Agenda Document Pack - Council - 26/06/2025
Renfrewshire Council · 26 June 2025
Back to Council — 26 June 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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19/06/2025 Notice of Meeting and Agenda Council Date Time Venue Thursday, 26 June 2025 09:30 Council Chambers (Renfrewshire), Council Headquarters, Renfrewshire House, Cotton Street, Paisley, PA1 1AN Membership Provost Lorraine Cameron (Convener): Councillor Iain Nicolson (Leader): Councillor Cathy McEwan (Depute Convener): Councillor Jacqueline Cameron (Depute Leader): Councillor Jennifer Adam: Councillor Fiona Airlie-Nicolson: Councillor Alison Ann-Dowling: Councillor Stephen Burns: Councillor Michelle Campbell: Councillor Graeme Clark: Councillor Carolann Davidson: Councillor Eddie Devine: Councillor Andy Doig: Councillor Audrey Doig: Councillor Chris Gilmour: Councillor Edward Grady: Councillor Gillian Graham: Councillor Neill Graham: Councillor John Gray: Councillor Anne Hannigan: Councillor John Hood: Councillor Lisa-Marie Hughes: Councillor Robert Innes: Councillor Alec Leishman: Councillor Bruce MacFarlane: Councillor James MacLaren: Councillor Kenny MacLaren: Councillor Mags MacLaren: Councillor Colin McCulloch: Councillor Janis McDonald: Councillor David McGonigle: Councillor Jamie McGuire: Councillor Marie McGurk: Councillor Iain McMillan: Councillor John McNaughtan: Councillor Kevin Montgomery: Councillor Sam Mullin: Councillor Will Mylet: Councillor Jim Paterson: Councillor Emma Rodden: Councillor John Shaw: Councillor Ben Smith: Councillor Andy Steel: Hybrid Meeting Please note that this meeting is scheduled to be held in the Council Chambers. However, it is a hybrid meeting and arrangements have been made for members to join the meeting remotely should they wish. Members of the Press and Public Members of the press and public wishing to attend the meeting should report to the customer service centre where they will be met and directed to the meeting. MARK CONAGHAN Head of Corporate Governance
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19/06/2025 Further Information This is a meeting which is open to members of the public. A copy of the agenda and reports for this meeting will be available for inspection prior to the meeting at the Customer Service Centre, Renfrewshire House, Cotton Street, Paisley and online at http://renfrewshire.cmis.uk.com/renfrewshire/CouncilandBoards.aspx For further information, please email democratic-services@renfrewshire.gov.uk Webcasting of Council Meeting This meeting will be filmed for live or subsequent broadcast via the Council’s internet site – at the start of the meeting the Provost will confirm if all or part of the meeting is being filmed. Generally the public seating areas will not be filmed. The cameras focus on the main participants. If you have any queries regarding this please contact Committee Services on democratic-services@renfrewshire.gov.uk. To find the webcast please navigate to: https://renfrewshire.public-i.tv/core/portal/home and select the meeting from the calendar. Information Bulletin To reduce the reporting of routine operational matters to Policy Boards, to allow Boards to focus on major policy issues and to streamline business for Members’ consideration and determination, a Bulletin, issued in line with the Council meeting timetable, is produced. The Bulletin is intended to provide members with a concise summary of significant decisions and action taken by officers in the exercise of their delegated powers, and details of issues which do not require a decision. A copy of the Bulletin has been attached under separate cover to this agenda.
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19/06/2025 Items of business Apologies Apologies from members. Declarations of Interest and Transparency Statements Members are asked to declare an interest or make a transparency statement in any item(s) on the agenda and to provide a brief explanation of the nature of the interest or the transparency statement. 1 Provost's Update Hear from Provost 2 Minutes of Meetings of Council, Boards and Panels Minutes of Meetings of Council, Boards and Panels Placing Requests and Exclusions Appeals Panel, 28 April 2025 Council, 1 May 2025 Placing Requests and Exclusions Appeals Panel, 8 May 2025 Communities and Housing Policy Board, 13 May 2025 Regulatory Functions Board, 14 May 2025 Education and Children's Services Policy Board, 15 May 2025 Audit, Risk and Scrutiny Board, 19 May 2025 Economy and Regeneration Policy Board, 20 May 2025 Planning and Climate Change Policy Board, 20 May 2025 Infrastructure, Land and Environment Policy Board, 21 May 2025 Personnel Appeals and Applied Conditions of Service Appeals Panel, 22 May 2025 Regulatory Functions Board, 29 May 2025 Petitions Board, 2 June 2025 Finance, Resources and Customer Services Policy Board, 12 June 2025 (to follow) Local Review Body, 17 June 2025 (to follow) Leadership Board, 18 June 2025 (to follow) 3 Unaudited Annual Accounts 2024/25 and Interim Financial Update Report by Director of Finance & Resources 1 - 154 4 Treasury Management Annual Report for 2024/25 Report by Director of Finance & Resources 155 - 164 5 Accounts Commission - Best Value Audit Report Report by Chief Executive 165 - 194
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19/06/2025 6 Governance Arrangements Joint report by Director of Environment, Housing & Infrastructure and Director of Finance & Resources 195 - 200 7 Audit, Risk & Scrutiny Board Annual Report 2024/25 Report by Director of Finance & Resources 201 - 214 8 Notice of Motion 1 by Councillors McMillan and Gilmour "Johnstone Burgh Football Club Council wishes to congratulate Johnstone Burgh on winning the Scottish Junior Cup against Tranent for season 2024/2025. Council recognises the hard work done by the committee, coaching staff and players in achieving this success. The Council further wishes the club well for the future." 9 Notice of Motion 2 by Councillors Steel and J Cameron "“Johnstone Burgh Football Club” Council congratulates Johnstone Burgh FC on their achievement of winning the Scottish Junior Cup for the first time since 1968. Council applauds the work done by players, staff and volunteers who make the Burgh a central part of Johnstone." 10 Notice of Motion 3 by Councillors Andy Doig and Hood "Feasibility Study into the Introduction of Criterium Cycling Events in Johnstone Town Centre Renfrewshire Council requests that the Events Team undertakes a feasibility study into the organisation of criterium cycle racing events in Johnstone town centre as part of their annual calendar, utilising funding for this from a variety of sources including, but not exclusive to, Scottish Cycling, One Ren, and business sponsorship. Council notes the success of various criterium events across the UK, and believes that in developing such an event in Johnstone it should be predicated on liaison with the Johnstone Business Consortium, Johnstone Community Council, and Johnstone Sounds to make it as community-based as possible."
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19/06/2025 11 Notice of Motion 4 by Councillors Grady and McMillan "Promotion of Renfrew Football Club Renfrewshire Council warmly congratulates Renfrew Football Club on their recent and well-deserved promotion to the West of Scotland Football League Premier Division following an excellent season. This achievement is a testament to the hard work and dedication shown by the players, management and all the staff and volunteers at the club. Council agrees to write to Renfrew Football Club to offer its congratulations and wishes the club continued success in the Premier Division." 12 Notice of Motion 5 by Councillors Clark and Smith "Gratitude to Tony Lawler As he stands down from the role, Renfrewshire Council wishes to express their gratitude to Tony Lawler for 33 years of public service in leading the Sma’ Shot parade by banging the Charleston Drum. In addition, to thank him for his many years of promoting both the history and contemporary relevance of this key event as it celebrates workers’ rights by reflecting on the victory of the weavers over their employers in 19th century Paisley." 13 Notice of Motion 6 by Councillors McMillan and Ann- Dowling "Council wishes to express its concern on the current financial situation facing Renfrewshire IJB. Council notes that the underfunding from the SNP government has put local health services in a perilous situation." 14 Notice of Motion 7 by Councillors Paterson and Shaw "70th Anniversary of Medical Ultrasound Innovation in Renfrew Renfrewshire Council recognises the historic role of the former Babcock & Wilcox site in Renfrew in the development of medical ultrasound. On 21 July 1955, Professor Ian Donald of the University of Glasgow conducted a pioneering experiment at the site using industrial ultrasound equipment to distinguish between cysts and tumours — a breakthrough that laid the foundation for modern diagnostic imaging. Council welcomes plans by Altrad Babcock, Westway, and Novosound to mark the 70th anniversary, and will work with stakeholders to install a commemorative plaque at the original site, celebrating Renfrew’s contribution to global medical innovation."
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19/06/2025 15 Notice of Motion 8 by Councillors Shaw and Hughes "Renfrew FC Promotion to the WOSFL Premier League Council congratulates Renfrew Football Club on securing promotion to the West of Scotland Football League Premier Division for the 2025/26 season and wishes them all the very best for the new season when it comes. This significant achievement marks an important milestone in the club’s proud history and is a testament to the commitment, talent, and perseverance of the players, management team, committee members, volunteers, and loyal supporters. Renfrew FC continues to be a cornerstone of the local community, providing opportunities for participation in football at all levels and fostering a strong sense of identity and civic pride in the town. Their promotion reflects positively not only on the club but on Renfrew as a whole."
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___________________________________________________________________ To: Council On: 26 June 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Unaudited Annual Accounts 2024/25 and Interim Financial Update ___________________________________________________________________ 1. Summary 1.1. The Council’s Accounts and Group Accounts for 2024/25 will be submitted for audit by the statutory deadline of 30 June 2025 and a copy is attached for Members’ approval, along with the accounts of the Coats Observatory Trust. 1.2. Once approved, the Unaudited Accounts and associated working papers will be passed to the external auditor (Azets) for their review. Their report on the audit of the accounts will be submitted to the Audit, Risk & Scrutiny Board in September for consideration prior to the audited accounts being presented to Council for approval. 1.3. A report to Council in May 2024 outlined the revised 2024/25 budget, which provided for £4.324m to be drawn down from earmarked reserves to meet estimated spending, of which £2.299m for recurring spend, and £2.025m was for non-recurring spend. 1.4. The Council has closed the 2024/25 financial year with an overall underspend against the revised budget of £0.104m. Much of this is attributable to increased investment income due to sustained higher interest rates. 1.5. On 11 June, The UK Government published on 11 June their Spending Review intentions for the coming years, a summary of which is outlined within this report including the potential impact on the council’s financial outlook. Item 3 Page 1 of 214
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1.6. The report also provides an update with regards the AMIDS South infrastructure project and a proposed revision to the Capital Plan. __________________________________________________________________ 2. Recommendations 2.1. It is recommended that members: a) Consider, subject to audit, the Renfrewshire Council Annual Accounts for 2024/25 (Appendix 2); and delegate authority to the Director of Finance and Resources to submit the accounts to external audit within the relevant timescales; b) Approve the Annual Governance Statement for 2024/25; c) Note the revenue outturn position for the Council, and approve the sums earmarked within the General Fund reserves and HRA reserves as outlined in section 4 below and Appendix 1; d) Approve the transfer of resources outlined in Table 1 and Appendix 1; e) Approve, subject to audit, the annual accounts attached for the Coats Observatory Trust Fund, which under accounting regulations require to be prepared and audited separately from the Council’s accounts (Appendix 3). f) Note the revenue and capital updates outlined in sections 10 and 11 of this report g) Agree the capital plan changes outlined in section 11; agree the proposed next steps in relation to contract award and grant acceptance under delegation during the summer recess period, subject to the anticipated approval of the full business case position by the Department for Transport. _________________________________________________________ 3. Unaudited Annual Accounts 2024/25 3.1. The Council’s Accounts and Group Accounts for 2024/25 will be submitted for audit by the statutory deadline of 30 June, and a copy is attached for Members’ consideration. The accounts have been produced to comply with International Financial Reporting Standards (IFRS) and relevant government accounting regulations. 3.2. Separate accounts have been prepared for the Coats’ Observatory Trust in accordance with registered charities accounting requirements, and these are also included for Members’ approval. Page 2 of 214
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3.3. The Annual Governance Statement 2024/25 has been incorporated into the annual accounts document, and this also requires specific approval by Council. 3.4. The Management Commentary prefacing the Accounts provides an overview of the Council’s financial performance and the key features are: • As reported to the Council over the course of the year, significant additional spend was experienced during 2024/25, particularly in relation to waste collection and disposal, and public building repairs, as well as inflationary pressures within fleet management. General Fund revenue net spending at 31 March 2025 was overspent by £3.953m compared to budget, including an overspend within Adult Services (HSCP) of £3.808m. • Capital spending of £28m for Housing and £92m for Non-Housing projects was managed within the overall expenditure control limits approved by Council. As reported over the course of the year, planned spend was impacted by inflationary pressures and the availability of contractors. The 2024/25 capital plan has been adjusted accordingly. • The Council’s in-year council tax collection performance for 2024/25 was 94.5% (94.3% in 2023/24). However, actual Council tax revenues performed above expectation, returning an over-recovery of £0.249m compared to budget. This sum also includes recovery of prior year arrears. 4. Reserve balances 4.1. Unallocated balances have remained steady at £10.279m moving into 2025/26, consistent with the recommended minimum level of £10m agreed by Council in September 2020, and reconfirmed as a core financial planning principle since then. 4.2. Of the overall General Fund reserves, a significant majority is earmarked as detailed at Appendix 1. This represents funding set aside by the Council to support a wide range of key priorities, investments, and long-term funding arrangements, including service concession commitments. The Council continues to assess the adequacy and use of ringfenced balances and to ensure that any grant funding carried forward is utilised in accordance with its conditions. Details of all earmarked balances are provided at Appendix 1. 4.3. Members may recall that the Scottish Government allowed a flexibility in 2022 around accounting for service concession arrangements, whereby the capital costs could be extended to the useful life of the asset, rather than the duration of the contract. This has been further impacted by the introduction of International Financial Reporting Standard 16 (Leases) in 2024/25, which Page 3 of 214
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shows that to date, we have accounted for £13.897m of capital costs that can be spread into future years. This value has been set aside in the Loan Charges Flexibility earmarked reserve, in order to provide for future costs arising from this change. 4.4. When the Council set its budget for 2025/26, a commitment was made to set aside recurring borrowing costs towards a Learning Estate capital investment programme that is expected to span over 20 years. As outlined in the August 2024 report to the Education and Children’s Services Policy Board, it will be necessary to establish a multi-disciplinary team to deliver this ambitious programme. In 2024/25, it is proposed that £2m is set aside in a new earmarked reserve to facilitate the funding of revenue costs associated with the delivery of the Learning Estate over the current phase. 4.5. The balance of HRA reserves as at 31 March 2025 is £6.933m, after a contribution in-year of £0.769m to bring the HRA to a break-even position in 2024/25. This reserve balance is viewed as prudent in terms of risks to the HRA revenue position over the medium term. 4.6. As detailed in Table 1 below, statutory reserves now total £84.007m, a net decrease in year of £6.910m, which relates to resources committed to the Council’s capital investment programme and the provision of school ICT. Table 1 Opening balance £m Contributions to Reserves £m Reserves Used / Transferred £m Closing balance £m Insurance Fund 2.901 0.128 - 3.029 DHN Repair and Renewal Fund 0.186 - - 0.186 Reservoir Repair Fund 0.341 0.017 - 0.358 Education Capital Items 1.454 0.2322 (0.279) 1.407 Investment Capital Fund 86.035 1.706 (8.714) 79.027 Total 90.917 2.083 (8.993) 84.007 5. Financial Performance – General Fund Revenue 5.1. In summary, the position across services departments, after adjusting for planned carry forwards and committed resources, is as follows: Page 4 of 214
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Table 2 Revised Budget £m Actual Outturn £m Variance (Adverse)/ Favourable £m P10 Projected Variance (Adverse)/ Favourable £m Chief Executive’s Service 28.334 28.330 0.004 0.028 Children’s Services 256.897 257.721 (0.824) (1.059) Environment, Housing and Infrastructure 68.520 70.671 (2.151) (2.552) Finance and Resources 47.702 47.537 0.165 0.116 Miscellaneous Services 27.837 25.176 2.661 3.000 Adult Services (HSCP) 103.002 106.810 (3.808) (3.666) Sub-Total General Fund 532.292 536.245 (3.953) (4.133) NDR /Council Tax over- recovery 0.000 (0.249) 0.249 0.000 Total General Fund 532.292 535.996 (3.704) (4.133) Excluding HSCP 429.290 429.186 0.104 (0.467) 5.2. While Table 2 shows the service position, an overview of the revenue budget performance by Policy Board is outlined at Appendix 1, with the significant budget variances and movements as follows: Communities and Housing - £0.636m underspend Within Public Protection, forecast at Period 10 to break even, there was a final year-end underspend of £0.221m. This relates to employee costs underspends in the Community Warden service. In Criminal Justice services, also forecast at Period 10 to break even, there was a final year-end underspend of £0.381m, owing to vacancies within the service that were previously expected to be filled. Education and Children's Services Policy Board - £1.205m overspend Children and Families underspent by £2.087m in 2024/25. The movement since the Period 10 forecast overspend of £1.059m due to some income from grant funding and recharges that had not been incorporated. In addition, costs relating to residential school placements were lower than expected due to the implementation of the Close to Home initiative. Page 5 of 214
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There was a final overspend of £3.293m within Education (£0.050m projected at Period 10), predominantly due to overspends in employee costs relating to teacher cover. Infrastructure, Land and Environment Policy Board - £1.763m overspend The main drivers of the year-end overspend (forecast as £1.210m at Period 10) are cost pressures within waste collection and disposal, along with inflation on parts and specialist contractors within fleet management and maintenance, as previously reported to Board. The movement between Period 10 and 31 March principally arises from additional waste disposal costs. Finance, Resources and Customer Services Policy Board - £2.113m underspend Within the Environment, Housing and Infrastructure services reporting to this board, there is a year-end underspend of £0.610m (£1.341m forecast at Period 10). The movement relates mainly to further underspends within Soft FM staffing, due to the level of vacancies within the service. These pressures have been offset by a year-end underspend within Miscellaneous Services of £2.661m. As reported at Period 10, investment income over-recovered due to persisting high interest rates. There were also overspends within provisions for insurance costs and bad debts for all of General Services. Planning and Climate Change Policy Board – £0.273m underspend The forecast position at Period 10 was an underspend of £0.047m. The movement arises from higher than budgeted income from building warrants and planning applications in the final quarter of the financial year. Economy and Regeneration Policy Board - £0.160m underspend The forecast position at Period 10 was an underspend of £0.097m, and there was additional cost saving within service arising from vacancies, now filled. Leadership (Chief Executive’s Service) - £0.359m overspend Within this service there are posts and teams (such as DXP) funded from reserve drawdowns. Given the year-end position elsewhere in the Chief Executives Service, this drawdown was not processed, instead offsetting underspends within the Service that report to Planning and Climate Change and Economy and Regeneration Boards. 5.3. Housing Revenue Account (HRA) – break-even The break-even position within HRA at year-end was achieved after a £0.769m contribution to HRA reserves. The 2024/25 budget assumed a Page 6 of 214
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£1.244m drawdown would have been required to bring the outturn to break even, therefore this represents a favourable variance against budget of £2.013m. This has arisen mainly due to underspends within loan charges, and insurance costs. The HRA also experienced overspends from higher than anticipated demand for repairs and maintenance, particularly in void properties. The updated HRA balance of £6.933m represents a prudent level of unallocated reserves, which remain available to mitigate future pressures, including the ICT Housing System replacement. 6. Financial Performance – Capital 6.1. Non-Housing Capital Budget Performance Non-Housing capital expenditure totalled £91.602m during 2024/25. Capital receipts of £0.730m were generated from asset sales. These receipts are added to the £7.518m balance from prior years, available within the Useable Capital Receipts Reserve to provide total receipts of £8.248m. From this, £2.763m was utilised to support current year investment, leaving a balance of £5.485m that has been committed to support the ongoing investment programme in future years. The capital investment performance was delivered within the approved prudential expenditure and borrowing limits set by the Council. 6.2. Housing Capital Budget Performance Housing capital expenditure totalled £28.151m during 2024/25. Capital receipts of £1.250m were realised from asset sales during the year. These receipts were fully utilised in 2024/25 to support the approved investment programme. 7. Prudential Framework 7.1. The Prudential Framework approved by the Council is supported by a number of indicators and the Council’s performance against these indicators is reported in the Management Commentary in the Accounts. A further report outlining the treasury management activity undertaken during 2024/25 is also on the agenda for this meeting. 8. Group Accounts 8.1. The Code of Practice on Local Authority Accounting in the United Kingdom 2024/25 (“the Code”), requires local authorities to consider accounting for their Page 7 of 214
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interests in all types of entity e.g. Joint Boards and Committees, Leisure Trusts, companies etc. This includes other local authorities or similar bodies as defined in section 106 of the Local Government (Scotland) Act 1973 e.g. statutory bodies such as Valuation Joint Boards plus all Joint Committees. Under the Code, authorities are required to prepare a full set of Group Accounts in addition to their own Council’s Accounts where they have a material interest in such entities. 8.2. To comply with the mandatory requirement for such disclosures we have once again reviewed over the last year a number of organisations with which the Council is involved against the accounting guidelines as detailed in the code. We have concluded that the Council is required to prepare Group Accounts and to consolidate the results of the Council with a share of a number of other entities. 8.3. The entities that are deemed to fall within the Council’s group boundary are: • Joint Boards encompassing the Strathclyde Concessionary Travel Scheme Joint Committee, Strathclyde Partnership for Transport, the Renfrewshire Valuation Joint Board, and the Renfrewshire Integration Joint Board, • Johnstone, Paisley and Renfrew Common Good Funds and the Coats Observatory Trust administered by the Council, • OneRen Limited, • Park Lane Developments (Renfrewshire) LLP, • Paisley Museum Reimagined Limited, • AMIDS (Renfrewshire) LLP. 8.4. Both the Council’s own Accounts and the Group Accounts will be submitted to external audit by 30 June in accordance with the statutory deadline. 9. Coats Observatory Trust Fund Accounts and Common Good Funds 9.1. Under accounting requirements introduced in 2010/11, the Council is required to present the annual accounts of the Coats Observatory Trust separately from the Council’s main accounts. Separate audit arrangements are also required. 9.2. Enclosed therefore, for members’ approval for submission for audit, are the annual accounts for the Coats’ Observatory Trust, which have been prepared in line the Charities Statement of Recommended Accounting Practice (Charities SORP). Page 8 of 214
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9.3. The financial performance of the Johnstone, Paisley and Renfrew Common Good Funds is disclosed as a statement within the Council’s annual accounts. 10. Financial Outlook – Revenue 10.1. Previous financial update to reports to Council have indicated ongoing financial pressures and the need for the Council to continue to make decisions which will ensure its ongoing financial sustainability. This message is echoed in the findings of the Accounts Commission in their recent Best Value report, which is detailed elsewhere in the agenda for this meeting. 10.2. Efforts in recent years to ensure that the Council remains financially sustainable have been successful, with the 2025/26 revenue budget being agreed by Council without the need to utilise reserves to balance the core revenue budget (reserves use was agreed to meet one-off spending commitments). 10.3. When the 2025/26 budget was set, it was estimated that the Council would face a financial gap of circa £33m over the period to 27/28, before any decision on council tax. This forecast gap was based on an assumed level of pay awards ranging from 2.5-3.0% over this period. In light of the pay settlements agreed elsewhere in the public sector in Scotland, and considering the 2025/26 pay award remains to be agreed, an increase in cost estimates in relation to pay would be prudent. For members’ information, each 1% pay increase generates an additional cost for the council of approximately £3.4m. The financial gap above was also based on an assumed broadly flat cash funding position. 10.4. The UK Government on 11 June published its Spending Review, which outlines its spending priorities for the period to 2028/29 (2029/30 for capital spend); including an estimate of funding which would be provided to the Scottish Government. The main emphasis of the Review was on boosting capital expenditure, potentially at the cost of higher borrowing. The aim of this course of action is to stimulate economic growth (and therefore tax revenues). If growth does not manifest however, then the interest payments associated with higher borrowing may impact negatively on future departmental budget settlements. 10.5. The Review is outlined in two phases - Phase 1 covers expenditure growth in 2024–25 and 2025–26, i.e. past spending announcements. Phase Two starts in 2026–27 and covers the rest of the Parliament, i.e. the SR spending announcements. Taken together, Phase One and Phase Two result in the Page 9 of 214
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growth in government spending looking quite strong. However, Phase Two taken on its own is tighter, and beyond 2026-27, tighter again. Average real terms growth in revenue from 25/26 is 1.2% across all portfolios. This front loading of increases suggests that annual rises in the following years will moderate. The position is exacerbated further by the fact that in 2027-28, three-quarters of the intended cash terms funding rise is allocated to the NHS and Defence and in 2028-29 over half of the funding rise is allocated to these two areas. Taking inflation (2%) into account implies a real-terms cut, on average, for other Departments in those years. The position for local government in England has been highlighted as consisting of an increase in ‘core spending power’ averaging at 2.6%, however this growth includes an assumed 5% increase in council tax in each year. 10.6. The figures for Scotland do not equate to the Government’s actual spending power, due to devolved tax policies, use of borrowing, operation of the Scotland Reserve etc. However, they do give an indication of the likely future spending pattern, i.e. also front loaded to the 24/25 and 25/26 financial years. The future Scottish growth rate for resource (day-to-day) spending is two thirds of that seen for the UK (0.8% vs 1.2% p.a.). This is slightly below the average for overall resource spending, predominantly because schools in England have been allocated less than perhaps would have been expected. As a result, most or all of the additional day-to-day spending for Scotland could be absorbed by the NHS in Scotland. This will be a decision for the Scottish Government in terms of whether they pass through to public services funding movement in proportion to the constituent elements of the block grant through Barnett consequentials. Traditionally, the Scottish Government has allocated NHS derived consequentials to NHS Scotland. 10.7. Nonetheless, the Spending Review does indicate an average real terms increase in funding to Scotland, with a cash terms increase in funding averaging £1.3bn in the next three years. This may be sufficient to allow an upward revision – albeit marginal – in the current flat-cash local government settlement. 10.8. The Scottish Government has committed to publishing an updated medium term financial plan on 25 June, which will hopefully provide a more detailed understanding of the local government grant settlement in the coming years. This would allow the Council in turn to further review its medium term financial outlook, and ascertain what its net financial gap may be, consequently informing the quantum of savings which could be required over this period. A further financial outlook update will be provided to the September meeting of the Council. Page 10 of 214
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11. Financial Outlook – Capital, and proposed Capital Plan revision 11.1. In February 2025, Council agreed a capital plan for the period 2025/26 to 2029/30 totalling £286m. Council agreed in May to revise this plan to reflect revised phasing of spend to better match anticipated spending, however the total over the 5 year period remains broadly as agreed in February. 11.2. As outlined above, the UK Government Spending Review placed a large focus (and funding allocation) in capital spend – particularly in relation to defence spending. However, there are also substantial allocations to NHS technology and digital transformation, nuclear power, and growth deals. There were specific allocations to a carbon capture facility in Aberdeenshire and to the redevelopment of HM Naval Base Clyde. The Spending Review outlines that the National Wealth Fund (NWF) is trialling a Strategic Partnership with Glasgow City Region to provide enhanced, hands-on support to help it develop and finance long-term investment opportunities, and states devolved governments will also receive a substantial increase in financial transactions through the Barnett formula across the next four years to go further in equity investments or loans to the private sector, including through the Scottish National Investment Bank. 11.3. The Spending Review also reaffirms the UK government’s commitment to deliver four Investment Zones and Green Freeports in Scotland. This includes £160 million each over 10 years for Investment Zones in the North East of Scotland and in Glasgow City Region. Further it confirms “the sector and geography focus for the Glasgow City Region Investment Zone, which will focus on advanced manufacturing. The Investment Zone will be focused around sites in Renfrewshire, alongside existing Innovation Districts, and underdeveloped sites near critical infrastructure around Glasgow Airport. Local partners expect it to generate at least £1.7 billion of investment and up to 18,000 full-time equivalent jobs over 10 years, and boost the region’s research and innovation economy”. 11.4. The Spending Review also outlines a capital DEL allocation to Scotland increasing at an average of 0.3% in real terms over the period 2026/27 to 2029/30. While this increase is welcome, there is a risk in the emphasis on large scale national capital spending over the relatively short term which has been highlighted by the Fraser of Allander Institute: “One big risk to this plan is whether the capacity will be available to deliver all these capital projects at once. Major projects already have a habit of seeing larger cost increases than foreseen and bringing so much capital spending forward could cause prices of inputs and labour increase to eat up the additional budgets – something to keep an eye out for in the coming months”. Page 11 of 214
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11.5. While not explicitly mentioned in the Spending Review, the capital allocations within the UK capital DEL figures include the funding the Council expects in relation to the Advanced Manufacturing Innovation District Scotland South (AMIDS South) project of £38.725m. 11.6. The AMIDS South project comprises a new transport link from Paisley town centre to the AMIDS site and Glasgow Airport, together with a new link from Shortroods to Renfrew Road, crossing the White Cart via a new bridge. The Project includes cycling, walking and vehicle infrastructure as well as sustainable drainage and landscape works. The new infrastructure will also incorporate access to the new Paisley Grammar School Community Campus. Council commitment to the project was approved by the Leadership Board on 16th June 2021, including a Council contribution of £4.3m to be funded through prudential borrowing. 11.7. Updates regarding the project have been provided to the Economy and Regeneration Policy Board, and the tender process for the project is nearing finalisation. Indicative costs in relation to the project received in the tender process suggest that the current budget assumptions will be insufficient; with costs for the bridge construction and risks around ground conditions being higher than anticipated. The design and associated traffic management arrangements for the new road and junction with Renfrew Road are also more complex than had been anticipated, reflecting the volume of vehicular and pedestrian traffic around the new Paisley Grammar School Community Campus. 11.8. While the tender process remains to be concluded, it is anticipated that additional capital funding of £14.5m will be required. The UK Government has confirmed there is no ability for them to increase the funding allocated to the project through the Levelling Up Fund, therefore if the project is to proceed, the Council will require to source the additional funding required. 11.9. The increase in costs can be broadly attributed as follows: • Land acquisition costs – The costs associated with the compensation required for the loss of private car parking spaces has been the subject of a lengthy legal action and while the Council has had a favourable initial ruling, there remains the potential for costs over original assumptions to be incurred; • External consultant support – the Council has required additional support in relation to LUF grant support, involving an increasing scale of work required by both the Department for Transport and Active Travel England to meet their respective and evolving governance requirements. There Page 12 of 214
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were also successive revisions required of CPO documentation; additional design work informed by ground condition surveys in the areas around the harbour wall; and additional services relating to the interface of the AMIDS South project and the Paisley Grammar School Community Campus project including junction redesign at Renfrew Road linked to planning application requirements. It is also expected that site supervision costs will be higher owing to a longer than expected duration for the construction works; • Construction costs are expected to be higher predominantly related to the construction methodology for the bridge; but also higher than anticipated earthworks costs informed by poorer ground conditions than had been anticipated; larger than expected road junctions and general inflationary costs; • Risk and contingency allowances have also been increased reflecting the greater scale and complexity of the works as improved technical information has been established during the project preparation phase. 11.10. The Council therefore has two options: opt not to proceed with the project in the knowledge that the UK Government would not provide funding for any costs incurred to date, while the Council will still require to construct an access road for the Paisley Grammar School Community Campus site (and also fund costs incurred to date); or proceed with the project and develop a funding package which will deliver on the original aims and economic benefits of the project. 11.11. Should the Council opt not to proceed, the Council will require to fund in full the project costs incurred to date, and also deliver the access road to the new school and associated cycle/walking infrastructure from Gallowhill – a total cost estimated at £12.7m. When the business case was agreed, Council funding of £4.3m was planned and budgeted for – therefore the additional funding required would be £8.4m. Funding of £1.5m has been secured from Transport Scotland in relation to the Gallowhill link, therefore the net additional funding required from the Council would be £6.9m. The Council would forfeit the £38.7m of investment funding provided by the UK Government. 11.12. Should the Council agree to proceed, then the funding from the UK Government would remain, however, the Council contribution to the project would require to increase to £20.3m. Council has already agreed to contribute £4.3m to the project, and again the £1.5m grant funding from Transport Scotland will be available, reducing the additional funding requirement to £14.5m. The full economic, environmental and transport benefits of the project as set out in the outline business case would be delivered. Considering the transport and wider economic benefits of the project against the council Page 13 of 214
