Unaudited Annual Accounts 2024-25
North Ayrshire Council · 25 June 2025
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NORTH AYRSHIRE COUNCIL 25 June 2025 North Ayrshire Council Title: North Ayrshire Council Unaudited Annual Accounts 2024/25 Purpose: To submit the unaudited Annual Accounts for the year to 31 March 2025 to the Council for approval. Recommendation: That Council: (a) Approves the Annual Accounts for 2024/25, subject to audit; (b) Notes that Audit Scotland plan to complete their audit of the Accounts by mid-September 2025 and will present their annual audit report to the Council’s Audit and Scrutiny Committee thereafter; (c) Authorises the Audit and Scrutiny Committee to consider, and approve for signature, the audited annual accounts within the required timeframe. 1. Executive Summary 1.1 The Council prepares its Accounts on an annual basis to 31 March and is required by the Local Authority Accounts (Scotland) Regulations 2014 to submit these Accounts to the appointed auditor by 30 June each year. Audit Scotland plan to complete their audit of the Accounts by mid-September 2025 and will present their annual audit report to the Council’s Audit and Scrutiny Committee thereafter. A copy of the Council’s unaudited accounts, containing the key financial statements, for the year to 31 March 2025 has been issued directly for Members’ approval prior to their submission to the appointed auditor. A copy of the full set of accounts can be found by following the undernoted link: https://www.north-ayrshire.gov.uk/council-voting-elections/performance-and- spending/budgets-and-finance 1.2 The 2024/25 Accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom (ACOP) and the requirements of the International Financial Reporting Standards (IFRS). 1.3 The Annual Accounts provide an overview of the financial performance of the various funds managed by the Council. The Management Commentary summarises the key messages in relation to the Council’s financial and service performance for 2024/25 and outlines the financial plans, challenges and risks which the Council faces.
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1.4 The detailed financial performance for both Revenue and Capital are reported to Cabinet throughout the financial year and the final Revenue Budget and Capital Programme Financial Performance reports were submitted to Cabinet on 3 June 2025. 1.5 At 31 March 2025 the General Fund reported a net underspend of £0.736m for the year after the earmarking of funds to support service delivery in 2025/26 and beyond. 1.6 The General Fund Unearmarked Balance at 31 March 2025 is confirmed as £9.181m. This is at the lowest level of the recommended range of 2% - 4% for general reserves. The balance of earmarked funds of £85.088m is detailed in paragraph 2.9. 1.7 At 31 March 2025 the Housing Revenue Account closed with a net underspend of £1.816m. The HRA earmarked funds of £22.141m are detailed in paragraph 2.20 with an uncommitted balance at 31 March 2025 of £1.758m. 1.8 Capital Expenditure for the year was £91.025m for the General Fund and £46.534m for the HRA, representing significant ongoing investment in the Council’s assets. 1.9 The Common Good Funds closed with a balance of £2.329m and the Trust Funds closed with a balance of £0.382m. The Annual Trustees’ Report and Financial statements for the charitable trusts are subject to a separate report to Council. 1.10 The Health and Social Care Partnership reported an in-year breakeven position after the utilisation of earmarked and unearmarked reserves and the provision of £2.036m additional funding approved by Cabinet on 3 June 2025. 2. Background 2.1 The Annual Accounts provide an overview of the financial performance of the various funds managed by the Council, including: • North Ayrshire Council General Fund (capital and revenue); • Housing Revenue Account (capital and revenue); • Six Common Good Funds; and • Charitable Trusts Funds. 2.2 The accounts also include “Group” accounts which recognise the material interest the Council has in other organisations, including: • North Ayrshire Ventures Trust Ltd; • North Ayrshire Leisure Ltd; • Strathclyde Partnership for Transport; • Ayrshire Valuation Joint Board; and • North Ayrshire Integration Joint Board. 2.3 The financial position of the Council and its Group is presented in the core financial statements, including: • Comprehensive Income and Expenditure Statement (CIES) on page 58; • Movement in Reserves Statement (MiRS) on page 59; • Balance Sheet on page 60; and • Cash Flow Statement on page 61.
