Here's a briefing on the Joint Audit and Standards Committee meeting held on 18 August 2025.

The Joint Audit and Standards Committee met to discuss treasury management, approve the appointment of a co-opted member, and review the draft statement of accounts. The committee approved the appointment of Julie Price as a co-opted member and recommended that the council note the treasury management activity for 2024/25. They also noted the draft statement of accounts for 2024/25.

Appointment of a Co-opted Member

Julie Price was unanimously approved as a co-opted member of the Joint Audit and Standards Committee. The Head of Democratic Services introduced the report, noting that the Chartered Institute of Public Finance and Accountancy (CIPFA) recommends that audit committees include at least two co-opted members to enhance the committee's expertise. Councillor Miles Row proposed the recommendation, which was seconded by Councillor Bryn Hurren. Co-opted members are politically independent, bound by the council's code of conduct, and do not have voting rights.

Treasury Management Outturn 2024/25

The committee recommended that the council note the treasury management activity for the year 2024/25, confirming that activities aligned with Prudential Indicators, with one exception regarding investment limits. The Head of Finance introduced the Annual Treasury Management Report 2024/25.

Councillor Adrienne Marriott raised concerns about risks outlined in the report. The Director – Finance & Procurement responded that the risk for Babergh Growth had been discussed with the cabinet, and Babergh had an earmarked reserve in the 2025/26 budget to reduce the risk.

Other key discussion points included:

• Councillor John Whitehead's query about the reporting of capital losses, to which the Head of Finance clarified that the guidance came from central government.
• Councillor Hurren asked whether discussions were ongoing with Ernst & Young to shadow the audit process. The Director – Finance & Procurement responded that the finance team had been in contact with Ernst & Young and were now responding to queries.
• Councillor Simon Dowling questioned the amount set aside for Babergh Growth, with the Director – Finance & Procurement confirming £1 million had been allocated.
• Councillor Mary McLaren asked about intervention points for the Section 151 Officer¹ regarding Babergh Growth. The Director – Finance & Procurement stated there was regular contact with the Director – Property, Development & Regeneration, and the recommendation to sell properties was being followed.
• Councillor Lorraine Baker asked about resources in the finance team. The Head of Finance responded that a recruitment drive had been undertaken, and a financial control team had been established.
• Councillor Whitehead referred to the Gateway 14 dividend falling away, with the Director – Finance & Procurement explaining these were current projections while waiting for occupiers to take up space.
• Councillor Hurren referred to ESG² funding and asked whether there had been any movement with the investments. The Head of Finance responded that Arlingclose had been consulted and there were not any options currently that had good returns. The Director – Finance & Procurement responded that for Babergh the priority was to reduce debt rather than reinvest.
• Councillor John Matthissen asked whether the funding circle was bad debt that needed to be written off. The Director – Finance & Procurement responded that an update would be sought from the Council's advisors.

Draft Statement of Accounts 24/25

The committee noted the Draft Statement of Accounts 24/25. The Head of Finance introduced the report.

Key discussion points included:

• Councillor Hurren asked whether the costs for the Kingfisher Leisure Centre were likely to be ongoing. The Director – Finance responded that if more work needed to be undertaken this may incur additional costs.
• Councillor Row referred to the life expectancy in relation to pensions and asked if this could be expanded beyond gender and if it could consider other factors such as socioeconomic background and culture. The Director – Finance & Procurement responded that Hymans Robertson LLP provided the advice on pensions, and it was hoped that this would be considered in their assumptions, and it could be asked if this could be included in the narrative.
• Councillor Matthissen referred to page 171 of the report and asked whether more information on what the directorate headings included could be provided. The Director – Finance and Procurement responded that there was a summary table that outlined what these areas were and more detail on these was provided in the outturn report.
• Councillor Whitehead queried why the General Fund surplus was different than in the Cabinet monitoring report. The Director – Finance & Procurement responded that there was a change during the development of the report, and this would be shown in future reports.
• Councillor Matthissen questioned whether the government had been lobbied over the inability for councils to subsidise the HRA³ from the General Fund. The Director – Finance & Procurement responded that the Councils had lobbied government, as had other councils.
• Councillor Baker questioned whether growing concern ratios were tracked. The Director – Finance & Procurement responded that a review of ratios was done under budget setting.
• Councillor Matthissen asked where costs of a combined workforce and resources that were not shared equally between the Councils were considered. The Head of Finance responded that this was not included in the Statement of Accounts but would be included in the budget paper for the next financial year.

Forward Plan

The committee noted the Forward Plan. The Director Finance & Procurement advised Members that the Audited Statement of Accounts would be taken to the February meeting.