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contribution, the benefit cost ratio continues to demonstrate that the project remains very good value for money for the Council’s investment. On balance therefore, it is proposed that the project continues. 11.13. There is a route to a funding solution to meet the required additional Council contribution, which would be broadly contained within the balance of existing Council funding linked to the City Deal programme and associated investment funding. Members are aware of the intended redistribution of resource previously associated with the Airport Access Project which has now been agreed by the Glasgow City Region Cabinet. Renfrewshire will be allocated £8.5m of this resource to offset higher costs incurred on City Deal and related projects. A proportion of this funding has already been ringfenced to address the remaining works required on the Glasgow Airport Investment Area (GAIA) site as agreed by Council in December 2024. The balance of this funding will be used to address increased costs on the CWRR (Renfrew Bridge) project which Council has previously funded; thereby releasing the Council’s borrowing capacity previously agreed on the CWRR project to be reallocated to the AMIDS South project. Also related to the CWRR project, there remains borrowing capacity that was agreed when the project commenced relating to the potential for a pain/gain share cost arrangement, which was a condition of the main contract and which has not been utilised as this project has concluded. This is in effect borrowing capacity that has been factored into the Council’s revenue estimates, but has not been committed in terms of capital expenditure and therefore available to be redirected to assist in managing the additional costs linked to the AMIDS South project. There is a final element of resource associated with the CWRR project in relation to an expected capital receipt for land purchased by the Council on the north bank of the river in order to facilitate the construction of the bridge, which is now surplus on completion of the works. A prudent estimate of the potential receipt has been calculated and will be confirmed by a District Valuer valuation; however, there is expected to be significant interest in the site for housebuilding (the site was originally purchased from a housebuilder). The final element of the complete funding solution would require the provision within the existing capital plan relating to GAIA regeneration, which had been set aside several years ago to be committed to the AMIDS South project if required. The total resource available from all the above measures is prudently estimated to be sufficient to fund the additional £14.5m cost expected to be required to complete the AMIDS South project; however, there is some risk associated with this funding solution given it includes the timing of realisation of an unrealised receipt, which would require to be managed through the Council’s wider treasury cash management arrangements. 11.14. As outlined above, the estimated additional cost is based on indicative pricing, which remains to be finalised while the main contractor procurement process Page 14 of 214
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progresses. Tenderers have been asked to submit best and final offers by mid-July. It is proposed, assuming the recommendation to progress with the project is agreed and the capital plan is adjusted as outlined above to accommodate the expected costs, that the Chief Executive under his delegated authority to award contracts during recess periods would award the contract to the bidder submitting the most economically advantageous tender response, with a report to the next Finance, Resources and Customer Services Policy Board to ratify this decision. This will ensure the project is able to commence timeously and maintain delivery of those elements that interface with the Paisley Grammar School Community Campus project. 11.15. In terms of the governance agreed with the Department for Transport to secure the LUF funding allocation, they will require also to formally agree the Final Business Case for the project, which will only be available on confirmation of final costs. DFT has been kept updated as to the position with the project, and the likely increase in costs indicated through the tender process. They have indicated their continued support for the project and its objectives, and it is not anticipated that there would be a risk of them not agreeing the FBC and associated funding. Assuming the FBC is agreed, this would likely require the Council to formally accept the DFT grant and associated conditions, which again would be actioned by the Chief Executive under his delegated authority to deal with operational matters during the recess period. 11.16. It is anticipated a full update as to the outcome of the tender process, financial impact, business case approval and construction plans will be provided to a future Economy & Regeneration Policy Board. ___________________________________________________________________ Implications of the Report 1. Financial – the report provides an overview of the Council’s financial performance over the course of 2024/25 and as at 31 March 2025. The Annual Accounts will be presented for audit in September, with the audit findings being reported to the Audit, Risk and Scrutiny Board. A full medium-term financial outlook will be reported to the September meeting of the Council. The report also outlines reserves movements, as well as funding options for anticipated increased costs at AMIDS South. 2. HR & Organisational Development – none arising from this report. 3. Community/Council Planning – the report outlines continued sound financial management, which supports the Council to deliver on its key community and council plan objectives. Page 15 of 214
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4. Legal – subject to approval by Council, the annual accounts will be released to external audit within the statutory timescales. 5. Property/Assets – the report outlines the planned investment in roads, cycling and pedestrian access infrastructure which will drive significant economic, transport and social benefits. 6. Information Technology – none arising from this report. 7. Equality & Human Rights – none arising from this report. 8. Health & Safety – none arising from this report. 9. Procurement – the report outlines the planned award of a contract under delegated authority by the Chief Executive during the recess period, with homologation of this decision by Elected Members at a subsequent Finance, Resources and Customer Services Policy Board. 10. Risk – the report outlines a proposed funding solution for a construction project, which is contingent on an unrealised capital receipt. 11. Privacy Impact – none arising from this report. 12. Cosla Policy Position – none arising from this report. 13. Climate Risk – none arising from this report. _______________________________________________________ Author: Alastair MacArthur, Director of Finance & Resources Page 16 of 214
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APPENDIX 1 Balance at 1 April 2023 Transfers out Transfers in Balance at 31 March 2024 Transfers out Transfers in Balance at 31 March 2025 £m £m £m £m £m £m £m Alcohol and Drugs Commission 1.303 (0.536) - 0.767 (0.139) - 0.628 City Deal 1.619 (0.716) 1.000 1.903 (1.007) 0.654 1.550 Civil Contingencies Shared Service 0.114 (0.026) 0.038 0.126 (0.032) 0.025 0.119 Culture Bid Legacy 3.093 (1.084) - 2.009 (0.621) 0.438 1.826 Development Contribution – Paisley T 1.057 (0.538) - 0.519 (0.265) - 0.254 Digital Infrastructure 2.422 (0.981) - 1.441 (1.000) - 0.441 Discretionary business grants 0.392 (0.392) - 0.000 - - 0.000 Early Years Change Fund 2.900 (1.112) 0.312 2.100 - - 2.100 Employability 9.310 (1.355) 2.635 10.590 - 0.110 10.700 Environment & Infrastructure 0.560 (0.510) 0.740 0.790 (0.250) 0.300 0.840 Fairer Renfrewshire Programme 4.497 (1.642) - 2.855 (0.542) 0.023 2.336 Financial Sustainability Fund 21.506 (8.262) - 13.244 (5.116) 13.069 21.197 Fly Tipping Enforcement 0.242 (0.242) - 0.000 (0.200) 0.250 0.050 Learning Estate Support Fund - - - - - 2.000 2.000 Leisure: Inclusive Play Facility 0.007 - - 0.007 - - 0.007 Loan Charges Flexibility Fund 44.759 - 4.000 48.759 - 14.897 63.656 Local Authority Economic Recovery 0.305 (0.800) 0.595 0.100 - - 0.100 Local Heat and Energy Efficiency 0.075 (0.075) - - - 0.036 0.036 Memorial Headstone Safety 0.114 (0.114) - 0.000 - - 0.000 Oakshaw Heritage Trail - - - - - 0.050 0.050 Paisley Town Centre Heritage Asset 0.885 (0.551) - 0.334 (0.334) - (0.000) Planning Enforcement - - - - - 0.120 0.120 Private Sector Housing Grant 2.039 (0.231) 0.500 2.308 (0.141) - 2.167 Pupil Equity Fund 1.030 (0.506) - 0.524 - 0.137 0.661 Rapid Rehousing Transition Plan 0.040 (0.040) - 0.000 - - 0.000 Resettlement and Asylum Fund 0.585 (0.398) 1.242 1.429 (0.537) 0.247 1.139 School Music Participation 0.222 - 0.054 0.276 (0.179) 0.162 0.259 Service Modernisation and Reform 11.019 (1.331) 0.974 10.662 (0.756) 0.269 10.175 Sustainable Communities Fund 0.656 (0.262) - 0.394 (0.163) 0.028 0.259 Villages Improvement Fund - - 0.200 0.200 (0.064) - 0.136 Welfare Reform 1.079 (0.780) 0.700 0.999 (0.713) 0.666 0.952 Year end flexibility: Children's Services 5.243 (1.365) 1.127 5.005 (2.110) 1.837 4.732 General Fund: Ring-fenced 117.073 (23.849) 14.117 107.341 (14.169) 35.318 128.490 Unallocated Balance 10.318 (0.039) - 10.279 - - 10.279 Total General Fund Balance 127.391 (23.888) 14.117 117.620 (14.169) 35.318 138.769 Ring-fenced elements of the General Fund Balance Page 17 of 214
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Policy Board Approved Annual Budget Budget Adjustments Revised Annual Budget Actual Annual Outturn Projected Variance at Period 10 Movement £000 £000 £000 £000 £000 % £000 £000 Communities and Housing 13,507 1,617 15,124 14,488 636 4.2% 0 636 Education and Children's Services 252,326 379 252,705 253,910 (1,205) (0.5%) (1,059) (146) Infrastructure, Land and Environment 31,431 2,721 34,152 35,915 (1,763) (5.2%) (1,210) (553) Finance, Resources and Customer Services 106,611 (4,994) 101,617 99,504 2,113 2.1% 1,610 503 Adult Services 106,490 (3,488) 103,002 106,810 (3,808) (3.7%) (3,666) (142) Planning 751 (109) 642 369 273 42.5% 47 226 Economy and Regeneration 3,172 (821) 2,351 2,191 160 6.8% 97 63 Chief Executive's Service 19,859 2,840 22,699 23,058 (359) (1.6%) 48 (407) GENERAL SERVICES NET EXPENDITURE 534,147 (1,855) 532,292 536,245 (3,953) (0.7%) (4,133) 180 Housing Revenue Account (HRA) 0 0 0 0 0 0.0% 0 0 NET EXPENDITURE 534,147 (1,855) 532,292 536,245 (3,953) (0.7%) (4,133) 180 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget Actual Annual Outturn Projected Variance at Period 10 Movement £000 £000 £000 £000 £000 % £000 £000 Employees 364,643 5,375 370,018 363,007 7,011 1.9% 4,151 2,860 Premises Related 50,601 3,591 54,192 58,104 (3,912) (7.2%) (2,690) (1,222) Transport Related 15,224 1,618 16,842 19,487 (2,645) (15.7%) (1,054) (1,591) Supplies and Services 96,419 (15,369) 81,050 86,236 (5,186) (6.4%) (2,951) (2,235) Third Party Payments 101,350 3,017 104,367 108,438 (4,071) (3.9%) (5,074) 1,003 Transfer Payments 79,903 22,032 101,935 103,956 (2,021) (2.0%) (1,163) (859) Support Services 3,200 3,230 6,430 7,614 (1,184) (18.4%) 48 (1,232) Depreciation and Impairment Losses 27,067 16,883 43,950 49,339 (5,389) (12.3%) (12) (5,377) GROSS EXPENDITURE 738,407 40,377 778,784 796,181 (17,397) (2.2%) (8,744) (8,653) Income (204,260) (42,232) (246,492) (259,936) 13,444 5.5% 4,611 8,833 NET EXPENDITURE 534,147 (1,855) 532,292 536,245 (3,953) (0.7%) (4,133) 180 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 31 March 2025 Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable Page 18 of 214
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Renfrewshire Council Unaudited Accounts 2024-2025 APPENDIX 2 Page 19 of 214
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Contents Management Commentary ......................................... 2 Statement of Responsibilities ................................... 22 Annual Governance Statement ................................. 23 Remuneration Report ............................................... 33 Comprehensive Income and Expenditure Statement .. 41 Movement in Reserves Statement ............................. 42 Balance Sheet .......................................................... 43 Cashflow Statement ................................................. 44 Note 1: Expenditure and Funding Analysis ................. 45 Note 2: Financing and investment income & expenditure .............................................................. 47 Note 3: Taxation and non-specific grant income......... 47 Note 4: Expenditure and income analysed by nature .. 47 Note 5: Grant income ................................................ 48 Note 6: Adjustment between accounting basis and funding basis under regulations ................................ 49 Note 7: Usable reserves ............................................ 50 Note 8: Unusable reserves ........................................ 52 Note 9: Property, Plant and Equipment ...................... 57 Note 10: Heritage Assets ........................................... 60 Note 11: Investment properties ................................. 60 Note 12: Assets held for sale ..................................... 60 Note 13: Intangible assets ......................................... 60 Note 14: Capital expenditure and capital financing .... 61 Note 15: Service Concession Arrangements .............. 62 Note 16: Leases ........................................................ 64 Note 17: Inventories .................................................. 66 Note 18: Cash and cash equivalents ......................... 66 Note 19: Debtors ...................................................... 66 Note 20: Creditors .................................................... 67 Note 21: Provisions .................................................. 67 Note 22: Financial Instruments ................................. 68 Note 23: Nature and extent of risks arising from Financial Instruments ............................................... 72 Note 24: External audit costs .................................... 75 Note 25: Agency services .......................................... 75 Note 26: Related parties ........................................... 76 Note 27: Pension schemes accounted for as defined contribution schemes .............................................. 78 Note 28: Defined benefit pension schemes ............... 78 Note 29: Contingent liabilities ................................... 84 Note 30: Events after the balance sheet date ............. 84 Note 31: Accounting Standards Issued not Adopted .. 84 Note 32: Accounting Policies – Renfrewshire Council 85 Note 33: Judgements in Applying Accounting Policies 97 Note 34: Assumptions made about the future ............ 98 Common Good Funds .............................................. 99 Housing Revenue Account ...................................... 101 Council Tax Income Account .................................. 103 Non-Domestic Rates Income Account .................... 104 Group Accounts ..................................................... 106 Notes to the Group Accounts .................................. 109 Group Accounting Policies ...................................... 121 Page 20 of 214
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2 Management Commentary The purpose of the Management Commentary is to present an overview of Renfrewshire Council’s performance during the 2024/25 financial year and to help readers understand its financial position at 31 March 2025. In addition, it outlines the main issues and risks that may impact the performance of the Council in the future. 51.7%Female Renfrewshire Council, one of 32 local authorities in Scotland, was established by the Local Government (Scotland) Act 1994 and came into being on 1 April 1996. It provides services to over 184,000 residents in the entire Renfrewshire area, which has a mixed geography, with many villages complementing its three main towns of Johnstone, Paisley and Renfrew. Renfrewshire Population 184,340 Age 0–15 16% 16–64 64% 65+ 20% 48.3%Male The Council is part of a wider Group, with partnerships spanning a number of organisations to varying degrees. Common Good Funds Renfrewshire Council Renfewshire Valuation Joint Board Renfrewshire Health and Social Care PartnershipScotland Excel Clydeplan Glasgow City Deal Park Lane Developments Ltd OneRen Strathclyde Partnership for Transport Page 21 of 214
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3 The services that the Council provides includes: The Council also works closely with the Renfrewshire Health and Social Care Partnership, which delivers adult care services across the region; and with OneRen, which delivers leisure and cultural services. During 2024/25, Renfrewshire Council was organised into four services, as follows: Chief Executives Service Responsible for regeneration, and the development of corporate policy, particularly in the areas of social inclusion, equalities, best value, efficient government and community learning and development. Finance and Resources Core activities are geared towards providing services to the Council, elected members, other council services and the general public. Children's Services Responsible for education services, children’s social work services and justice social work services. Environment, Housing and Infrastructure Services include the management of roads and transportation, housing services (including our corporate landlord function), public protection, fleet, neighbourhood services, waste, and facilities management. Waste management Roads Housing Early Years Primary and Secondary education Regeneration Page 22 of 214
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4 Our Aims and Objectives The aims of the Council Plan 2022-2027 were revised during 2024 with a refreshed Community Plan and a new Council Plan. The Community Plan is Renfrewshire’s Local Outcomes Improvement Plan, and the Council works with local partners to achieve a Renfrewshire that is Thriving, Well, Fair and Safe. The Council’s vision to 2027, as described in the Council Plan is: ‘ Creating a fairer Renfrewshire built on innovation, wellbeing, and opportunity’. The five strategic outcomes, which the Council is working with partners, communities, and businesses to deliver, and one cross-cutting theme that underpins the delivery of these outcomes, are: • Place: Working together to enhance wellbeing across communities • Economy: Building an inclusive, green, and resilient economy • Fair: Nurturing bright, happy, and healthy futures for all • Green: Leading Renfrewshire to Net Zero • Living Our Values: Making a difference together • Improving outcomes for Children and Families: Cross-cutting Linked closely to this is the new phase of the Council’s transformation programme, Reshaping Renfrewshire. This programme links the Council’s financial challenge, and the vision for place, as described through the Council Plan, and explores how we can continue to develop how we work and operate to ensure a financially sustainable long-term future, while transforming our impact across Renfrewshire and improving outcomes for our communities. This phase of our transformation programme also has a sharp external focus on the needs of our communities and to ensure our vital services are financially sustainable for the longer term, again closely aligned to the Council Plan. Each Council service prepares a Service Improvement Plan, themed around the Council Plan’s strategic outcomes, demonstrating how the services will contribute to the delivery of the Council Plan. Financial Strategy The financial strategy and service plans of the Council support the delivery of the Council’s priorities outlined in the Council Plan. To achieve this, the financial strategy must ensure that resources are effectively and efficiently used in line with overall objectives; and ensure that resources are managed sustainably and in a way that continues to ensure the stability of service delivery. The medium-term Financial Outlook was reported to the Council on 12 December 2024, with a further update on 27 February 2025. These reports highlight the increasingly challenging financial and economic environment the Council is facing, predominantly linked to high levels of cost growth, coupled with lower real terms income. The Council’s medium-term financial outlook continues to be based on an assumed flat- cash revenue settlement over the short term; this, coupled with significant cost pressures, particularly around pay inflation, is the principal driver for the extremely challenging financial outlook. Page 23 of 214
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5 On 27 February 2025, the Council decided to increase council tax in 2025/26 by 9.5%. At that time, it was reported to Council that it is estimated to be facing a £25-40m funding gap over the period to 2027/28, before any further decisions on council tax. The Council therefore continues to target cost reductions and savings averaging £8m each year over the medium term, and financial sustainability and stability risks remain high going into 2025/26. Information on the year-end financial position of the Council at 31 March 2025 is detailed later in the Financial Performance section. Review of the Year The Council publishes updates on progress delivering the Council Plan every six months, and the next update will be reported to the Leadership Board on 18 June 2025. The December report can be found here. The Council also publishes an annual Public Performance Report, which gives residents an overview of how the Council performs in relation to its key priorities, and how we perform in terms of the 108 indicators included in the Local Government Benchmarking Framework (LGBF). A detailed report on Renfrewshire’s performance against the LGBF indicators was considered by the Audit, Risk and Scrutiny Board on 19 May 2025. Key Achievements 2024/25 Place • The Council continues to work with owners of prominent town centre buildings on regenerating them and bringing them back into use. Recent investments have included the Liberal Club, St Matthew’s Church and County Place in Paisley. Other town centre work includes current work on designs for civic squares in Erskine and Johnstone. • A new Transport Strategy —Travel Renfrewshire 2035—has been through an extensive consultation programme including online surveys, workshops with community organisations and pop-up engagement sessions in supermarkets. It is anticipated that the finalised strategy will be ready for approval in summer 2025. Economy • Our employability services worked with over 1,800 people in 2024/25. Over 600 people gained new qualifications through the service and 491 were supported into paid employment. • At the Advanced Manufacturing Innovation District Scotland (AMIDS), ground has been broken for CPI’s Oligonucleotide Manufacturing Innovation Centre (OMICE); CPI already operate the Medicines Manufacturing Innovation Centre on the AMIDS site. • The Council’s events programme during 2024/25 attracted 108,665 attendees against an annual target of 95,000. The target was in part exceeded due to good weather throughout the spring programme, increasing the number of attendees at each of the Gala Days and the Food and Drink Festival. Halloween continues to be the key driver for attendees and visitors, with 37% of the 40,000 attendees identifying as visitors to the area. Page 24 of 214
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6 Fair: • Officers continued to work with partners to progress the Fairer Renfrewshire Programme, ensuring that residents and communities are able to benefit from targeted advice and support. This has included the establishment of new schools and family advice provision, pension credit take-up campaigns, and support for the ongoing work programme of the Fairer Renfrewshire Lived Experience Panel. • Successful programmes for both Summer of Fun and Winter Connections ran in 2024/25. Summer of Fun allocated £60,000 of funding to 21 organisations to deliver free activities over the school summer holidays, including toddler play sessions, sports, arts and crafts and day trips to visitor attractions. Green: • The Council has developed an initial carbon budget with interim targets covering the period until 2030/31. Identifying emissions by service area will be key to understanding how emissions relate to service delivery, and help develop initiatives to reduce these. • Priority projects to support our journey to Net Zero continue to be identified, costed and progressed in partnership Projects include Sustainable Travel, and Local Heating and Energy Efficiency (LHEES). A project register will be finalised within the new Carbon Management Plan, outlining our approach to reducing carbon emissions over a 3-year period. Living Our Values: • External auditors Azets have published an interim Best Value follow-up report on the Council’s approach to community engagement and culture change. Reported to the Audit, Risk and Scrutiny Board on 17 April 2025, the report was positive, with the auditors noting that the Council has made good progress, building on a range of existing good practice alongside refreshed approaches. • In late 2024, the Council undertook an Employee Survey covering issues including how people felt about the Council, their job and management, their wellbeing and key HR policies. The survey was issued to all staff and 1,956 responses were received. There were many positive results, including in relation to line management and job satisfaction. A full report on the results can be found here. • The Council’s Digital Experience Programme is progressing well, with new content for the highest-demand areas of the Council website now completed. The team has undertaken user testing with local residents, with feedback on ease of use and clarity of information being positive. The programme remains on track to deliver the first phase of renfrewshire.gov.uk in summer 2025. • Renfrewshire has performed well in external inspections of its services to support and protect children and adults. The Care Inspectorate’s Children at Risk of Harm Inspection identified major strengths in Renfrewshire, with an overall grade of ‘Very Good’ and its joint inspection (with Healthcare Improvement Scotland) of Adult Support and Protection found that processes were ‘very effective’ with major strengths, supporting positive experiences and outcomes for adults at risk of harm. Page 25 of 214
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7 Improving Outcomes for Children and Young People: • Renfrewshire Council’s new Learning Estate Strategy was approved by the Education and Children’s Services Policy Board on 22 August 2024. It provides a long-term framework for planning and investment in the school estate across the region, including projections and capacity planning for the next 10-15 years. The report can be found here. • Renfrewshire Council’s Promise Keeper Network has 362 Promise Keepers and work continues to support further growth. Our approach has attracted national interest. Three of Renfrewshire’s Promise-funded projects were featured in March at a Promise Partnership Event organised by CORRA. • The Renfrewshire Whole Family Wellbeing service has supported over 1,000 families so far, currently trialling technology that allows third sector partners to make referrals and record wellbeing information, which is facilitating better data-sharing. To date, the service can demonstrate positive outcomes against a range of measures, including improved parental understanding of the needs of the child, improved participation in / engagement with universal services, and improvements in family functioning and relationships. • Construction is well underway on the new Paisley Grammar School Community Campus and remains on track to welcome pupils in 2026. This is a flagship project for the Council, with the school being built to Passivhaus energy standards. Performance Indicators Our Council Plan is one way in which we report to elected members and Renfrewshire residents on our performance. The Council Plan reports on 34 indicators, of which 21 have a target. In 2024/25, five of our indicators met or exceeded their target, three narrowly missed the target, and seven were behind target. There are six indicators for which 2024/25 data is not yet available. Our areas of strong performance include: • Helping our citizens back into work, with 491 people supported by our employability service moving into paid employment this year; • The percentage of primary school children taking up their free school meal entitlement, which is now over 60% following menu changes and taster session to encourage pupils to try the meals; • The number of young people entering a positive destination after leaving school has maintained strong performance, with approximately 97% of the 2024 leavers cohort entering a positive destination; • Keeping our looked after children in family settings wherever possible, with 91.6% looked after in the community; • The condition of local roads, which reflects year-on-year investment in this area; and • Promoting Renfrewshire as a great place to live, work and visit, with extensive media reach for council activity and local events. Page 26 of 214
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8 We are narrowly missing our annual targets in the following areas: • Responding to frontline complaints and Freedom of Information requests within the required timescales; • Reducing the level of CO2 emissions from our vehicle fleet and public space lighting; • V isits to fly-tipping hotspots. Areas for Improvement and Development Detailed consideration of performance is a core part of our Service Improvement Plan and Council Plan reporting, which note areas for continued improvement and development as well as successes. As well as the achievements noted above, services have identified areas where progress has been delayed or where further work is required. These are: • The percentage of Council housing stock which meets the Scottish Housing Quality Standard; • The time taken for planning applications and building warrants; • The average days lost to sickness absence per employee. We do not yet have 2024/25 data on affordable housing completions, pothole completions, the percentage of procurement spend with local businesses, average times to complete homelessness duty, percentage of household waste recycled, or average days of staff sickness absence. Data in relation to educational attainment and accredited awards are based on academic years (August to July) so the latest available reporting year is 2023/24 and this has been included in the data. General performance information can be found on the Council’s website at the following path: Your Council>Information, performance and statistics>Council Performance. LGBF data can be found at: Your Council>Information, performance and statistics>Council Performance>Benchmarking. Service Update Reports, Service Delivery Plans and Operational Performance Reports are reported to the relevant Policy Board and can be found on the Council Committee Management Information System at: https://renfrewshire.cmis. uk.com/renfrewshire/Council andBoards.aspx Page 27 of 214
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9 Working Towards Net Zero by 2030 Renfrewshire Council’s Public Bodies Climate Change Duties reported a 3.3% emissions reduction compared with the previous year, and overall annual emissions reduction of 64.6% against the 2012/13 baseline. Activity includes delivering change across Council operations, and large-scale projects with local benefits aligned to the five themes of Renfrewshire’s Plan for Net Zero, which are Clean Energy, Sustainable Transport, Circular Economy, Connected Communities and Resilient Place. Further detail of activity within each theme is set out in the following sections. Clean Energy: • Following the launch of the AMIDS district heating network (DHN), the Council has secured Scottish Government grant funding to develop Outline Business Cases for potential heat networks in Paisley Central and an extension of the AMIDS DHN. • The Council is also exploring large scale renewable energy generation in collaboration with external specialists to evaluate sites that could be commercially viable. This aims to optimise locally generated energy opportunities and maximise the renewable energy generated locally, thereby increasing energy security and resilience. Sustainable Transport: • Working in collaboration as part of the Glasgow City Region to accelerate the delivery of public EV Charging Infrastructure which aims to install over 3,000 additional charge points over the coming years. The project is currently being scoped out, with suitable locations being identified and prioritised based on clear metrics such as deprivation, flood risk and existing local infrastructure. • Continued use of hydrotreated vegetable oil (HVO) as alternative fuel for bin lorries and large fleet, reducing CO2 emissions by up to 90% and contributing to improved air quality. Circular Economy: • Exploring opportunities to maximise recycling, building on successful recycling initiatives across the school estate. An initial public buildings project is focusing on the implementation of full recycling facilities within Renfrewshire House. Resilient Place: • An Adaptation Plan, including an Offsetting Strategy for Renfrewshire will be developed over the next 12 months. Early engagement has taken place with internal services and with communities. • Restoring Renfrewshire Rivers: Continued project to tackle non-native species (INNS) and restore natural habitats along 5 watercourses within the Renfrewshire Council area. Page 28 of 214
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10 Gender Pay Gap The gender pay gap is the difference between the average hourly rates of pay of men and women expressed as a percentage, where a positive figure indicates that women are paid less than men. A negative figure indicates that women are paid more than men. The gender pay gap is different from equal pay, which is a direct comparison of two people or groups carrying out the same or an equivalent role. At 31 March 2025, the mean gender pay gap for Renfrewshire Council was -0.52% (0.44% at 31 March 2024). Mean gender pay gap in hourly pay Mean hourly salary Employee Head Count Workforce Gender Demograpghics -0.52% £21.36 Female 6305 Female£21.25 Male 74.12% Female 25.88% Male 2201 Male Page 29 of 214
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11 Key Financial Ratios The following tables provide information regarding the financial performance of the Council in 2024/25 and the affordability of its ongoing commitments: Financial Indicator 2024/25 2023/24 Commentary Estimate Actual Actual Reserves Uncommitted General Fund reserves as a % of budgeted net expenditure 1.9% 1.9% 2.0% Reflects the level of funding available to meet unplanned expenditure and manage financial risk Movement in uncommitted General Fund balance n/a 0.0% -0.4% Reflects Council spending decisions during the financial year Council Tax In-year collection rate 95.0% 94.5% 94.3% Reflects the Council’s effectiveness in collecting Council Tax debt Council Tax income as a proportion of total taxation and non-specific grant income 18.8% 18.3% 19.8% Reflects the Council’s ability to vary expenditure by raising Council Tax, the principal local authority controlled source of finance Debt/Long term borrowing Capital Financing Requirement (CFR) £591.7m £598.7m £510.1m The information is this section demonstrates that the level of external debt (driven by the capital programme) is affordable, owing to the low proportion of our budget spent on servicing debt. Further information, including descriptions of these terms and their significance, is available in the Treasury Management Annual Report, presented to the June Council meeting each year. External debt £475.1m £397.7m £386.1m Ratio of financing costs to net revenue stream (General Fund) 2.7% 2.9% 3.1% Page 30 of 214
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12 Financial Performance Primary Financial Statements The annual accounts summarise the Council’s transactions for the year, its financial position at 31 March 2025, and its cashflows. The annual accounts are prepared in accordance with the International Accounting Standards Board Framework for the Preparation and Presentation of Financial Statements as interpreted by the Code of Practice on Local Authority Accounting in the United Kingdom (“the Code”). The Primary Financial Statements include the Comprehensive Income and Expenditure Statement (CIES), Movement in Reserves Statement (MIRS), Balance Sheet and Cashflow Statement. These statements are accompanied by notes to the accounts, which provide more details on the figures shown in the statements and set out the accounting policies adopted by the Council. There are also separate statements for Council Tax, Non-Domestic Rates, the Housing Revenue Account and the Common Good Funds. The Comprehensive Income and Expenditure Statement (CIES) presents the total cost of providing Council services in 2024/25 along with the income available to fund those services. The outturn explained in the following section differs from the accounting deficit shown in the CIES due to accounting adjustments required to comply with proper accounting practice, but which under statute should not impact on local taxpayers. A reconciliation of these figures can be found in the Note 1: Expenditure and Funding Analysis. General Fund The General Fund is funded by government grant and Council Tax revenues and the Council is also able to apply usable reserves from the General Fund Balance to fund expenditure. As mentioned previously, the Council’s medium- term Financial Outlook highlights the continuing challenging financial and economic environment the Council is facing, linked to inflation, coupled with slower income growth. For the General Fund in 2024/25, increases in waste collection and disposal costs, high inflation on vehicle parts and specialist contractors, and public building repairs, have featured in regular budget monitoring reports throughout the financial year. These pressures have been offset by increased investment income, culminating in a minor service overspend against budget of £0.145m (0.03%). The Council’s largest category of spend is staffing, so naturally any pay settlement linked to high levels of inflation will create a further cost pressure. In 2024/25 a national pay settlement of 3.6% was agreed for local government workers. In recognition of the challenging financial environment, the Scottish Government provided councils with additional funding to support this pay settlement. For Renfrewshire, this amounted to £2.6m. Adult Services experienced a year-end overspend of £3.8m which decreased the reserves of the Renfrewshire Health and Social Care Partnership, who operates these services. As this reserve drawdown does not affect the Council’s General Fund balance, it is shown as a break-even position in the table below. Page 31 of 214
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13 The Council fell short of its target in-year council tax collection rate of 95.0% in 2024/25, instead returning a creditable 94.5% in light of the persisting cost of living strain on household finances. Income from Council Tax actually over- recovered by £0.249m, owing mainly to more prior year arrears being collected than had been anticipated. 2024/25 Revised Budget Actual Variance £m £m £m Chief Executive’s Service 28.333 28.330 0.003 Children’s Services 256.897 257.721 (0.824) Environment, Housing and Infrastructure 68.238 70.671 (2.433) Finance and Resources 47.702 47.537 0.165 Miscellaneous Services 28.120 25.176 2.944 Adult Services* 106.810 106.810 0.000 Net Expenditure 536.100 536.245 (0.145) Revenue Support Grant (338.436) (338.436) 0.000 Council Tax Income (97.453) (97.702) 0.249 Non-Domestic Rates Income** (107.505) (107.505) 0.000 Funding (543.394) (543.643) 0.249 Contribution to General Fund Balances (7.294) (7.398) 0.104 * Adult Services overspent against budget in the year by £3.808m; this was drawn from HSCP reserves and does not impact on the Council’s General Fund balance. ** The Council collected £107.2m directly from local businesses with £0.3m due back to the Scottish Government National Non-Domestic Rates Pool. After adjusting for the over-recovery in Council Tax revenues, the final position for the Council’s General Fund balance at 31 March 2025 was an underspend of £0.104m. Page 32 of 214
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14 The Council’s Reserves The Council holds the following balances in reserve. Further details can be found in Note 7: Usable reserves. As at 31 March 2024 Usable Reserves As at 31 March 2025 £m £m 117.620 General Fund Balance 138.769 6.164 Housing Revenue Account 6.933 7.518 Capital Receipts Reserve 5.485 90.917 Other Statutory Funds 84.008 222.219 Total 235.195 The General Fund balance of £138.8m will be carried forward to 2024/25. Of this balance, £128.5m has been earmarked for a particular purpose, as outlined in Note 7: Usable reserves. This leaves unallocated reserves of £10.3m (1.9% of the Council’s net annual running costs), which is in line with levels agreed by the Council under its revised financial planning principles. It is viewed that this balance is appropriate to the financial risk environment the Council is facing both in light of the recovery from the pandemic, but also to mitigate adverse risks anticipated in public finances generally over the medium to longer term. Housing Revenue Account The balance on the Housing Revenue Account (HRA) as at 31 March 2025 has increased to £6.9m. This remains a prudent level of unallocated reserves for the HRA to mitigate the impact of any unforeseen risks and to provide an element of mitigation against forecast pressures related to the prevailing economic climate. The year-end break-even position was arrived at after some budget variances were experienced in-year. Property repairs and maintenance, including voids management, significantly overspent; however, this was offset by lower capital charges and increased interest receivable following higher interest rates over the year, allowing a contribution to reserves of £0.77m. Infrastructure Assets The Scottish Government published a Statutory Override in August 2022, which has been extended to allow councils to continue the current accounting treatment for Infrastructure assets until 31 March 2025. Further detail is provided at Note 9. Capital and Borrowing Renfrewshire Council continues to make significant capital investment in council housing, schools, culture, roads and the town centre estate. On 29 February 2024, the Council approved the housing capital investment programme for 2024/25 of £35m; and the General Fund capital investment programme for 2024/25 of £148m. The capital investment programmes were affected by the availability of contractors the complexity of refurbishment and construction works as well as high levels of inflation impacting construction costs and professional fees. Programmes have therefore been re-profiled during the year to reflect revised timescales of individual projects, or where project completion dates have been delayed, resulting in actual capital spend for the year of £28m for housing capital investment and £92m for the General Fund. Further detail is provided in Note 14: Capital expenditure and capital financing. The following charts show the actual expenditure incurred and income received in relation to the 2024/25 capital programme. Page 33 of 214
