Hastings BC Auditors Annual Report 2024-25 - Final (add as supplementary)

Committee report · Audit Committee · Thu 11 Dec 2025 · Hastings Borough Council · agenda item 4

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“raised in 2024/25 36 06 Follow up of previous Key recommendations 45.”

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Noted · Received for information; no decision followed.

The report gives commentary on the Council's value for money arrangements in three areas: financial sustainability, governance, and improving economy, efficiency and effectiveness. p9 p20

The Council's 2024/25 financial statements had not been published by the statutory deadline of 30 June 2025. p60 p139

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p904 Value for Money commentary on arrangements 13 Financial sustainability 15 Governance 22 Improving economy, efficiency and effectiveness 31
p20• financial sustainability • governance • improving economy, efficiency and effectiveness.
p60Executive Summary Auditor’s Annual Report Year ending 31st March 2025 We set out below the key findings from our commentary on the Council’s arrangements in respect of value for money. The statutory deadline for the publication of the 2024/25 group accounts was 30 June 2025. As at the date of final draft (24 November 2025), the group accounts is yet to be published. We raised a Key Recommendation (KR3) in response. If the 2024/25 financial statements are not published by 15 January 2026, the latest date elector rights can be exercised to meet the statutory deadline of 27 February 2026, we will consider the use of our statutory audit powers.
p139In addition, a significant weakness exists in statutory reporting compliance. The Council has yet to publish its full set of 2024/25 financial statements as at the time of writing (November 2025). The Council remains non-compliant with the Audit and Accounts Regulations, which require publication of complete financial statements by 30 June following yearend. Officers sent 2024/25 Financial Statements to the audit team on 9 October 2025, three months after the statutory deadline, but these statements are not complete as they do not show the group position by including the Council’s subsidiary, Hastings Housing Ltd. If the full set of the Council’s 2024/25 financial statements are not published by 15 January 2026, then we will consider the use of our statutory audit powers. We raise a Key Recommendation on page 27. The decision will have significant impact on both 2024/25 group accounts and HHC accounts including basis of preparation of HHC accounts if it is not a going concern, the group accounting treatment of expected credit loss on the £5.5m loan the Council made to HHC Ltd, the loss of accrued interest of £0.77m over the last 3 years. R Auditor’s Annual Report Year ending 31st March 2025 Guidance Note This should be maintained as one page if at all possible and no more than two. If we are saying more (where there are amber or red assessments, insights or notable practice ) then the detail will go on the following pages. Use this slide to introduce the fact that there is more detail, not to provide it.

Places and organisations it names

Hastings Borough Council

Other papers for this meeting

Audit Committee agenda · Committee agenda
Appendix 1 - Strategic Risk Report Nov 2025 · Committee report
Covering Report for External Audit Annual Findings Report 2024-25 · Committee report
HBC Covering Report Q2 2025-26 Progress Report · Committee report
HBC Quarter 2 2025-26 Progress Report Appendix A · Committee report
HBCReportMidyearTreasuryreport Audit · Committee report
Hastings BC Auditors Annual Report 2024-25 v1.1 · Committee report
Minutes Public Pack, 09/10/2025 Audit Committee · Committee report
Audit Committee minutes · Committee minutes
Strategic Risk Report Nov 25 - Final · Committee report

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