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Financial performance and governance

It is important to us that the council's finances are as open as possible and that we account to you for the ways in which we spend your money.

Statement of Accounts

The Annual Statement of Accounts is an important statutory document that we produce and publish every year. The preparation, and the subsequent external audit, of the document is a significant undertaking for the finance function. The oversight of these tasks is one of the key undertakings for our Chief Finance Officer, also known as the Section 151 Officer.

Visit our Statement of Accounts page for more information.

Financial performance reporting

Following the start of the new financial year, the process of budgetary control review takes place.

Budgetary control consists of regular monitoring, review and comparison of actual costs and income against the budget. It is a continuous process which reviews and adjusts the forecasts during the financial year and provides a control mechanism to hold budget holders to account. Remedial action is required by budget managers when there is likely to be a significant variation from the budget. Failure to do so may cause the budget to be overspent, leading to a drain on the financial reserves. This subsequently could result in the reduction or stopping of some service provision.

View our Reserves Policy and Strategy 2025/26 on the Democracy Peterborough website (opens PDF).

Budgetary control reports

Our Cabinet and Sustainable Future City Council Scrutiny Committee receive the Budget Control Report each quarter to review. The Sustainable Future City Council Scrutiny Committee is responsible for the oversight of budget reporting. This report provides an overview of our financial performance and includes the anticipated forecast outturn for both revenue and capital budgets, delivery against planned savings targets, key budgetary risks and the overall level of reserves.

The Cabinet and Sustainable Future City Council Scrutiny Committee receive the end of year outturn report for information. The report is then considered by the Audit Committee alongside the annual Statement of Accounts.

The role of the Audit Committee includes reviewing and approving the annual Statement of Accounts, specifically, to consider whether appropriate accounting policies have been followed and whether there are concerns arising from the financial statements.

Governance

Governance is about how we ensure that we are doing the right things, in the right way, for the right people, in a timely, inclusive, open, honest and accountable manner. It comprises the systems and processes, and culture and values, by which the council is directed and controlled and through which we account to, engage with and, where appropriate, lead our communities.

We abide by The Seven Principles of Public Life, known as the 'Nolan Principles of Good Governance'. These were introduced in 1995 by the UK Government's Committee on Standards in Public Life. These important values are enshrined in codes of conduct across the public sector, including schools, government departments and hospitals.

View The Seven Principles of Public Life on the GOV.UK website.

CIPFA (Chartered Institute for Public Finance Accounts) and Solace (Society of Local Authority Chief Executives) published the framework 'Developing Good Governance in Local Government' in 2016 to ensure it remains 'fit for purpose'. This has core principles, which were taken from the Good Governance Standard for Public Services 2004 and adapted for local government.

The CIPFA / SOLACE document is a paid-for publication and cannot be linked to.

The Framework, Developing Good Governance in Local Government, recommends that the council has a local code of corporate governance to set out how it works towards meeting the seven principles of good governance set out in the CIPFA/SOLACE framework.

PCC Local Code of Corporate Governance - Audit Committee 22/7/24

The Annual Governance Statement (AGS) forms part of the annual closure of accounts process. It is not a financial exercise but represents a corporate overview of the processes and procedures adopted by Peterborough to manage its affairs. It indicates on the extent to which the council complies with its own local code of corporate governance.

PCC Annual Governance Statement 2023/24 - Audit Committee 22/7/24.

Financial regulations

The financial regulations provide the framework for managing our financial affairs. They are a key component in ensuring the security of the assets under our control and that use of these resources is lawful, properly authorised, and provides value for money.

The financial regulations are set out in Part 4, Section 11 of our Constitution, which we are required to have in place by the Local Government Act 2000.

View the financial regulations in Part 4, Section 11 of our Constitution on the Democracy Peterborough website (opens PDF).

Last updated: 22 August 2025