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15 Capital Funding 2023/24 Prudential borrowing 43.1% Government Grants 29.5% and contributions CFCR 23.0% Capital receipts 4.4% Capital Investment 2024/25 Education and Children 27.9% Council Dwellings 23.5% City Deal 16.5% Leisure and Heritage 14.1% Roads and Transport 11.5% Other 3.6% Lifecycle 3.0% Page 34 of 214
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16 During the course of 2024/25 there was no new long-term external borrowing. The level of cash balances available to the Council remains consistent with daily cash requirements, treasury and capital investment plans. The decrease in cash balances compared to 31 March 2024 is attributable in part to a significant capital programme, particularly the Council’s investment in the new Paisley Grammar School Community Campus, along with completion of the Renfrew Bridge. The Council’s borrowing strategy is prepared in accordance with the Code of Practice on Treasury Management in Local Authorities. The majority of the Council’s borrowing comes from the Public Works Loan Board with the remainder from market and other loans. Further details are provided in Note 22: Financial Instruments. The Council regulates its capital spending limits within a prudential framework recommended by CIPFA and endorsed by the Scottish Government. Each year, the Council sets its capital financing requirement (CFR) for the forthcoming year in its Treasury Management Strategy Statement (TMSS), approved by the Council on 29 February 2024 with a mid-year update on 12 December 2024. The TMSS for 2024/25 can be found on the Council Committee Management Information System at: http://renfrewshire.cmis.uk.com/ renfrewshire/Home.aspx. The CFR is a prudent assessment of the aggregate external borrowings for capital investment purposes that are affordable and sustainable over the longer- term. The actual CFR at 31 March 2025 was £598.7m, within the authorised limit of £620.0m. The Council’s external borrowings have only been applied for capital investment purposes, with the Council’s net external debt being £397.7m at 31 March 2025 compared to the operational boundary of £595.0m. The Council’s costs of borrowing remain consistently one of the lowest of all Scottish local authorities, are affordable, and align to the Council’s medium to long-term financial strategy. The Council’s non-housing financing costs were 2.9% as a proportion of the Council’s non-housing net revenue stream. Housing related financing costs as at 31 March 2025 were 22.7% of net housing revenues, lower than the budgeted level of 28.6%. Net Pension Position The disclosure requirements for pension benefits under IAS19 are detailed in Notes 27 and 28. The appointed actuaries, have confirmed an increase of £187m in their assessment of the Council’s share of the actuarial position of the local government pension fund as at 31 March 2025. This is largely attributable to the corporate bond yield (upon which the pension discount rate is derived) having risen over the past year, which served to reduce the employer’s pension obligations and led to the gain on the balance sheet. Page 35 of 214
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17 The assessment provides only a snapshot as at 31 March 2025 and necessarily changes on a day-to- day basis to reflect stock market movements in particular. The appointed actuaries remain of the view that the asset holdings of the Strathclyde Pension Scheme and the contributions from employees and employers provide sufficient security and income to meet future pension liabilities. Accounting rules require that a cap is placed on the value of a pension asset that can be reported in the Balance Sheet. For 2024/25, this has adjusted the value of the pension asset shown in the balance sheet from £754m to nil. The value of Unfunded liabilities at the same date is £65m. A potential change to pension rules is outlined in Note 29: Contingent liabilities; however, this has not been reflected in the pension liability reported in the Balance Sheet. Provisions and Contingencies The Council has provided for eventualities which may have a material effect on the financial position of the Council. The reasons for the provisions made are outlined in Note 21: Provisions. In general, any contingent liabilities known to the Council are covered by insurance arrangements. As outlined at Note 7, the Council has also set aside £3.0m for uninsured claims. Any contingencies that cannot yet be accurately quantified are outlined in Note 29: Contingent Liabilities. The Renfrewshire Council Group Local authorities are required to prepare Group Accounts in addition to their own Council’s accounts where they have a material interest in other organisations. The Group Accounts consolidate the results of the Council with five subsidiaries: • Renfrewshire Leisure Limited, trading as OneRen; • the Common Good Funds; • the Coats Observatory Trust; • Park Lane Developments (Renfrewshire) LLP; and • Paisley Museum Reimagined Limited. The Group Accounts also consolidate the Council’s share of five other entities treated as associates or joint ventures: • Strathclyde Partnership for Transport; • Strathclyde Concessionary Travel Scheme Joint Committee; • Renfrewshire Valuation Joint Board; • Renfrewshire Health and Social Care Integration Joint Board; and • AMIDS Renfrewshire LLP. The Council has non-material interests in a number of other entities namely Scotland Excel; Glasgow and the Clyde Valley Strategic Development Planning Authority; and Glasgow City Region – City Deal Cabinet. Page 36 of 214
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18 Financial Outlook and Key Risks Financial Sustainability The Financial update reports throughout 2024/25 outlined continued uncertainty for local government finances. In 2020, the Council agreed to replenish unallocated reserves to a threshold of £10m in order to address the risks of significant and unplanned cost pressures which may emerge over the medium term, and this has been maintained in 2024/25. The Council continued to feel the impact of global political and economic change during 2024/25, and though general inflation did reduce mid-year, it increased again towards the end of the financial year. The Scottish Government most recently published its Medium Term Financial Strategy (MTFS) on 25 May 2023, outlining its potential spending and funding position over the subsequent 5 years. The MTFS outlined a growing financial gap for the Scottish Government, with spending pressures are expected to outstrip the resources available from 2024/25, with an estimated funding gap of approaching £2 billion by 2027/28. The outlook for the local government settlement is likely to remain very constrained and in line with that previously outlined in the Resource Spending Review i.e. effectively real terms cuts. An updated MTFS is now expected in summer 2025. As outlined in the Revenue Estimates 2024/25 report to Council in February 2024, after adjusting for new responsibilities, areas of growing responsibility and other conditional aspects of the settlement to provide a like-for- like comparison to 2024/25, the underlying core grant for Renfrewshire Council increased by £1.507m (0.4%). The Scottish Government announced a council tax freeze in 2024/25, and the Council approved the use of £2.299m of earmarked reserves to balance the recurring revenue budget. Existing service and cost pressures arising from pay settlements, demographic and socio-economic factors will continue to play a major role in driving spending pressures for the Council; however, the predominant focus of the Council will be addressing its projected medium- term funding gap. As reported to the Council in February 2025, the central forecast is a financial gap of £25-40m by the end of 2028. This forecast is prior to any decisions on council tax increases in 2026/27 or 2027/28. Assuming a decision to uplift in council tax by 6.5% in each of these two years, the cumulative gap would reduce to a range of £5-25m. The financial sustainability of Renfrewshire Health and Social Care Partnership is an additional risk to this position, with financial support from the Council, as partner, potentially required in the medium term, as reserves of the Integration Joint Board deplete. The Council continues to mitigate treasury risks, including those associated with the security of cash deposits, by actively considering debt restructuring as outlined in the Council’s agreed Treasury Management Strategy. The Council also continually reviews, in consultation with its treasury advisors, the criteria for placing deposits with financial institutions on the Council’s approved counterparty list. As part of the Council’s treasury strategy, it continues to utilise internal cash balances, deferring or minimising external borrowing with the dual objectives of reducing the level of cash deposits held by the Council, whilst generating ongoing savings in net interest costs. This strategy is monitored carefully in order to ensure that the Council retains sufficient cash balances to support its ongoing requirements and remains alert to any anticipated adverse movement in future borrowing rates. Page 37 of 214
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19 Other Key Risks Renfrewshire Council has a robust risk management approach and strategic, corporate and service risks are monitored through our Audit, Risk and Scrutiny Board. The areas identified as highest risk for the year ahead are detailed below: Risk Mitigating Actions Economy A range of strategic challenges impact on the local and national economy. Renfrewshire’s economy has well-established strengths in transport, manufacturing, construction and retail, but all sectors and supply chains have been impacted by these global economic challenges. The impact is mitigated through our large-scale infrastructure investment programme which includes the AMIDS development, our investment in schools, housing and heritage assets, our employability programmes and our support for new and existing businesses, which includes support to bid for council contracts and to reduce carbon emissions. Reducing inequalities The COVID-19 pandemic exacerbated many existing inequalities and had a disproportionate impact on our poorer communities. In Renfrewshire, we seek to address unequal outcomes through strong partnership working, through our Fairer Renfrewshire programme, through specific programmes which tackle local priorities (such as our focus on alcohol and drug use), through national programmes such as the Scottish Attainment Challenge, and on building community capacity. In the short-term, we are significantly focused on food insecurity and income maximisation. Financial Sustainability In common with other Scottish local authorities, Renfrewshire Council continues to face significant financial challenges. These have arisen from demographic pressures, the level of grant settlements, national policy decisions relating to areas of spend, inflationary cost pressures, and the impact of external events across the world. The Council has delivered savings through successive transformation programmes and financial sustainability workstreams to support delivery of further efficiencies. The managed use of reserves is also a factor that supports financial sustainability planning in the phasing of achievable savings. Successful Cyber Attack The risk has been updated from cyber-attack to risk of a successful cyber-attack. The likelihood of this risk has escalated, despite sophisticated technical security protocols and cyber architecture being in place. For those organisations who have been impacted by successful attacks, the effects are devastating. For security reasons, we do not publish details of the mitigating actions in place. Page 38 of 214
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20 Common Good Funds and Coats Observatory Trust The Council administers the Common Good Funds for the areas of Paisley, Renfrew and Johnstone, as well as the Coats Observatory Charitable Trust. In order to comply with the Code, Audit Scotland and the Office of the Scottish Charity Regulator (OSCR) requirements, the Council separately prepares the financial statements of the Coats Observatory Trust, with the financial performance of the Common Good Funds disclosed in the Council’s Annual Accounts. Balances are also included in the Group Accounts. Azets is the appointed auditor for the Coats Observatory Charitable Trust. Overall, the Common Good Funds incurred a combined in-year surplus of £0.262m which is added to the previous surplus brought forward. The total net asset value increased by £0.290m, including a decrease in investments of £0.387m. Both the market values of investments and income generated from dividends are likely to be subject to ongoing volatility as the economy responds to global political and economic changes, and is subject to increased inflationary risk. The total net asset value of the Observatory Trust increased by £0.352m owing to investment in the Observatory as part of the Paisley Museum Reimagined project. Page 39 of 214
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21 Conclusion and Acknowledgements We would like to acknowledge efforts by the whole Finance team in producing the annual accounts, as well as colleagues in other services for their continued hard work and support. Further information on the annual accounts or on the Council’s general finances can be obtained on the Council website www.renfrewshire.gov.uk, or by telephoning 0300 300 0285. Cllr Iain Nicolson Leader of the Council Alan Russell Chief Executive Alastair MacArthur Director of Finance and Resources Page 40 of 214
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22 Annual Accounts 2024/25 Statement of Responsibilities The Authority's Responsibilities The Authority is required to: • make arrangements for the proper administration of its financial affairs and to secure that one of its officers has responsibility for the administration of those affairs (section 95 of the Local Government (Scotland) Act 1973). In Renfrewshire Council, that officer is the Director of Finance and Resources; • manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; • ensure that the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014), and so far as is compatible with that legislation, in accordance with proper accounting practices (section 12 of the Local Government in Scotland Act 2003), and; • approve the Annual Accounts for signature. I can confirm that these annual accounts were approved for signature by the Council at its meeting on 26 June 2025. Signed on behalf of Renfrewshire Council. Cllr Iain Nicolson Leader of the Council The Director of Finance and Resources’ Responsibilities The Director of Finance and Resources is responsible for the preparation of the Authority's Annual Accounts in accordance with proper practices as required by legislation and as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (the Accounting Code). In preparing the Annual Accounts, the Director of Finance and Resources has: • selected suitable accounting policies and then applied them consistently; • made judgements and estimates which were reasonable and prudent; • complied with legislation; and • complied with the local authority Accounting Code (in so far as it is compatible with legislation). The Director of Finance and Resources has also: • kept adequate accounting records that were up to date; and • taken reasonable steps for the prevention and detection of fraud and other irregularities. I certify that the financial statements give a true and fair view of the financial position of the Council and its group at the reporting date and the transactions of the Council and its group for the year ended 31 March 2025. Alastair MacArthur Director of Finance and Resources Page 41 of 214
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23 Annual Accounts 2024/25 Annual Governance Statement Scope of responsibility Renfrewshire Council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently and effectively. The Council also has a statutory duty to make arrangements to secure best value under the Local Government in Scotland Act 2003. In discharging this overall responsibility, the Council’s members and the corporate management team are responsible for putting in place proper arrangements for its affairs and facilitating the effective exercise of its functions, which includes arrangements for the management of risk. The Council has approved and adopted a Local Code of Corporate Governance, which is consistent with the principles of the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives (SOLACE) framework; Delivering Good Governance in Local Government. A copy of the Local Code is available on our website at: www.renfrewshire.gov.uk > Your Council > Information, performance and statistics > Information Governance This statement explains how Renfrewshire Council has complied with the Local Code and also meets the Code of Practice on Local Authority Accounting in the UK, which details the requirements for an Annual Governance Statement. The purpose of the governance framework The governance framework comprises the systems and processes, and culture and values, by which the Council is directed and controlled and through which it accounts to, engages with and leads the community. It enables the Council to monitor the achievement of its strategic objectives set out in the Council Plan. The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. Internal control cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Council’s policies aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The governance framework The main features of our governance arrangements are described in the Local Code but are summarised below: The overarching strategic priorities and vision of the Council are set out in the Council Plan 2022-2027, which was refreshed in 2024 to make sure our priorities were clear and focused and to reflect how quickly the context was changing. The Council Plan is aligned to the Renfrewshire Community Plan 2017-2027 and sets out 5 strategic outcomes that the organisation will work to achieve over a 5-year period with specific priorities relating to tackling inequality, promoting economic and cultural regeneration, attainment, and sustainability. These strategic outcomes are underpinned by a cross- cutting theme of improving outcomes for children and families. Renfrewshire’s Community Plan (which also acts as Renfrewshire’s Local Outcome Improvement Plan as required by the Community Empowerment (Scotland) Act 2015) details how community planning partners will work together to achieve the key priorities identified for Renfrewshire. A mid-term review of the Community Plan was also undertaken in 2022 in tandem with the development of the new Council Plan, which identified three key areas of focus which should be progressed by partners. • The key outcomes the Council is committed to delivering with its partners, are set out in the Community Plan; • The Council operates within an established governance framework which incorporates a scheme of delegated functions, financial regulations, standing orders relating to contracts and procedural standing orders. These elements of the framework are kept under regular review by the Council; Page 42 of 214
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24 Annual Accounts 2024/25 • The Council facilitates policy and decision making through a policy board structure; • Services can demonstrate how their own activities link to the Council’s vision and priorities through their service improvement plans. Performance management and monitoring of service delivery is reported through policy boards regularly including six monthly updates to the Leadership Board on progress against the implementation of the Council Plan alongside six-monthly updates to policy boards on the service improvement plans. Operational reports are also provided to relevant policy boards by different services; • With regard to Performance Monitoring, the Council Plan scorecard is considered alongside other performance information each quarter by the Corporate Management Team. In addition, an in- depth look at performance in one service particular area of interest is undertaken at regular intervals. Performance scrutiny sessions between the Chief Executive and Directorate teams are undertaken, supported by a Peer Director model; • The Council has developed a performance management framework and uses the Pentana ICT system to co-ordinate and host all performance information. A performance management guide has been refreshed and shared with relevant Council officers to guide practice; • A Performance Board is being established which will be chaired by the Director of Environment, Housing and Infrastructure and will drive improvements in performance corporately and across Council services; • An annual report on the Local Government Benchmarking Framework, which includes data for over 100 indicators for all 32 local authorities, is provided to the Audit, Risk and Scrutiny Board each year. This will increase in frequency in relation to the recently revised Accounts Commission’s Statutory Performance Direction; • The Council makes a range of performance information available on its website, including the publication of its public performance report “How are we doing?”, in line with statutory requirements; • The Council has adopted a code of conduct for its employees. Elected members adhere to the nationally prescribed Code of Conduct for Members. In addition, the Council has in place a protocol for Relationships between Political Groups, Elected Members and Officers; • In 2024/25 Willis Towers Watson undertook an independent review of the Council’s risk management arrangements and concluded that “Renfrewshire Council has a well-established approach to risk management with many positive features, especially in terms of strong governance and a positive cultural attitude towards risk management at a corporate level.” The Council’s approach to risk management is set out in the combined risk management policy and strategy, Risk Matters, and is well embedded. Risks are reported 6 monthly to the Audit, Risk and Scrutiny Board and a Risk Management Annual Report is also provided to Board in respect of corporate risk management arrangements. Online and in-person risk management courses are available to all staff. In 2023/24 the council launched an innovative approach for business-as-usual risks (BaURAM © Renfrewshire Council). Now in year two of implementation, Heads of Service have continued to engage well with the model. All 12 modules within the model showed an improved position in assurance levels when compared with year one. Directors are required to confirm their assurance levels for their service areas and the Heads of Service returns within BaURAM provide Directors with a tangible evidence base to support their assurance. To complete the loop in terms of organisational learning and continuous improvement, each module in BaURAM has its own identified subject matter experts (SME) and the SMEs use responses within the modules to inform any corporate improvements that can be taken forward; • The Director of Finance and Resources is the Council’s Senior Information Risk Owner and information risk is monitored through the Information Management and Governance Group and its sub-groups. The Managing Solicitor (DPO) is the statutory Data Protection Officer; Page 43 of 214
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25 Annual Accounts 2024/25 • Comprehensive arrangements are in place to ensure members and officers are supported by appropriate training and development; • Registers of interests for elected members and senior officers are maintained and published on the Council’s website; • The Council complies with the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption and the Council’s arrangements for fraud prevention, detection and investigation are managed through the corporate counter fraud service. The Council’s Counter Fraud Policy was updated during 2024/25; • The Council’s approach to ‘whistleblowing’ is outlined in the whistleblowing policy; • Cyber-attacks are growing in both frequency and sophistication. While no system or internal control can offer absolute protection, the Council has implemented a comprehensive, multilayered set of cyber security controls. These controls are subject to annual testing to ensure alignment with current government standards and best practices. The Council adheres to recognised industry and public sector cyber security standards, including those set by the Public Sector Network (PSN), the National Cyber Security Centre (NCSC), the Scottish Government Public Sector Cyber Resilience Framework, and the Payment Card Industry Data Security Standards (PCI DSS). The O365 security and compliance toolset provides a wide range of protection against cyber-attacks including identity theft and phishing. The Council holds a current Certificate of Compliance for PSN standards. ICT network and digital services are continuously monitored for threats, with ongoing vulnerability assessments conducted every 2 weeks in partnership with our external cyber security provider. All activity is overseen by the Security & Compliance Team, led by a Security & Compliance Manager (Cyber) holding both CISSP and CISM certifications. Security events and alerts are monitored 24/7 by our cyber security partner, who are authorised to take immediate preventative action when necessary to protect systems and data; • Clear and independent governance arrangements are in place with One Ren and the Renfrewshire Health and Social Care Partnership with oversight from the Head of Policy and Commissioning and the Head of Corporate Governance respectively and the Council’s Leadership Board. • Seven Local Partnerships have been established and have identified initial local priorities. Decision making including that relating to relevant grants is delegated to each Local Partnership through a Lead Officer appointed by the Council, through the Chief Executive. This governance framework has been in place at Renfrewshire Council for the year ended 31 March 2025. The system of internal financial control The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management and supervision, and a system of delegation and accountability. Development and maintenance of the system is undertaken by managers within the Council. The system includes: • Guidance on financial management supported by comprehensive financial regulations and codes; • Comprehensive budgeting systems, and detailed guidance for budget holders; • Regular reviews of periodic and annual financial reports which indicate financial performance against the forecasts; • Setting targets to measure financial and other performance; • Clearly defined capital expenditure guidelines; • As appropriate, formal project management principles; • The Chief Finance Officer is the Director of Finance and Resources who complies with the CIPFA Statement on the Role of The CFO in Public Services. Page 44 of 214
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26 Annual Accounts 2024/25 The role and responsibilities of the Audit Committee and the Chief Auditor The role of the audit committee is under the remit of the Audit, Risk and Scrutiny Board, which is chaired by a member of the opposition. Its role is: • to approve the internal audit charter and annual internal audit plans; • to review internal and external audit reports and the main issues arising, including those relating to the annual accounts and seek assurance that action has been taken and make recommendations to the Council where appropriate; • to receive and consider the Chief Auditor’s annual report, summarising internal audit activity and the level of assurance this provides over the arrangements for internal control, risk management and governance within the Council; • to monitor the performance of Internal Audit; • to consider the annual review of the Local Code of Corporate Governance. The internal audit service operated in accordance with Public Sector Internal Audit Standards during 2024/25 and reports to the Audit, Risk and Scrutiny Board. Internal audit undertakes an annual programme of work, approved by the Board, based on a strategic risk assessment. The Council’s Chief Auditor provides an independent opinion on the adequacy and effectiveness of the governance framework, risk management and internal control. The Council conforms to the requirements of the CIPFA Statement on the Role of the Head of Internal Audit (2019). Members and officers of the Council are committed to the concept of sound governance and the effective delivery of Council services. The Audit, Risk and Scrutiny Board complies with the CIPFA guidance Audit Committees: Practical Guidance for Local Authorities and Police. The Council’s Chief Auditor has responsibility to review independently and report to the Audit, Risk and Scrutiny Board annually, to provide assurance on the adequacy and effectiveness of the Local Code and the extent of compliance with it. The Audit, Risk and Scrutiny Board performs a scrutiny role in relation to the application of the Local Code of Corporate Governance and regularly monitors the performance of the Council’s Internal Audit service. Internal Audit reporting arrangements include communication of finalised audit engagements, monitoring the progress of agreed management actions and communication of any unacceptable risk identified to the Board. Review of effectiveness and continuous improvement Renfrewshire Council has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness of the framework is informed by the work of the Corporate Management Team who have responsibility for the development and maintenance of the governance environment, the Chief Auditor’s annual report, and reports from the external auditors and other review agencies and inspectorates. The effectiveness of the governance framework and how the organisation manages its risks is reviewed annually by the Corporate Management Team, including the use of an annually updated self-assessment tool covering twelve key areas of governance, internal control and risk as follows: • Asset Management • Complaints, Comments and Claims • Financial Control and Governance • Health and Safety, and managing adverse events • Information Handling • Organisational Resilience • Partnership Management • People, Wellbeing and Development • Programme Management • Service Performance • Community and Public Safety This self-assessment indicated the governance framework is being complied with in all material respects. The 2024/25 outturn compares favourably Page 45 of 214
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27 Annual Accounts 2024/25 with 2023/24, with all modules showing an improved position. In addition, the review of the effectiveness of the governance arrangements and the systems of internal control within the group entities places reliance upon the individual bodies’ management assurances in relation to the soundness of their systems of internal control. The Council’s approach to continuous improvement has several strands and is closely aligned to our Council value of “we value learning”. Our Council Plan and Service Improvement Planning processes drive much of this and allow for elected member scrutiny of improvement activity. Services also undertake improvement work linked to their core duties and to statutory requirements. Registered services in education, housing, social work and social care regularly undertake self-assessment activity as part of their regulatory framework and inspection process. Services within Environment, Housing and Infrastructure maintain their ISO 9001 accreditation as one means of demonstrating quality. The Council has embedded self-assessment as a core element of its approach to improvement. A full corporate self- assessment was undertaken in 2023, which was based on the PSIF/EFQM model widely used across the public sector. In 2024/25 this was supplemented by a specific self-assessment exercise on organisational culture, through our new Cultural Assurance Model. Developed in partnership with the Improvement Service, this is the first model of this type in Scotland for local government and will used in conjunction with Employee Survey and Employee forum outputs to strengthen organisational culture. Improvements identified through the self-assessment process have been used to inform the development of a Corporate Improvement Plan. The Plan also includes specific actions identified by our external auditors through the Annual Audit Report and will also include any specific improvement actions flowing from the Council’s Best Value report, with the findings due to be published by the Accounts Commission in June 2025. The first iteration of the Corporate Improvement Plan was reported to the Leadership Board in February 2025. A new Strategic Learning Estate Strategy was developed in 2024/25 and its implementation will span across several years. To assist in the governance of this programme a new Learning Estate Strategy and Delivery Board has been established with clear Terms of Reference to manage and control the delivery of the learning estate programme effectively and ensure all formal governance requirements within the Council are observed. The Council continues to recognise the need to exercise strong financial management arrangements to manage the financial pressures common to all local authorities and has robust financial control and financial planning processes in place. The CIPFA Financial Management (FM) Code was first adopted by the Council in June 2021, and the resulting action plan contained 59 improvement actions. There are currently 16 outstanding actions with target dates up to December 2026. Work to refresh the initial engagement will be undertaken by the end of 2025/26 to ensure that improvement work continues to be focused, relevant and effective. The Council continues to manage a number of very significant challenges and is operating within a context of new and emerging challenges which require the Council to respond very flexibly to the changing needs of local businesses, communities and citizens. These factors include: • Ongoing economic uncertainty, which has significantly increased costs and impacted supply chains utilized by the Council and its partners. The linked cost of living crisis has also required the Council to respond in new ways with partners to meet the needs of those most vulnerable across Renfrewshire through our Fairer Renfrewshire Programme. • Inflationary cost pressures, including those linked to pay, continue to significantly impact the Council’s financial position. The Council continues to progress its long-term change and transformation programme which will drive a range of service improvements and financial savings across the organisation over the next three years. Page 46 of 214
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28 Annual Accounts 2024/25 • New and developing demand pressures continue to impact the Council, including in relation to issues such as migration and asylum, in relation to support for Ukrainian Displaced Persons, Unaccompanied Asylum-Seeking Children and Young People and more recently the widening out of the asylum dispersal programme and Afghan Resettlement programmes. The Council continues to mitigate some of the impacts on our communities from the pandemic, including those relating to increasing living costs and by supporting routes to employment to try and boost our working age population. Improving outcomes for children and families underpins all that we wish to achieve as a Council. As an organisation, the Council has continued to adopt new ways of working, building on the strong approach developed during the pandemic in areas such as digital access for customers, and embracing hybrid working. Much of the business-as-usual work has fully resumed, including: • The work on social renewal is now part of the wider Fairer Renfrewshire programme, which is overseen by the Fairer Renfrewshire sub-committee of the Leadership Board. • The current Right for Renfrewshire transformation programme is now reaching its natural end but there is a requirement for the Council to continue to maintain a focus on progressing the delivery of further change, transformation and improvement to address the ongoing financial challenge that is expected to persist over the medium term. Therefore, the next phase of the long-term programme will continue to have a similar focus on development of the organisation, which will be critical for the Council to deliver further financial savings, but it will be coupled with a strategically wider outward focused perspective that considers Renfrewshire’s geography and its communities. A report summarising progress to date and outlining the next phase of transformation through the Reshaping Renfrewshire programme, was approved by the Leadership Board in February 2025. • A new 5-year digital strategy has been developed using customer insights, which focuses on corporate transformation to ensure the Council and its services continue to develop for the future needs of its customers in the most appropriate and efficient manner. The organisation has been recognised for its best practice in terms of its activities to reduce digital exclusion in a recent national report by Audit Scotland and is working collaboratively at pace to progress significant programmes of digital transformation, including in relation to Artificial Intelligence utilisation. Audit Scotland have introduced a new approach to auditing Best Value in local government which commenced in 2023 as part of the next 5-year Best Value Audit programme. This approach involves thematic areas of focus each year which will be considered for all local authorities within the same snapshot in time rather than the previous rolling programme of deep dive audits which inspect each local authority across a five-year programme. This is a significant shift in approach and has involved thematic reviews of leadership in 2023 and workforce innovation in 2024. In 2025, the Accounts Commission have identified a focus on transformation, and officers have provided information to our external auditors to assist with this process. Following the findings of the independent review into the circumstances of the errors in the planning and delivery of school provision in the Dargavel area and the related Account Commission s102 Investigation Report, a combined action plan was drawn up, detailing the Council’s response. The progress of this action plan was regularly reported to the Audit, Risk and Scrutiny Board until all the actions were completed in November 2024. The Accounts Commission notified the Council that further updates in relation to the s102 report would be incorporated within wider best value audit activity planned for Renfrewshire Council, which would be accelerated to early 2025. This work has been ongoing in recent months in conjunction within our external auditors and it is anticipated that a report relating to local best value activity will be presented to the Accounts Commission in May 2025. Page 47 of 214
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29 Annual Accounts 2024/25 The Council’s best value report was drafted by Audit Scotland in recent months, utilising published information drawn from reports by the Council’s external auditors Azets. The report summarises improvements identified within these reports, which as highlighted above, are embedded and are being progressed through the Council’s overarching Corporate Improvement Plan. This includes the best value thematic reviews which the Accounts Commission requires external auditors to progress each year, reviewing the Council through a specific lens. In the last few years this has covered themes such as Leadership, Workforce Innovation, whilst this year’s theme of Transformation has not yet been formally audited and reported. The report will be considered by the Accounts Commission on 15 May, with findings subsequently being published. The Best Value report is positive and notes “Renfrewshire Council remains committed to the principles of Best Value and has made good progress on previous improvement actions identified in best value reports.” “In a recent follow-up report the auditor reported they are satisfied that the council has demonstrated evidence of a positive corporate culture and continues to take a range of actions aimed at supporting further development of openness and transparency”. The Council undertook a comprehensive review of its governance arrangements through a member led cross party working group, the recommendations arising were reported to and approved by the Council on 29 February 2024 and have now all been actioned. The Action plan from the separate self-assessment against the CIPFA guidance for effective Audit Committees which was undertaken with the members of the Audit, Risk and Scrutiny Board has now been completed. A further annual self-assessment has been planned to reflect on the Board’s operations and facilitate continuous improvement. Following the successful roll out of the bespoke Leadership Development Programme to Chief Officers, this has been extended to 3rd tier managers over 2 cohorts. This includes a governance module. The programme for cohorts 2 and 3 has now been completed and an evaluation has been undertaken, which will inform plans for future programmes. The external auditors, Azets, provided an unqualified and unmodified audit opinion on the 2023/24 annual accounts. Regular reviews of the Council’s arrangements are undertaken by Internal Audit. Three specific areas were identified in the 2023/24 governance statement as impacting on the overall internal control, risk management and governance arrangements. These were: • Disaster recovery – The review identified that improvements were required, including formal identification of critical systems and formalising the procurement guidance to ensure that services procured meet the required disaster recovery arrangement. All the recommended actions have now been implemented. • Health and Safety – An external health check, which was commissioned, has just been completed and management are progressing the recommendations. • Purchasing processes (corporate credit cards) - Compliance against the corporate procedures required to be improved upon. All the recommendations have now been implemented. The programme of work undertaken by internal audit in 2024/2025 identified 3 occasions where a limited assurance level was provided in relation to the internal control, risk management and governance objectives for the specific areas of each audit review which is an improvement on last year. All were specific to individual service areas and although these areas require to be addressed there is no significant impact on the Council’s overall system of internal control and action plans are in place to address the risks identified. Internal audit undertakes an annual exercise to ensure that recommendations arising from internal audit engagements have been implemented by service management and the results are reported to the Audit, Risk and Scrutiny Board. This work highlighted that 76% Page 48 of 214
