Agenda and minutes

The Chair welcomed everyone present to the meeting and noted the apology for absence. He informed the committee of a change in membership following Councillor Ieuan Williams’s appointment to the Executive and expressed thanks for Councillor Williams’s contribution during his tenure on the Governance and Audit Committee.

An apology for absence was received from Councillor Keith Roberts.

To receive any declaration of interest by any member or officer in respect of any item of business.

No declaration of interest was received.

To present the following –

·      The report of the Director of Function (Resources)/Section 151 Officer – Statement of the Accounts 2024/25.

·      The report of the Head of Profession (HR) and Transformation – Annual Governance Statement 2024/2025.

·      The report of External Audit on the audit of the 2024/25 financial statements (ISA 260 report).

The report of the Director of Function (Resources)/Section 151 Officer incorporating the Final Statement of the Accounts for 2024/25 following audit was presented for the committee’s consideration.

The Director of Function (Resources)/Section 151 Officer reported that the Isle of Anglesey County Council’s draft Statement of Accounts 2024/25 was presented to the Council’s external auditors, Audit Wales for audit on 30 June 2025.The detailed audit work is now substantially complete. The statutory deadline for the completion of the audited accounts for the 2024/25 financial year for all Welsh councils is 31 October 2025. The Statement of the Accounts will be considered by the Full Council on 28 October 2025 and signed shortly afterwards. Audit Wales conducted a thorough review of the accounts and financial transactions relating to 2024/25. Their audit testing identified some necessary changes and all material errors recommended for correction by the audit team have been amended to ensure that the accounts are materially correct. A summary of these changes is included in Audit Wales’s ISA 260 report.

The Section 151 Officer guided members through the amendments, as outlined in section 3 of the report and detailed in the ISA 26O report presented separately below. Key points included  –

·      A reduction in the Council’s end of year surplus by £500k, primarily due to technical accounting adjustments.

·      A £5k reduction in the General Fund.

·      An increase of  £2.46m in earmarked reserves following the reclassification of costs associated with potential remedial works at the Penhesgyn former landfill site specifically relating to an onsite culvert. This risk has long been recognised, and a provision previously made in the accounts. On the auditors’ advice the original £2m has now been transferred from the provision to an earmarked reserve.

·      Technical changes have been made to the capital adjustment account and revaluation reserve (two unusable reserves) to reflect asset valuation adjustments. These do not affect the General Fund or earmarked reserves.

·      The reduction in the end of year surplus has led to a corresponding decrease in the net asset value shown on the balance sheet.

·      Update to Note 41 – Contingent Liabilities. – Electrical Installation Condition Report (EICR) Certificates. Under Part 4 of the Renting Homes (Wales) Act 2016 landlords are required to ensure their properties are in good repair and fit for human habitation. Whilst this and other councils in Wales have ensured that all electrical checks have been undertaken there has been a delay in issuing some certificates to tenants. A recent High Court ruling confirmed that rent repayment is not required for the period when a certificate was not available. The contingent liability remains in place pending any appeal, but the wording has been updated to reflect the current position.

The Director of Function (Resources)/Section 151 Officer welcomed the auditors’ intention to issue an unqualified opinion on the accounts and thanked them for their professionalism and thoroughness in the conduct of the audit. He also thanked the Finance Service staff for their efforts in ensuring the accounts were completed on time. The  ...  view the full minutes text for item 3.