Agenda item

1.     The item was introduced by the Interim Corporate Director Finance, Mr John Betts.

2.     Mr Betts explained that the Draft Statement of Accounts, the Annual Governance Statement and the External Auditor’s Findings Report were intrinsically linked and needed to be approved, pending overall consideration, and suggested that the Committee that consider the recommendations separately, once all the items had been presented, before signing the Letters of Recommendation.

3.     Sincere thanks were expressed to the Acting Chief Accountant, Mr Joe McKay, the Head of Finance Operations, Ms Cath Head and the Pension Fund and Treasury Investments Manager, Ms Sangeeta Surana, as well as all the officers involved in the preparation of accounts for their extensive work.

4.     Acting Chief Accountant, Mr Joe McKay, clarified that Mr Betts’ proposed way of dealing with the agenda items would enable the official documentation to be completed in relation to signing off the accounts for 2024/25 and explained the recommendation was for the Committee to approve the accounts, note Grant Thornton’s Audit Findings Report and then both Letters of Representation would be signed the Chair and Section 151 Officer for both the Kent County Council and Kent Pension Fund accounts.

5.     Mr McKay confirmed that the publication deadline for the draft accounts for 2024/25 was met on the 30 June 2025 (inclusive of group accounts) as well as the inspection of the accounts window, which ran from 1 July 2025 to 11 August 2025, and the audit work has been completed well in advance of the audit backstop date of the end of February 2026.

6.     It was confirmed that an all Member Training session on the statement of accounts process was held on Thursday 16 October 2025 and thanks was given to all who attended. The recording of the session has been shared on the Member Development site for anyone who was not able to attend.

7.     Mr McKay explained to Members that the major accounting change was the implementation of IFRS 16 Leases which meant the recognition of right of use assets and lease liabilities on the balance sheet.  After thorough testing, Grant Thornton concluded that the implementation was successful.

8.     It was explained to Members that there were a few recommendations which require work between now and the closedown period for 2025/26.

9.     Several Members raised concerns that the Cabinet Member for Finance was not present at the meeting in order to take questions.  Mr Betts indicated that any technical questions relating to the statement of accounts would be best answered by senior finance officers, all of whom were present.

10.   Some Members remarked that they found the absence of a responsible Member of the Administration to address questions unacceptable. It was proposed, and seconded, that the meeting be adjourned until such time that a competent Member of the Administration was present in order to answer questions on behalf of the Executive and decision making.

11.   Members voted in favour of the motion and the Governance and Audit Committee was temporarily adjourned.

12.   RESOLVED that the meeting adjourn until such time that a competent Member of the Administration was present, in order to answer questions on behalf of the Executive and decision making.

The Deputy Leader and Cabinet Member for Finance, Mr Brian Collins, was in

attendance for this segment of the meeting.

13.   Mr Collins explained to Members that he had attended previous Governance and Audit meetings and whilst he had been on hold to attend today, he was subsequently informed that he was not required. Mr Collins confirmed he had limited availability for the meeting but was content to take Member questions.

14.   In answer to some Member questions, the following was said:

        a)     Mr Betts confirmed that the Council was within the boundaries set as part of the Treasury Management Strategy when the long term debt was of £50 million was paid off.

        b)     Mr Collins confirmed that, currently, there was no indication of changing the formal scrutiny and decision making process of the Council.

        c)     It was confirmed that Kent County Council had a good relationship with the Commercial Services Group (CGS) and regular meetings and updates were provided to the Cabinet Member for Finance.  A written response would be provided in relation to a Member’s question around the acquisition details of WF Education, the WF Education Group Holdings Limited and WF Education Group Limited and the expansion of CSG.

        d)     It was confirmed that the accounts reflected the current financial position of Kent County Council and therefore any lease with a particular value, or at a peppercorn rate rent, would be reflected at the rate they current were (at the time of preparing the accounts).

        e)     It was confirmed that the 2024/25 reserves fund which was designed to aid the implementation of economic development and tourism initiatives still existed.  Mr Collins commented that he was aware of the reserves however they were not available to assist the Visit Kent scheme, as very little notice was given when the scheme ended.  A new brand and joint venture with Medway were being examined and funds were being discussed.

        f)      Mr McKay confirmed that the special funds balance was still in existence and currently earmarked for a particular building in Northfleet and therefore was not available for any other purposes.

        g)     Total reserves were reviewed as part of the budget setting process; general reserves form part of the Section 25 Statement which focuses on the adequacy of the Council’s reserves and the analysis of these figures was yet to be finalised for the 2026/27 budget.  Once this had been completed, it would be highlighted as part of the budget setting papers in February 2026.

        h)     It was explained that the salaries for both the Acting Corporate Director Finance and the Corporate Director Finance featured in the 2023/24 accounts because two individuals covered this statutory post in the same financial year.

        i)      Mr Watts confirmed that all previous financial decisions were taken in accordance with governance and in conversation with the external auditors. Mr Watts reminded the Committee that it was not appropriate to discuss employees who were no longer employed by Kent County Council.

        j)      Mr McKay confirmed that employee benefit expenses were staffing costs in from 2023/24 and 202425; this covered both payroll and agency costs.  Any fluctuation in these figures related to the increases in pay between 2023/24 and 2024/25. A further break down of these figures could be provided, if Members found this helpful. Any questions relating to specific accounting adjustments would be dealt with outside of the Committee.

15.   RESOLVED the Members APPROVED the Annual Governance

        Statement (AGS) FOR 2024/25;

        RESOLVED that Members CONSIDERED and APPROVED the

        Statement of Accounts for 202425.