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Basingstoke & Dean Borough Council
Councillors: 54
Wards: 18
Committees: 22
Meetings (2025): 67
Meetings (2024): 72

Meeting

Audit and Accounts Committee - Basingstoke & Dean

Meeting Times
Scheduled Time
Start:
Monday, 10th February 2025
6:30 PM
End:
Monday, 10th February 2025
9:30 PM
Meeting Status
Status:
Confirmed
Date:
10 Feb 2025
Location:
Committee Rooms 1 & 2 - Deanes
Webcast:
Available
Meeting Attendees
Councillor Paul Basham photo
Chair
Chair of the Audit and Accounts Committee
Councillor Paul Basham

Basingstoke & Deane Independent Group

Present, as expected

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Councillor Samir Kotecha photo
Vice-Chair
Councillor Samir Kotecha

Basingstoke & Deane Independent Group

Present, as expected

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Councillor Kevin Chatburn photo
Committee Member
Councillor Kevin Chatburn

Liberal Democrat

Apologies

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Councillor David Conquest photo
Committee Member
Councillor David Conquest

Liberal Democrat

Apologies

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Councillor John Izett photo
Committee Member
Chair of the Resources Committee
Councillor John Izett

Conservative

Present, as expected

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Councillor Simon Minas-Bound photo
Committee Member
Leader of the Conservative Group
Councillor Simon Minas-Bound

Conservative

Present, as expected

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Councillor Sajish Tom photo
Committee Member
Councillor Sajish Tom

Labour

Present, as expected

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Councillor Jacky Tustain photo
Committee Member
Deputy Mayor and Chair of the Resident Services Committee
Councillor Jacky Tustain

Labour

Present, as expected

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Councillor Karen Watts photo
Committee Member
Councillor Karen Watts

Basingstoke & Deane Independent Group

Present, as expected

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Committee Member
Richard Harbord (Co Opted Member of the Audit and Accounts Committee)

Present, as expected

Councillor Gavin James photo
Committee Member
Co-Leader and Cabinet Member for Finance and Property
Councillor Gavin James

Liberal Democrat

In attendance

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Councillor Andrea Bowes photo
Reserve
Chair of the Human Resources Committee
Councillor Andrea Bowes

Liberal Democrat

Not required

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Councillor Samuel Carr photo
Reserve
Councillor Samuel Carr

Conservative

Not required

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Councillor Michael Howard-Sorrell photo
Reserve
Chair of the Investigating and Disciplinary and Standards Appeals Committee
Councillor Michael Howard-Sorrell

Green

Not required

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Councillor David McIntyre photo
Reserve
Councillor David McIntyre

Conservative

Not required

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Councillor Colin Phillimore photo
Reserve
Mayor
Councillor Colin Phillimore

Basingstoke & Deane Independent Group

Not required

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Councillor Andrew McCormick photo
Reserve
Chair of the Development Control Committee
Councillor Andrew McCormick

Labour and Co-Operative Party

Not required

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Councillor Kate Tuck photo
Reserve
Councillor Kate Tuck

Independent Member

Not required

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Councillor Jo Slimin photo
Reserve
Councillor Jo Slimin

Liberal Democrat

Not required

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Secretary
Phil Matthews

Copy docmts only

Agenda
1 Apologies for absence and substitutions
Minutes Apologies were received from Councillor K Chatburn and Councillor D Conquest.

R. Harbord arrived at 6.33pm.
2 Declarations of interest
Minutes There were no declarations of interest.
3 Urgent matters
To consider any items of business, other than those shown on this agenda and which, by reason of special circumstances to be stated at the meeting, in the opinion of the Chairman, should be considered at the meeting as a matter of urgency.
Minutes There were no urgent matters.
4 Minutes of the meeting held on 25 November 2024
The Chair will move that the minutes of the meeting be signed as a correct record. The only part of the minutes that can be discussed is their accuracy.
Attachments:
Minutes The minutes of the meeting held on 25 November 2024 were confirmed by the Committee as a correct record and signed by the Chair.
5 EY Draft Audit Results Report - Year ended 31 March 2024
Contact Officer: Adam Swain

The purpose of this report is for the external auditors, EY, to present the audit results report to the committee for discussion, along with their findings in relation to the Value for Money conclusion.
Attachments:
Minutes The Chair introduced Andrew Brittain and Nimisha Dosa from EY, who presented the audit results report for the year ended 31 March 2024 along with their findings related to the value for money conclusion. The external auditors also provided a summary of assurances, outlining the areas of their work completed with an assurance rating for each area.

