The Senior Finance Manager (Client) introduced his report setting out the unaudited Statement of Accounts for 2021/22 and the External Auditor’s risk assessment document.  It was noted that:

·  The Statement would be subject to external audit, scheduled to commence in August, and it was the intention to bring a final version back to the Committee for approval at its September meeting.

·  An updated Narrative Report had been circulated correcting/updating the information contained within the original version.

·  The headline messages from the Statement of Accounts could be summarised as follows:

Long-Term assets had increased in value by £22.667m, primarily due to asset acquisitions and expenditure, and revaluation adjustments.  The major acquisitions included Maidstone House and the buy-out of Kent County Council’s share of the Former Royal Mail Sorting Office.  Other major items of expenditure included the Innovation Centre, housing developments at Springfield Mill and the construction of the new Mote Park Visitor Centre. 

Cash and Cash Equivalents had increased by £22.689m, which reflected an increased level of short-term deposits held for cashflow purposes as at the balance sheet date.

The increase in Short-Term Creditors of £25.963m was largely a consequence of grant and energy rebate monies still being held from the Covid-19 pandemic and yet to be paid out.

The first Long-Term borrowing (£5.0m) to fund the capital programme was now in place.

The net pension liability had reduced by £4.421m.

In response to questions:

·  The Director of Finance and Business Improvement explained that the Council was continuing to add to the portfolio of Maidstone Property Holdings Limited and at some point, it would be necessary to produce consolidated financial statements. 

·  The Director of Finance and Business Improvement also explained the difference between financial and management accounting and undertook to provide clarification within the Narrative Report that the Council had moved from a Committee to an Executive system of governance in May 2022.

RESOLVED:

1.  That, subject to the points raised in the discussion, the unaudited Statement of Accounts for 2021/22, attached as Appendix 2 to the report of the Senior Finance Manager (Client), and the Updated Narrative Report, circulated separately, be noted.

2.  That the External Auditor’s risk assessment document, attached as Appendix 3 to the report of the Senior Finance Manager (Client), be noted.