Agenda item

The following papers are to be read in conjunction with the minutes of the Strategy and Resources Working Group held on 23rd April 2025 and are for formal approval by the Council prior for submission to the External Auditor. These documents were previously circulated to all councillors ahead of the Strategy & Resources Working Group.

i) To receive a report on the 2024/24 Outturn Appendix D

ii) To receive the 2024/24 Income and Expenditure Outturn Appendix E

iii) To consider the final Internal Auditor’s Report for the Year Ended 31 March 2025 and accept the issues raised Appendix F

iv) To receive and agree the draft Report and Financial Statements for 2024/25 and earmarked reserves at 31st March 2025 Appendix G

v) To approve the Annual Governance Statement (Section 1 of Annual Governance and Accountability Return) at Appendix H

vi) To approve the variances between 2023/24 and 2024/24 Annual Returns Appendix Hi.

vii) To approve the Annual Governance and Accountability Return for the Year Ended 31st March 2025 for signature and submission for External Audit at Appendix H

Cllr White introduced the report on the 2024-25 accounts at Appendix D highlighting the End of Year Finance papers for audit and the discussion at Strategy & Resources.  The overall income position was £2,396,408 (against a budget of £1,784,568) whilst expenditure was £1,825,681 (against a budget of £1,806,950).  The higher than anticipated income was primarily due to Section 106 and CIL receipts, along with significantly higher interest as a result.  After the planned transfers for Christmas lights and elections were and the earmarked CIL and section106 allocations allocated to reserves. there was a positive surplus of £81,831 of income over expenditure. 

1.       Council welcomed the Internal Auditor’s letter and recommendations at Appendix F following the end of year audit and received the draft Report and Financial Statements at Appendix G which included the detail of earmarked reserves and grants distributed during the year.The General Reserve was agreed as £602,597 (2023/24: £505,765)   The precept for the year ahead was £1,535,300 and the budget £1,964,500, so the earmarked reserve represents 31% (2023/24: 28%) of operating expenditure or 39% of precept (2023/24 37%). This is a prudent level for Farnham Town Council given the level of earmarked reserves in addition.

2.       The Governance Statement at Appendix H was endorsed;

3.       The details of the updated Assets Register at 31-3-25 were received;

4.       The detail on the variances between the 2023/24 Annual Return and the 2024/25 Annual Return were noted alongside the more detailed explanations in the report at Appendices E1 and H1, the latter relating specifically to the AGAR (Annual Accountancy and Governance Return).

5.       Council noted the level of CIL received that was included in earmarked reserves and that end of year adjustments meant that all of the CIL receipts had been committed to specific infrastructure projects.

6.       Council agreed the dates for the exercise of public rights to inspect the accounts as being between 3rd June and 14th July 2025.

It was RESOLVED unanimously that

1)      The report on the 2024-25 finances be adopted;

2)      the 2024-25 Outturn be welcomed;

3)      the Annual Governance Statement (Section 1 of the Annual Governance and Accountability Return, page 4) be approved;

4)      The Internal Auditor’s report be welcomed and the recommendations agreed;

5)      The updated Asset Register be approved;

6)      The Report and Financial Statements including the general and earmarked reserves for 2024-25 be adopted for signature;

7)      The variances list for the Annual Return be agreed;

8)      The Annual Governance and Accountability Return and associated papers be approved for signature and submission to the External Auditor.