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2.4 The Local Authority Accounts (Scotland) Regulations 2014 require various disclosures of the remuneration and pensions benefits of senior councillors and employees. These are detailed in the Remuneration Report which can be found on page 35 of the Annual Accounts. 2.5 The Council is legally required to make its draft accounts available for public inspection for a three-week period during the audit. A notice was published on the Council website and an advert placed in local newspapers during week beginning 9 June 2025 advising that the unaudited accounts would be available for inspection by appointment and on the Council’s website between 30 June 2025 and 21 July 2025. 2.6 Under the Local Authority Accounts (Scotland) Regulations 2014 the Council, or a committee of the Council with a remit including audit or governance, must meet to approve the audited annual accounts for signature following confirmation of the completion of the audit. A meeting of the Audit and Scrutiny Committee has been arranged for 2 October 2025 to consider the audited annual accounts and approve them for signature. This date is subject to alteration dependent on completion of the audit by Audit Scotland. General Fund Revenue 2.7 The final position for the General Fund Revenue Account at 31 March 25 was a net underspend of £0.736m, after the earmarking of underspends to support service delivery in 2025/26 and beyond. The following table details the final position on a service by service basis: Service Expenditure Annual Budget £ million Actual Expenditure to 31 March 2025 £ million Variance for year (Fav)/Adv £ million Carry Forwards £ million Variance after Carry Forward (Fav)/Adv £ million Corporate Services 20.730 19.936 (0.794) 0.314 (0.480) Education 175.108 175.995 0.887 0.000 0.887 Place 56.516 57.127 0.611 0.230 0.841 Communities & Housing 15.678 15.231 (0.447) 0.112 (0.335) Other Corporate Items 14.430 10.213 (4.217) 3.108 (1.109) Sub Total 282.462 278.502 (3.960) 3.764 (0.196) Health and Social Care Partnership 135.243 135.243 0.000 0.000 0.000 Balance for Services 417.705 413.745 (3.960) 3.764 (0.196) Financing Charges 26.909 26.909 0.000 0.000 0.000 Contribution to Loans Fund Reserve 11.174 11.174 0.000 0.000 0.000 Total Planned Expenditure 455.788 451.828 (3.960) 3.764 (0.196) Aggregate External Finance (374.368) (374.375) (0.007) 0.000 (0.007) Council Tax (65.607) (66.140) (0.533) 0.000 (0.533) Use of Earmarked Funds (15.813) (15.813) 0.000 0.000 0.000 Total Planned Income (455.788) (456.328) (0.540) 0.000 (0.540) Net Expenditure/ (Income) 0.000 (4.500) (4.500) 3.764 (0.736)
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2.8 The Council’s contribution to the Health and Social Care Partnership reported an in year breakeven position after the utilisation of earmarked and unearmarked reserves and the application of £2.036m additional funding approved by Cabinet on 3 June 2025. 2.9 The following table summarises the movements on each of the Council’s General Fund reserves during the year: General Fund Reserve Balance as at 31 March 2024 £ million Income £ million Expenditure £ million Balance as at 31 March 2025 £ million Anticipated Expenditure £ million Available Balance £ million Unearmarked Reserves 8.445 0.736 0 9.181 0 9.181 Loans Fund Reserve 26.884 11.174 (0.049) 38.009 (38.009) 0 Investment Fund 5.033 0 (0.741) 4.292 (4.292) 0 Renewal and Recovery Fund 9.123 0 (3.881) 5.242 (5.242) 0 Affordable Housing Reserve 1.925 1.126 (0.434) 2.617 (2.617) 0 Change and Service Redesign Fund 2.431 0.097 (0.361) 2.167 (2.167) 0 Future Budget Strategy 14.288 0 (5.000) 9.288 (9.288) 0 Other Earmarked Reserves 25.256 5.981 (7.764) 23.473 (23.473) 0 Total Earmarked Reserves 84.940 18.378 (18.230) 85.088 (85.088) 0 Capital Fund 9.831 1.777 (0.422) 11.186 (11.186) 0 Insurance Fund 2.558 0.124 (0.449) 2.233 (2.233) 0 Total General Fund Reserves 105.774 21.015 (19.101) 107.688 (98.507) 9.181 2.10 General Fund (Unearmarked) – Following agreement by Council, the level of unearmarked balances has been maintained at 2% of budgeted expenditure. As a result, the uncommitted balance at 31 March 2025 was £9.181m. This is equivalent to 2.0% of the Council annual budgeted expenditure, compared to the recommended level of between 2% and 4%. 2.11 Loans Fund Reserve – funds arising from the Council’s Treasury Management and Investment Strategy have been earmarked to support the Councils’ Capital Investment Strategy. 2.12 Investment Fund – funds set aside to support investment in environmental projects, infrastructure investment and Community Wealth Building activity. 2.13 Renewal & Recovery Fund – funds earmarked to support the delivery of the Councils’ Recovery and Renewal Strategy through prioritised investment. 2.14 Affordable Housing – 40% of Council Tax income on properties which are not a sole or main residence plus 10% of Second Homes levies are earmarked for the provision of new build affordable housing.