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30 Annual Accounts 2024/25 of recommendations were implemented by the due date. 21% had passed their original due date and revised implementation dates have now been set and 4% were superseded. Of the 19 recommendations followed up that were deemed to be critical, 13 have been fully implemented, 1 has been superseded, 1 has been partially implemented, and 4 have not yet been implemented. Revised implementation dates have been agreed for each of these recommendations. It is our view that the Council has in place a sound framework for governance, risk management and internal control and that appropriate mechanisms are in place to identify any areas of weakness. This is corroborated by an Annual Report incorporating the Annual Assurance Statement prepared by the Council’s Interim Chief Auditor stating that subject to management addressing the critical and important recommendations made and the limited assurance report findings, it is considered that reasonable assurance can be placed upon the adequacy and effectiveness of the Council’s internal control, risk management and governance arrangements. Action Plan Following consideration of the review of adequacy and effectiveness the following action plan has been agreed to ensure continual improvement of the Council’s governance. Agreed action Responsible person Date Implement recommendations from Best Value Reports, including the follow up report on the council’s approach to community engagement and culture change Chief Executive & Director of Finance and Resources 31 October 2025 Agreed action Responsible person Date Implement the new Statutory Performance Information Direction in line with statutory timescales Head of Policy and Partnerships 31 December 2025 Agreed action Responsible person Date Address the improvement action arising from the independent review of the Council’s Risk Management Arrangements Director of Finance and Resources 31 December 2025 The agreed actions will be subject to review to identify the progress being made in implementing them. Update on the 2023/24 Action Plan Agreed action Progress Update Responsible person Date Implement improvement plan arising from the Corporate Self- Assessment Exercise. The vast majority of actions have been completed or are nearing completion and represent a significant programme of work across the range of Best Value themes. The Improvement Plan will be regularly updated and we last Head of Policy and Partnerships July 2025 Page 49 of 214
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31 Annual Accounts 2024/25 Agreed action Progress Update Responsible person Date reported progress to Leadership Board in February 2025 The recommendations arising from the review of the corporate health and safety internal audit report, will be considered and an action plan developed for implementation. In addition to the Internal Audit Report, an external health check on Health & Safety management and systems was undertaken. The independent review made a number of improvement recommendations which will be actioned during 2025 Director of Finance and Resources December 2025 Update on the 2022/23 Action Plan Agreed action Progress Update Responsible person Date All service level business continuity plans are to be updated to record all the ICT risks referred to in the council’s business continuity plan template for all service areas. All service areas have updated their business continuity plan templates. An external quality assurance review has now completed and any improvement actions from this review will be implemented Service Directors December 2025 A review of the current manual payment process is under review with key stakeholders from the Corporate Procurement Unit and the Finance Business Partners, this will enable and introduce an exception policy to support the No Purchase Order No Payment. Once the review is conducted the exception policy will be implemented and the No Purchase Order No Payment approach will commence, this is anticipated to take up to 12 Months The Council’s No PO No Pay Policy was approved by the Finance, Resources and Customer Services Policy Board in November 2024. While early adoption is encouraged across services, the policy will be formally implemented upon launch of the new P2P Module within Business World ERP, currently targeted for September 2025 Strategic Lead (P2P) September 2025 Assurance Subject to the above, and on the basis of the assurances provided, we consider the governance and internal control environment operating during 2024/25 provides reasonable and objective assurance that any significant risks impacting on the achievement of our principal objectives will be identified and actions taken to avoid or mitigate their impact. Systems are in place to continually review and improve the governance and internal control environment and action plans are in place to address identified areas for improvement. Page 50 of 214
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32 Annual Accounts 2024/25 Cllr Iain Nicolson Alan Russell Leader of the Council Chief Executive Page 51 of 214
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33 Annual Accounts 2024/25 Remuneration Report The Local Authority Accounts (Scotland) Amendment Regulations 2014 (SSI No. 2014/200) amend the Local Authority Accounts (Scotland) Regulations 2011 (SI No 2011/64) and requires local authorities in Scotland to prepare a Remuneration Report as part of the annual statutory accounts. All information disclosed in sections 3 to 8 in this Remuneration Report will be audited by the Council’s appointed auditor, Azets. The other sections of the Remuneration Report will be reviewed by Azets to ensure that they are consistent with the financial statements. 1. Remuneration Policy for Senior Employees The salary of senior employees is set by reference to national arrangements. The Scottish Joint Negotiating Committee (SJNC) for Local Authority Services sets the salaries for the Chief Executives of Scottish local authorities. The salaries of the Corporate Directors and Heads of Service are based on a spinal column point model as agreed by the Finance and Resources Policy Board on 14 May 2014. Senior employees received a 3.6% pay award in 2024/25 and no other benefits. 2. Remuneration policy for the Leader of the Council, the Provost and Senior Councillors The annual salary of the Leader of the Council and the upper limit for the annual salary of the Provost (or civic head) are set by the Scottish Government in terms of the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2007, as amended by the Local Governance (Scotland) Act 2004 (Remuneration) Amendment Regulations 2021. The salary for the Leader of the Council in 2024/25 was £42,698 per annum (£40,205 in 2023/24) and the salary for the Provost was £32,024 per annum (£30,154 in 2023/24). In terms of the same Regulations, the Scottish Government permits Renfrewshire Council to nominate up to 14 senior councillors (in addition to the Leader of the Council and the Provost), whose salaries in aggregate must not exceed a specified amount, in 2024/25 being £373,580 per annum; and whose salaries individually must be on a specified scale, in 2024/25 £21,345 to £32,024. At the Council meeting of 30 June 2022, it was agreed that Renfrewshire Council would have 13 senior councillors: six Policy Board Conveners (salary of £30,746 per annum in 2024/25); four Regulatory Board Conveners (salary of £25,522 in 2024/25); Chair of OneRen Board and Chair of Integration Joint Board (salary of £30,746 in 2024-25); and one Leader of the Opposition (salary of £25,522 in 2024/25). 3. Remuneration of Senior Employees The regulations define a senior employee as any employee who meets one or more of the following criteria: • has responsibility for the management of the local authority to the extent that the person has power to direct or control the major activities of the authority whether solely or collectively with other persons. • holds a post that is politically restricted by reason of section 2(1)(a), (b) or (c) of the Local Government and Housing Act 1989. • whose annual remuneration, including any annual remuneration from a local authority subsidiary body is £150,000 or more. The Council has interpreted the above criteria as including the Chief Executive, Directors and the Chief Executive of OneRen. The term ‘remuneration’ means gross salary, fees and bonuses, allowances and expenses and compensation for loss of office. The table below outlines the remuneration details for senior employees, including prior year figures. The table shows the relevant amounts, before tax and other deductions, due to, or receivable by, each of the persons named for the year to 31 March 2025, whether or not those amounts were actually paid to, or received by, those persons within that period. There were no non-consolidated bonuses or performance-related payments made to any senior officer in 2024/25 nor any remuneration in connection with election activities. Page 52 of 214
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34 Annual Accounts 2024/25 2023/24 Total Remuneration Annual Salary Election Allowances Total Remuneration £ £ £ £ 167,893 Alan Russell Chief Executive 174,470 6,664 181,134 2,839 Mary Crearie Director of Communities and Housing Services until 2 April 2023 0 0 0 136,907 Alastair MacArthur Director of Finance and Resources 142,287 2,666 144,953 136,924 Gordon McNeil Director of Environment, Housing & Infrastructure until 23 May 2023 then Director of 142,287 1,666 143,953 41,002 Janie O'Neil Director of Children's Services from 04 December 2023 138,112 0 138,112 51,508 Steven Quinn Director of Children's Services until 11 August 2023 0 0 0 537,073 Total 597,156 10,996 608,152 Senior employees Name Post held 2024/25 2023/24 2024/25 Total Remuneration Total Remuneration £ £ 115,493 Victoria Hollows 120,016 115,493 120,016 Chief Executive, OneRen Total Name Senior Employees of Subsidiary Bodies Post held 4. Remuneration of Senior Councillors Under the regulations, remuneration disclosures are to be made for the Leader of the Council, the Civic Head and any councillor designated a Senior Councillor by the Council. The table below shows the relevant amounts, before tax and other deductions, due to each of the persons named for the year to 31 March 2025, whether or not those amounts were actually paid or received within that period and relate only to the Senior Councillor posts indicated. No payments were made in connection with loss of employment or office, nor were any other payments made that are not included in the table. Page 53 of 214
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35 Annual Accounts 2024/25 2023/24 2024/25 Total Remuneration Name Position held Total Remuneration £ £ 40,089 Iain Nicolson Leader Of the Council 42,698 30,067 Lorraine Cameron Provost 32,024 28,868 Michelle Campbell Policy Board Convener 30,746 28,868 Marie McGurk Policy Board Convener 30,746 28,868 Jim Paterson Policy Board Convener 30,746 28,868 Emma Rodden Policy Board Convener 30,746 28,868 John Shaw Policy Board Convener 30,746 28,868 Andy Steel Policy Board Convener 30,746 23,963 Stephen Burns Regulatory Board Convener 25,522 23,963 Andy Doig Regulatory Board Convener 25,522 23,963 Cathy McEwan Regulatory Board Convener 25,522 23,963 John McNaughtan Regulatory Board Convener 25,522 28,868 Jennifer Adam Chair/Vice Chair IJB 30,746 28,868 Lisa-Marie Hughes Chair, OneRen 30,746 23,963 Iain McMillan Leader of largest opposition group 25,522 420,915 448,300 Total Senior Councillors No payments were made in connection with loss of employment or office, nor were any other payments made which are not included in the table. 5. Pension Entitlement Pension benefits for councillors and local government employees are provided through the Local Government Pension Scheme (LGPS). Councillors’ pension benefits are based on career average pay. The councillor’s pay for each year or part year ending 31 March (other than the pay in the final year commencing 1 April) is increased by the increase in the cost of living, as measured by the appropriate index (or indices) between the end of that year and the last day of the month in which their membership of the scheme ends. The total of the revalued pay is then divided by the period of membership to calculate the career average pay. This is the value used to calculate the pension benefits. From 1 April 2015 benefits for local government employees are based on career average pay. Pension benefits are based on the pay received for each year in the scheme increased by the increase in the cost of living, as measured by the appropriate index (or indices). The scheme’s normal retirement age is linked to the state pension age of each member. From 1 April 2009 a five-tier contribution system was introduced with contributions from scheme members being based on how much pay falls into each tier. This is designed to give more equality between the cost and benefits of scheme membership. Prior to 2009 contributions rates were set at 6% for all non-manual employees. The tiers and members contribution rates are as follows: Equivalent bandings for 2023/24 Up to £27,000 5.5% Up to £25,300 £27,001 to £33,000 7.25% £25,301 to £31,000 £33,001 to £45,300 8.5% £31,001 to £42,500 £45,301 to £60,400 9.5% £42,501 to £56,600 Over £60,401 12% Over £56,601 Tiered contribution rates on whole time pay 2024/25 If a person works part-time their contribution rate will be based on their part-time pay. There is no automatic entitlement to a lump sum. Members may opt to give up (commute) pension for Page 54 of 214
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36 Annual Accounts 2024/25 lump sum up to the limit set by the Finance Act 2004. The accrual rate guarantees a pension based on 1/49th of pensionable pay for each year of membership, adjusted in line with the cost of living (prior to 2015 the accrual rate guaranteed a pension based on 1/60th of final pensionable salary). The value of the accrued benefits has been calculated on the basis of the age at which the person will first become entitled to receive a pension on retirement without reduction on account of its payment at that age; without exercising any option to commute pension entitlement into a lump sum; and without any adjustment for the effects of future inflation. The pension entitlements for Senior Employees and Senior Councillors for the year to 31 March 2025 are shown in the table below, together with the contribution made by the Council to each individual’s pension during the year. Any senior employees or councillors omitted from the following tables are not members of the Local Government Pension Scheme (LGPS). 2024/25 2023/24 Pension Lump Sum Pension Lump Sum £ £ £000 £000 £000 £000 Alan Russell Chief Executive 11,541 32,403 86 105 6 4 Mary Crearie Director of Communities and Housing Services until 2 April 2023 n/a 548 0 0 n/a n/a Alastair MacArthur Director of Finance and Resources 9,412 26,423 67 80 5 2 Gordon McNeil Director of Environment, Housing & Infrastructure until 23 May 2023 then Director of Environment, Housing & Infrastructure from 24 May 2023 9,412 26,426 54 37 4 1 Steven Quinn Director of Children's Services until 11 August 2023 n/a 9,941 0 0 n/a n/a Janie O'Neil Director of Children's Services from 04 December 2023 9,129 7,913 15 0 n/a n/a 39,494 103,654 222 222 15 7Total Senior Employees Name Post held In-year pension contributions by Renfrewshire Council Accrued pension benefits as at 31 March 2025 Change in accrued pension benefits since 31 March 2024 Page 55 of 214
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37 Annual Accounts 2024/25 2024/25 2023/24 Pension Lump Sum Pension Lump Sum £ £ £000 £000 £000 £000 Victoria Hollows Chief Executive, OneRen 7,939 22,290 51 53 3 2 7,939 22,290 51 53 3 2 Senior Employees of Subsidiary Bodies Name Post held In-year pension contributions by Renfrewshire Leisure Accrued pension benefits as at 31 March 2025 Change in accrued pension benefits since 31 March 2024 Total The following table reports on in-year pension contributions relating to senior councillor positions only. Pension benefits shown relate to those that the individual has accrued as a consequence of their total local government service and not just their current appointment. 2024/25 2023/24 Pension Lump Sum Pension Lump Sum £ £ £000 £000 £000 £000 Iain Nicolson Leader Of the Council 2,822 7,737 13 3 0 0 Michelle Campbell Policy Board Convener 2,032 5,571 4 0 0 0 Marie McGurk Policy Board Convener 2,032 5,571 6 0 1 0 Jim Paterson Policy Board Convener 2,032 5,571 5 0 1 0 Emma Rodden Policy Board Convener 2,032 5,571 4 0 0 0 John Shaw Policy Board Convener 2,032 5,571 5 0 0 0 Andy Steel Policy Board Convener 2,032 5,571 5 0 1 0 Cathy McEwan Regulatory Board Convener 0 787 0 0 -9 0 Stephen Burns Regulatory Board Convener 1,687 4,625 4 0 1 0 Andy Doig Regulatory Board Convener 1,687 4,625 4 0 1 0 John McNaughtan Regulatory Board Convener 1,687 4,625 4 0 0 0 Jennifer Adam Chair/Vice Chair IJB 2,032 5,571 5 0 1 0 Lisa-Marie Hughes Chair, OneRen 2,032 5,571 5 0 0 0 Iain McMillan Leader of opposition group 1,687 4,625 2 0 1 0 Total 25,826 71,592 66 3 -2 0 Leader of the Council, Provost, Senior councillors Name Post held In-year pension contributions by Renfrewshire Council Accrued pension benefits as at 31 March 2025 Change in accrued pension benefits since 31 March 2024 Page 56 of 214
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38 Annual Accounts 2024/25 6. Councillors’ remuneration The Council paid the following amounts to its elected members (councillors) during the year. 2023/24 2024/25 £ £ 987,073 Salaries 1,051,873 1,915 Travel costs – reimbursed 917 5,971 Travel costs – paid directly by the Council 5,456 1,802 Training and Conferences 2,951 2,870 Telephone and information technology expenses – paid directly by the Council 2,983 999,631 Total 1,064,180 The public record of members' salaries, allowances and expenses for 2024/25 is available for inspection on the Register of Councillors’ Interests page of the Council’s website and navigating to: Your Council>Councillors> Record of councillor salaries, allowances, expenses and training register. 7. Remuneration of Employees The following table gives a statement of the number of employees whose remuneration, excluding pension contributions, was in excess of £50,000 during 2024/25, in bands of £5,000; and also details of the number of those employees highlighted who left the employment of the Council during 2024/25. This information includes those senior employees who are subject to the fuller disclosure requirements in the tables above. Note that leavers may be included due to retirement or redundancy costs. Bands with nil employees for both years are not shown. Teachers Non-teachers Total Remuneration band Teachers Non-teachers Total 113 116 229 £50,000 to £54,999 228 159 387 85 60 145 £55,000 to £59,999 65 64 129 116 58 174 £60,000 to £64,999 102 58 160 67 24 91 £65,000 to £69,999 84 47 131 52 30 82 £70,000 to £74,999 76 13 89 10 6 16 £75,000 to £79,999 27 19 46 4 10 14 £80,000 to £84,999 9 7 16 2 5 7 £85,000 to £89,999 3 4 7 8 5 13 £90,000 to £94,999 6 1 7 1 4 5 £95,000 to £99,999 1 6 7 2 4 6 £100,000 to £104,999 1 2 3 0 3 3 £105,000 to £109,999 2 4 6 0 1 1 £110,000 to £114,999 0 0 0 0 4 4 £115,000 to £119,999 0 5 5 0 2 2 £135,000 to £139,999 0 1 1 0 0 0 £140,000 to £144,999 0 2 2 0 1 1 £165,000 to £169,999 0 0 0 0 0 0 £170,000 to £174,999 0 1 1 460 333 793 604 393 997 2023/24 2024/25 In 2023/24, there were 26 employees who left and received termination payments and would have been included as an over £50k earner in a normal year. There were no such employees in 2024/25. Page 57 of 214
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39 Annual Accounts 2024/25 8. Exit Packages The Council has agreed a number of exit packages in 2024/25 as detailed in the table below. The exit packages agreed were all on a voluntary basis; there were no compulsory redundancies. The Council only agrees exit packages where they are consistent with wider workforce planning and service delivery objectives; and where the savings accruing from an individual ceasing employment with the Council are sufficient to pay back the costs of the exit package within an acceptable period. The assessment of the payback period takes account of the total costs of the exit package. The total exit package costs in the table below include redundancy, pension strain and compensatory lump sum payments; and also, the notional capitalised costs of compensatory added years. These notional costs are not based on actual costs, but are the estimated present value of projected costs over the lifetime of the individuals in receipt of the exit package, based on the following assumptions: 2024/25 2023/24 Future Life expectancy at age 65 – males 20.5 years 20.6 years Future Life expectancy at age 65 – females 24.1 years 24.2 years Pension increase rate 2.80% 2.80% Discount Rate 5.80% 4.80% Value Value £m £m £0 - £20,000 6 0.046 2 0.024 £20,001 - £40,000 2 0.059 4 0.111 £40,001 - £60,000 4 0.203 1 0.055 £60,001 - £80,000 1 0.145 3 0.204 £80,001 - £100,000 2 0.176 2 0.187 £100,001 - £150,000 3 0.365 2 0.230 £150,001 - £200,000 3 0.497 2 0.318 £200,001 - £250,000 0 0.000 2 0.411 £300,001 - £350,000 0 0.000 2 0.621 Total 21 1.491 20 2.161 Exit Package Cost 2024/25 2023/24 Number of Employees Number of Employees Page 58 of 214
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40 Annual Accounts 2024/25 Trade Union Facility Time Renfrewshire Council recognises that it is to the mutual benefit of the Council and its employees that employees are represented by Trade Unions. The Council is committed to the principle of collective bargaining at both national and local level. The Council recognises the key role of Trade Unions in promoting and developing good employee relations and health and safety practices. The Trade Union (Facility Time Publication Requirements) Regulations 2017 requires public sector employers to publish information relating to facility time taken by union representatives. 28 Total cost of facility time £278,394 Total pay bill £348,931,359 FTE employee number 27.03 Percentage of the total pay bill spent on facility time 0.08% Number of representatives % time 23 1% - 50% 36.99% 3 51% - 99% 2 100% Percentage of time spent on facility time Trade Union (TU) representative Number of employees who were relevant union officials during the period Paid Trade Union activities Percentage of pay bill spent on facility time Time spent on paid TU activities as a percentage of total paid facility time hours Cllr Iain Nicolson Alan Russell Leader of the Council Chief Executive Page 59 of 214
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41 Annual Accounts 2024/25 Comprehensive Income and Expenditure Statement This statement shows the accounting cost of providing services and managing the Council during the year. It includes, on an accruals basis, all of the Council’s day-to-day expenses and related income. It also includes transactions measuring the value of non-current assets actually consumed during the year and the real projected value of retirement benefits earned by employees during the year. The statement shows the accounting cost in accordance with generally accepted accounting practices, rather than the cost according to the statutory regulations that specify the net expenditure that Councils need to take into account when setting the annual Council Tax charge. The required adjustments between accounting basis and funding basis under regulations are shown in the Movement in Reserves Statement. Gross expenditure Gross income Net expenditure Note Gross expenditure Gross income Net expenditure £m £m £m £m £m £m 298.501 (39.097) 259.404 333.440 (19.481) 313.959 251.324 (142.398) 108.926 Environment, Housing and Infrastructure 258.474 (145.277) 113.197 105.680 (59.449) 46.231 Finance and Resources 108.775 (58.981) 49.794 49.507 (12.629) 36.878 50.496 (12.186) 38.310 19.641 (13.728) 5.913 Miscellaneous Services 12.771 (13.098) (0.327) 144.335 (44.290) 100.045 Adult Services 186.382 (73.758) 112.624 868.988 (311.591) 557.397 950.338 (322.781) 627.557 0.000 (0.302) (0.302) (Gain)/Loss on the disposal of non-current assets 0.000 (0.057) (0.057) 21.333 (16.863) 4.470 Financing and investment income and expenditure 2 25.778 (5.741) 20.037 0.000 (513.914) (513.914) Taxation and non-specific grant income 3 0.000 (562.381) (562.381) 890.321 (842.670) 47.651 976.116 (890.960) 85.156 (33.187) 8 (86.295) (0.030) 8 0.058 185.455 28 (31.275) 152.238 Other comprehensive (income) and expenditure (117.512) 199.889 Total comprehensive (income) and expenditure (32.356) (Surplus)/Deficit on the revaluation of non-current assets (Surplus)/Deficit from investments in equity instruments designated as Fair Value through Other Comprehensive Income Actuarial (gain)/loss on pension assets and liabilities 2023/24 2024/25 Children’s Services Chief Executive’s Service Deficit/(Surplus) on the Provision of Services Cost of Services Figures shown in brackets represent income or gains and figures without brackets represent expenditure or losses. Page 60 of 214
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42 Annual Accounts 2024/25 Movement in Reserves Statement This statement shows the movement in the year on the different reserves held by the Council, analysed into usable reserves (those reserves that can be applied to fund expenditure or to reduce local taxation) and unusable reserves. The surplus or deficit on the provision of services line shows the true economic cost of providing the Council’s services, more details of which are shown in the CIES. These are different from the statutory amounts required to be charged to the General Fund Balance and the Housing Revenue Account for Council Tax-setting and dwellings rent-setting purposes. The net increase or (decrease) before transfers to other statutory reserves line shows the statutory General Fund Balance and the Housing Revenue Account Balance before any discretionary transfers to or from the other statutory reserves of the Council. 2024/25 General Fund Balance Housing Revenue Account Revenue statutory funds Capital Funds Total Usable Reserves Unusable Reserves Total reserves Note £m £m £m £m £m £m £m Balance at 1 April 2024 117.618 6.164 3.428 95.007 222.217 1,302.619 1,524.836 Movement in reserves during the year (68.284) (16.872) 0.000 0.000 (85.156) 117.512 32.356 24.204 14.910 0.000 0.000 39.114 (39.114) 0.000 Transfers to / (from) other statutory reserves 7 (0.099) 0.000 0.145 (0.046) 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 13.901 0.000 0.000 0.000 13.901 (13.901) 0.000 Adjustments between accounting basis and funding basis under regulations 6 51.429 2.731 0.000 (9.041) 45.119 (45.119) 0.000 21.151 0.769 0.145 (9.087) 12.978 19.378 32.356 Balance at 31 March 2025 138.769 6.933 3.573 85.920 235.195 1,321.997 1,557.192 Increase / (Decrease) in year Total Comprehensive Income and Expenditure Adjustments to Usable Reserves permitted by accounting standards Comparative movements in 2023/24 General Fund Balance Housing Revenue Account Revenue statutory funds Capital Funds Total usable reserves Unusable reserves Total reserves Note £m £m £m £m £m £m £m Balance at 1 April 2023 127.391 6.497 3.095 99.068 236.051 1,488.674 1,724.725 Movement in reserves during the year (31.647) (16.004) 0.000 0.000 (47.651) (152.238) (199.889) 21.356 14.832 0.000 0.000 36.188 (36.188) 0.000 Transfers to / (from) other statutory reserves 7 (0.333) 0.000 0.333 0.000 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 1.597 0.000 0.000 0.000 1.597 (1.597) 0.000 Adjustments between accounting basis and funding basis under regulations 6 (0.746) 0.839 0.000 (4.061) (3.968) 3.968 0.000 (9.773) (0.333) 0.333 (4.061) (13.834) (186.055) (199.889) Balance at 31 March 2024 117.618 6.164 3.428 95.007 222.217 1,302.619 1,524.836 Increase / (Decrease) in year Total Comprehensive Income and Expenditure Adjustments to Usable Reserves permitted by accounting standards Page 61 of 214
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43 Annual Accounts 2024/25 Balance Sheet The balance sheet shows the value as at 31 March 2025 of the assets and liabilities recognised by the Council. The net assets of the Council are matched by the reserves held by the Council. Reserves are reported in two categories. The first category comprises usable reserves, which are reserves that the Council may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example the Capital Receipts Reserve, which may only be used to fund capital expenditure or to repay debt). The second category of reserves comprises those that the Council is not able to use to provide services. This category includes reserves that hold unrealised gains and losses in the value of assets (for example the Revaluation Reserve), where amounts would only become available to provide services if the assets are sold, and reserves that hold differences shown as ‘adjustments between accounting basis and funding basis under regulations’ in the Movement in Reserves Statement. As at 31 March 2024 As at 31 March 2025 £m Note £m 1,858.221 Property, plant and equipment 9 1,955.548 44.186 Heritage assets 10 44.186 1.724 Intangible assets 13 1.189 4.321 Long-term investments 22 4.391 2.365 Long-term debtors 19 2.002 1,910.817 2,007.316 0.100 Assets held for sale 12 2.492 67.755 Short-term investments 22 17.534 1.287 Inventories 17 1.060 66.354 Short-term debtors 19 62.480 29.461 Cash and cash equivalents 18 5.505 164.957 89.071 (65.492) Short-term borrowing 22 (89.745) (83.332) Short-term creditors 20 (70.019) (0.721) Short-term provisions 21 (0.406) (149.545) (160.170) (63.352) Long-term creditors 20 (76.664) (4.630) Long-term provisions 21 (5.230) (258.931) Long-term borrowing 22 (232.050) (74.480) Other long-term liabilities 28 (65.081) (401.393) (379.025) 1,524.836 1,557.192 Alastair MacArthur (222.219) Usable reserves 7 (235.195) (1,302.617) Unusable reserves 8 (1,321.997) (1,524.836) (1,557.192)Total reserves Long-term assets Current assets Current liabilities Long-term liabilities Net assets Director of Finance and Resources The unaudited accounts were issued on 26 June 2025. Page 62 of 214
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44 Annual Accounts 2024/25 Cashflow Statement This statement shows the changes in cash and cash equivalents of the Council during the year. It shows how the Council generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Council are funded by way of taxation and grant income or from the recipients of services provided by the Council. Investing activities represent the extent to which cash outflows have been made for resources that are intended to contribute to the Council’s future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (that is, borrowing) to the Council. 2023/24 2024/25 £m £m (47.651) Net surplus/(deficit) on the provision of services (46.042) Adjustment for non-cash movements: 97.867 Depreciation, amortisation, impairment and revaluations 86.040 (1.423) Increase/(decrease) in creditors (11.885) 1.285 (Increase)/decrease in debtors 4.237 0.027 (Increase)/decrease in inventories 0.227 (8.576) Pension (liability)/asset 21.876 1.531 Carrying amount of non-current assets sold 1.923 0.157 Other non-cash items charged to the net surplus or deficit on the provision of services 0.285 (30.658) Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities (25.010) 12.559 Net cash flows from operating activities 31.651 Net cash flows from investing activities : (128.149) Purchase of property, plant and equipment, investment property and intangible assets (123.212) (1.832) Proceeds from the sale of property, plant and equipment, investment property and intangible assets (1.980) 98.862 Proceeds from short-term and long-term investments 50.093 32.490 Other receipts from investing activities 27.091 Net cash flows from financing activities (3.271) Cash payments for the reduction of the outstanding liability relating to right of use assets and on-balance sheet PFI /PPP contracts (4.971) 7.170 Repayment of short-term and long-term borrowing (2.628) 17.829 Net increase/(decrease) in cash and cash equivalents (23.956) 11.632 Cash and cash equivalents at the beginning of the reporting period 29.461 29.461 Cash and cash equivalents at the end of the reporting period 5.505 The Net cash flow from operating activities above includes the following elements of interest paid and received: 2023/24 2024/25 £m £m (16.863) Interest received (5.741) 11.347 Interest paid 16.213 4.976 Interest element of right of use and PPP payments 4.919 (0.540) 15.391 Interest Paid and Received Page 63 of 214
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45 Annual Accounts 2024/25 Note 1: Expenditure and Funding Analysis The Expenditure and Funding Analysis shows how annual expenditure is used and funded from resources (government grants, rents, Council Tax and non-domestic rates) by the Council in comparison with those resources consumed or earned by the Council in accordance with generally accepted accounting practices. It also shows how this expenditure is allocated for decision making purposes between the Council’s service departments. Income and expenditure accounted for under generally accepted account practices is presented more fully in the CIES. 2024/25 Net Expenditure chargeable to the General Fund and HRA Adjustments between Funding and Accounting basis Depreciation charged to Revaluation Reserve Net Expenditure in the CIES £m £m £m £m Children's Services 257.721 56.339 16.958 313.959 Environment, Housing and Infrastructure 69.902 43.679 17.395 113.197 Finance & Resources 47.537 2.258 1.923 49.794 Chief Executive's Service 28.330 9.979 2.615 38.310 Miscellaneous Services 25.322 (25.403) 0.223 (0.327) Adult Services 106.810 5.813 0.000 112.624 Net cost of services 535.622 92.665 39.114 627.557 Other income and expenditure (543.643) 0.612 0.000 (542.401) (Surplus) / Deficit (8.021) 93.277 39.114 85.156 Opening General Fund and HRA balance (123.784) Less (Surplus) / Deficit in the year (8.021) Add other items not charged to the Surplus / (Deficit) (13.897) Closing General Fund and HRA at 31 March 2025 (145.702) 2024/25 Adjustments for capital purposes Net change for the pensions adjustments Other differences Total Adjustments £m £m £m £m Children's Services 55.101 6.371 (5.133) 56.339 Environment, Housing and Infrastructure 36.361 7.021 0.297 43.679 Finance & Resources 4.131 3.738 (5.611) 2.258 Chief Executive's Service 8.580 1.389 0.010 9.979 Miscellaneous Services (6.127) (4.755) (14.521) (25.403) Adult Services 0.003 4.097 1.713 5.813 Net cost of services 98.049 17.861 (23.245) 92.665 Other income and expenditure (27.148) 4.014 23.746 0.612 Total adjustments between accounting basis and funding basis 70.901 21.875 0.501 93.277 • Adjustments for capital purposes: adds in depreciation, impairment and revaluation gains and losses to the service net expenditure including income on the disposal of assets and the amounts written off for those assets and the statutory charges for capital financing and capital grants which are not chargeable under generally accepted accounting practices. Page 64 of 214
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46 Annual Accounts 2024/25 • Net change for the pensions adjustments: removes employer pension contributions as allowed by statute and replaces with the current and past service costs within the IAS 19 employee benefits pension related expenditure and income. The net interest on the defined benefit liability is also included as charged to the CIES. • Other differences: any other differences between those amounts debited or credited to the CIES and amounts payable or receivable to be recognised under statute, including those primarily involved in the financial instruments adjustment account, the employee statutory adjustment account and other statutory funds. Any other non-statutory adjustments would also be included here. 2023/24 Net Expenditure chargeable to the General Fund and HRA Adjustments between Funding and Accounting basis Depreciation charged to Revaluation Reserve Net Expenditure in the CIES £m £m £m £m Children's Services 252.456 (9.362) 16.310 259.404 Communities and Housing Services 74.560 18.753 15.613 108.926 Environment & Infrastructure 48.972 (4.796) 2.055 46.231 Finance & Resources 28.749 5.791 2.000 36.878 Chief Executive's Service 14.373 (8.670) 0.210 5.913 Miscellaneous Services 98.765 1.280 0.000 100.045 Net cost of services 517.875 2.996 36.188 557.397 Other income and expenditure (507.771) (1.975) 0.000 (509.746) (Surplus) / Deficit 10.104 1.021 36.188 47.651 Opening General Fund and HRA balance (133.888) Less (Surplus) / Deficit in the year 10.140 Closing General Fund and HRA at 31 March 2024 (123.748) * For a split of this balance between the General Fund and the HRA, see the Movement in Reserves Statement. 2023/24 Adjustments for capital purposes Net change for the pensions adjustments Other differences Total Adjustments £m £m £m £m Children's Services 17.796 (0.830) (26.328) (9.362) Environment, Housing and Infrastructure 17.542 (0.518) 1.729 18.753 Finance & Resources 1.846 (0.500) (6.142) (4.796) Chief Executive's Service 5.206 (0.178) 0.763 5.791 Miscellaneous Services (0.433) 2.286 (10.523) (8.670) Adult Services 0.003 (0.475) 1.752 1.280 Net cost of services 41.960 (0.215) (38.749) 2.996 Other income and expenditure (32.792) (8.361) 39.178 (1.975) Total adjustments between accounting basis and funding basis 9.168 (8.576) 0.429 1.021 Page 65 of 214
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47 Annual Accounts 2024/25 Note 2: Financing and investment income & expenditure 2023/24 2024/25 £m £m 21.333 Interest payable and similar charges 21.764 (8.360) Net interest on the net defined benefit liability 4.014 (8.503) Interest receivable and similar income (5.741) 4.470 Total 20.037 Note 3: Taxation and non-specific grant income 2023/24 2024/25 £m £m (95.528) Income from Council Tax and community charge (97.701) (131.322) Distribution from the national non-domestic rate pool (107.505) (254.574) General Revenue Grant from the Scottish Government (330.084) (32.490) Capital grants and contributions (27.091) (513.914) Total (562.381) Note 4: Expenditure and income analysed by nature This note presents the subjective analysis of expenditure and income shown by operational service area in the CIES. 2023/24 2024/25 £m Note £m Expenditure 369.489 Employee benefits expenses 383.118 401.632 Other service expenses 442.067 97.867 Depreciation, amortisation, impairment 86.039 21.333 Interest Payments 2 25.778 890.424 Total expenditure 937.002 Income (311.591) Fees, charges and other service income (322.781) (16.863) Interest and investment income 2 (5.741) (0.302) Gain on the disposal of assets 9 (0.057) (226.850) Income from council tax and non-domestic rates 3 (205.206) (287.067) Government grants and contributions 3 (357.175) (842.673) Total income (890.960) 47.751 (Surplus) or deficit on the provision of services 46.042 Page 66 of 214
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48 Annual Accounts 2024/25 Note 5: Grant income The Council credited the following grants, contributions and donations direct to services in the CIES during 2024/25. 2023/24 2024/25 £m £m 40.841 Housing benefit 39.996 0.549 Housing benefit and Council Tax administration 0.638 0.687 Discretionary Housing Payment 0.937 0.200 Private sector housing grant 0.600 0.491 Education Maintenance Allowance 0.554 0.061 Gaelic Education 0.050 4.663 Pupil Equity Fund 4.663 18.716 Early Years Expansion 18.430 7.772 Other Education 6.833 3.203 Children's Services 3.203 12.254 Adult Services 12.257 3.406 Employability 4.809 3.415 Other grants 8.040 96.258 Total 101.010 Page 67 of 214