The external auditors confirmed they intended to issue a disclaimed audit opinion on the financial statements for the year ended 31 March 2024. New regulations from government required any outstanding external audits for the financial year 2023/24 to be completed by 28 February 2025. The external auditors also detailed that as the previous year’s financial statements were disclaimed, there was no assurance over the 2023/24 opening balance position or the closing reserves balances. Additionally, the auditors confirmed completion of their review of the council’s value for money arrangements, with no significant risks identified.

The Committee discussed the report and made the following comments:

Stated that the Committee had discussed the impact of the previous years disclaimed audit opinion on the 2023/24 financial year at the last meeting. However, a disclaimed audit opinion for the financial year 2023/24 was not anticipated and the Committee highlighted the significance of the matter. The external auditors described that they were unable to obtain full assurance over valuations of property, plant, and equipment (PPE), investment properties and the movement of reserves. Highlighted a net £2.36M overstatement of the valuation of Manydown investment property. The Chief Finance Officer stated this was in part due to an input error in the council’s fixed assets register, alongside different judgements on valuations between the council’s valuers and EY’s. Stated that it was unclear what councillors were asked to do with the information provided. The auditors highlighted that the medium-term effects of disclaimed audits had been explained in previous meetings. The auditors confirmed that all audit procedures for the 2023/24 financial statements had been completed. Issues arose from comparative analysis of previous years, which led to areas of limited assurance due to opening balance movement. As a result of government policy, accounts from previous years could not be re-audited to provide greater assurance as this would risk the statutory backstop date not being met. The Chair agreed to bring the matter of the disclaimed 2023/24 audit opinion to the attention of full council at the meeting with the minutes on the agenda. Felt the work completed was thorough in highlighting audit differences. Expressed disappointment that EY’s summary of assurances appendix was not made available earlier before the meeting. The Chair stated that the document was distributed as soon as it became available. Asked about the process for moving away from disclaimed audit opinions, including the timeline, the position of the 2023/24 audit within it, and whether the previous year was the first in the process. Specific reference was made to the timeline being recorded in the minutes. The auditors explained that the previous year’s financial statements ended 31 March 2023 was the first with a disclaimed opinion, with the same expected with the current and following year due to not having assurance over opening balances and all in-year movements. It was anticipated that the 2026/27 year would be the first year with an unqualified opinion. It was noted that each year’s audit depended on the previous year which could affect the timeline. The Committee mentioned adjustment of audit fees through officer discussion with Public Sector Audit Appointments Ltd (PSAA), the responsible body for setting audit fees.

Resolved: The Committee receives the report from the External Auditors, EY, on the results of the audit of accounts for the year ended 31 March 2024.
6 Statement of Accounts for the year ended 31 March 2024
Contact Officer: Adam Swain

The purpose of this report is to provide the Committee with the Statement of Accounts for the year ended 31 March 2024.
Attachments:
Minutes The Chief Finance Officer introduced the report which provided the Committee with the annual statement of accounts for the year ended 31 March 2024.

Resolved: Authority is delegated to the Chief Finance Officer (Section 151 Officer), in consultation with the Chair of the Audit and Accounts Committee, to approve the Statement of Accounts for the year ended 31 March 2024 and that the Chair of the Audit and Accounts Committee is authorised to subsequently sign the Statement of Responsibilities to that effect on behalf of the Committee.
7 Draft Annual Property Plan 2025/26
Contact Officer: Liz Suatt

This report is to present the Annual Property Plan for 2025/26 that is contained within the Cabinet Report at Appendix 1 which will be reported to Cabinet on 11th February 2025.
Attachments:
Minutes The Investment Portfolio Lead and the Cabinet Member for Finance and Property introduced the report, that would be reported to Cabinet on 11 February 2025 and built on the implementation of the Strategic Asset Management Plan and Property Investment Strategy 2022/23 to 2025/26.

The Committee discussed the report and made the following comments:

Raised concern regarding vacant properties in the Malls Shopping Centre. Sought greater understanding of what was planned with the Fanum House site. It was clarified that the Property Investment Strategy had been reviewed by the Council’s external advisors which recommended no immediate changes, despite market changes affecting progress. Questioned whether the required investment to achieve a minimum Energy Performance Certificate (EPC) rating of C for directly let properties from 2027 would be funded by the council. The Investment Portfolio Lead confirmed that the council had reviewed its portfolio to plan a appropriate strategy.

