Unaudited 2025/26 Annual Accounts (Draft)
Perth and Kinross Council · 29 June 2026
Back to Audit and Risk Committee — 29 June 2026 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 or Board: Audit and Risk Committee Date of Meeting: 29 June 2026 Report Title: Unaudited 2025/26 Annual Accounts (Draft) Report Number: 26/190 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 unaudited 2025/26 Annual Accounts (draft) in accordance with the Local Authority Accounts (Scotland) Regulations 2014. 2. Structure of the Report 2.1 The information in the report is structured as follows – 1. Purpose 2. Structure of the Report 3. Recommendations 4. Background 5. Annual Accounts 6. Final Outturns 7. Next Steps 8. Conclusion 9. Impact Value Assessment 10. Appendices 3. Recommendations It is recommended that the Committee: 3.1 Authorises the Chief Finance Officer to sign the unaudited 2025/26 Annual Accounts – see paragraph 5.6.
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3.2 Notes that it is anticipated that the unsigned audited 2025/26 Annual Accounts will be considered by the Audit & Risk Committee on 30 November 2026 – see paragraph 7.6. 4. Background 4.1 The Local Authority Accounts (Scotland) Regulations 2014 sets out the following in respect of the unaudited Annual Accounts: (5) The proper officer must ensure that financial statements give a true and fair view of the financial position of the local authority and its group at the end of the financial year and the transactions of the local authority and its group for that year. (6) Once the proper officer is satisfied as to the matters set out in paragraph (5), the proper officer must certify these matters by signing and dating the statement of responsibilities and the balance sheets contained within the Annual Accounts and then submit the Annual Accounts to the auditor. (7) The Annual Accounts must be submitted to the auditor no later than 30 June immediately following the financial year to which the Annual Accounts relate. (8) The local authority must publish a copy of the Annual Accounts submitted to the auditor, clearly identified as an unaudited version, on a website of the authority from the date they are submitted until the date on which the audited Annual Accounts are published in accordance with regulation 11. (9) A local authority or a committee of that authority whose remit includes audit or governance functions must meet to consider the unaudited Annual Accounts as submitted to the auditor. (10) The meeting referred to in paragraph (9) must be held no later than 31 August immediately following the financial year to which the Annual Accounts relate”. 5. Annual Accounts 5.1 The Annual Accounts are prepared in accordance with the 2025 CIPFA Code of Practice on Local Authority Accounting (“the Code”). 5.2 These accounts also comply with the Local Authority Accounts (Scotland) Regulations 2014 which came into force in October 2014.
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5.3 The Annual Accounts include a Management Commentary, which provides users of the financial statements with integrated information on management’s view of performance, position and progress (including forward looking information). This is set out on pages 1 to 21 of the unaudited Annual Accounts (draft) which are attached at Appendix 1. 5.4 The Regulations require an annual review of the effectiveness of a local authority’s system of internal control by Elected Members. This requirement was met with the approval of the Annual Governance Statement by the Scrutiny Committee on 3 June 2026 (Report No. 26/158 refers). The Statement is set out from page 22 of the unaudited Annual Accounts (draft). 5.5 The Regulations also require consideration of the unaudited Annual Accounts by those charged with governance at a meeting to be held no later than 31 August. This report (and the unaudited Annual Accounts (draft) attached at Appendix 1) is before the Committee today to ensure compliance with the statutory requirements prior to submitting them to the appointed auditor (Audit Scotland) and making them available for public inspection. 5.6 ACTION: Following consideration of the draft unaudited Annual Accounts the Committee is asked to authorise the Chief Finance Officer to sign the unaudited 2025/26 Annual Accounts. 6. Final Outturns 6.1 The 2025/26 final outturns were considered by the Finance and Resources Committee on 24 June 2026 (Report No. 26/181 refers). This was the fifth report to the Committee on 2025/26 and included the unaudited final position on the revenue and capital budgets. 6.2 On completion on the unaudited 2025/26 Annual Accounts (draft), the level of unearmarked Reserves was £17.790 million or 3.5% 6.3 Furthermore, the level of earmarked Reserves included in the unaudited 2025/26 Annual Accounts (draft) is £43.143 million. 7. Next Steps 7.1 The audit of the Annual Accounts will take place between July and October 2026. 7.2 Audit Scotland (supported by Council officers) will consider whether the Annual Accounts: • Give a true and fair view, in accordance with applicable law and the 2025 Code, of the state of the affairs of Perth and Kinross Council and its Group as at 31 March 2026 and of the income and expenditure for the year then ended;
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• Have been properly prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, as interpreted and adapted by the 2025 Code; and • Have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973 and the Local Government in Scotland Act 2003. 7.3 The Companies Act requires auditors to give an explicit opinion on whether the strategic report and governance statement have been prepared in accordance with legal requirements. Audit Scotland’s policy is to apply Companies Act requirements on a best practice basis, and will include opinions to the auditor’s report on whether the: • Management commentary has been prepared in accordance with statutory guidance. • Annual Governance Statement has been prepared in accordance with the proper practices set out in the good governance code. 7.4 The results of the external audit will be summarised in the Draft Annual Audit Report which incorporates the International Standard on Accounting (ISA) 260: Report to those Charged with Governance. 7.5 The Council has been advised that the external audit report is not expected to be available by 30 September 2026. On that basis, it is anticipated that this Audit Scotland report will be considered by the Audit and Risk Committee, along with the unsigned audited 2025/26 Annual Accounts, at its meeting scheduled for 30 November 2026. 7.6 ACTION: The Committee is asked to note that it is anticipated that the unsigned audited 2025/26 Annual Accounts will be considered by the Audit and Risk Committee on 30 November 2026. 7.7 The unaudited 2025/26 Annual Accounts will be available for public inspection between 1 July and 21 July 2026 (inclusive) with any objections being sent to the auditor by 22 July 2026. 8. Conclusions 8.1 The unaudited 2025/26 Annual Accounts will be submitted to the Controller of Audit by 30 June 2026 following authorisation by the Chief Finance Officer.
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9. Impact and Value Assessment 9.1 This is an operational report, and as such, an impact and value assessment is not required. 10. Appendices • Appendix 1 – Unaudited 2025/26 Annual Accounts (draft)