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49 Annual Accounts 2024/25 Note 6: Adjustment between accounting basis and funding basis under regulations This note details the adjustments that are made to the total comprehensive income and expenditure recognised by the Council in the year in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Council to meet future capital and revenue expenditure. The first table outlines the current year position, and the second table outlines the comparative prior year position. General Fund Balance Housing Revenue Account Balance Capital Statutory Funds Capital Receipts Reserve £m £m £m £m £m Reversal of items charged to the CIES: Charges for depreciation and impairment of non-current assets (67.899) (17.292) 0.000 0.000 85.191 Amortisation of intangible assets (0.848) 0.000 0.000 0.000 0.848 Capital grants and contributions applied 25.080 2.112 0.000 0.000 (27.192) Revenue expenditure funded from capital under statute (0.352) 0.000 0.000 0.000 0.352 Amounts of non-current assets written off on disposal or sale as part of the gain or loss on disposal to the CIES 0.075 (0.018) 0.000 0.000 (0.057) Insertion of items not charged to the CIES: Statutory provision for the repayment of Loans Fund & Finance Lease principal 4.127 9.105 0.000 0.000 (13.232) Capital expenditure charged against the General Fund and HRA Balances 9.557 4.567 7.008 0.000 (21.132) Transfer of cash sale proceeds credited as part of the gain or loss on disposal to the CIES 0.000 0.000 0.000 (1.980) 1.980 Use of the Capital Receipts Reserve to finance new capital expenditure 0.000 0.000 0.000 4.013 (4.013) Amount by which finance costs charged to the CIES are different from finance costs chargeable in the year in accordance with statutory requirements 0.298 0.107 0.000 0.000 (0.405) Reversal of items relating to retirement benefits debited or credited to the CIES (37.486) (1.958) 0.000 0.000 39.444 Employer’s pension contributions and direct payments to pensioners payable in the year 16.963 0.605 0.000 0.000 (17.568) Amount by which officer remuneration charged to the CIES on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements (0.944) 0.041 0.000 0.000 0.903 Total adjustments (51.429) (2.731) 7.008 2.033 45.119 Usable reserves Unusable reserves2024/25 Adjustment primarily involving the Employee Statutory Adjustment Account: Adjustments primarily involving the Pension Reserve: Adjustment primarily involving the Financial Instruments Adjustment Account: Adjustments primarily involving the Capital Receipts Reserve: Adjustments primarily involving the Capital Adjustment Account: Page 68 of 214
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50 Annual Accounts 2024/25 General Fund Balance Housing Revenue Account Capital Statutory Funds Capital Receipts Reserve £m £m £m £m £m Reversal of items charged to the CIES: Charges for depreciation and impairment of non-current assets (44.202) (16.610) 0.000 0.000 60.812 Amortisation of intangible assets (0.866) 0.000 0.000 0.000 0.866 Capital grants and contributions applied 30.424 2.066 0.000 0.000 (32.490) Revenue expenditure funded from capital under statute (0.793) 0.000 0.000 0.000 0.793 Amounts of non-current assets written off on disposal or sale as part of the gain or loss on disposal to the CIES 0.145 0.157 0.000 0.000 (0.302) Insertion of items not charged to the CIES: Statutory provision for the repayment of Loans Fund & Finance Lease principal 3.708 9.747 0.000 0.000 (13.455) Capital expenditure charged against the General Fund and HRA Balances 3.285 3.924 3.395 0.000 (10.604) Transfer of cash sale proceeds credited as part of the gain or loss on disposal to the CIES 0.000 0.000 0.000 (1.832) 1.832 Use of the Capital Receipts Reserve to finance new capital expenditure 0.000 0.000 0.000 2.498 (2.498) Amount by which finance costs charged to the CIES are different from finance costs chargeable in the year in accordance with statutory requirements 0.176 0.077 0.000 0.000 (0.253) Reversal of items relating to retirement benefits debited or credited to the CIES (31.271) 0.050 0.000 0.000 31.221 Employer’s pension contributions and direct payments to pensioners payable in the year 40.027 (0.230) 0.000 0.000 (39.797) Amount by which officer remuneration charged to the CIES on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements 0.113 (0.020) 0.000 0.000 (0.093) Total adjustments 0.746 (0.839) 3.395 0.666 (3.968) Adjustments primarily involving the Capital Receipts Reserve: Adjustment primarily involving the Financial Instruments Adjustment Account: Adjustments primarily involving the Pension Reserve: Adjustment primarily involving the Employee Statutory Adjustment Account: Adjustments primarily involving the Capital Adjustment Account: Usable reserves Unusable reserves2023/24 Note 7: Usable reserves Usable reserves are those reserves the Council is able to apply to fund expenditure or reduce taxation and comprise both capital and revenue reserves. Movements in the revenue reserves during the year are outlined in the Movement in Reserves Statement and a summary is shown in below. More information about the Housing Revenue Account can be found on page 101. Page 69 of 214
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51 Annual Accounts 2024/25 As at 31 March 2024 As at 31 March 2025 £m £m (117.620) General Fund Balance (138.769) (6.164) Housing Revenue Account Balance (6.933) (7.518) Capital Receipts Reserve (5.485) (90.917) Other Statutory Funds (84.008) (222.219) Total (235.195) Usable Reserves This note sets out the amounts set aside from the General Fund Balance in statutory funds established under Schedule 3 of the Local Government (Scotland) Act 1975 to provide financing for specific areas of expenditure, and the amounts transferred back from these funds to meet General Fund expenditure in 2024/25. Balance at 1 April 2023 Transfers out Transfers in Balance at 31 March 2024 Transfers out Transfers in Balance at 31 March 2025 £m £m £m £m £m £m £m Insurance Fund 2.768 0.000 0.133 2.901 0.000 0.128 3.029 DHN Repair and Renewal Fund 0.000 0.000 0.186 0.186 0.000 0.000 0.186 Reservoir Repair Fund 0.327 0.000 0.014 0.341 0.000 0.017 0.358 Revenue statutory funds 3.095 0.000 0.147 3.428 0.000 0.145 3.573 Education Capital Items Fund 2.106 (0.883) 0.231 1.454 (0.279) 0.232 1.407 Investment Capital Fund 88.778 (2.743) 0.000 86.035 (8.714) 1.707 79.028 Capital statutory funds 90.884 (3.626) 0.231 87.489 (8.993) 1.939 80.435 Total 93.979 (3.626) 0.378 90.917 (8.993) 2.084 84.008 • The Insurance Fund is the funding mechanism for the control of insurable risk and covers the main classes of insurance. It is earmarked for premiums and self-funded insurance costs. • The DHN Repair and Renewal Fund is earmarked for future component replacement of the District Heating Network at the Advanced Manufacturing Innovation District Scotland (AMIDS). • The Reservoir Repair Fund is funding received from a contractor for repairs in perpetuity to the Thornly Dam. • The Education Capital Items Fund is earmarked funding for specific schools to be used in future years for planned purchases of a capital nature, such as computers and information communication technology equipment. • The Investment Capital Fund represents planned funding earmarked to support the Council’s investment programme and the wider strategic management of the Council’s associated debt profile. • In addition to the capital statutory funds above the Capital Receipts Reserve is also a statutory fund. The Capital Receipts Reserve holds cash receipts from asset sales and is used to fund planned capital expenditure. Balance at 1 April 2023 Sale proceeds Capital exp funded Balance at 31 March 2024 Sale proceeds Capital exp funded Balance at 31 March 2025 £m £m £m £m £m £m £m Capital Receipts Reserve 8.184 1.832 (2.498) 7.518 1.980 (4.013) 5.485 Page 70 of 214
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52 Annual Accounts 2024/25 The following note sets out the amounts within the General Fund Balance that the Council has ring-fenced for future expenditure plans. The unallocated balance of £10.279m represents 1.9% of the Council’s net annual running costs. Balance at 1 April 2023 Transfers out Transfers in Balance at 31 March 2024 Transfers out Transfers in Balance at 31 March 2025 £m £m £m £m £m £m £m Alcohol and Drugs Commission 1.303 (0.536) - 0.767 (0.139) - 0.628 City Deal 1.619 (0.716) 1.000 1.903 (1.007) 0.654 1.550 Civil Contingencies Shared Service 0.114 (0.026) 0.038 0.126 (0.032) 0.025 0.119 Culture Bid Legacy 3.093 (1.084) - 2.009 (0.621) 0.438 1.826 Development Contribution – Paisley Town Centre1.057 (0.538) - 0.519 (0.265) - 0.254 Digital Infrastructure 2.422 (0.981) - 1.441 (1.000) - 0.441 Discretionary business grants 0.392 (0.392) - 0.000 - - 0.000 Early Years Change Fund 2.900 (1.112) 0.312 2.100 - - 2.100 Employability 9.310 (1.355) 2.635 10.590 - 0.110 10.700 Environment & Infrastructure 0.560 (0.510) 0.740 0.790 (0.250) 0.300 0.840 Fairer Renfrewshire Programme 4.497 (1.642) - 2.855 (0.542) 0.023 2.336 Financial Sustainability Fund 21.506 (8.262) - 13.244 (12.089) 20.042 21.197 Fly Tipping Enforcement 0.242 (0.242) - 0.000 (0.200) 0.250 0.050 Learning Estate Support Fund - - - - - 2.000 2.000 Leisure: Inclusive Play Facility 0.007 - - 0.007 - - 0.007 Loan Charges Flexibility Fund 44.759 - 4.000 48.759 - 14.897 63.656 Local Authority Economic Recovery Fund 0.305 (0.800) 0.595 0.100 - - 0.100 Local Heat and Energy Efficiency Strategy 0.075 (0.075) - - - 0.036 0.036 Memorial Headstone Safety 0.114 (0.114) - 0.000 - - 0.000 Oakshaw Heritage Trail - - - - - 0.050 0.050 Paisley Town Centre Heritage Asset Strategy 0.885 (0.551) - 0.334 (0.334) - (0.000) Planning Enforcement - - - - - 0.120 0.120 Private Sector Housing Grant 2.039 (0.231) 0.500 2.308 (0.141) - 2.167 Pupil Equity Fund 1.030 (0.506) - 0.524 - 0.137 0.661 Rapid Rehousing Transition Plan 0.040 (0.040) - 0.000 - - 0.000 Resettlement and Asylum Fund 0.585 (0.398) 1.242 1.429 (0.537) 0.247 1.139 School Music Participation 0.222 - 0.054 0.276 (0.179) 0.162 0.259 Service Modernisation and Reform 11.019 (1.331) 0.974 10.662 (0.756) 0.269 10.175 Sustainable Communities Fund 0.656 (0.262) - 0.394 (0.163) 0.028 0.259 Villages Improvement Fund - - 0.200 0.200 (0.064) - 0.136 Welfare Reform 1.079 (0.780) 0.700 0.999 (0.713) 0.666 0.952 Year end flexibility: - Children's Services 5.243 (1.365) 1.127 5.005 (2.110) 1.837 4.732 General Fund: Ring-fenced 117.073 (23.849) 14.117 107.341 (21.142) 42.291 128.490 Unallocated Balance 10.318 (0.039) - 10.279 - - 10.279 Total General Fund Balance 127.391 (23.888) 14.117 117.620 (21.142) 42.291 138.769 Housing Revenue Account 6.497 (0.333) - 6.164 (0.298) 1.067 6.933 Ring-fenced elements of the General Fund Balance Page 71 of 214
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53 Annual Accounts 2024/25 Note 8: Unusable reserves Unusable reserves are those reserves that the Council is not able to utilise to provide services, and comprise: • Reserves that hold unrealised gains and losses, particularly in relation to the revaluation of property, plant and equipment and financial instruments, where amounts will only become available to provide services (or limit resources in the case of losses) once the gains or losses are realised as the assets are disposed of. This category of reserves comprises the Revaluation Reserve and the Financial Instruments Revaluation Reserve. • Adjustment accounts that deal with situations where income and expenditure are recognised according to statutory regulations against the General Fund Balance and the Housing Revenue Account Balance on a different basis from that expected by generally accepted accounting practices. These adjustment accounts will carry either a debit balance (showing that the Council is required by statute to fund its expenditure more slowly than accounting standards would expect) or a credit balance (where the Council has set resources aside under statute earlier than accounting standards require). The adjustment accounts effectively offset the General Fund Balance and the Housing Revenue Account Balance to give the Council more or less spending power in the short term than proper accounting practices would allow. The adjustment accounts comprise the Capital Adjustment Account, the Financial Instruments Adjustment Account, the Capital Receipts Reserve, the Pension Reserve and the Employee Statutory Adjustment Account. As at 31 March 2024 As at 31 March 2025 £m £m (768.193) Revaluation Reserve (814.232) 74.480 Pension Reserve 65.081 (625.941) Capital Adjustment Account (590.439) 10.688 Financial Instruments Adjustment Account 10.283 (0.558) Financial Instruments Revaluation Reserve (0.500) 6.907 Employee Statutory Adjustment Account 7.810 (1,302.617) Total Unusable Reserves (1,321.997) Unusable Reserves Revaluation Reserve The Revaluation Reserve contains the gains made by the Council arising from increases in the value of its non-current assets. The balance is reduced when assets with accumulated gains are: i) revalued downwards or impaired and the gains are lost, ii) used in the provision of services and the gains are consumed through depreciation; or iii) disposed of and the gains are realised. The Revaluation Reserve contains only revaluation gains accumulated since 1 April 2007, which was the date that the Revaluation Reserve was created. Accumulated gains arising before that date are consolidated into the balance on the Capital Adjustment Account. Page 72 of 214
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54 Annual Accounts 2024/25 As at 31 March 2024 As at 31 March 2025 £m £m (772.123) Balance at 1 April (768.193) (33.185) Upward revaluation of non-current assets (86.293) 36.188 Difference between fair value depreciation and historic cost depreciation 39.114 0.927 Accumulated (gains) / losses on disposal of non-current assets transferred to the Capital Adjustment Account 1.140 3.930 Movement in Year (46.039) (768.193) Balance at 31 March (814.232) Revaluation Reserve Pension Reserve The Pension Reserve absorbs the timing differences arising from the different arrangements for accounting for post- employment benefits and for funding benefits in accordance with statutory provisions or regulations. The Council accounts for post-employment benefits in the CIES as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and investment returns on any resources set aside to meet the costs. However, statutory arrangements require benefits earned to be financed as the Council makes employer’s contributions to pension funds. The debit balance on the Pension Reserve shows a significant shortfall in the benefits earned by past and current employees and the Council’s share of Strathclyde Pension Fund resources available to meet them. The statutory arrangements will ensure that funding will have been set aside by the time the benefits come to be paid. As at 31 March 2024 As at 31 March 2025 £m £m (102.399) Balance at 1 April 74.480 258.948 Actuarial (gains) / losses on pension assets and liabilities (785.822) (73.493) Restriction to Asset Ceiling 754.547 31.221 Reversal of items relating to retirement benefits debited or credited to the surplus or deficit on the provision of services in the CIES 39.444 (39.797) Employer’s pension contributions payable in the year (17.568) 74.480 Balance at 31 March 65.081 Pension Reserve Capital Adjustment Account The Capital Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets. The Capital Adjustment Account is debited with the cost of acquisition, construction or enhancement as depreciation, impairment losses and amortisations are charged to the CIES (with reconciling postings from the Revaluation Reserve to convert fair value figures to a historical cost basis). The Capital Adjustment Account is credited with the amounts set aside by the Council as finance for the costs of acquisition, construction and enhancement. Page 73 of 214
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55 Annual Accounts 2024/25 The Capital Adjustment Account contains accumulated gains and losses on investment properties and gains recognised on donated assets that have yet to be consumed by the Council, and also revaluation gains accumulated on property, plant and equipment before 1 April 2007. The Revaluation Reserve was created to hold such gains arising from 1 April 2007 onwards. As at 31 March 2024 As at 31 March 2025 £m £m (631.565) Balance at 1 April (625.941) Reversal of items relating to capital expenditure charged to the CIES: 60.812 Charges for depreciation, impairment and revaluation losses of non-current assets 85.191 0.866 Amortisation of intangible assets 0.848 0.793 Revenue expenditure funded from capital under statute 0.352 1.832 Non-current assets sale proceeds 1.980 (0.302) (Gain)/Loss on disposal of non-current assets charged to the CIES (0.057) (0.927) Adjusting amounts written out of the Revaluation Reserve (1.140) 63.074 Net written out amount of non-current assets consumed in the year 87.174 Capital financing applied in the year: (2.498) Use of the Capital Receipts Reserve to finance new capital expenditure (4.013) (32.490) Capital grants and contributions credited to the CIES that have been applied to capital financing (27.192) (13.455) Loans Fund and Finance Lease principal repayments (14.638) (10.604) Capital expenditure charged against the General Fund and Housing Revenue Account balances (21.132) 1.597 Adjustment for Service Concession Arrangements 15.303 (57.450) (51.672) (625.941) Balance at 31 March (590.439) Capital Adjustment Account Financial Instruments Adjustment Account The Financial Instruments Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for income and expenses relating to certain financial instruments, and for bearing losses or benefiting from gains in accordance with statutory provisions [or regulations]. The Council uses the Financial Instruments Adjustment Account to: • Manage premiums incurred on the early repayment of borrowings. Generally accepted accounting practices require that premiums are debited to the CIES when they are incurred (except where the loan debt being repaid is exchanged for new loan debt on substantially similar terms). However, statutory arrangements or regulations allow any premiums that would normally require to be to be taken immediately to the surplus or deficit on the provision of services, to be amortised to the General Fund Balance over the various periods of time as specified in the regulations/statutory guidance. Furthermore, statutory arrangements [or regulations] require that any premiums that were on the Council’s balance sheet at 31 March 2007 be amortised to the General Fund Balance over the unexpired term that was outstanding on the associated loans when they were redeemed. The Council had various premiums totalling £17.630m at 31 March 2007 and, under the statutory arrangements, these will be fully amortised to the General Fund Balance by financial year 2053-2054. • Manage borrowings that were on the Council’s balance sheet at 31 March 2007 and that have a stepped interest rate feature. These borrowings comprise four ‘lender option borrower option’ (LOBO) loans for which the interest rate Page 74 of 214
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56 Annual Accounts 2024/25 was fixed for an initial period, and at a pre-agreed later date the interest rate changed. Generally accepted accounting practices require that interest charges relating to borrowings that have a stepped interest rate feature are debited to the CIES on the basis of a single effective interest rate (EIR) over the expected life of the loans, rather than based on the contractual cash outflows of interest. However, statutory arrangements [or regulations] allow such borrowings that were on the Council’s balance sheet at 31 March 2007 to be charged to the General Fund Balance in accordance with the accounting treatment prior to 1 April 2007, which did not require the use of the effective interest rate as the basis for the interest charge. • Manage ‘soft loans’ that were on the Council’s balance sheet at 31 March 2007. Soft loans are loans advanced by the Council at nil or below prevailing interest rates. Generally accepted accounting practices require that the discounted interest rate is recognised as a reduction in the fair value of the loan, with the difference being debited to the CIES as service expenditure. However, statutory arrangements [or regulations] require that, for soft loans on the Council’s balance sheet at 31 March 2007, the reduction in value and corresponding charge to be reversed, so that there is no impact on the General Fund Balance. As at 31 March 2007 interest free loans amounting to £0.156m had been advanced to employees who had had changes implemented to their pay cycle. These loans are repayable when employees leave the Council’s employment. Financial Instruments Adjustment Account Refinancing premiums and discounts Borrowing on stepped interest rate loans Loans to third parties at less than market rate Total £m £m £m £m Balance at 1 April 2024 9.608 1.066 0.014 10.688 Premiums incurred in previous financial years to be charged against the General Fund Balance in accordance with statutory requirements (0.389) 0.000 0.000 (0.389) Amount by which finance costs charged to the CIES are different from finance costs chargeable in the year in accordance with statutory requirements 0.000 (0.013) (0.003) (0.016) Balance at 31 March 2025 9.219 1.053 0.011 10.283 Financial Instruments Revaluation Reserve The Financial Instruments Revaluation Reserve contains the gains made by the Council arising from increases in the value of its investments that are measured at fair value through other comprehensive income. The balance is reduced when investments with accumulated gains are: i) revalued downwards or impaired and the gains are lost; or ii) disposed of and the gains are realised. As at 31 March 2024 As at 31 March 2025 £m £m (0.528) Balance at 1 April (0.558) (0.030) Downward/(Upward) revaluation of investments 0.058 (0.558) Balance at 31 March (0.500) Financial Instruments Revaluation Reserve Page 75 of 214
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57 Annual Accounts 2024/25 Employee Statutory Adjustment Account The Employee Statutory Adjustment Account absorbs the differences that would otherwise arise on the General Fund Balance from accruing for short-term accumulating compensated absences at the end of the financial year. As at 31 March 2024 As at 31 March 2025 £m £m 7.000 Balance at 1 April 6.907 (7.000) Settlement or cancellation of accrual made at the end of the prior year (6.907) 6.907 Amounts accrued at the end of the current year 7.810 6.907 Balance at 31 March 7.810 Employee Statutory Adjustment Account Note 9: Property, Plant and Equipment The Code requires that where a component of an asset is replaced, the carrying amount (i.e. net book value) of the old component shall be derecognised to avoid double counting and the new component is reflected in the carrying amount of the infrastructure asset. However, due to practical difficulties in applying component accounting for the recognition and derecognition of replaced components of infrastructure assets, most local authorities have been unable to comply with the requirement to assess the net book value of the replaced component and have treated the amount of the replaced component as zero, because the replaced component is considered to have been fully used up at the point that it is replaced. In recognition of this difficulty, the Scottish Government issued a Statutory Override in August 2022. Finance circular 8/2024 extended the temporary measures until 31 March 2025. Renfrewshire Council has elected to apply both of the following provisions: • Statutory Override 1: For accounting periods commencing from 1 April 2021 until 31 March 2025 a local authority is not required to report the gross cost and accumulated depreciation for infrastructure assets. • Statutory Override 2: For accounting periods commencing from 1 April 2010 until 31 March 2025 the carrying amount to be derecognised in respect of a replaced part of an infrastructure asset is required to be a nil amount, and no subsequent adjustment shall be made to the carrying amount of the asset with respect to that part. Page 76 of 214
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58 Annual Accounts 2024/25 Note 9: Property, Plant and Equipment (continued) Council dwellings Other land and buildings Vehicles, plant, furniture and equipment Infrastructure assets Assets under construction Surplus assets Total Of which funded by PPP/ROU £m £m £m £m £m £m £m £m Balance sheet net carrying amount at 31 March 2024 733.908 375.022 349.145 228.036 149.695 22.415 1,858.221 107.508 Reclassified (to)/ from Assets Held for Sale 0.000 0.000 (2.492) 0.000 0.000 0.000 (2.492) 0.000 Other Reclassifications 5.918 4.504 (0.017) 0.464 (10.869) 0.000 0.000 0.000 Recognition of Right of Use Assets and Increase in PPP liaiblity 0.000 19.294 0.921 0.000 0.000 0.000 20.215 20.215 Additions 10.010 2.549 27.954 18.604 60.144 0.179 119.440 2.411 Disposals (1.204) (0.310) (0.005) 0.000 0.000 (0.304) (1.823) 0.000 Depreciation (24.464) (11.368) (49.158) (11.628) 0.000 (0.121) (96.739) (8.809) Impairment adjustments recognised in the CIES 0.000 0.000 0.000 0.000 (2.934) 0.000 (2.934) 0.000 Revaluation adjustments taken to the Revaluation Reserve 76.219 0.549 9.458 0.000 0.000 0.067 86.293 11.454 Revaluation adjustments recognised in the CIES 0.000 (23.144) (1.492) 0.000 0.000 0.003 (24.633) (16.395) Balance sheet net carrying amount at 31 March 2025 800.387 367.096 334.314 235.476 196.036 22.239 1,955.548 116.384 Gross carrying amount at 31 March 2025 800.387 393.903 632.909 n/a 196.036 27.451 2,050.686 132.777 Accumulated depreciation at 31 March 2025 0.000 (26.807) (298.595) n/a 0.000 (5.212) (330.614) (16.393) Infrastructure Assets 0.000 0.000 0.000 235.476 0.000 0.000 235.476 0.000 Balance sheet net carrying amount at 31 March 2025 800.387 367.096 334.314 235.476 196.036 22.239 1,955.548 116.384 Movements in 2024/25 Page 77 of 214
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59 Annual Accounts 2024/25 Council dwellings Other land and buildings Vehicles, plant, furniture and equipment Infrastructure assets Assets under construction Surplus assets Total Of which funded by PFI £m £m £m £m £m £m £m £m Balance sheet net carrying amount at 31 March 2023 714.690 343.150 371.154 222.732 124.526 21.098 1,797.350 127.539 Reclassified (to)/ from Assets Held for Sale 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Other Reclassifications 8.153 35.812 2.612 5.519 (51.856) 1.353 1.593 0.000 Additions 17.184 5.469 14.554 10.393 77.025 0.000 124.625 1.735 Disposals (1.094) (0.035) (0.063) 0.000 0.000 (0.339) (1.531) 0.000 Depreciation (23.823) (10.408) (45.885) (10.608) 0.000 (0.088) (90.812) (9.585) Revaluation adjustments taken to the Revaluation Reserve 18.798 4.538 8.814 0.000 0.000 1.035 33.185 (10.185) Revaluation adjustments recognised in the CIES 0.000 (3.504) (2.041) 0.000 0.000 (0.644) (6.189) (1.996) Balance sheet net carrying amount at 31 March 2024 733.908 375.022 349.145 228.036 149.695 22.415 1,858.221 107.508 Gross carrying amount at 31 March 2024 733.908 398.942 626.542 n/a 149.695 27.551 1,936.638 123.901 Accumulated depreciation at 31 March 2024 0.000 (23.920) (277.397) n/a 0.000 (5.136) (306.453) (16.393) Infrastructure Assets 0.000 0.000 0.000 228.036 0.000 0.000 228.036 0.000 Balance sheet net carrying amount at 31 March 2024 733.908 375.022 349.145 228.036 149.695 22.415 1,858.221 107.508 Movements in 2023/24 Page 78 of 214
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60 Annual Accounts 2024/25 Note 10: Heritage Assets 2023/24 2024/25 £m £m 44.186 Balance at 1 April 44.186 0.000 Revaluations to CIES 0.000 0.000 Revaluations to Revaluation Reserve 0.000 44.186 Balance at 31 March 44.186 Heritage Assets A valuation of the fair value of the Council’s Heritage Assets was carried out by an external valuer in 2021/22. In the five years prior to 2024/25, there were no acquisitions, donations, or disposals of Heritage Assets. The combined collections managed by the Renfrewshire Arts and Museums Service number in excess of 350,000 objects and it is impractical to undertake a full valuation of all the items in the collection. The balances above reflect the valuation of materials examined by the external valuer during 2021/22. Further detail on the valuation of each category of asset is outlined in Accounting Policy K on page 91. The details of the valuations of the assets are as follows: • Archaeology items • Natural history and science book collections • Art collection • Ceramics • Natural history and Numismatics • Science and social history collections • Special collections • Textiles • Transport collection • World cultures Note 11: Investment properties There are no restrictions on the Council’s ability to realise the value inherent in its investment property or on the Council’s right to the remittance of income and the proceeds of disposal. The Council has no contractual obligations to purchase, construct or develop investment property, nor does it have contractual obligations in relation to repairs, maintenance or enhancement. The following table summarises the movement in the fair value of investment properties during the year: 2023/24 2024/25 £m £m 1.593 Opening balance at 1 April 0.000 0.000 Net gains or (losses) from fair value adjustments 0.000 (1.593) Transfers from inventories and property, plant and equipment 0.000 0.000 Closing balance at 31 March 0.000 Fair Value of Investment Properties Note 12: Assets held for sale The following table summarises the movement in the fair value of assets held for sale during the year: 2023/24 2024/25 £m £m 0.100 Opening balance at 1 April 0.100 Assets reclassified as held for sale: 0.000 Other Land and Buildings 2.492 0.000 Assets sold (0.100) 0.100 Closing balance at 31 March 2.492 Assets Held for Sale Note 13: Intangible assets The Council accounts for purchased software licences as intangible assets. The cost of the licences is amortised on a straight-line basis over the expected life of the licences, which is three to five years for all ICT systems. Amortisation charges are initially charged to ICT services and then absorbed as an overhead across all the service headings in the net expenditure of services. Page 79 of 214
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61 Annual Accounts 2024/25 The movement on intangible asset balances during the year is shown in the following table. 2023/24 2024/25 £m £m Balance at 1 April 5.861 Gross carrying amount 5.927 (3.337) Accumulated amortisation (4.203) 2.524 Net carrying amount at 1 April 1.724 0.066 Additions: purchases 0.313 0.000 Disposals (0.180) 0.000 Disposal amortisation 0.180 (0.866) Amortisation for the year (0.848) 1.724 Net carrying amount at 31 March 1.189 Comprising: 5.927 Gross carrying amount 6.060 (4.203) Accumulated amortisation (4.871) 1.724 Balance at 31 March 1.189 Purchased Software Licences There are no individual intangible assets that are material to the financial statements and there are currently no contractual commitments for the acquisition of intangible assets. Note 14: Capital expenditure and capital financing Capital expenditure involves the creation of assets, the benefit of which will be available to future Council Tax and non-domestic rate payers. It is financed from borrowing and capital income (sales receipts), and so the cost of the asset is effectively borne over a number of years. The Council’s overall capital investment programme is sub-divided into two programmes: housing and non- housing. In 2024/25 total spending on capital projects was £119.705m (£125.484m in 2023/24) and was within the overall prudential limits approved by Council. Capital receipts of £4.013m (£2.498m in 2023/24) were used to fund spending on capital projects. The net capital expenditure for the year of £67.469m (£79.892m in 2023/24) was financed from external borrowing, credit arrangements and from cash balances. The table below shows the total amount of capital expenditure incurred in the year, including the value of assets acquired under finance leases and Service Concession Arrangements. Also shown are the resources that have been used to finance this capital expenditure. Where capital expenditure is to be financed in future years by charges to revenue as assets are used by the Council, the expenditure results in an increase in the Capital Financing Requirement (CFR), a measure of the capital expenditure incurred historically by the Council that has yet to be financed. The movement in the CFR during the year is also analysed in the table below. Page 80 of 214
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62 Annual Accounts 2024/25 As at 31 March 2024 As at 31 March 2025 £m £m 442.065 Opening Capital Financing Requirement 510.099 Capital investment: 124.625 Property, plant and equipment 119.440 0.066 Intangible assets 0.313 0.793 Revenue expenditure funded from capital under statute 0.352 0.000 Recognition of Right of Use Assets and increase in PPP Liaiblity 20.215 Sources of finance: (2.498) Capital receipts – sale of council assets (4.013) (32.490) Government grants and other contributions (27.192) (10.604) Sums set aside from revenue – direct revenue contributions (21.132) (13.455) Loans Fund/Finance Lease principal repayments (14.638) 1.597 Adjustment for Service Concession Arrangements 15.303 510.099 Closing Capital Financing Requirement 598.747 Explanation of movements in year: 71.265 Increase/(decrease) in underlying need to borrow (unsupported by government financial assistance) 58.157 (0.117) Increase/(decrease) in Right of Use Asset Creditor 3.529 (3.114) Increase/(decrease) in PPP finance lease creditor 26.962 68.034 Increase/(Decrease) in Capital Financing Requirement 88.648 At 31 March 2025 the Council had commitments on capital contracts for non-housing projects of £35.412m (£29.614m in 2023/24) and for housing projects of £11.534m (£25.932m in 2023/24). This expenditure will be funded from a combination of government grants, external borrowing, income from selling assets and contributions from revenue budgets. Note 15: Service Concession Arrangements The Council entered into a Public Private Partnership on 1 July 2006 for the provision and maintenance of educational buildings and other facilities. This agreement provides the Council with replacement buildings such as primary and secondary schools and community education premises. The provider is required to ensure the availability of these buildings to a pre- agreed standard, with deductions from the fee payable being made if facilities are unavailable or performance is below the minimum standard. When the agreement ends in 2038, the buildings will be handed to the Council at nil consideration with a guarantee of no major maintenance requirements for a five-year period. The Council only has rights to terminate the contract if it compensates the contractor in full for costs incurred and future profits that would have been generated over the course of the remainder of the contract. The assets used to provide services are recognised on the Council’s Balance Sheet. Movements in their value over the year are shown in the movement on the Property, Plant and Equipment balance in Note 9. The Council makes an agreed payment each year which is increased by inflation and can be reduced if the contractor fails to meet availability and performance standards. Under the agreement the Council is committed to paying the following sums (assuming an average inflation rate of 2.5% per annum and excluding any performance/availability deductions). The discount rate used in this calculation is the interest rate implicit in the PFI agreement, which was fixed at the outset at 7.6%. Page 81 of 214
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63 Annual Accounts 2024/25 After the adoption of IFRS 16, the opening liability as at 1 April 2024 was remeasured to include the net present value of contingent rental payments. Contingent rental payments are those payments where an inflationary increase is applied to the unitary payments. Future Repayment Periods - Schools Service Charges Liability Repayment Interest Repayment Total £m £m £m £m Payable within 1 year 7.910 4.345 8.881 21.136 Payable within 2-5 years 32.214 19.274 36.637 88.125 Payable within 6-10 years 39.707 31.118 47.850 118.675 Payable within 11-15 years 28.727 17.291 23.023 69.041 Total 108.558 72.028 116.391 296.977 In 2019/20, the Council entered into a Service Concession Agreement for the use of a waste materials recovery facility at Bargeddie. Residual waste is then processed at a thermal treatment plant in Dunbar. North Lanarkshire Council is the lead authority and is contracted to Viridor. Five councils, including Renfrewshire, have an inter-authority agreement with North Lanarkshire Council. Renfrewshire Council’s share of the contract is 20%. The discount rate used in this calculation is the interest rate implicit in the agreement, which was fixed at the outset at 5.68% Future Repayment Periods - Waste Facility Service Charges Liability Repayment Interest Repayment Total £m £m £m £m Payable within 1 year 4.545 0.120 0.259 4.924 Payable within 2-5 years 19.174 0.757 0.945 20.876 Payable within 6-10 years 27.443 0.593 0.993 29.029 Payable within 11-15 years 30.697 1.365 0.726 32.788 Payable within 16-20 years 32.552 1.732 0.290 34.574 114.411 4.567 3.213 122.191Total Outstanding Service Concession Arrangements Schools Waste Facility Total £m £m £m Balance at 1 April 2023 (63.349) (4.858) (68.207) Payments during the year 3.114 0.157 3.271 Balance at 31 March 2024 (60.235) (4.701) (64.936) Increase in liability to recognise net present value of contingent rents (16.285) 0.000 (16.285) Payments during the year 4.492 0.134 4.626 Balance at 31 March 2025 (72.028) (4.567) (76.595) In accordance with Accounting Policy and in line with Finance Circular 10/2022, the Council applied the permitted PPP Service Concession Arrangement flexibility in financial year 2022/23 on a retrospective annuity basis with a useful life of 40 years. The flexibility being applied is consistent with the current Loans Fund arrangements and is considered prudent, sustainable and affordable over the life of the asset. The current annuity charges based on the estimated useful life for the schools service concession Page 82 of 214
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64 Annual Accounts 2024/25 arrangement have been compared against the liability repayment profile based on the estimated useful asset lives for the schools service The most appropriate asset life was considered to be 40 years which replicated the useful life of other similar type assets on the council’s balance sheet i.e. schools. The calculation of the repayment charges for the service concession arrangement using asset life annuity is compared to the current charges which are made over the contract period. As the opening liability was remeasured at 1 April 2024 to include the net present value of contingent rents, the calculation of the repayment charges for the service concession arrangement have also been remeasured. This has resulted in a further one-off pre 2024/25 retrospective saving of £13.897m. In addition to the one-off retrospective element, an in- year saving occurred in the scheduled debt repayments in 2024/25 of 1.406m (£1.597m in 2022/23). This will be followed by a reduction in the annual charges for a further 13 years and then the continuation of statutory charges after the contract arrangements have been repaid. Over the full asset life of the service concession arrangement, the total debt liability remains the same. Prior Repayment Current Repayment (Cost)/Reduction £m £m £m Pre 2024/25 62.368 19.272 43.096 Paid in 2024/25 4.492 3.086 1.406 Payable within 1 year 4.345 2.298 2.047 Payable within 2-5 years 19.274 11.089 8.185 Payable within 6-10 years 31.118 19.353 11.765 Payable within 11-15 years 17.291 27.977 (10.686) Payable within 16-20 years 0.000 40.444 (40.444) Payable within 21-25 years 0.000 15.369 (15.369) Total 138.888 138.888 0.000 PPP Service Concession Liability Repayment Note 16: Leases Renfrewshire Council as Lessee Right of Use Assets The Council has adopted IFRS 16 leases from 1 April 2024, as per the Code of Practice for Local Authority Accounting. The main impact of the new requirements is that for arrangements previously accounted for as operating leases, a right of use asset and a lease liability have been brought into the balance sheet at 1 April 2024. Leases for items of low value and leases that expire on or before 31 March 2025 are exempt from the new arrangements. IFRS 16 has been applied retrospectively but with the cumulative effect recognised at 1 April 2024. This means that right of use assets and lease liabilities have been calculated as if IFRS 16 had always applied but recognised in 2024/25 and not by adjusting prior year figures. However, some practical expedients have been applied as required or permitted by the Code: • Lease liabilities are measured at the present value of the remaining lease payments at 1 April 2024 discounted by the authority’s incremental borrowing rate at that date; • The weighted average of the incremental borrowing rates used to discount liabilities was 4.92%; • Right of use assets were initially measured at the amount of the lease liability, any initial direct costs have been excluded. Page 83 of 214