Resolved: The Committee notes the Draft Annual Property Plan 2025/26 and provides its comments to Cabinet.
8 Capital Investment Strategy for 2025/26
Contact Officer: Adam Swain

This report sets out the Capital Investment Strategy for 2025/26, and the Investment Strategy (Non-Treasury) for 2025/26.
Attachments:
Minutes The Chief Finance Officer introduced the report, which set out the draft Capital Investment Strategy for 2025/26 and the Investment Strategy (Non-Treasury) for 2025/26 which would be presented at Council on 27 February 2025 and to inform the Committee of the proposed strategy.

The Committee discussed the report and made the following comments:

Drew attention to the Investment Strategies chart, which set out the structure for Council’s investment strategies and how they fitted alongside each other. Sought to understand further the revenue implications of internal borrowing as part of the Minimum Revenue Provision policy. The Chief Finance Officer explained that when the council used its own funds for capital projects, it would set aside revenue to repay this over time. Commented that a redeveloped Leisure Park could be more cost-effective which could help offset costs. The Cabinet Member stated that the associated costs for redevelopment of the Aquadrome and Leisure Park was part of long-term investment and acknowledged it would affect treasury management funds.

Resolved: The Committee considers the Capital Investment Strategy for 2025/26 and provides its comments on the report.
9 Treasury Management Strategy for 2025/26
Contact Officer: Adam Swain

The purpose of this report is to present the Chief Finance Officer’s (Section 151 Officer) draft Treasury Management Strategy 2025/26 report that will be considered by Council on 27 February 2025 and to inform the committee of the proposed strategy.
Attachments:
Minutes The Chief Finance Officer introduced the report which presented the Committee with the draft Treasury Management Strategy 2025/26 that would be considered by the Council on 27 February 2025 and to inform the Committee of the proposed strategy.

The Committee discussed the report and made the following comments:

Queried how ongoing local government reorganisation proposals could affect the councils’ investments. The Chief Finance Officer stated that, despite ongoing reorganisation proposals, the priority was management of the council’s finances for the next financial year. Questioned if the council had acted on recommendations made by its treasury advisors, MUFG Corporate Markets. The Chief Finance Officer detailed that some of the recommendations had been acted on.

Resolved: The Committee considers the Treasury Management Strategy for 2025/26 and provides its comments on the report.
10 Housing Benefits Subsidy Certification Report for the year ended 31 March 2024
Contact Officer: Adam Swain

The purpose of this report is to present the Housing Benefit Subsidy Certification Letter in respect of the year ended 31 March 2024.
Attachments:
Minutes The Chief Finance Officer introduced the report, which presented the Housing Benefit Subsidy Certification Letter in respect of the year ended 31 March 2024. There were three errors found during their audit which totalled £78.

The Committee congratulated the council’s Benefits team on their hard work.

Resolved: The Committeenote the letter from KPMG relating to the Certification of the Housing Benefits Subsidy Claim for the year ended 31 March 2024.
11 Audit and Accounts work programme
The Committee is asked to note and review it’s work programme.
Attachments:
Minutes The Chair introduced the work programme and gave a brief overview of the items that would be included on the agenda for the upcoming meetings.

The Chair also introduced the list of actions that had arisen from previous Committee meetings.
Previous Meetings
Meeting

31st Mar 2025 Webcast

Audit and Accounts Committee

Meeting

10th Feb 2025 Webcast

Audit and Accounts Committee

Meeting

25th Nov 2024 Webcast

Audit and Accounts Committee

Meeting

30th Sep 2024 Webcast

Audit and Accounts Committee

Meeting

29th Jul 2024 Webcast

Audit and Accounts Committee

Meeting

24th Jun 2024 Webcast

Audit and Accounts Committee

Meeting

4th Mar 2024 Webcast

Audit and Accounts Committee

Meeting

29th Jan 2024 Webcast

Audit and Accounts Committee

Meeting

27th Nov 2023 Webcast

Audit and Accounts Committee

Meeting

25th Sep 2023 Webcast

Audit and Accounts Committee

Future Meetings
Meeting

23rd Jun 2025 Webcast

Audit and Accounts Committee

Meeting

29th Sep 2025 Webcast

Audit and Accounts Committee

Meeting

24th Nov 2025 Webcast

Audit and Accounts Committee

Meeting

26th Jan 2026 Webcast

Audit and Accounts Committee

Meeting

30th Mar 2026 Webcast

Audit and Accounts Committee

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