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2.15 Change & Service Redesign Fund – funds have been set aside to support the delivery of the Sustainable Change programme. 2.16 Earmarked Funds – these funds relate to specific projects for which monies have been identified prior to 31 March 2025, but for which spending plans exist in 2025/26 and beyond, including Child Poverty and Cost of Living activities. 2.17 Insurance Fund – these funds represent the amount required to deal with potential uninsured claims and Municipal Mutual Insurance (MMI) underwriting costs. 2.18 Capital Fund – Capital receipts and funds allocated by Council in support of the General Fund Capital Investment Programme 2025 to 2034. General Fund Capital 2.19 General Fund Capital Expenditure amounted to £91.025m compared to the revised budget of £91.436m. The underspend was related to lower than anticipated costs within the Residential Respite Unit and Lockhart Campus projects. These funds will be transferred to the Capital Flexibility budget to offset anticipated budget pressures elsewhere in the programme. HRA Revenue 2.20 The final position for the Housing Revenue Account at 31 March 2025 was a net in year underspend of £1.816m. A full analysis of HRA Revenue financial performance was presented to Cabinet on 3 June 2025. The following table details the movements on the Council’s HRA Reserves for the year: HRA Reserves Balance as at 31 March 2024 £ million Income £ million Expenditure £ million Balance as at 31 March 2025 £ million Anticipated Expenditure £ million Available Balance £ million Unearmarked Reserves 1.553 0.253 (0.048) 1.758 0 1.758 Council House Building Fund 11.590 1.816 (0.193) 13.213 (13.213) 0 Sustainability Fund 5.000 0 0 5.000 (5.000) 0 Transformation Programme 2.000 0 0 2.000 (2.000) 0 Other Earmarked Reserves 0.423 0 (0.253) 0.170 (0.170) 0 Total HRA Reserves 20.566 2.069 (0.494) 22.141 (20.383) 1.758 HRA Capital 2.21 HRA Capital Expenditure amounted to £46.534m, an underspend of £1.526m compared to the revised annual budget for 2024/25 of £48.060m. The underspend was primarily related to lower than anticipated expenditure on bathroom and kitchen refurbishments in void properties.
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Common Good Funds 2.22 A summary of the revenue and capital balances on the Common Good Funds is provided below with further details provided on page 64 of the unaudited annual accounts: Common Good Balance as at 31 March 2024 £ million Income £ million Expenditure £ million Balance as at 31 March 2025 £ million Ardrossan 0.364 0.056 (0.008) 0.412 Irvine 1.120 0.123 (0.099) 1.144 Largs 0.443 0.037 (0.024) 0.456 Millport 0.070 0.003 0 0.073 Saltcoats 0.016 0.001 (0.002) 0.015 Stevenston 0.204 0.026 (0.001) 0.229 Total Common Good 2.217 0.246 (0.134) 2.329 Trusts 2.23 A summary of the revenue and capital balances on the charitable trusts administered by the Council is provided below with further details provided on page 65 of the unaudited annual accounts. Charitable trusts, where the Council is the sole trustee, are required to prepare their own Accounts and Trustees’ annual report. These are subject to a separate external audit and a separate report to Council. Trusts Balance as at 31 March 2024 £ million Income £ million Expenditure £ million Balance as at 31 March 2025 £ million North Ayrshire Charitable Trust 0.110 0.011 (0.001) 0.120 Town Trusts 0.044 0.001 (0.035) 0.010 Douglas Sellers Trust 0.001 0 0 0.001 Anderson Park Trust 0.001 0 0 0.001 Margaret Archibald Trust 0.202 0.013 (0.006) 0.209 Other Bequests 0.040 0.002 (0.001) 0.041 Total Trusts 0.398 0.027 (0.043) 0.382 3. Proposals 3.1 It is proposed that Council: (a) Approves the Annual Accounts for 2024/25, subject to audit; (b) Notes that Audit Scotland plan to complete their audit of the Accounts by mid- September 2025 and will present their annual audit report to the Council’s Audit and Scrutiny Committee thereafter; (c) Authorises the Audit and Scrutiny Committee to consider, and approve for signature, the audited annual accounts within the required timeframe.
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4. Implications/Socio-economic Duty Financial 4.1 The financial implications are as outlined in the report Human Resources 4.2 None. Legal 4.3 Under the Local Authority Accounts (Scotland) Regulations 2014 the Council is required to submit its Unaudited Annual Accounts for external audit by 30 June each year. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 4.6 This report and the annual accounts directly support the Council Plan 2023 to 2028 by maximising financial flexibility to support the delivery of our priorities Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None.
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5. Consultation 5.1 Officers from across all services were consulted during the preparation of the annual accounts 2024/25. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551 or DavidForbes@north-ayrshire.gov.uk. Background Papers Revenue Budget 2024/25 – Financial Performance to 31 March 2025 – Cabinet 3 June 2025; Capital programme Performance to 31 March 2025 – Cabinet 3 June 2025