Agenda item

Report of the Corporate Governance Working Group (including various external audit reports), attached.

Considered

A report of the Corporate Governance Working Group following a review of legacy County, District and Borough Final Accounts and Audits which advised Members of:

a)     the outcome of the consideration of the Statement of Final Accounts, Annual Governance Statements and Annual External Audit Reports for the legacy North Yorkshire Districts and Boroughs, and

b)     the consideration of the Statement of Final Accounts and Annual Governance Statements for North Yorkshire County Council for 2022/23 and the opinion of the working group in advance of the Audit Committee being asked to approve them.

David Portlock and Councillors Neil Swannick and Philip Broadbank provided a summary of the work carried out by the Working Group and informed Members that it was deemed that nothing in the aforementioned accounts would have a material impact on the opening balance sheet of North Yorkshire Council in April 2023. The Working Group recommended that the Corporate Director Resources and Chair of Audit Committee sign the legacy District and Borough Statements of Accounts up to and including 2022/23 and that the Chief Executive and Leader sign the various Annual Governance Statements.

It was reported that the Working Group was disappointed that some of the accounts had been disclaimed by auditors and attention was drawn to the Scarborough Borough Council accounts that had been disclaimed with a matter of concern because the decision of Whitby Harbour court case is still awaited.

It was also highlighted that the Working Group expressed concerns over the severance payments made to senior management in the former Hambleton District Council but it was agreed that there were no actions to carry forward for North Yorkshire Council. Given the comments on Page 140 of the papers and information included in the interim report that was presented to Members of the Working Group, Members were concerned that no information regarding these payments was present on Page 133 of the papers. However the critical information was contained within the Value for Money section of the auditor’s report at the end of page 135 of the papers. Officers clarified that the Hambleton District Council Completion Report included in the papers was currently incomplete and confirmed that the final version would be circulated to Committee Members.

Members highlighted that if any costs arose from the above two concerns, they would not be material costs to North Yorkshire Council’s budget and therefore did not influence the Working Group’s recommendations. They were informed that the Working Group concluded that the reports represented a correct view of the accounts at the end of 2022/23 and that there were no actions for North Yorkshire Council to take up. Members were reminded that the Working Group had been delegated the authority to review, and recommend that the Corporate Director Resources and Chair of Audit Committee sign the legacy District and Borough Statements of Accounts up to and including 2022/23.

Resolved

a)     That Audit Committee note the Working Group’s approval of and signing by the Corporate Director Resources and Chair of Audit Committee, of the legacy District and Borough Statements of Accounts up to and including 2022/23, and endorse the recommendations to the Chief Executive and Leader to sign the various AGSs.

b)     That, subject to the completion of the audit, the Committee recommends the North Yorkshire County Council Statement of Final Accounts and Annual Governance Statement for 2022/23 for signature by the Corporate Director Resources, the Chair of the Audit Committee, the Chief Executive and the Leader.

c)     That the final Completion Reports for the Legacy District and Borough Councils be circulated to Committee Members and published.