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65 Annual Accounts 2024/25 This has resulted in the following additions to the balance sheet at 1 April 2024: • £2.907m Other land and buildings; • £0.921m Vehicle, plant furniture and equipment; • £3.465m Non-current creditors (lease liabilities); • £0.363m Current creditors (lease liabilities). The newly recognised lease liabilities of £3.828m compare with the operating lease commitments of £4.399m disclosed in the 2023/24 annual accounts. The difference of £0.571m is explained by the fact the lease liability has been discounted to net present value, leases that expired at 31 March 2025 have been excluded, partially offset by the extending the lease term in some of the contracts. The Council has 17 properties classed as a right of use asset with a liability. As at 31 March 2025, outstanding obligations to make payments are as follows: As at 31 March 2024 As at 31 March 2025 £m £m 0.000 Not later than one year 0.413 0.000 Between one and five years 1.220 0.000 Between six and ten years 1.457 0.000 Later than ten years 0.376 0.000 3.466 Finance Leases Finance leases, which have substantially transferred to the Council the benefits and risks of ownership of a non- current asset, are treated as if the asset had been purchased outright. Assets acquired under finance leases are included in non-current assets at the lower of the fair value or the present value of the minimum lease payments. The capital element of the lease is included as obligations under creditors. After the adoption of IFRS 16 on the 1 April 2024 all finance leases will be recognised as right of use assets in the same way as operating leases. There were no finance leases which were recognised as right of use assets as the existing contracts ceased prior to the 31 March 2025 and were therefore exempt from the new arrangements. As at 31 March 2024 As at 31 March 2025 £m £m 0.037 Not later than one year 0.000 0.037 0.000 Renfrewshire Council as Lessor Operating Leases The Council leases out property and equipment under operating leases for the following purposes: • for the provision of community services, such as sports facilities, tourism services and community centres • for economic development purposes to provide suitable affordable accommodation for local businesses. The future minimum lease payments receivable under non-cancellable leases in future years are: As at 31 March 2024 As at 31 March 2025 £m £m 0.158 Not later than one year 0.235 0.511 Between one and five years 0.494 6.112 Later than five years 1.355 6.781 2.084 The minimum lease payments receivable does not include rents that are contingent on events taking place after the lease was entered into, such as adjustments following rent reviews. Page 84 of 214
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66 Annual Accounts 2024/25 Note 17: Inventories 2023/24 2024/25 £m £m 1.314 Balance at 1 April 1.287 9.163 Additions during the year 9.670 (9.188) Recognised as an expense during the year: inventories sold, exchanged or distributed (9.893) (0.002) Recognised as an expense during the year: inventories written down (0.004) 1.287 Balance at 31 March 1.060 Inventories Note 18: Cash and cash equivalents The balance of cash and cash equivalents is made up of the following components. With the exception of imprest accounts held at Council establishments, the balances in all of the categories listed below are used together to manage the Council’s overall cash balances on a day-to-day basis. 2023/24 2024/25 £m £m (7.653) Current account balances with the council's banker (13.479) 3.707 Euro account balances with the council's banker - sterling equivalent 0.516 13.263 Callable deposits with UK banks and building societies 5.301 20.101 Callable deposits in money market funds and ultra-short bond funds 13.127 0.043 Imprest accounts held at council establishments 0.040 29.461 Total cash and cash equivalents 5.505 Note 19: Debtors Amounts due to be received by the Council at 31 March are set out below. This is analysed by type of debtor to provide greater transparency of the sums due. Page 85 of 214
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67 Annual Accounts 2024/25 Short-term Long-term Short-term Long-term £m £m £m £m 22.904 0.000 Central government bodies (non-NHS) 23.728 0.000 5.075 0.990 Central government bodies (NHS) 5.037 0.900 5.476 0.000 Other local authorities 1.535 0.000 5.170 0.000 HM Revenue and Customs 8.281 0.000 0.084 0.029 Employees 0.064 0.029 21.084 0.000 Council Tax arrears 21.889 0.000 (13.296) 0.000 less impairment (14.397) 0.000 4.939 0.000 Rent arrears 4.376 0.000 (2.945) 0.000 less impairment (3.240) 0.000 37.425 6.046 Other entities and individuals 35.814 6.045 (19.562) (4.700) less impairment (20.607) (4.972) 66.354 2.365 Total Debtors 62.480 2.002 31 March 2024 As at 31 March 2025 Note 20: Creditors Amounts due to be paid by the Council as at 31 March are set out below. This is analysed by type of creditor to provide greater transparency of the sums due. Short-term Long-term Short-term Long-term £m £m £m £m (7.510) (0.732) Central government bodies (non-NHS) (5.485) (0.549) (1.976) 0.000 Central government bodies (NHS) (1.894) 0.000 (3.635) 0.000 Other local authorities (2.506) 0.000 (7.437) 0.000 HM Revenue and Customs (7.895) 0.000 (6.946) 0.000 Strathclyde Pension Fund and Scottish Public Pensions Agency (5.368) 0.000 (10.440) 0.000 Employees (13.646) 0.000 (3.038) (57.197) Service concession arrangements: schools (4.345) (67.683) (0.134) (4.567) Service concession arrangements: waste facility (0.120) (4.447) (0.037) 0.000 Right of Use Assets (0.413) (3.053) (4.044) 0.000 Council Tax refundable to taxpayers (3.488) 0.000 (1.018) 0.000 Council Tax receipts in advance (1.656) 0.000 (37.117) (0.856) Other entities and individuals (23.203) (0.932) (83.332) (63.352) Total Creditors (70.019) (76.664) As at 31 March 2024 As at 31 March 2025 Note 21: Provisions Provisions are made where an event has taken place that gives the Council a legal or constructive obligation that probably requires settlement by a transfer of economic benefits or service potential, and a reliable estimate can be made of the amount of the obligation. Teacher’s maternity pay is a short-term provision, made to reflect the changes in European legislation that allow teachers to accrue all holidays during parental leave. The movement in these short-term provisions is detailed below: Page 86 of 214
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68 Annual Accounts 2024/25 Short Term Provisions Teachers’ maternity pay Other Total £m £m £m As at 1 April 2024 (0.121) (0.600) (0.721) Additional provisions made during the year (0.142) (0.264) (0.406) Amounts used during the year 0.121 0.600 0.721 As at 31 March 2025 (0.142) (0.264) (0.406) A summary of the movements in the long-term provisions made by the Council is detailed below, along with an explanation of the reason for the provision: Long-term Provisions Holiday pay compensation Insurance claims Total £m £m £m Balance at 1 April 2024 (0.445) (4.185) (4.630) Additional provisions made during the year 0.000 (1.172) (1.172) Amounts used during the year 0.000 0.572 0.572 As at 31 March 2025 (0.445) (4.785) (5.230) Holiday pay compensation payments The Council has received a number of claims arising from a European Court of Justice ruling in relation to holiday pay. A provision has been made to reflect the potential outcome of known claims. A contingent liability is recognised in Note 29 for potential claims that have not yet materialised. Insurance claims The provision for insurance claims represents the actuarial assessment of excess costs arising from insurance claims together with identified liabilities in respect of insurance claims outstanding against Renfrewshire Council and predecessor local authorities. The Council has increased its net assessment by £1.172m on the basis of information held by the Council and notified by Glasgow City Council, the coordinating authority for the former Strathclyde Regional Council. Note 22: Financial Instruments Categories of financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. The term ‘financial instrument’ covers both financial assets and financial liabilities and includes trade payables, borrowings (for example Public Works Loan Board debt and market debt), financial guarantees, bank overdraft, trade receivables, loans receivable, cash deposits with financial institutions (some on a fixed term basis and some which are immediately available) and longer-term investments. The following categories of financial instrument are carried in the balance sheet. Page 87 of 214
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69 Annual Accounts 2024/25 Long-term Current Long-term Current £m £m £m £m (238.592) (5.000) (232.050) (5.000) 0.000 (2.815) 0.000 (2.694) (238.592) (7.815) (232.050) (7.694) (20.000) (26.766) 0.000 (46.766) 0.000 (0.864) 0.000 (0.858) (0.339) (0.262) 0.000 (0.588) (20.339) (27.892) 0.000 (48.212) 0.000 (29.785) 0.000 (33.839) (258.931) (65.492) (232.050) (89.745) 0.000 (49.988) 0.000 (33.091) (61.763) (3.210) (75.183) (4.878) 0.000 0.000 (0.395) 0.000 (61.763) (53.198) (75.578) (37.969) As at 31 March 2024 As at 31 March 2025 Financial Liabilities Total Public Works Loan Board (PWLB) borrowing Borrowing from group entities Total Borrowing Financial Liabilities included in Creditors Principal sum borrowed Accrued interest Principal sum borrowed Accrued interest EIR adjustments Total non-PWLB borrowing (“market debt”) At amortised cost trade payables Service Concession and Right of Use Asset liabilities Financial guarantees Long-term Current Long-term Current £m £m £m £m 0.000 66.000 0.000 17.521 0.000 1.755 0.000 0.017 0.000 0.000 0.000 (0.004) 4.321 0.000 4.391 0.000 4.321 67.755 4.391 17.534 0.000 5.617 0.000 (8.165) 0.000 0.048 0.000 0.029 0.000 0.012 0.000 (0.003) 0.000 23.808 0.000 13.644 0.000 29.485 0.000 5.505 1.030 74.996 5.959 70.444 4.826 0.054 4.826 0.044 1.208 0.000 0.000 0.000 (4.700) (21.739) (4.972) (23.847) 2.364 53.311 5.813 46.641 As at 31 March 2024 Financial Assets At amortised cost: Principal Accrued interest Accrued interest As at 31 March 2025 Loss allowance At fair value through other comprehensive income - designated equity instruments At fair value through profit or loss Principal Accrued interest Loss allowance Total Investments Total Cash and cash equivalents At amortised cost: At amortised cost: Trade receivables Loans made for service purposes Loss allowance Financial Assets included in Debtors Page 88 of 214
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70 Annual Accounts 2024/25 Loans to other entities and individuals comprise a loan to Kilbarchan Amateur Athletic Club of £0.073m (2023/24 £0.074), home loans of £0.213m (2023/24 £0.256m) and social care charging order debtors of £0.737m (2023/24 £0.736m). Note that these balances are not principal amounts owed, rather valued at amortised cost based on a notional (effective) interest rate. Equity instruments elected to fair value through other comprehensive income The Council has elected to account for the Insurance Fund at fair value through other comprehensive income because it is a long-term strategic holding and changes in its fair value is not considered to be part of the Council’s annual financial performance. The Insurance Fund is invested in the Phoenix Fund, managed on behalf of the Council by LGT Wealth Management. The objective of the fund is to achieve long term growth with low volatility, through a widely diversified portfolio. The fair value of the investment is £4.391m at 31 March 2025 (£4.321m as at 31 March 2024). Income from the Fund is reinvested. Fair value of financial instruments Financial instruments, except those classified at amortised cost, are carried in the Balance Sheet at fair value. For most assets, including money market funds, the fair value is taken from the market price. The fair values of other instruments have been estimated by calculating the net present value of the remaining contractual cash flows at 31 March 2025. The Council’s ‘Fair value through other comprehensive income’ assets comprise its insurance fund investments. The fair value of the insurance fund investments equates to the market value of those investments, and this valuation has been provided by the Council’s investment manager, LGT Wealth Management. Financial instruments classified at amortised cost are carried in the Balance Sheet at amortised cost. Their fair values have been estimated by calculating the net present value of the remaining contractual cash flows at 31 March 2025, using the following methods and assumptions: • Loans borrowed by the Council have been valued by discounting the contractual cash flows over the whole life of the instrument at the appropriate market rate for local authority loans. • For ‘lender option borrower option’ (LOBO) loans, PWLB premature repayment rates have been applied to provide the fair value under PWLB debt redemption procedures. The PWLB redemption rates provide a reasonable proxy for rates and a number of market participants have used this basis when considering early redemption costs for market loans. It is likely that lenders will only exercise their options when market rates have risen above the contractual loan rate. The interest rate risk associated with the Council’s LOBOs is not deemed to be significant and the potential penalties charged may make the redemption of the loans an uneconomic option. • The fair values of other long-term loans and investments have been discounted at the market rates for similar instruments with similar remaining terms to maturity on 31 March. • The fair values of financial guarantees have been estimated based on the likelihood of the guarantees being called and the likely payments to be made. • No early repayment or impairment is recognised for any financial instrument. • The fair value of short-term instruments, including trade payables and receivables, is assumed to approximate to the carrying amount given the low and stable interest rate environment. Fair values are shown in the table below, split by their level in the fair value hierarchy: • Level 1 – fair value is only derived from quoted prices in active markets for identical assets or liabilities, e.g. bond prices • Level 2 – fair value is calculated from inputs other than quoted prices that are observable for the asset or liability, e.g. interest rates or yields for similar instruments • Level 3 – fair value is determined using unobservable inputs, e.g. non-market data such as cash flow forecasts or estimated creditworthiness. Page 89 of 214
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71 Annual Accounts 2024/25 The fair value for each category of financial instrument is shown below, with the balance sheet carrying amount shown for comparison. Carrying Amount Fair value Financial Liabilities Carrying Amount Fair value £m £m £m £m Financial liabilities measured at amortised cost: (246.407) (220.126) Public Works Loan Board borrowing 2 (239.743) (189.683) (48.231) (53.523) Non-PWLB borrowing (“market debt”) 2 (48.211) (53.523) Other liabilities: (64.973) (119.570) Service Concession and Finance Lease liabilities 3 (80.061) (80.061) 0.000 0.000 Financial guarantees 3 (0.395) (0.395) (359.611) (393.219) (368.410) (323.662) Financial liabilities measured at amortised cost: (29.785) n/a Borrowing from group entities (33.839) n/a (49.988) n/a Trade payables: short-term (33.091) n/a (79.773) (66.930) As at 31 March 2024 As at 31 March 2025 Fair value level Total financial liabilities for which fair value is disclosed Total financial liabilities for which fair value is not disclosed Carrying Amount Fair value Financial Assets Carrying Amount Fair value £m £m £m £m 20.101 20.101 Callable deposits in money market funds and ultra-short bond funds 1 13.128 13.128 3.707 3.707 Euro current account balances with the council’s banker 2 0.516 0.516 4.321 4.321 Investments in pooled funds (insurance fund) 1 4.391 4.391 28.129 28.129 18.035 18.035 67.755 67.751 Fixed term deposits with UK local authorities 2 0.000 0.000 0.000 0.000 Fixed term deposits with UK building societies 2 17.534 17.534 5.610 5.610 Callable deposits with UK banks and building societies (including sterling current account balances with the Council’s banker) 2 (8.178) (8.178) 0.043 0.043 Imprest accounts held at council establishments 2 0.040 0.040 1.387 1.543 Loans made for service purposes 3 1.023 1.037 74.795 74.947 10.419 10.433 102.924 103.076 28.454 28.468 Financial assets measured at amortised cost: 1.029 n/a Trade receivables and prepayments: long-term 1.020 n/a 53.259 n/a Receivables and prepayments: short-term 46.598 n/a 54.288 47.618 As at 31 March 2024 As at 31 March 2025 Total financial assets for which fair value is disclosed Total financial assets for which fair value is not disclosed Fair value level Total Financial assets measured at fair value Total Financial assets measured at amortised cost Items of income, expense, gain and loss relating to financial instruments The following items of income, expense, gain and loss relating to financial instruments are included within the lines ‘Financing and investment income and expenditure’ and ‘(Surplus)/Deficit from investments in equity instruments designated as Fair Value through Other Comprehensive Income’ in the CIES. Page 90 of 214
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72 Annual Accounts 2024/25 2023/24 Amortised cost Elected to Fair Value through Other Comprehensive Income Fair Value through Profit or Loss 2024/25 £m £m £m £m £m £m 16.323 Interest expense 0.000 0.000 0.000 17.118 17.118 3.720 Impairment losses 2.472 0.000 0.000 0.000 2.472 0.007 Fee expense 0.000 0.000 0.000 0.007 0.007 20.050 Total expense in the Surplus / Deficit on the Provision of Services 2.472 0.000 0.000 17.125 19.597 (8.259) Interest income (4.025) 0.000 (1.711) 0.000 (5.736) (0.133) Dividend income 0.000 (0.128) 0.000 0.000 (0.128) (8.392) Total income in the Surplus/Deficit on the Provision of Services (4.025) (0.128) (1.711) 0.000 (5.864) 0.008 Net (gain) or loss on revaluation 0.000 0.058 0.010 0.000 0.068 0.008 (Surplus)/Deficit on the revaluation of financial assets 0.000 0.058 0.010 0.000 0.068 11.666 Net (Gain)/Loss for the year (1.553) (0.070) (1.701) 17.125 13.801 Financial Assets Financial liabilities at amortised cost Note 23: Nature and extent of risks arising from Financial Instruments The Council’s management of treasury risks actively works to minimise the Council’s exposure to the unpredictability of financial markets and to protect the financial resources available to fund services. The Council complies with CIPFA’s Code of Treasury Management Practices and has written principles for overall risk management as well as written policies and procedures covering specific areas such as credit risk, liquidity risk and market risk. In line with the Treasury Management Code, the Council approves a Treasury Management Strategy before the commencement of each financial year. The Strategy sets out the parameters for the management of risks associated with financial instruments. The Council also produces Treasury Management Practices specifying the practical arrangements to be followed to manage these risks. The Treasury Management Strategy includes an Investment Strategy in compliance with Scottish Government guidance on Local Government Investments. This Guidance emphasises that priority is to be given to security and liquidity, rather than yield. The Council’s Treasury Management Strategy and its Treasury Management Practices seek to achieve a suitable balance between risk and return or cost. Credit Risk Credit risk arises from the short-term lending of surplus funds to financial institutions and local authorities, as well as credit exposures to the Council’s customers. It is the policy of the Council to place deposits only with other local authorities and a limited number of high- quality banks, building societies and money market funds whose credit rating is independently assessed as sufficiently secure by the Council’s treasury advisers and to restrict lending to a prudent maximum amount for each entity. The Treasury Management Strategy outlines the limits placed on investments with any counterparty. Page 91 of 214
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73 Annual Accounts 2024/25 The table below summarises the credit risk exposures of the Council’s treasury investment portfolio (including accrued interest) by credit rating. 2023/24 2024/25 £m £m 20.015 AAA (money market funds and ultra-short bond funds) 13.071 6.736 A+ 0.000 0.000 A 2.810 6.491 A– 0.000 66.000 UK local authorities 0.000 0.000 UK Debt Management Office 17.521 99.242 Total 33.402 Total Investment Portfolio by Credit Rating The Council does not generally allow credit for customers such that, at 31 March 2025, £9.111m of sundry income debt is past its due date for payment (£9.903m as at 31 March 2024). The past due amount can be analysed by age as follows: 2023/24 2024/25 £m £m 2.258 Less than three months 1.549 0.635 Three to six months 1.864 1.612 Six months to one year 0.666 5.398 More than one year 5.032 9.903 Total 9.111 Sundry Income Debt Past Due Loss allowances on trade receivables have been calculated by reference to the Council’s historic experience of default, adjusted for current and forecast economic conditions. Receivables are determined to have suffered a significant increase in credit risk where they are 30 or more days past due and they are determined to be credit-impaired where they are 90 or more days past due. Receivables are written off to the Surplus or Deficit on the Provision of Services when there is no reasonable prospect of payment, or when they become prescribed; but steps are still taken to collect sums owing when information becomes available which suggests the debtor can make payment. Collateral Renfrewshire Council occasionally provides loans to residents who wish to buy their homes under Right to Buy legislation. In such cases the Council takes a standard security over the property. As at 31 March 2025 the outstanding value of home loans advanced by the Council was £0.213m (£0.256m as at 31 March 2024). Liquidity risk The Council’s main source of borrowing is HM Treasury’s Public Works Loan Board, but the Council also has loans classed as ‘lender option borrower option’ (LOBO). There is no significant risk that the Council will be unable to raise finance to meets its commitments under financial instruments. The Council has safeguards in place to ensure that a significant proportion of its borrowing does not mature for repayment at any one time in the future to reduce the financial impact of re-borrowing at a time of unfavourable interest rates. The Council’s policy is to ensure that not more than 15% of loans are due to mature within any financial year and 50% within any rolling five-year period through a combination of prudent planning of new loans taken out and, where it is economic to do so, making early repayments. Page 92 of 214
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74 Annual Accounts 2024/25 The maturity analysis of the principal element of borrowing is as follows: £m % £m % 5.000 1.72% Less than one year 5.000 1.76% 5.000 1.72% Between one and two years 0.007 0.00% 0.011 0.00% Between two and five years 0.000 0.00% 280.347 96.56% More than five years 278.809 98.24% 290.358 100.00% Total 283.816 100.00% As at 31 March 2024 Principal Borrowing Maturity Analysis As at 31 March 2025 Market risk: interest rate risk Changes in market interest rates influence the interest payable on borrowings and on interest receivable on surplus funds invested. For example, a rise in interest rates would mean an increase in the interest charged on borrowing at variable rates and an increased cost to the taxpayer. An increase in interest rates would also mean an increase in the income received on lending at variable rates and a reduction in cost for the taxpayer. Changes in market rates also affect the notional ‘fair value’ of lending and borrowing. For example, a rise in interest rates would reduce the fair value of both lending and borrowing at fixed rates. Changes in the fair value of lending and borrowing do not impact upon the taxpayer and are confined to prescribed presentational aspects in the Accounts. The Council has a variety of strategies for managing the uncertainty of future interest rates and the financial impact on the Council’s finances: • it is the policy of the Council to limit its exposure to variable rate borrowing to a maximum of 25% of what it borrows; • during periods of falling rates and where it is economically advantageous to do so, the Council will consider the repayment and restructuring of fixed interest rate debt; • the Council takes daily advice from its specialist treasury advisers and actively monitors changes in interest rates to inform decisions on the lending of surplus funds, new borrowings and restructurings of existing borrowings. To illustrate the notional impact of changes in interest rates upon the Council, the following table shows the financial effect if rates had been 1% higher during 2024/25, with all other variables held constant. Decrease in the fair value of fixed rate loans and deposits Decrease in the fair value of fixed rate borrowing (1.113) (1.113) (0.297) 0.011 32.389 Increase in interest receivable on deposits placed during the year Notional impact on the Surplus/Deficit on the Provision of Services Share of this impact which would be attributable to the Housing Revenue Account Other changes that would have no impact on the Surplus/Deficit on the Provision of Services or Other Comprehensive Income and Expenditure: As at 31 March 2025 £m Interest rate risk The impact of a 1% fall in interest rates would be as above but with the changes being reversed. Page 93 of 214
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75 Annual Accounts 2024/25 Market risk: price risk The Council’s Insurance Fund is invested in an externally managed fund under the powers of schedule 3 of the Local Government (Scotland) Act 1975 and section 3 of the Local Government etc. (Scotland) Act 1994. The investments are managed on behalf of the Council by LGT Wealth Management in the Phoenix Fund. The objective of the fund is to achieve long-term growth with low volatility, through a widely diversified portfolio. The benchmark return is SONIA+2% per annum. During 2024/25 the book cost of investments increased by £0.135m (£0.133m increase during 2023/24). The investment is classified as fair value through other comprehensive income, meaning that all movements in price will impact on the gains and losses recognised in other comprehensive income and expenditure. This is an accounting requirement that has no impact on the taxpayer. To illustrate the impact of changes in share price upon the Council, an increase or fall of 5% in the general price of shares at 31 March 2025 would have resulted in a £0.089m gain or loss being recognised in Other Comprehensive Income and Expenditure for 2024/25. Market risk: foreign exchange risk As at 31 March 2025 the Council had a foreign currency deposit of €0.617m with the Council’s banker (€4.335m as at 31 March 2024). This sum was being held in order to mitigate the foreign exchange risk associated with a contract being entered into as part of the Glasgow and Clyde Valley City Deal programme. The sterling valuation of this deposit as at 31 March 2025, based on the euro to sterling exchange rate at that time, was £0.516m. To illustrate the impact of changes in foreign exchange rates upon the Council, a relative increase or decrease of 1% in the euro to sterling exchange rate at 31 March 2025 would have resulted in a £0.005m gain or loss being recognised in Other Comprehensive Income and Expenditure for 2024/25. Note 24: External audit costs 2023/24 2024/25 £m £m 0.443 Fees payable with regard to external audit services carried out by the appointed auditor for the year 0.469 0.443 Total 0.469 Audit Fees Note 25: Agency services The Council bills and collects non-domestic rates on behalf of the Scottish Government from ratepayers situated within Renfrewshire Council and East Renfrewshire Council. The Council also bills and collects, along with its own Council Tax, domestic water and sewerage charges on behalf of Scottish Water. 2023/24 2024/25 £m £m 131.322 Scottish Government - Contributions (to)/from the non-domestic rates pool 107.505 14.880 Non-domestic rates collected: East Renfrewshire 15.951 0.070 Service income from East Renfrewshire Council for collection of non-domestic rates 0.073 (14.950) Cost of collection of Non-domestic rates from East Renfrewshire (16.024) 34.461 Domestic water and sewerage charges collected 38.164 (34.461) Domestic water and sewerage charges paid over to Scottish Water (38.164) 0.706 Service income from Scottish Water for collection of domestic water and sewerage charges 0.730 Agency Services Page 94 of 214
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76 Annual Accounts 2024/25 Note 26: Related parties The Council’s related parties are those bodies or individuals that have the potential to control or significantly influence the Council, or to be controlled or significantly influenced by the Council, or where those individuals or bodies and the Council are subject to common control. The Council is required to disclose material transactions that have occurred with related parties and the amount of any material sums due to or from related parties. Related party relationships require to be disclosed where control exists, irrespective of whether there have been transactions between the related parties. Disclosure of this information allows readers to assess the extent to which the Council might have been constrained in its ability to operate independently or might have secured the ability to limit another party’s ability to bargain freely with the Council. Senior Officers and Elected Members Members of the council and senior officers have control over the Council’s financial and operating policies. They have the responsibility to adhere to a Code of Conduct, requiring them to declare an interest in matters that directly or indirectly influence, or appear to influence, their judgement or decisions taken during the course of their work. The total of councillors’ and senior officers’ remuneration allowances paid in 2024/25 are shown in the Remuneration Report on page 33. Senior Officers No senior officer holds a remunerated position outside of their Council employment. For details of Senior Officers’ interests, please check the register of interests on the Council website at: Register-of-senior-officers-interests Senior Elected Members Under the Council Code of Conduct, elected members and senior officials must declare any registered interests in any bodies where the Council itself does not have significant influence over their operations. Each member’s Register of Interest is available at Councillors - Renfrewshire Website. In 2024/25, the Council made payments totalling £6.581m (£7.979m 2023/24) to bodies where members hold a position where they have significant influence or control as listed below: 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 0.015 0.000 0.000 0.000 Public Health Scotland 0.000 0.000 0.000 0.000 5.084 0.000 0.000 0.000 Quarriers - Charity Care Organisation 4.401 (0.108) 0.107 0.000 0.423 0.000 0.000 0.000 Renfrewshire Citizens' Advice Bureau 0.599 0.000 0.000 0.000 2.401 0.000 0.000 0.000 Kibble Trust 1.520 0.000 0.000 0.000 0.056 0.000 0.000 0.000 Erskine Arts - Charity 0.061 0.000 0.000 0.000 7.979 0.000 0.000 0.000 Total 6.581 (0.108) 0.107 0.000 NB: This disclosure excludes group entities and trade union membership. Page 95 of 214
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77 Annual Accounts 2024/25 Key Related Parties: subsidiaries and associates The organisations set out in the group accounts note are those which the Council is considered to have control or influence over. For further details of the nature of group relationships, please refer to the Group Accounts and Notes from page 106. IAS 24 requires related party transactions during the year to be disclosed. This disclosure should include the nature of the transaction and any outstanding balances. Significant transactions with other public bodies are displayed below: 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 142.817 (44.052) 0.000 (26.103) Renfrewshire Health and Social Care Integration Joint Board 155.834 (49.083) 0.000 (24.186) 142.817 (44.052) 0.000 (26.103) Total 155.834 (49.083) 0.000 (24.186) Joint Ventures 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 16.819 (0.511) 0.209 (0.001) Renfrewshire Leisure Ltd trading as OneRen 16.186 (0.631) 0.274 (1.487) 0.455 0.000 0.000 0.000 Coats Observatory Trust 0.352 0.000 0.000 0.000 0.000 0.000 0.275 0.000 Park Lane Developments (Renfrewshire) LLP 0.000 0.000 0.000 0.000 0.668 (1.453) 0.000 0.000 Paisley Museum Reimagined Ltd 0.048 (0.056) 0.000 0.000 17.942 (1.964) 0.484 (0.001) Total 16.586 (0.687) 0.274 (1.487) Subsidiary 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 2.914 (1.483) 0.000 0.000 Strathclyde Partnership for Transport 2.955 (0.165) 0.000 0.000 0.332 0.000 0.000 0.000 Strathclyde Concessionary Travel Scheme Joint Committee 0.332 0.000 0.000 0.000 1.637 (0.160) 0.000 (0.962) Renfrewshire Valuation Joint Board 1.643 (0.162) 0.000 (1.493) 4.883 (1.643) 0.000 (0.962) Total 4.930 (0.327) 0.000 (1.493) Associates Page 96 of 214
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78 Annual Accounts 2024/25 Key Related Parties: Other Public Bodies Scottish Government The Scottish Government has effective control over the operations of the Council as it is responsible for providing the statutory framework within which the Council operates, provides the majority of its funding in the form of grants and prescribes the terms of many of the transactions that the Council has with other parties, such as Council Tax and Non-Domestic Rates. Significant transactions with the Scottish Government are shown in the table below: 2023/24 2023/24 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 0.000 (404.553) 0.173 0.000 Scottish Government 0.000 (452.499) 0.202 0.000 0.000 (404.553) 0.173 0.000 0.000 (452.499) 0.202 0.000 Note 27: Pension schemes accounted for as defined contribution schemes Renfrewshire Council participates in the Scottish Teachers' Superannuation Scheme. The scheme is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary. The last four-yearly valuation was undertaken as at 31 March 2024, which set the contribution rate payable from 1 April 2024 to 31 March 2026. Renfrewshire Council has no liability for other employers’ obligations to the multi-employer scheme. As the scheme is unfunded there can be no deficit or surplus to distribute on the wind-up of the scheme or withdrawal from the scheme. The scheme is an unfunded multi-employer defined benefit scheme. It is accepted that the scheme can be treated for accounting purposes as a defined contribution scheme in circumstances where Renfrewshire Council is unable to identify its share of the underlying assets and liabilities of the scheme. While the employee rate applied is variable, it will provide an actuarial yield of 9.4% of pensionable pay. At the last valuation a shortfall of £1.3bn was identified in the notional fund, which will be repaid by the increased rate of employers’ pension contribution, effective from 1 April 2024, of 26%. Based on the proportion of employer contributions paid in 2024/25, Renfrewshire Council’s level of participation in the scheme is 3.1%. The Council paid £24.806m (£21.041m in 2023/24) for employer's contributions to the Scottish Public Pensions Agency. £0.375m of expenditure (£0.401m in 2023/24) was charged to service revenue accounts in respect of “added years” pension enhancement termination benefits, representing 0.4% of teachers’ pensionable pay (0.4% in 2023/24). The estimated contribution for 2025/26 is £23.785m. Note 28: Defined benefit pension schemes 28a: Participation in pension schemes The pension scheme for teachers (the Scottish Teachers’ Superannuation Scheme) is explained in the previous note, whilst this note relates exclusively to the pension scheme for all other employees: the Local Government Pension Scheme. The Local Government Pension Scheme in Scotland (LGPS) is a funded, defined benefit, statutory occupational pension scheme. It is regulated by the Scottish Public Pensions Agency but is administered locally by fund administering authorities through regional pension funds. For Renfrewshire Council, the fund administering authority is Glasgow City Council and Page 97 of 214
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79 Annual Accounts 2024/25 the regional pension fund is the Strathclyde Pension Fund. As a funded scheme, the Council and employees pay contributions into the fund, calculated at a level intended to balance the scheme’s pension liabilities with the scheme’s investment assets. The statutory nature of the fund means that the post-employment benefits are defined and set out in law. The Strathclyde Pension Fund is a multi-employer fund, and it is possible for each employer to identify its own share of the assets and liabilities of the fund on a consistent and reasonable basis. The principal risks to the scheme are assumptions relating to longevity, inflation, and investment performance; in addition, statutory changes to the scheme. These risks are mitigated to an extent by statutory requirements limiting charges to the Council’s general fund. The Council has additional liabilities for unfunded discretionary pension payments outside the main schemes such as arrangements for the award of discretionary post-employment benefits upon early retirement. This is an unfunded defined benefit arrangement, under which liabilities are recognised when awards are made. However, there are no investment assets built up to meet these pensions liabilities, and cash has to be generated to meet actual pensions payments as they eventually fall due. 28b: Transactions relating to post- employment benefits The Council accounts for post-employment benefits in the CIES as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and accounting for investment returns on any resources set aside to meet the costs. However, the charge according to statutory regulations that is required to be made against the General Fund Balance and the Housing Revenue Account Balance is based upon the employer contributions payable by the Council to the pension fund in the year. This requires an adjustment to be made in the movement in reserves statement to remove the cost (according to generally accepted accounting practices) of post-employment benefits and replace that cost with the value of employer contributions payable to the fund in the year. The following transactions have been made in the CIES and the General Fund Balance via the movement in reserves statement during the year: Page 98 of 214
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80 Annual Accounts 2024/25 2023/24 2024/25 £m £m Included within net cost of services: 31.776 Current service cost 34.765 7.805 Past service cost/(gain) 0.665 Included within Financing and Investment income and expenditure: 57.468 Interest cost 62.127 12.265 Interest on the effect of the asset ceiling 27.231 (78.093) Expected return on scheme assets (85.344) 31.221 Total of Post-employment benefits charged to the Surplus/Deficit on the Provision of Services 39.444 Included within Other Comprehensive Income and Expenditure: (84.242) Return on Assets excluding amounts included in net interest 22.312 (20.669) Actuarial gains and losses arising on changes in Demographic Assumptions (2.179) (44.838) Actuarial gains and losses arising on changes in Financial Assumptions (196.526) 111.846 Actuarial gains and losses arising on changes in Other Assumptions (14.878) 296.851 Changes in effect of Asset Ceiling (594.551) 290.169 Total of LGPS post-employment benefits charged to the CIES (746.378) Movement in reserves statement: 258.948 Actuarial losses or (gains) (785.822) (73.493) Restriction on pension asset to Asset Ceiling 754.547 31.221 Reversal of items relating to post-employment benefits debited or credited to the Surplus/Deficit on the Provision of Services 39.444 (39.797) Employer contributions and direct payments to pensioners payable in the year (17.568) 176.879 Movement in the year on the Pension Reserve (9.399) The cumulative amount of actuarial gains and losses recognised in the CIES as at 31 March 2025 is a gain of £1,179.789m (£1,121.675m gain as at 31 March 2024). 28c: Assets and liabilities relating to post-employment benefits Renfrewshire Council's share of the defined benefit obligation (that is, the scheme liabilities) and of the scheme assets in the Strathclyde Pension Fund has been assessed by Hymans Robertson LLP, the Fund’s independent actuaries. The assessment indicates that, as at 31 March 2025, scheme assets exceeded the defined benefit obligation by £689.466m (£492.840m excess of obligations over assets as at 31 March 2024). The defined benefit obligation is valued on an actuarial basis using the “projected unit credit” method, which estimates the pensions that will be payable in future years (dependent on assumptions about mortality rates, salary levels and other factors) discounted to their present value. The discount rate used at 31 March 2025 was 5.8% based on the indicative rate of return on high quality corporate bonds. Scheme assets are valued at fair value which, in the case of marketable securities, is market value using the current bid price. Where no market price is available, the fair value of scheme assets is estimated. The valuations are based on the latest formal valuation of the Strathclyde Pension Fund which was carried out as at 31 March 2024. The common position for employers participating in the Strathclyde Pension Fund is that, based on a snapshot valuation as at 31 March 2025, a net pension asset is disclosed as a result of prevailing market conditions at that date. The net pension position of £689.466m represents an increase in asset of £196.626m between 31 March 2024 and 31 March 2025. The net pension asset has a substantial impact on the net worth of the Council as recorded in the balance Page 99 of 214
