015. The AGS provides an overview of the Council’s governance arrangements. The report set out the process for compiling the 2022/23 and 2023/24 AGS and updating the 2019/20 and 2020/21 AGS. Proposals to review the Local Code of Governance and establish a Corporate Assurance Framework by October 2024 were welcomed.

Combined Value For Money Report

The Auditor’s Annual Report highlighted several significant weaknesses, including the misappropriation of funds between the Housing Revenue Account (HRA) and General Fund, and governance issues such as incorrect handling of client money. Overspends occurred in each year of the reporting period, and asset disposal to fund the Council’s Transformation Programme was slower than anticipated.

The Committee expressed disappointment that the Council’s Audit Committee had not been consulted prior to the issuing of the Section 24 Notice by Grant Thornton and queried why concerns had not been raised in meetings which the External Auditors had attended.

A Section 24 Notice is issued by an external auditor to a local authority when they identify a significant matter that needs addressing.

Financial Improvement Plan Update

Substantial progress has been made on the Financial Improvement Plan, with 83.5% of the 248 financial deliverables/actions identified as of February 2024 completed or in progress. The Section 114 spending controls successfully reduced a projected overspend of £23.6m to £19.6m. The Section 151 Officer acknowledged resourcing issues but stressed that the process was being refined.

East Midlands Shared Services Joint Committee - Monday 24 June 2024

The East Midlands Shared Services Joint Committee met to discuss the performance of the East Midlands Shared Services (EMSS) partnership. The committee approved the Annual Report for 2023-24 and noted the year-end financial report and the external auditor's report.

Annual Report 2023-24

Councillor Leslie Ayoola praised the achievements and resilience of the partnership, which delivered £600,000 of cashable savings to its three partner councils: Nottingham City Council, Derby City Council, and Derbyshire County Council.

Audit Report

Grant Thornton presented their annual report, giving EMSS an unqualified audit opinion ¹. However, they identified one significant weakness related to compliance with statutory deadlines for financial statements. Steps have been taken to rectify this problem.

Trusts and Charities Committee - Monday 24 June 2024

The Trusts and Charities Committee met to discuss the Bridge Estate, a charitable trust managed by Nottingham City Council. They approved the Trust's budget and discussed the grant-making process.

Bridge Estate

The Bridge Estate owns a portfolio of properties across Nottingham that generate income for the trust. The Committee discussed the process by which money from the Bridge Estate is passed to the Council. Concerns were raised about financial management, and the committee resolved to review the process of providing funds to Nottingham City Council, aiming to implement a new process for 2025/26.

As part of this review consideration should be given as to whether the charity should engage with an independent external advisor due to perceived or actual conflicts of interest between officers acting on behalf of the Council and the Charity.

The minutes note that external auditors were unable to use lease agreements to verify rent received and that there are aged invoices raised by the Council to Bridge. The charity made a surplus of £268,100 after paying a grant of £750,000 to the Council.

The charity has made a surplus of £268,100 after paying the grant to the Council of £750,000.

For more detailed information, you can refer to the minutes of the meeting.

Cancelled Meetings

The Licensing Panel and Schools Forum meetings scheduled for Tuesday 25 June 2024 were cancelled.