Draft 2024/25 Annual Accounts (Audited) Draft 2024/25 Annual Audit Report
Perth and Kinross Council · 1 December 2025
Back to Audit and Risk Committee — 1 December 2025 and its agenda
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee: Audit and Risk Committee Date of Meeting: 1 December 2025 Report Title: Draft 2024/25 Annual Accounts (Audited) Draft 2024/25 Annual Audit Report Report Number: 25/330 Report Author: Alison O’Brien, Corporate Accounting Manager Scott Walker, Chief Finance Officer Organisational Lead: Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 This report presents the Council’s draft 2024/25 Annual Accounts (Audited) in accordance with the Local Authority Accounts (Scotland) Regulations 2014 and draft 2024/25 Annual Audit Report. 1.2 This report includes the following sections: • Section 2 – Recommendations • Section 3 – Background • Section 4 - Draft 2024/25 Annual Accounts (Audited) • Section 5 - Draft 2024/25 Annual Audit Report • Section 6 – Conclusions • Section 7 – Impact Value Assessment • Section 8 - Appendices 2. Recommendations It is recommended that the Committee: 2.1 approves the 2024/25 Annual Accounts (Audited) – see Appendix 1. 2.2 authorises the Leader of the Council, the Chief Executive and the Chief Finance Officer to sign the 2024/25 Annual Accounts (Audited) and the Chief Finance Officer to sign the Letter of Representation – see paragraph 4.8.
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2.3 Notes the contents of Audit Scotland’s Draft 2024/25 Annual Audit Report – see paragraph 5.3. 3. Background 3.1 In line with legislative requirements, the Audit and Risk Committee considered the 2024/25 Annual Accounts (Unaudited) on 25 June 2025 (Report No. 25/163 refers). 3.2 The 2024/25 Annual Accounts (Unaudited) were then submitted to Audit Scotland, the Council’s external auditors on the same day (25 June 2025). 3.3 The Annual Accounts are prepared in accordance with the 2024/25 CIPFA Code of Practice on Local Authority Accounting (“the Code”). 3.4 These accounts also comply with the Local Authority Accounts (Scotland) Regulations 2014 which revoked the Local Authority Accounts (Scotland) Regulations 1985. 3.5 The 2024/25 Annual Accounts (Unaudited) were available for public inspection between 30 June and 18 July 2025 (inclusive), during which time Audit Scotland received no objections. 4. Draft 2024/25 Annual Accounts (Audited) 4.1 The audit of the 2024/25 Annual Accounts took place between July and November 2025. The audit considered not only the financial statements but also areas such as financial performance and corporate governance. 4.2 Significant findings and key audit matters impacting on the draft 2024/25 Annual Accounts (Audited) are set out in detail in Exhibit 2 within the draft 2024/25 Annual Report which is included in Appendix 3. 4.3 These findings are summarised as follows: • Restatement of (previous year) gross expenditure figures • Classification of property, plant and equipment • IFRS 16 Implementation (leases) – Group • Debtors and Creditors • Fixed Asset Register • Remuneration Report 4.4 None of the issues identified above and within Exhibit 3 have an impact on the level of resources available to the Council. 4.5 In addition, there were a few minor presentational adjustments.
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4.6 Approval of the Accounts at today’s meeting will provide authorisation for the Leader of the Council, the Chief Executive and the Chief Finance Officer to sign them. The draft 2024/25 Accounts (Audited) (unsigned) are attached to this report at Appendix 1. 4.7 The Chief Finance Officer will also sign the Letter of Representation included at Appendix 2. Once signed, the draft 2024/25 Annual Accounts (Audited) and Letter of Representation will be passed to Audit Scotland so that they may issue their opinion in the form of an audit certificate. 4.8 ACTION: The Committee is asked to approve the draft 2024/25 Annual Accounts (Audited) and authorises the Leader of the Council, the Chief Executive and the Chief Finance Officer to sign them and also to authorise the Chief Finance Officer to sign the Letter of Representation. 4.9 All signatures will be provided electronically using a system recognised by Audit Scotland that ensures the signings comply with the legislative requirements. 5. Draft 2024/25 Annual Audit Report 5.1 The draft 2024/25 Annual Audit Report is set out at Appendix 3. This report sets out Audit Scotland’s opinions and conclusions on the overall audit and their findings to be reported under ISA260: Report to those Charged with Governance. 5.2 The key messages from the 2024/25 audit are set out on page 3 of Appendix 3 and are summarised as follows: Audit of the annual accounts All audit opinions stated that the annual accounts were free from material misstatement and prepared in accordance with the relevant requirements. Wider scope audit 1. Perth and Kinross Council’s budget setting and financial management arrangements operated effectively during 2024/25. 2. Appropriate arrangements are in place for financial sustainability despite the challenging financial environment in which the council is operating. 3. Arrangements in place around Vision, Leadership and Governance are generally appropriate. There is scope to improve transparency and scrutiny of senior management exits and restructuring decisions through presentation of options and proposals to elected members.
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4. The Council demonstrates a clear link between the use of resources and delivery of its priorities through measuring performance against a suite of Key Performance Indicators (KPIs) linked to its Corporate Plan. Best Value audit 1. The Council has effective and appropriate arrangements in place for securing Best Value. 2. The Best Value Management Report on service transformation reported the council has a clear vision and plan to support the transformation of its services and has robust officer-led governance arrangements in place to monitor its transformational projects through its Transformation Board and Project Teams. There is scope for the council to provide more information on the potential impacts of its transformation projects on vulnerable groups through its Equality and Fairness Impact Assessment process. 3. The Council has effective and appropriate arrangements in place for preparing and publishing Statutory Performance Information, with a slight improvement in performance compared to prior years and other councils. 5.3 ACTION: The Committee is asked to note the contents of Audit Scotland’s draft 2024/25 Annual Audit Report. 5.4 It is anticipated that the final 2024/25 Annual Audit Report will be issued by Audit Scotland following completion of the final accounts process. 6. Conclusions 6.1 Audit Scotland’s findings on the 2024/25 audit are set out in the draft 2024/25 Annual Audit Report which is attached at Appendix 3 to this report. 7. Impact and Value Assessment 7.1 This is an operational report, and as such, an impact and value assessment is not required. 8. Appendices Appendix 1 – Draft 2024/25 Annual Accounts (Audited) Appendix 2 – Letter of Representation Appendix 3 – Draft 2024/25 Annual Audit Report