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81 Annual Accounts 2024/25 sheet). However, this surplus of scheme assets is restricted to the “asset ceiling” i.e., the net present value of future service costs less net present value of future contributions over the future working lifetime as at 31 March 2025. This has been calculated to be £0 for funded obligations. After adjusting for the asset ceiling, the balance sheet now reflects a pension liability of £65.081m, representing the unfunded obligations of the scheme. Local government legislation provides that local authorities have an obligation to meet the expenditure of the joint boards of which they are constituent members. As a consequence, Renfrewshire Council has additional liabilities arising from the pension scheme deficits of the Renfrewshire Valuation Joint Board. In accordance with accounting regulations, the group accounts include a share of the post-employment benefits transactions, defined benefit obligations and scheme assets of this joint board. Further information can be found in the annual report and accounts of each joint board. The main fund (Fund 1) of Strathclyde Pension Fund does not have an asset and liability matching (ALM) strategy. 28d: Movement in defined benefit obligation (scheme liabilities) The following is a reconciliation of the 2024/25 opening and closing balances of the present value of Renfrewshire Council’s share of the Strathclyde Pension Fund’s defined benefit obligation (that is, scheme liabilities). 2023/24 2024/25 £m £m 1,211.991 Balance at 1 April 1,297.361 31.776 Current service cost 34.765 7.805 Past service cost (including curtailments) 0.665 57.468 Interest cost 62.127 9.277 Member contributions 10.447 32.218 Actuarial losses or (gains) (213.583) Losses or (gains) on curtailment (5.157) Estimated benefits paid: unfunded (5.387) (48.017) Estimated benefits paid: other (44.813) 1,297.361 Balance at 31 March 1,141.582 Page 100 of 214
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82 Annual Accounts 2024/25 28e: Movement in scheme assets The following is a reconciliation of the 2024/25 opening and closing balances of the fair value of Renfrewshire Council’s share of the Strathclyde Pension Fund’s scheme assets. 2023/24 2024/25 £m £m 1,646.087 Balance at 1 April 1,790.201 78.093 Expected return on scheme assets 85.344 9.277 Member contributions 10.447 34.640 Employer contributions 12.181 5.157 Contributions in respect of unfunded benefits 5.387 (14.121) Effect of other experience 0.000 84.242 Actuarial (losses) or gains (22.312) (5.157) Estimated benefits paid: unfunded (5.387) (48.017) Estimated benefits paid: other (44.813) 1,790.201 Balance at 31 March 1,831.048 The expected return on scheme assets is determined by considering the expected returns available on the assets underlying the current investment policy as provided by the administering authority. Expected yields on fixed interest investments are based on gross redemption yields as at the balance sheet date. Expected returns on equity investments reflect long-term real rates of return experienced in the respective markets. The actual return on scheme assets from 1 April 2024 to 31 March 2025 was 3.5%. The fair value of the assets held in the scheme may be analysed as follows: Quoted Prices in active markets Prices not quoted in active markets Total Quoted Prices in active markets Prices not quoted in active markets Total £m £m £m £m £m £m 361.564 0.392 361.956 Equity instruments 379.323 1.184 380.507 0.000 427.395 427.395 Private Equity 0.000 423.249 423.249 0.000 140.763 140.763 Real Estate 0.000 138.149 138.149 7.352 819.550 826.902 Investment Funds 6.704 837.889 844.593 0.000 (0.001) (0.001) Derivatives 0.000 (0.002) (0.002) 2.789 30.397 33.186 Cash and cash equivalents 0.000 44.552 44.552 371.705 1,418.496 1,790.201 Fair value of scheme assets 386.027 1,445.021 1,831.048 As at 31 March 2024 As at 31 March 2025 Page 101 of 214
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83 Annual Accounts 2024/25 28f: Scheme history: analysis of defined benefit obligation and scheme assets The Council’s share of the accumulated deficit or surplus in the scheme is shown below. The analysis shows the nature of various elements of the Council’s share of the scheme’s defined benefit: As at 31 March 2024 As at 31 March 2025 £m £m (537.973) Current employee members (485.594) (53.892) Pre-local government reorganisation (1996) liabilities (49.398) (128.007) Deferred pensioners (105.970) (503.009) Pensioners (435.539) (1,222.881) Total Present Value of the Defined Benefit Obligation - Funded liabilities (1,076.501) 1,790.201 Fair value of scheme assets 1,831.048 567.320 Net Asset / (Liability) arising from funded obligations 754.547 (567.320) Restriction to asset ceiling (754.547) (67.713) Retirals from Renfrewshire Council (59.494) (6.767) Retirals pre-local government reorganisation (1996) (5.587) (74.480) Total Present Value of the Defined Benefit Obligation - Unfunded liabilities (65.081) (74.480) Net Pension Asset / (Liability) (65.081) The presentation of this table has been revised to better reflect the Unfunded Pension obligation. Basis for estimating assets and liabilities The following table shows the principal assumptions used by Hymans Robertson LLP, the Fund’s independent actuaries, to estimate the Council’s post-employment benefits transactions for 2024/25, and the Council’s share of the Strathclyde Pension Fund’s defined benefit obligation (scheme liabilities) and scheme assets as at 31 March 2025: 2023/24 2024/25 4.8% Discount rate for defined benefit obligation 5.8% 2.7% Long-term expected rate of return on scheme assets* 2.7% 3.5% Rate of increase in salaries 3.5% 2.8% Rate of increase in pensions 2.8% 2.8% Rate of inflation 2.8% Mortality assumptions (years): Longevity at age 65 for current pensioners: 19.6 Men 19.5 22.3 Women 22.3 Longevity at age 65 for future pensioners: 20.6 Men 20.6 24.2 Women 24.1 Take up of option to convert annual pension into retirement lump sum 75% For Pre-April 2009 service 75% 75% For Post-April 2009 service 75% *The expected rates of return are set equal to the discount rate as per IAS19, Page 102 of 214
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84 Annual Accounts 2024/25 The estimation of the defined benefit obligations is sensitive to the actuarial assumptions set out in the table above. The sensitivity analyses below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period and assumes for each change that the assumption analysed changes while all the other assumptions remain constant. The estimations in the sensitivity analysis have followed the accounting policies for the scheme, i.e. on an actuarial basis using the projected unit credit method. The methods and types of assumptions used in preparing the sensitivity analysis did not change from those used in the previous period. The limitations of methods and assumptions used are associated with any changes in market conditions that affect the net discount rate. These can have a significant effect on the value of the obligations reported. Impact on the Defined Benefit Obligation on the Scheme % £m 0.1% decrease in the Real Discount Rate 2% 18.971 1 year increase in the member life expectancy 4% 45.663 0.1% increase in the Salary Increase Rate 0% 1.238 0.1% increase in the Pension Increase Rate 2% 18.241 Impact on the Authority’s cash flows An objective of the Fund is to keep employers’ contributions at as constant a rate as possible. The Fund has agreed a strategy to achieve a funding rate of 100% in the longer term. Employers’ and employees’ contributions have been determined so that rates are standard across all participating employers. The rate for employer contributions has been set at 6.5% for 2024/25 to 2025/26, rising to 17.5% from 2026/27. The total contribution expected to be made by the Council to the Strathclyde Pension Fund in the forthcoming year to 31 March 2026 is £11.229m. The weighted average duration of the defined benefit obligation is 17 years. Note 29: Contingent liabilities i) The Council has been notified of a number of contractor claims for additional costs incurred on construction contracts. The Council disputes the claims, which may be referred for arbitration. The Council recognises a contingent liability for potential costs, which may be incurred to resolve this dispute. It is not considered practicable at this stage to estimate the financial effect. ii) Following two court cases, including Mrs Goodwin v Department for Education, it is expected that proposed changes to public service pension schemes will be required, to ensure that surviving same-sex spouses and civil partners receive benefits equivalent to those received by the surviving spouses of opposite-sex marriages. Strathclyde Pension Fund’s actuary estimates that the potential impact may be 0.1% of gross obligations, which equates to £1.141m for the Council. This estimate is not reflected in the Primary Financial Statements because the trigger event that would require recognition has not yet occurred. Note 30: Events after the balance sheet date Events taking place after the authorised date for issue per the balance sheet are not reflected in the financial statements or notes. Where events taking place before this date provided information about conditions existing at 31 March 2025, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. Note 31: Accounting Standards Issued not Adopted The Code requires the disclosure of information relating to the impact of an accounting change that will be required by a new standard that has been issued but not yet adopted. Page 103 of 214
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85 Annual Accounts 2024/25 The following new standards and amendments to existing standards have been published but not yet adopted by the Code: • IAS 21 The Effects of Changes in Foreign Exchange Risk issued in August 2023. • IFRS 17 Insurance Contracts, IFRS 17 replaces IFRS 4 setting out principles for recognition, measurement, presentation and disclosure of insurance contracts. There is no material impact anticipated in future years from the implementation of these standards. Note 32: Accounting Policies – Renfrewshire Council The Financial Statements for the year ended 31 March 2025 have been prepared in accordance with proper accounting practice as per section 12 of the Local Government in Scotland Act 2003. Proper accounting practice comprises the Code of Practice on Local Authority Accounting in the United Kingdom (the Accounting Code) and the Service Reporting Code of Practice, supported by International Financial Reporting Standards and recommendations made by the Local Authority (Scotland) Accounts Advisory Committee (LASAAC). They are designed to give a true and fair view of the financial performance and position of the Council and comparative figures for the previous financial year are provided. There are no significant departures from these recommendations. The accounts have been prepared under the historic cost convention, other than changes resulting from the revaluation of certain categories of non-current assets and financial instruments, and on a going concern basis. A Accruals of Expenditure and Income Activity is accounted for in the year that it takes place, not simply when cash payments are made or received. In particular: i) Revenue from the sale of goods or provision of services is recognised when the performance obligation relating to the transaction has been satisfied, and it is probable that the economic benefits or service potential associated with the transaction will flow to the Council. ii) Supplies are recorded as expenditure when they are consumed. Where there is a gap between the date supplies are received and their consumption, they are carried as inventories on the Balance Sheet. Works are charged as expenditure when they are completed, before which they are carried as assets under construction on the Balance Sheet. iii) Interest payable on borrowings and receivable on investments is accounted for on the basis of the effective interest rate for the relevant financial instrument. Interest receivable and dividend income is recognised when it is probable that the economic benefits or service potential associated with the transaction will flow to the Council. iv) Where income and expenditure have been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. Where there is evidence that debts are unlikely to be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected. v) Supplier invoices paid in the two weeks following the year-end are accrued together with specific accruals in respect of further material items provided the goods or services were received by 31 March 2025 or relate to services associated with the prior financial year. B Business Improvement District Following the formation of the Paisley First BID company on 15 January 2015, the Council has entered into an agreement to act as the billing body for the purposes of the Planning etc. (Scotland) Act 2006 and the Regulations and is responsible for the administration, collection and recovery of the BID Levy. As the Council is acting as agent for the BID company, no transactions in relation to the BID levy or BID Revenue Account are included in the CIES with the exception of any contribution made by the Council to the BID project, the costs and income related to the collection of the BID levy or any income from the BID company in relation to services provided. Page 104 of 214
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86 Annual Accounts 2024/25 C Cash and Cash Equivalents Cash is defined as cash in hand and deposits repayable on demand less overdrafts repayable on demand. Cash equivalents are defined as call accounts, money market funds and instant deposits. Fixed term deposits are not classified as cash or cash equivalents as these are held for investment purposes rather than for meeting short- term cash commitments. Charges for the Use of Assets Services are charged for the use of assets no matter how they are financed, and this charge includes a provision for depreciation where appropriate. D Contingent Assets and Liabilities Contingent assets and liabilities are not recognised in the financial statements but are disclosed as a note to the accounts where they are deemed material. E Employee Benefits Benefits payable during employment All salaries and wages earned up to 31 March 2025 are included in the Accounts irrespective of when payment was made. An accrual is made for the cost of holiday entitlements earned by employees, but not taken before the year end and which employees may carry forward into the next financial year; along with any pay inflation agreed for the year and not yet paid. Termination benefits Termination benefits are amounts payable as a result of a decision by the Council to terminate an officer’s employment before the normal retirement date or an officer’s decision to accept voluntary redundancy. They are charged on an accruals basis to the relevant service line in the CIES when the Council is demonstrably committed to either terminating the employment of an officer or making an offer to encourage voluntary redundancy. The Council is only demonstrably committed to a termination when it has a detailed formal plan for the termination, and it is without realistic possibility of withdrawal. Where termination benefits involve the enhancement of pensions, statutory provisions require the General Fund balance to be charged with the amount payable by the Council to the pension fund or pensioner in the year, not the amount calculated according to the relevant accounting standards. In the Movement in Reserves Statement, appropriations are required to and from the Pensions Reserve to remove the notional debits and credits for pension enhancement termination benefits and to replace them with debits for the cash paid to the pension fund and pensioners and any such amounts payable but unpaid at the year-end. Post-employment benefits The Council participates in two formal pension schemes: the Local Government Pension Scheme which is administered by Strathclyde Pension Fund; and the Scottish Teachers’ Superannuation Scheme. Liabilities for the Scottish Teachers’ Superannuation Scheme cannot be identified specifically to the Council; therefore, the scheme is accounted for as a defined contributions scheme. The Local Government Pension Scheme is accounted for as a defined benefit scheme in accordance with International Accounting Standard 19 (IAS19) (as revised in 2011). Renfrewshire Council's share of the net pension asset or liability in Strathclyde Pension Fund and a pension reserve are recognised in the Balance Sheet. The CIES recognises changes during the year in the pension asset or liability. Service expenditure includes pension costs based on employers' pension contributions payable and payments to pensioners in the year. Liabilities are included in the Balance Sheet on an actuarial basis using the projected unit method. Liabilities are discounted to their value at current prices using a discount rate based on the indicative rate of return on high quality corporate bonds. Assets are included in the Balance Sheet at their fair value, principally the bid price for quoted securities, and estimated fair value for unquoted securities. Page 105 of 214
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87 Annual Accounts 2024/25 F Events after the Balance Sheet date Events after the Balance Sheet date are those events that occur between the end of the reporting period and the date when the Statements are authorised for issue. There are two types of events: • Adjusting events – those that provide evidence of conditions that existed at the end of the reporting period, and the Statements are adjusted to reflect such events • Non-adjusting events – those that are indicative of conditions that arose after the reporting period, and the Statements are not adjusted. Events taking place after the date of authorisation for issue are not reflected in the Statements. G Prior Period Adjustments When items of income and expense are material, their nature and amount is disclosed separately, either on the face of the CIES or in the notes to the accounts, depending on how significant the items are to an understanding of the Council’s financial performance. Where there has been a change in accounting policy, that change will be applied retrospectively. Where there has been a change in accounting estimate, that change will be applied prospectively. Where a material misstatement or omission has been discovered relating to a prior period, that misstatement or omission will be restated unless it is impracticable to do so. H Financial Instruments Financial Assets Financial assets are classified into three categories of valuation: • At amortised cost; • At fair value through other comprehensive income – designated equity instruments; and • At fair value through profit or loss. Financial Assets Measured at Amortised Cost Financial assets measured at amortised cost are recognised on the Balance Sheet when the Council becomes a party to the contractual provisions of a financial instrument and are initially measured at fair value. They are subsequently measured at their amortised cost. Annual credits to the Financing and Investment Income and Expenditure line in the CIES for interest receivable are based on the carrying amount of the asset multiplied by the effective rate of interest for the instrument. For most of the loans made by the Council, this means that the amount presented in the Balance Sheet is the outstanding principal receivable (plus accrued interest) and interest credited to the CIES is the amount receivable for the year in the loan agreement. Any gains and losses that arise on the derecognition of an asset are credited or debited to the Financing and Investment Income and Expenditure line in the CIES. The Council has assets such as investments and debtors which are classified as financial assets measured at amortised cost. Financial Assets Measured at Fair Value through other Comprehensive Income (FVOCI) Financial assets that are measured at FVOCI are recognised on the Balance Sheet when the Council becomes party to the contractual provisions of a financial instrument and are initially measured and carried at fair value. Investment income is credited to Financing and Investment Income and Expenditure in the CIES when it becomes receivable by the Council. Where an equity instrument is designated as FVOCI, changes in fair value are posted to Other Comprehensive Income and Expenditure and are balanced by an entry in the Financial Instruments Revaluation Reserve (an unusable reserve). When the asset is derecognised, the cumulative gain or loss previously recognised in Other Comprehensive Income and Expenditure is transferred from the Financial Instruments Revaluation Reserve and recognised in the Surplus or Deficit on the Provision of Services. The Council has made an irrevocable election to designate these assets as FVOCI on the basis that they Page 106 of 214
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88 Annual Accounts 2024/25 are held for non-contractual benefits, not for trading, but for strategic purposes. Financial assets measured at fair value through profit and loss Assets are recognised on the Balance Sheet when the Council becomes a party to the contractual provisions of a financial instrument and are initially measured and carried at fair value. Where there are no fixed or determinable payments, income (e.g. dividends) is credited to the CIES when it becomes receivable by the Council. Assets values are based on the following principles: • instruments with quoted market prices – the market price • other instruments with fixed and determinable payments – discounted cash flow analysis • equity shares with no quoted market prices – independent appraisal of company valuations. Any gains and losses that arise on the derecognition of the asset are credited/debited to the Financing and Investment Income and Expenditure line in the CIES. Where fair value cannot be measured reliably, the instrument is carried at cost (less any impairment losses). Expected Credit Loss Model Where assets are identified as impaired as a result of an expected credit loss, the asset is written down and a charge made to the Financing and Investment Income and Expenditure line in the CIES. If the asset has fixed or determinable payments, the impairment loss is measured as the difference between the carrying amount and the present value of the revised future cash flows discounted at the asset’s original effective interest rate. Otherwise, the impairment loss is measured as any shortfall of fair value against the acquisition cost of the instrument (net of any principal repayment and amortisation). Financial Liabilities Financial liabilities are recognised on the Balance Sheet when the Council becomes a party to the contractual provisions of a financial instrument and initially measured at fair value and carried at their amortised cost. Annual charges to the Financing and Investment Income and Expenditure line in the CIES for interest payable are based on the carrying amount of the liability, multiplied by the effective rate of interest for the instrument. The effective interest rate is the rate that exactly discounts estimated future cash payments over the life of the instrument to the amount at which it was originally recognised. For most of the borrowings that the Council has, this means that the amount presented in the Balance Sheet is the outstanding principal repayable (plus accrued interest) and interest charged to the CIES is the amount payable for the year according to the loan agreement. Gains and losses on the repurchase or early settlement of borrowing are credited and debited to the Financing and Investment Income and Expenditure line in the Income and Expenditure Account in the year of extinguishment. However, where repurchase has taken place as part of a restructuring of the loan portfolio that involves the modification or exchange of existing instruments, the premium or discount is respectively deducted from or added to the amortised cost of the new or modified loan and the write-down to the CIES is spread over the life of the loan by an adjustment to the effective interest rate. Where premiums and discounts have been charged to the CIES, regulations allow the impact on the General Fund Balance to be spread over future years. The Council has a policy of spreading the gain/loss over the term that was remaining on the loan against which the premium was payable or discount receivable when it was repaid. The reconciliation of amounts charged to the CIES to the net charge required against the General Fund Balance is managed by a transfer to or from the Financial Instruments Adjustment Account in the Movement in Reserves Statement. Page 107 of 214
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89 Annual Accounts 2024/25 Financial Guarantees Financial guarantees are recognised at fair value assessed as the probability of the guarantees being called and the likely amount payable under the guarantees. Loans Fund The Council operates a Loans Fund and all loans raised are paid into the Fund. Advances are made to departments to finance capital expenditure during the year. Repayments to the Loans Fund are calculated using the annuity method. The local Authority (Capital Financing and Accounting) (Scotland) Regulations 2016 - loans fund accounting came into force on 1 April 2016 and replaced the statutory provisions for local authority borrowing, lending and loans funds as set out in Schedule 3 of the local Authority (Scotland) Act 1975. The regulations contain the following provisions in respect of the loans fund: • Regulation 12 places a duty on a local authority to maintain a loans fund, which is to be administered in accordance with the proper accounting practices and prudent financial management, • Regulation 13 requires a local authority to make loans fund advances each year for expenditure of or lending to third parties by, the local authority which it has determined should be met from borrowing, and • Regulation 14 requires a local authority to determine for each loans fund advance the period over which it will be repaid and the amount of each repayment. Both the period and the annual amounts must be considered by the authority to be prudent. Interest is calculated and allocated to the CIES in accordance with Local Authorities Scotland Accounts Advisory Committee’s (LASAAC) Guidance Note 2: Statement on the Calculation and Allocation of Loans Fund Interest and Expenses. Financial Instruments - Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement assumes that the transaction to sell the asset or transfer the liability take place either in the principal market for that asset or liability or, in the absence of a principal market, in the most advantageous market for the asset or liability. The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Valuation techniques used are appropriate in the circumstances and have sufficient data available, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Inputs to the valuation techniques in respect of assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, as follows: • Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that the authority can access at the measurement date • Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly • Level 3 – unobservable inputs for the asset or liability. The fair value hierarchy gives priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). I Government Grants and other Contributions Government grants and third-party contributions and donations are recognised as due to the Council when there is reasonable assurance that: Page 108 of 214
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90 Annual Accounts 2024/25 • the Council will comply with the conditions attached to the payments; and • the grants or contributions will be received. Amounts recognised as due to the Council are not credited to the CIES until conditions attaching to the grant or contribution have been satisfied. Monies advanced as grants and contributions for which conditions have not been satisfied are carried in the Balance Sheet as creditors. When conditions are satisfied, the grant or contribution is credited to the relevant service line or Taxation and Non-Specific Grant Income in the CIES. Where capital grants are credited to the CIES, they are reversed out of the General Fund Balance in the Movement in Reserves Statement. Where the grant has yet to be used to finance capital expenditure, it is posted to the Capital Grants Unapplied Account. Where it has been applied, it is posted to the Capital Adjustment Account. Amounts in the Capital Grants Unapplied Account are transferred to the Capital Adjustment Account once they have been applied. J Heritage Assets The Council’s heritage assets are held in the museums operated by OneRen (Paisley Museum and Art Gallery, Renfrew Town Hall and Museum, and The Secret Collection). The purpose of holding these assets according to the Museums’ Statement of Purpose is “to enhance public understanding of the human and natural world, principally by the use of original objects”. Heritage assets are recognised and measured (including the treatment of revaluation gains and losses) in accordance with the Council’s accounting policies on property, plant, and equipment. However, some of the measurement rules are relaxed in relation to heritage assets. The accounting policies in relation to heritage assets that are deemed to include elements of intangible heritage assets are also presented below. Purchased acquisitions are recognised at cost and donated acquisitions are recognised at valuation with reference to appropriate commercial markets. Acquisitions are made in line with the approved Acquisition and Disposal Policy. The collections of heritage assets are accounted for as follows: Art Collection The collection includes fine, contemporary and applied art works. The collection is included in the balance sheet at market value where this is available (from external valuations provided by suitably experienced and knowledgeable experts) or insurance valuations provided by the relevant collection curator. The assets within the collection are deemed to have indeterminate lives and a high residual value, and therefore no depreciation is charged. Shawl and textile design The museums hold a collection of approximately 1,000 Paisley-type shawls, and a considerable collection of original designs for shawl manufacture. The collection is included in the balance sheet at insurance valuation which is based on market values. The assets within the collection are deemed to have indeterminate lives and a high residual value, and therefore no depreciation is charged. Natural History The collection includes vertebrate and invertebrate zoology, botany, geology and microslide collections; in addition to a library of natural history books. The collection is included in the balance sheet at insurance valuation which is based on market values. The assets within the collection are deemed to have indeterminate lives and a high residual value, and therefore no depreciation is charged. Page 109 of 214
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91 Annual Accounts 2024/25 Human History The museums hold collections relating to social history, transport, science (including an important collection of astronomical apparatus in Coats Observatory), archaeology, arms, local archives, numismatics, photography, textiles, ethnography and Egyptology. The collection is included in the balance sheet at insurance valuation which is based on market values. However, where an external valuation or cost information is available, or a valuation may be secured at a cost which is not prohibitive relative to the value of the item, then the Council will recognise the asset in the balance sheet at this value. The assets within the collection are deemed to have indeterminate lives and a high residual value, and therefore, no depreciation is charged. In addition to the museum collections, there are a number of public space statues, monuments, memorials, fountains and outdoor artworks at various locations throughout Renfrewshire. These assets are not generally recognised in the balance sheet. The Council considers that obtaining valuations would involve disproportionate cost and that reliable cost or valuation information cannot be obtained for these items. This is because of the diverse nature of assets held, the number of assets and the lack of comparable data. However, where reliable cost information can be reasonably obtained, the asset will be included in the balance sheet. The carrying amounts of heritage assets are reviewed where there is evidence of impairment for heritage assets, eg where an item has suffered physical deterioration or breakage or where doubts arise as to its authenticity. Any impairment is recognised and measured in accordance with the Council’s general policies on impairment. Heritage assets will occasionally be disposed of in accordance with the approved Acquisitions and Disposal Policy (a copy of which is available). Assets are only disposed of for curatorial reasons (eg the item has deteriorated to such an extent it is no longer suitable for public display) and not with the aim of generating funds. Any proceeds of such items are accounted for in accordance with the Council’s general provisions relating to the disposal of property, plant and equipment. Disposal proceeds are disclosed separately in the notes to the financial statements and are accounted for in accordance with statutory accounting requirements relating to capital expenditure and capital receipts. Expenditure incurred in preserving individual items is recognised in the CIES. K Intangible Assets The Council accounts for purchased software licences as Intangible Assets. Expenditure on intangible assets is capitalised when it is expected that future economic benefits or service potential will flow from the intangible asset to the Council. Items costing less than £10,000 are not treated as Intangible Assets. Intangible assets are measured initially at cost. Amounts are not revalued, as the fair value of the assets held by the Council cannot be determined by reference to an active market. The depreciable amount of an intangible asset is amortised over its useful life. An asset is tested for impairment whenever there is an indication that the asset might be impaired. Any gain or loss arising on the disposal or abandonment of an intangible asset is posted to the Other Operating Expenditure line in the CIES. Where expenditure on intangible assets qualifies as capital expenditure for statutory purposes, amortisation, impairment losses and disposal gains and losses are not permitted to have an impact on the General Fund Balance. The gains and losses are therefore reversed out of the General Fund Balance in the Movement in Reserves Statement and posted to the Capital Adjustment Account and (for any sale proceeds greater than £10,000) the Capital Receipts Reserve. L Interests in Companies and Other Entities The Council has material interests in two charitable companies, two limited liability partnership and Joint Boards and Committees that have the nature of Page 110 of 214
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92 Annual Accounts 2024/25 subsidiaries and associates under accounting conventions, requiring it to prepare group accounts. In the Council’s own single-entity accounts, these interests are not recorded as the Council has no shares in, or ownership of, any of these organisations. Reflected in the Council’s single-entity balance sheet is a 50% share in an Integration Joint Board, which is recorded as an investment. M Inventories Inventories (generally consumable stock) are included in the Balance Sheet at weighted average cost. The Code requires inventories to be held at lower of cost or Net Realisable Value. Weighted average cost is used as the measure of cost. N Investment Property Investment properties are those that are used solely to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost and subsequently at fair value. Properties are not depreciated but are revalued annually according to market conditions at the year-end. Gains and losses on revaluation are posted to the Financing and Investment Income and Expenditure line in the CIES. The same treatment is applied to gains and losses on disposal. Rentals received in relation to investment properties are credited to the Financing and Investment Income line and result in a gain for the General Fund Balance. However, revaluation and disposal gains and losses are not permitted by statutory arrangements to have an impact on the General Fund Balance. The gains and losses are therefore reversed out of the General Fund Balance in the Movement in Reserves Statement and posted to the Capital Adjustment Account and (for any sale proceeds greater than £10,000) the Capital Receipts Reserve. O Leases The Council adopted International Financial Reporting Standard 16 (IFRS 16: Leases) from 1 April 2024. The main Impact of which is that for arrangements previously accounted for as operating leases, a right of use asset and a lease liability were brought into the balance sheet at 1 April 2024. Leases for items of low value, under £10,000, and leases that expire on or before the 31 March 2025 are exempt from the new arrangements. IFRS 16 has been applied retrospectively but with the cumulative effect recognised at 1 April 2024. This means that right of use assets and lease liabilities have been calculated as if IFRS 16 had always applied but recognised in 2024/25 and not by adjusting prior year figures. The Council as Lessee Right of use assets As a lessee, The Council previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Council. Under IFRS 16, the Council recognises right of use assets and corresponding lease liabilities for most lease arrangements. The Council has elected to apply recognition exemptions and will not recognise right of use assets and lease liabilities for short term leases that have a term of 12 months or less and leases of a low value, under £10,000. The Council will recognise the lease payments associated with these leases as an expense on a straight- line basis over the lease term. At transition, lease liabilities are measured at the present value of the remaining lease payments, discounted at the Council’s incremental borrowing rate as at 1 April 2024. Right of use assets are measured either at: • An amount equal to the lease liability; • Their carrying amount as if IFRS 16 had been applied since the commencement date; • For right of use assets for nominal lease payments right of use assets shall be recognised at fair value as at 1 April 2024. Any gain being the difference between that fair value and lease liability, recognised as a donated asset on the 1 April 2024. Page 111 of 214
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93 Annual Accounts 2024/25 The Council as Lessor The Council is not required to make any adjustment on transition to IFRS 16 for leases in which acts as a lessor. Finance Leases Where the Council grants a finance lease over a property or an item of plant or equipment, the relevant asset is written out of the Balance Sheet as a disposal. Lease rentals receivable are apportioned between: • a capital receipt for the disposal of the asset – applied to write down the Debtor (together with any premiums received); and • finance income (credited to the CIES). Operating Leases Where the Council grants an operating lease over a property or an item of plant or equipment, the asset is retained in the Balance Sheet. Rental income is credited to the CIES. P Overheads and Central Support Costs Where internal costs are allocated to user departments, the basis of allocation varies by originating department, for example the cost of Payroll Services may be allocated on the number of payslips per service. In many instances the allocation is time-based. Internal transactions are no longer present in the income and expenditure figures reported in the CIES. Q Service Concession Arrangements – School Buildings and Other Facilities The Council carries the assets used under PFI or Service Concession contracts on its Balance Sheet as part of Property, Plant and Equipment. The original recognition of these assets at fair value (based on the cost to purchase the property, plant and equipment) was balanced by the recognition of a liability for amounts due to the scheme operator to pay for the capital investment. The accounting treatment of the contractual arrangements are in accordance with IFRIC12 Service Concession Arrangements. R Property, Plant and Equipment Assets that have physical substance and are held for use in the production or supply of goods or services, for rental to others or for administrative purposes, and that are expected to be used during more than one financial year are classified as Property, Plant and Equipment. Recognition Expenditure on the acquisition, creation or enhancement of Property, Plant and Equipment is capitalised on an accruals basis. Expenditure that maintains but does not add to an asset’s potential to deliver future economic benefits or service potential is charged as an expense when it is incurred. Measurement Assets are initially measured at cost, comprising: • the purchase price; • any costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating. The cost of assets acquired other than by purchase is deemed to be its fair value. The valuation of work-in- progress is based on cost plus an appropriate proportion of overheads, together with attributable profits and allowances for foreseeable losses. Plant, furniture and computer equipment costing less than £9,000 are not treated as fixed assets. This de- minimis level does not apply where certain categories of these assets are grouped together and form part of the approved capital programme. Donated assets are measured initially at fair value. The difference between fair value and any consideration paid is credited to the CIES. Where gains are credited to the CIES, they are reversed out of the General Fund Balance to the Capital Adjustment Account. Page 112 of 214
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94 Annual Accounts 2024/25 Assets are then carried in the Balance Sheet using the following measurement bases: • infrastructure, community assets and assets under construction – depreciated historical cost; • council dwellings – fair value, determined using the basis of existing use value for social housing (EUV- SH). Council dwellings are valued using a Beacon Principle (adjusted vacant possession) methodology in accordance with the Royal Institution of Chartered Surveyors (RICS) guidance; • Vehicles, plant, furniture and equipment – depreciated replacement cost; • Other land and buildings – fair value, determined as the market value amount that would be paid for the asset in its existing use (existing use value – EUV). Operational assets are shown at the lower of net current replacement cost or net realisable value in existing use. Non-operational assets are shown at the lower of net current replacement cost or net realisable value. Where there is no market-based evidence of fair value because of the specialist nature of an asset, depreciated replacement cost is used as an estimate of fair value. Assets included in the Balance Sheet at fair value are revalued sufficiently regularly to ensure that their carrying amount is not materially different from their fair value at the year-end, but as a minimum every five years. The effective date of any revaluation is 31 March. Valuations are undertaken by the Council Valuer who is MRICS qualified. Increases in valuations are matched by credits to the Revaluation Reserve to recognise unrealised gains. The Revaluation Reserve contains revaluation gains recognised since 1 April 2007 only, the date of its formal implementation. Gains arising before that date have been consolidated into the Capital Adjustment Account. Fair Value Measurement The authority measures some of its non-financial assets such as surplus assets and investment properties at fair value at each reporting date. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. The authority uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Inputs to the valuation techniques in respect of assets for which fair value is measured are categorised within the fair value hierarchy as follows: • Level 1 - quoted prices in active markets for identical assets that the authority can access at the measurement date; • Level 2 - inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly; • Level 3 - unobservable inputs for the asset. Impairment Assets are assessed at each year-end as to whether there is any indication that an asset may be impaired. Where indications exist and any possible differences are estimated to be material, the recoverable amount of the asset is estimated, and an impairment loss is recognised for the shortfall. Where impairment losses are identified, they are accounted for as follows: • where there is a balance of revaluation gains for the asset in the Revaluation Reserve, the carrying amount of the asset is written down against that balance (up to the amount of the accumulated gains); • where there is no balance in the Revaluation Reserve, the carrying amount of the asset is written down against the relevant service line(s) in the CIES. Where an impairment loss is reversed subsequently, the reversal is credited to the relevant service line(s) in the CIES, up to the amount of the original loss, adjusted for depreciation that would have been charged if the loss had not been recognised. Page 113 of 214
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95 Annual Accounts 2024/25 Disposals When it becomes probable that the carrying amount of an asset will be recovered principally through a sale transaction rather than through its continuing use, it is reclassified as an Asset Held for Sale. The asset is revalued immediately before reclassification and then carried at the lower of this amount and fair value less costs to sell. Where there is a subsequent decrease to fair value less costs to sell, the loss is posted to the Other Operating Expenditure line in the CIES. Gains in fair value are recognised only up to the amount of any previously losses recognised in the Surplus or Deficit on Provision of Services. Depreciation is not charged on Assets Held for Sale. Assets that are to be abandoned or scrapped are not reclassified as Assets Held for Sale. When an asset is disposed of or decommissioned, the carrying amount of the asset in the Balance Sheet (whether Property, Plant and Equipment or Assets Held for Sale) is written off to the Other Operating Expenditure line in the CIES as part of the gain or loss on disposal. Receipts from disposals (if any) are credited to the CIES also as part of the gain or loss on disposal (i.e. netted off against the carrying value of the asset at the time of disposal). Any revaluation gains accumulated for the asset in the Revaluation Reserve are transferred to the Capital Adjustment Account. Amounts received for a disposal in excess of £10,000 are categorised as capital receipts and are credited to the Capital Receipts Reserve. Depreciation Depreciation is provided for on all Property, Plant and Equipment assets by the allocation of their depreciable amounts over their useful lives. An exception is made for assets without a determinable finite useful life, investment properties and assets that are not yet available for use (i.e., assets under construction). Deprecation is calculated on the following bases: • dwellings and other buildings – straight-line allocation over the useful life of the property of between 10 and 50 years as estimated by the Council Valuer • vehicles, plant and equipment – a percentage of the value of each class of assets in the Balance Sheet, as advised by a suitably qualified officer based on useful lives of between 3 and 30 years. • infrastructure – straight-line allocation based on useful lives of between 10 and 60 years. General Fund services are charged with depreciation where appropriate for the use of assets no matter how they are financed. Depreciation on the Council’s non- operational assets is not charged to service revenue accounts. It is however reflected in the CIES through non-distributable costs. Where an item of Property, Plant and Equipment asset has major components whose cost is significant in relation to the total cost of the item, the components are depreciated separately. Significance is determined by comparing a component’s cost against the overall cost of an asset, and a component is deemed significant if its cost is 20% or more of the total asset cost. The de- minimis threshold for componentisation is £1m. Revaluation gains are also depreciated, with an amount equal to the difference between current value depreciation charged on assets and the depreciation that would have been chargeable based on their historical cost being transferred each year from the Revaluation Reserve to the Capital Adjustment Account. S Provisions Provisions are made where an event has taken place that gives the Council a legal or constructive obligation that probably requires settlement by a transfer of economic benefits or service potential, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to the appropriate service line in the CIES. When payments are eventually made, they are charged to the provision carried in the Balance Sheet. Estimated settlements are reviewed at the end of each financial year. Page 114 of 214
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96 Annual Accounts 2024/25 T Reserves The Council has various reserve funds. The two capital reserves arising from the system of capital accounting are the Revaluation Reserve and the Capital Adjustment Account. The former of these represents the store of gains on revaluation of fixed assets not yet realised through sales and the latter relates to amounts set aside from capital resources to meet past expenditure. The two accounting reserves arising from the restatement of financial instruments to “fair value” are the Financial Instruments Adjustment Account and the Financial Instruments Revaluation Reserve. The Financial Instruments Adjustment Account is a balancing account to allow for differences in statutory requirements and proper accounting practices for lending & borrowing by the Council. The Financial Instruments Revaluation Reserve is a store of gains or losses on revaluation of the investments of the Insurance Fund not yet realised through sales. The Pension Reserve arises from the IAS19 accounting disclosures for retirement benefits and recognises the Council's share of actuarial gains and losses in the Strathclyde Pension Fund and the change in the Council’s share of the Pension Fund net liability chargeable to the CIES. U Revenue Expenditure Funded from Capital under Statute Expenditure incurred during the year that may be capitalised under statutory provisions but does not result in the creation of a non-current asset has been charged as expenditure to the relevant service in the CIES in the year. Where the Council has determined to meet the cost of this expenditure from existing capital resources or by borrowing, a transfer in the Movement in Reserves Statement from the General Fund Balance to the Capital Adjustment Account then reverses out the amounts charged so that there is no impact on the level of Council Tax. V Value Added Tax Income and Expenditure excludes any amount relating to Value Added Tax (VAT), as all VAT is payable to HM Revenue & Customs and all VAT is recoverable from them. Page 115 of 214
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97 Annual Accounts 2024/25 Note 33: Judgements in Applying Accounting Policies In applying the accounting policies, the Council has had to make certain judgements about complex transactions or those involving uncertainty about future events. Where a judgement has been made, this is referred to in the relevant note to the core financial statements; however, a summary of those with the most significant effect is detailed below. Item Judgement Public Sector Funding The Council has assessed that anticipated levels of local government funding over the medium term do not provide sufficient indication that the assets of the Council might be impaired as a result of a need to close facilities and reduce levels of service provision. This is discussed further in the Management Commentary. Service Concession Arrangements The Council is deemed to control the services provided under the agreement for the provision of schools. The accounting policies for PFI schemes and similar arrangements have been applied and the assets under the contract are included within Property, Plant and Equipment on the Council’s Balance Sheet. Bargeddie Waste Facility is shared by a number of Scottish councils with North Lanarkshire Council taking the lead. The apportionment of costs and liabilities over the life of the facility, which was funded by a service concession agreement, has been agreed between the councils involved and the local external audit team. Note 15 provides further details. Impairment of financial assets In line with IFRS9: Financial Instruments, the approach to impairment of financial assets depends on the type of asset being assessed, either using a ‘historic loss rate’ approach, or a ‘probability of default’ approach, whereby historical experience of default rates across a similar class of instrument and credit rating is used to estimate 12-month expected credit losses. Further detail can be found at Note 22: Financial Instruments. Determination of Contingent Liabilities and Provisions A Provision is defined by the Code as a liability of uncertain timing or amount. A Contingent Liability is a possible obligation whose timing or value cannot be reliably measured and the Council makes a judgement on which is appropriate based on information available at the Balance Sheet date. Rolling Valuation Programme The Council employs professional valuers who are registered with the Royal Institution of Chartered Surveyors. These valuers carry out regular reviews of the value of assets reported in the Balance Sheet and any significant changes in value are processed as asset revaluations or impairments. These values are based on their professional opinion using available market information at the time of assessment. Due to the high number of assets, a rolling programme of asset valuation has been established for many years, with the aim of revaluing one fifth of the portfolio each financial year. This carries inherent risk that assets not valued in-year have been subject to material changes in value. The highest risk in this respect relates to assets valued using the Depreciated Replacement Cost (DRC) method, which for Renfrewshire Council, includes schools and leisure centres. To mitigate for this risk, a desktop exercise was undertaken for 2024/25 accounts to estimate the potential increase in value of all DRC assets not valued in-year and reflected any material adjustment required in these accounts. Page 116 of 214
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98 Annual Accounts 2024/25 Note 34: Assumptions made about the future The Annual Accounts contains estimated figures that are based on assumptions made by the Council about the future or that are otherwise uncertain. Estimates are made taking into account historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates. The items in the Council’s Balance Sheet as at 31 March 2025 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows: Item Uncertainty Effect if results differ from assumption Pensions Liability Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. A firm of consulting actuaries is engaged to provide the Council with expert advice about the assumptions to be applied. The carrying value of the net pension asset was £689.5m, before the asset cap, as at 31 March 2025 (asset of £492.9m as at 31 March 2024). Further detail can be found in Note 28: Defined Benefit Pension Schemes. The effects on the net pension asset of changes in individual assumptions can be measured. For instance, a 0.1% decrease in the discount rate assumption would result in a decrease in the pension asset of £22.0m. However, the assumptions interact in complex ways. At 31 March 2025, the Council’s actuaries advised that (before the asset cap is applied) the net pensions asset had increased by £14.8m as a result of estimates being corrected as a result of experience; increased by £2.2m as a result of updating demographic assumptions; and increased by £196.5m as a result of updating financial assumptions. Debt Impairment At 31 March 2025, the Council had a balance for long and short term debtors (including council tax, rent arrears and trade debtors) of £64.5m. A review of significant balances suggested that an impairment of doubtful debts of £43.2m was appropriate. However, in the current economic climate it is not certain that such an allowance would be sufficient. Over 2024/25, the principal debt impairment increases related to Council Tax and Other Entities & Individuals, which increased by £2.7m. Based on experience, the bad debt provision is considered adequate; however, if collection rates were to deteriorate, a 10% increase in the amount of potential impairment losses would require an additional £4.3m to be set aside as an allowance. Page 117 of 214
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99 Annual Accounts 2024/25 Common Good Funds The Common Good Funds comprise land granted to a Burgh by the Crown; further grants of land and buildings, mainly in the late 19th and early 20th century by local industrialists and other landowners for the common good of the inhabitants of the Burgh; and rental income and sale proceeds from such land. The bulk of the Paisley Common Good was granted to the Burgh of Paisley by the King Charles II Charter, dated 27 and 28 July 1666, and has been administered by the Burgh and its successors since that date. The bulk of the Renfrew Common Good was granted to the Royal Burgh of Renfrew by the Queen Anne Charter, dated 7 August 1703, and again has been administered by the Burgh and its successors since that date. Income and expenditure statement Paisley Johnstone Renfrew Total £m £m £m £m Expenditure 0.247 0.000 0.853 1.100 Income (0.166) 0.000 (0.672) (0.838) (Surplus)/Deficit for the year 0.081 0.000 0.181 0.262 (Surplus)/Deficit Brought Forward (6.373) (0.052) (36.180) (42.605) Accumulated (Surplus)/Deficit at 31 March 2024 (6.292) (0.052) (35.999) (42.343) Income and Expenditure Statement for the Year Ending 31 March 2025 Paisley Johnstone Renfrew Total £m £m £m £m Expenditure 0.260 0.000 0.786 1.046 Income (0.534) 0.000 (3.261) (3.795) (Surplus)/Deficit for the year (0.274) 0.000 (2.475) (2.749) (Surplus)/Deficit Brought Forward (6.099) (0.052) (33.703) (39.854) Accumulated (Surplus)/Deficit at 31 March 2023 (6.373) (0.052) (36.178) (42.603) Income and Expenditure Statement for the Year Ending 31 March 2024 Balance Sheet Paisley Johnstone Renfrew Total £m £m £m £m Tangible Fixed Assets 0.764 0.000 13.110 13.874 Heritage Assets 0.063 0.046 0.109 0.218 Investments 5.019 0.000 19.194 24.213 Debtors 0.000 0.000 0.020 0.020 Short-term deposits 0.452 0.006 3.591 4.049 Total assets 6.298 0.052 36.024 42.374 Creditors: Amounts Falling Due Within One Year (0.005) 0.000 (0.026) (0.031) Net Assets 6.293 0.052 35.998 42.343 Income Funds (3.551) (0.036) (21.118) (24.705) Revaluation reserve: Investments (1.307) 0.000 (4.602) (5.909) Revaluation reserve: Fixed Assets (1.435) (0.016) (10.278) (11.729) Total Reserves (6.293) (0.052) (35.998) (42.343) Balance Sheet as at 31 March 2025 Page 118 of 214
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100 Annual Accounts 2024/25 Balance Sheet as at 31 March 2024 Paisley Johnstone Renfrew Total £m £m £m £m Tangible Fixed Assets 0.846 0.000 13.571 14.417 Heritage Assets 0.063 0.046 0.109 0.218 Investments 5.098 0.000 19.502 24.600 Debtors 0.000 0.000 0.133 0.133 Short term deposits 0.371 0.006 2.892 3.269 Total assets 6.378 0.052 36.207 42.637 Creditors: Amounts Falling Due Within One Year (0.005) 0.000 (0.027) (0.032) Net Assets 6.373 0.052 36.180 42.605 Income Funds (3.629) (0.036) (21.330) (24.995) Revaluation reserve: Investments (1.309) 0.000 (4.570) (5.879) Revaluation reserve: Other Fixed Assets (1.435) (0.016) (10.280) (11.731) Total Reserves (6.373) (0.052) (36.180) (42.605) Accounting Policies and Note Accounting Policies adopted for the Common Good are the same as those adopted for Renfrewshire Council except for the application of IAS 16. IAS 16 requires that assets be depreciated and that the charge for depreciation be set against and surplus in the Income and Expenditure account. In addition, IAS 16 requires any decreases in the value of assets to be recognized in the Income and Expenditure account, unless there is a previous increase in the value of the asset held in the Revaluation Reserve. Conversely, any increases in the value of assets are to be recognized in the surplus or deficit in the Income and Expenditure account, to the extent that it reverses a decrease of the same asset previously recognized in the Income and Expenditure account. The Council is required to make arrangements for the proper administration of its financial affairs and to ensure that one of its officers has the responsibility for the administration of those affairs. The Director of Finance and Resources has been designated as that officer in Renfrewshire Council. They manage the affairs of the Council to secure the economic, efficient, and effective use of resources and safeguard its assets and those of any charitable trust it controls. Given that the Common Good is owned by the Council, these specific provisions are supplemented by the general provisions relating to the administration of local authority monies, i.e., the duty to obtain best value. Income to the Common Good Funds is solely from investment returns (both financial investments and property rental income) and bank interest; no donations to the Funds are solicited. The only other source of income, which arises periodically, is from the sale of fixed assets. The investment performance of the Common Good Funds is monitored regularly by Council officers and is reported bi- annually to the Investment Review Board, which is comprised of five cross-party elected members. The minutes of the Investment Review Board are submitted to the Finance, Resources and Customer Services Policy Board, whose meetings are held in public. In turn, the minutes of this Board are submitted to the full Council for ratification. Therefore, all elected members are kept informed of both the performance of the funds and any decision regarding the operation of the Funds, which would be made by the Finance, Resources and Customer Services Policy Board. Revaluation adjustments related to investments are included in Income within the CIES and were £0.079m for Paisley Common Good and £0.307m for Renfrew Common Good. Page 119 of 214
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101 Annual Accounts 2024/25 Housing Revenue Account Income and expenditure statement The Housing Revenue Account (HRA) reflects a statutory obligation to maintain a revenue account for local authority housing provision in accordance with the Housing (Scotland) Act 1987. The Housing Revenue Account income and expenditure statement shows the economic cost in the year of providing housing services in accordance with generally accepted accounting practices, rather than the amount to be funded from rents and government grants. Councils charge rents to cover expenditure in accordance with regulations; this may be different from the accounting cost. The increase or decrease in the year, on the basis on which rents are raised, is shown in the movement on the Housing Revenue Account statement. 2023/24 2024/25 £m £m 22.753 Repairs and maintenance 22.179 13.560 Supervision and management 15.114 31.442 Depreciation and impairment of non-current assets 32.202 0.900 Increase/(Decrease) in the allowance for bad debts (0.058) 2.709 Other expenditure 3.810 71.364 Total Expenditure 73.247 (50.701) Dwelling rents (53.993) (1.141) Non-dwelling rents (1.120) (1.864) Other income (1.808) (53.706) Total Income (56.921) 17.658 Net Cost of HRA services as included in the CIES 16.326 HRA share of the operating income and expenditure included in the CIES: (0.157) (Gain)/Loss on sale of HRA non-current assets 0.018 3.406 Interest payable and similar charges 3.137 (2.787) Interest and investment income (1.850) (0.050) Pensions interest cost and expected return on pensions assets 1.353 (2.066) Taxation and non specific grant income (2.112) 16.004 Deficit for the year on HRA services 16.872 Movement on the Housing Revenue Account statement This statement shows the movement in the year on the Housing Revenue Account (HRA) Balance. The surplus or deficit for the year on the HRA income and expenditure statement represents the true economic cost of providing the Council’s HRA services, more details of which are shown in the HRA income and expenditure statement itself. The adjustments between accounting basis and funding basis under regulations detail the adjustments that are made to the HRA income and expenditure, as recognised by the Council in the year in accordance with proper accounting practice, to the statutory amounts required to be charged to the HRA Balance for dwellings rent setting purposes. An analysis of these adjustments can be found in Note 6: Adjustment between accounting basis and funding basis under regulation on page 49. Page 120 of 214
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102 Annual Accounts 2024/25 2023/24 2024/25 £m £m (6.497) Balance on the HRA at 1 April (6.164) 16.004 Deficit for the year on the HRA income and expenditure statement 16.872 (0.839) Adjustments between accounting basis and funding basis under statute (2.731) (14.832) Adjustments to Usable Reserves permitted by accounting standards (14.910) 0.333 Net (Increase)/Decrease before transfers to or from reserves (0.769) (6.164) Balance on the HRA at 31 March (6.933) Notes to the Housing Revenue Account income and expenditure statement The number and types of dwelling in the Council’s housing stock The Council was responsible for managing 12,078 dwellings during 2024/25 (12,305 in 2023/24). The following shows an analysis of these dwellings by type. The figures below exclude void initiative properties. Number Average weekly rent Type of dwelling Number Average weekly rent 418 £67.46 One-apartment 419 £70.22 3692 £78.62 Two-apartment 3,594 £84.83 5905 £91.75 Three-apartment 5,773 £99.00 2074 £105.12 Four-apartment 2,078 £111.22 216 £113.82 Five-apartment 214 £120.08 12,305 Total 12,078 As at 31 March 2024 As at 31 March 2025 Other information Dwellings Non-Dwellings Total as at 31 March 2025 Total as at 31 March 2024 £m £m £m £m Void Rent Loss 2.127 0.334 2.461 2.967 Rental Income Arrears 3.536 0.648 4.184 5.048 Provision for uncollectable rent arrears 2.962 0.606 3.568 3.818 Corporate and Democratic Core costs 0.033 0.038 Page 121 of 214
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103 Annual Accounts 2024/25 Council Tax Income Account The Council Tax income account shows the gross income raised from Council Taxes levied and deductions made under statute. Councils raise taxes from residents through Council Tax, which is a tax linked to property values. The Council Tax Reduction Scheme represents a discount introduced across Scotland following the abolition of Council Tax Benefits as part of the UK government’s Welfare Reform programme. The resultant net income is transferred to the Council’s CIES. 2023/24 2024/25 £m £m 131.897 Gross council tax levied 132.893 (18.072) Other discounts and reductions (17.658) (13.865) Council tax reduction scheme (13.666) (3.450) Write-off of uncollectable debts and allowance for impairment (3.387) (0.982) Adjustment to previous years’ community charge and council tax (0.481) 95.528 Transfer to the Comprehensive Income and Expenditure Statement 97.701 Calculation of the Council Tax Dwellings are valued by the Assessor and placed within valuation bands ranging from the lowest “A” to the highest “H”. The band D Council Tax charge is calculated using the Council Tax base, and this in turn fixes the charge for each of the other bands, which are based on pre-determined proportions relative to the band D charge. The band D charge for 2024/25 was £1,436.17 (£1,436.17 in 2023/24). 2023/24 2024/25 £ £ 957.45 A 957.45 1,117.02 B 1,117.02 1,276.60 C 1,276.60 1,436.17 D 1,436.17 1,886.97 E 1,886.97 2,333.78 F 2,333.78 2,812.50 G 2,812.50 3,518.62 H 3,518.62 Council Tax Band If a property is occupied by only one person over 18, a discount of 25% is applied. Since 15 July 2016, unoccupied and unfurnished properties have been exempted from Council Tax for the first six months. A discount of 10% is then available for the next six months and 100% additional Council Tax levy is then payable for as long as the property remains empty, although the 10% discount may be extended by a further 12 months if the property is being actively marketed for sale or let. Certain persons are disregarded for Council Tax purposes, including students, people who are in detention and those who are severely mentally impaired. Reductions in Council Tax are available for people with disabilities. Page 122 of 214
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104 Annual Accounts 2024/25 Charges for water and sewerage services are the responsibility of Scottish Water. Renfrewshire Council collects total monies and makes a precept payment to Scottish Water on the basis of collection levels based on a pre-determined formula. The figures below exclude the water and sewerage charges. Calculation of the Council Tax base The Council Tax base is the number of chargeable dwellings across all valuation bands (adjusted for dwellings where discounts apply), after providing for non-payment, expressed as an equivalent number of band D dwellings. Number of dwellings Number of exemptions Disabled relief Discounts Council Tax Reduction Total equivalent dwellings Ratio to Band D 2024/25 Band D equivalent 2023/24 Band D equivalent 13,321 2,070 6 1,902 3,604 5,786 0.67 3,857 3,987 25,909 1,585 47 3,358 5,596 15,374 0.78 11,958 12,189 15,450 543 51 1,667 2,076 11,163 0.89 9,923 9,970 13,659 318 50 1,287 826 11,258 1.00 11,258 11,219 11,693 197 80 775 440 10,248 1.31 13,465 13,490 7,205 79 47 325 137 6,633 1.63 10,779 10,671 4,497 90 16 155 59 4,178 1.96 8,182 7,933 203 5 1 9 2 186 2.45 456 463 91,937 Band A dwellings subject to disabled relief 6 8 Class 17 and 24 dwellings 70 73 Sub-total 69,954 70,003 Less: Provision for non-payment and future award of discounts and reliefs (2,098) (3,780) Council Tax Base 67,856 66,223 Non-Domestic Rates Income Account This account is an agent’s statement that reflects the statutory obligation for those councils who issue bills to non- domestic rate payers to maintain a separate non-domestic rate account. The account shows the rates collected from non-domestic rate payers during the year. Any difference between the rates collected and the amount the Council is guaranteed to receive under the national pooling arrangements is adjusted via the Scottish Government's general revenue grant to the Council. Non-domestic rate income is redistributed from the national non-domestic rate pool in proportions based on the prior year mid-year income returns net of prior year adjustments. In 2012/13 the Scottish Government introduced the Business Rates Incentivisation Scheme (BRIS) which allows councils, where an agreed target income figure is exceeded, to retain 50% of the ‘above target’ income. 2023/24 2024/25 £m £m 143.620 Gross rates levied 146.060 (23.339) Reliefs and other deductions (26.998) (2.015) Write-off of uncollectable debts and allowance for impairment (1.840) 118.266 Net Non-Domestic Rates income 117.222 (9.550) Adjustment to previous years’ non-domestic rates (10.047) 22.606 Contribution (to)/from the National Non-Domestic Rate pool 0.330 131.322 Transfer to the Comprehensive Income and Expenditure Statement 107.505 Page 123 of 214
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105 Annual Accounts 2024/25 The nature and amount of each rate fixed The non-domestic rates charge for each subject is determined by the rateable value placed upon it by the Assessor, multiplied by the rate per pound (the “rate poundage”) set each year by the Scottish Government. For 2024/25 the charge was 49.8 pence in the pound, with a 4.7 pence supplement for properties with a rateable value over £51,000 and a 6.1 pence supplement for properties with a rateable value above £100,000. Under the Small Business Bonus Scheme (SBBS), the following has applied from 2023/24 onwards, relief is available to businesses where the combined rateable value of all business premises is £35,000 or less and the rateable value of individual premises is £20,000 or less. Properties with a total rateable value up to and including £12,000 are entitled to a 100% reduction in their business rates. For those properties with a rateable value between £12,001 and £20,000 relief will be tapered. Relief will taper from 100% to 25% for those properties with rateable values between £12,001 and £15,000 and from 25% to 0% for those properties with rateable values between £15,001 to £20,000. Analysis of Renfrewshire Council’s rateable values 2024/25 £m 104.357 47.472 31.476 1.593 102.347 287.245 (8.678) 278.567 (1.374) 277.193Net Rateable Value at 31 March Analysis of Rateable Values Commercial Industrial and freight transport Education and public service Communications Others Rateable Value at 1 April Adjustments (Full Year Rateable Value) Less: Wholly Exempt Subjects Rateable Value at 31 March Page 124 of 214
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106 Annual Accounts 2024/25 Group Accounts Group Comprehensive Income and Expenditure Statement This statement shows the accounting cost of providing services and managing operations during the year. It includes, on an accruals basis, all day-to-day expenses and related income. The statement shows the accounting cost in accordance with generally accepted accounting practices, rather than the cost according to the statutory regulations that specify the net expenditure that councils need to take into account when setting the annual Council Tax charge. The required adjustments between accounting basis and funding basis under regulations are shown in the group movement in reserves statement. Gross expenditure Gross income Net expenditure Note Gross expenditure Gross income Net expenditure £m £m £m £m £m £m 298.501 (39.097) 259.404 333.440 (19.481) 313.959 251.324 (142.398) 108.926 258.474 (145.277) 113.197 105.680 (59.449) 46.231 Finance and Resources 108.775 (58.981) 49.794 52.784 (18.136) 34.648 53.787 (17.330) 36.457 20.629 (14.947) 5.682 Miscellaneous Services 13.427 (12.896) 0.531 144.335 (44.290) 100.045 Adult Services 186.382 (73.758) 112.624 873.253 (318.317) 554.936 954.285 (327.723) 626.562 0.000 (0.302) (0.302) (Gain)/Loss on the disposal of non-current assets 0.000 (0.057) (0.057) 21.333 (17.771) 3.562 Financing and investment income and expenditure G6 25.778 (6.570) 19.208 0.000 (513.914) (513.914) Taxation and non-specific grant income 3 0.000 (562.381) (562.381) 894.586 (850.304) 44.282 980.063 (896.731) 83.332 0.796 G3 (1.749) 45.078 81.583 (34.155) (86.295) (1.993) G15 0.028 182.853 (41.014) 0.334 G3 (1.393) 147.039 Other comprehensive (income) and expenditure (128.674) 192.117 Total comprehensive (income) and expenditure (47.091) Share of other comprehensive (income) and expenditure of associates and joint ventures Actuarial (gain)/loss on pension assets and liabilities 2023/24 (restated) 2024/25 Children’s Services Chief Executive’s Service Cost of Services Deficit/(Surplus) on the Provision of Services Share of the (surplus) / deficit on the provision of services by associates and joint ventures Group Deficit/(Surplus) (Surplus)/Deficit on the revaluation of non- current assets (Surplus)/Deficit from investments in equity instruments designated as Fair Value through Other Comprehensive Income Environment, Housing and Infrastructure Figures shown in brackets represent income or gains and figures without brackets represent expenditure or losses. Page 125 of 214
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107 Annual Accounts 2024/25 Group Movement in Reserves Statement The group movement in reserves statement shows the movement in the year on the different reserves held by the Council's group, analysed into the Council's usable reserves, the Council's unusable reserves and the Council's share of the reserves of the subsidiaries, associates, and joint ventures within the group. 2024/25 Council’s Usable Reserves Council’s Unusable Reserves Council’s Total Reserves Council’s share of Reserves of Subsidiaries, Associates and Joint Ventures Total Reserves Note £m £m £m £m £m Balance at 1 April 2024 222.217 1,302.619 1,524.836 131.707 1,656.543 Movement in reserves during the year Total Comprehensive Income and Expenditure (69.197) 117.512 48.315 (1.224) 47.091 Adjustments between Group accounts and Council accounts G5 (15.959) 0.000 (15.959) 15.959 0.000 Adjustments to Usable Reserves permitted by accounting standards 7 0.000 0.000 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 13.901 (13.901) 0.000 0.000 0.000 Adjustments between accounting basis and funding basis under regulations 6 84.233 (84.233) 0.000 0.000 0.000 Increase / (Decrease) in year 12.978 19.378 32.356 14.735 47.091 Balance at 31 March 2025 235.195 1,321.997 1,557.192 146.442 1,703.634 Comparative movements in 2023/24 (restated) Council’s Usable Reserves Council’s Unusable Reserves Council’s Total Reserves Council’s share of Reserves of Subsidiaries, Associates and Joint Ventures Total Reserves Note £m £m £m £m £m Balance at 1 April 2023 236.051 1,488.674 1,724.725 123.935 1,848.660 Movement in reserves during the year Total Comprehensive Income and Expenditure (31.156) (152.238) (183.394) (8.723) (192.117) Adjustments between Group accounts and Council accounts G5 (16.495) 0.000 (16.495) 16.495 0.000 Adjustments to Usable Reserves permitted by accounting standards 36.188 (36.188) 0.000 0.000 0.000 Transfers to / (from) other statutory reserves 7 0.000 0.000 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 1.597 (1.597) 0.000 0.000 0.000 Adjustments between accounting basis and funding basis under regulations 6 (3.968) 3.968 0.000 0.000 0.000 Increase / (Decrease) in year (13.834) (186.055) (199.889) 7.772 (192.117) Balance at 31 March 2024 222.217 1,302.619 1,524.836 131.707 1,656.543 Page 126 of 214
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108 Annual Accounts 2024/25 Group Balance Sheet The group balance sheet shows the value as at 31 March 2025 of the assets and liabilities recognised by the Council. The net assets of the Council’s group are matched by the reserves held by the group. Reserves are reported in two categories: usable reserves, which are those reserves that the group may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations; and unusable reserves, comprising those that the group is not able to use to provide services. This category includes reserves that hold unrealised gains/losses in the value of assets where amounts would only become available to provide services if the assets are sold, and reserves that hold timing differences shown as ‘adjustments between accounting basis and funding basis under regulations’ in the group movement in reserves statement. As at 31 March 2024 (restated) As at 31 March 2025 £m Note £m 1,873.970 Property, plant and equipment G10 1,971.056 44.404 Heritage assets G11 44.404 0.415 Investment property G9 0.409 1.724 Intangible assets 13 1.189 28.921 Long-term investments G15 28.604 54.209 Investments in associates and joint ventures G3 57.351 2.090 Long-term debtors G15 2.002 31.788 Other long-term assets 41.941 2,037.521 2,146.956 0.100 Assets held for sale 12 2.492 67.755 Short-term investments G15 17.534 1.352 Inventories 1.120 67.407 Short-term debtors G12 62.628 31.422 Cash and cash equivalents G15 7.515 168.036 91.289 (64.348) Short-term borrowing G15 (85.805) (82.552) Short-term creditors G13 (69.375) (0.721) Short-term provisions 21 (0.242) (147.621) (155.422) (63.352) Long-term creditors 20 (76.664) (4.630) Long-term provisions 21 (5.394) (258.931) Long-term borrowing G15 (232.050) (74.480) Other long-term liabilities (65.081) (401.393) (379.189) Alastair MacArthur 1,656.543 1,703.634 (252.201) Usable reserves G7 (264.668) (1,404.342) Unusable reserves G8 (1,438.966) (1,656.543) (1,703.634) Director of Finance and Resources Total reserves Long-term assets Current assets Current liabilities Long-term liabilities Net assets The unaudited accounts were issued on 26 June 2025. Page 127 of 214
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109 Annual Accounts 2024/25 Group Cashflow Statement The group cash flow statement shows the changes in cash and cash equivalents of the Council’s group during the year. It shows how the Council generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Council are funded by way of taxation and grant income or from the recipients of services provided by the Council. Investing activities represent the extent to which cash outflows have been made for resources that are intended to contribute to the Council’s future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (that is, borrowing) to the Council. The Council’s share of the cash flows of its associates and joint ventures is disregarded for the purpose of this statement because the Council’s share of the associates’ and joint ventures’ reserves is unusable and cannot be used to fund services. 2023/24 (restated) 2024/25 £m £m (45.078) Group surplus/(deficit) (81.583) 88.377 Adjustment for non-cash movements 138.293 (30.658) Adjustments for items included in the group surplus/deficit that are investing and financing activities (25.010) 12.641 Net cash flows from operating activities 31.700 1.371 Net cash flows from investing activities (48.008) 3.899 Net cash flows from financing activities (7.599) 17.911 Net increase/(decrease) in cash and cash equivalents (23.907) 13.511 Cash and cash equivalents at the beginning of the reporting period 31.422 31.422 Cash and cash equivalents at the end of the reporting period 7.515 Notes to the Group Accounts The Council’s share of Group entities is reviewed on an annual basis and some prior year figures are adjusted as a result, when compared to the prior year audited accounts. Note G1: Details of the group’s combining entities Renfrewshire Council is represented on the board of a number of organisations. The extent of the Council’s controlling interest has been reviewed in determining those entities that should be consolidated and incorporated within the group accounts. Those organisations, which have a significant impact on the Council’s operations, are listed below. The accounting period for all of these bodies is the year to 31 March 2025. In addition to the information included in the group accounts on the preceding pages the accounting regulations require specific disclosures about the combining entities and the nature of their business. OneRen, the Paisley, Renfrew and Johnstone Common Good Funds, Paisley Museum Reimagined Limited, Park Lane Developments (Renfrewshire) LLP and the Coats Observatory Trust administered by Renfrewshire Council (as sole trustee) are treated as subsidiaries in the Council’s group accounts, with assets, liabilities, reserves, income and expenses being consolidated line-by-line. AMIDS (Renfrewshire) LLP is a joint venture arrangement. Page 128 of 214
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110 Annual Accounts 2024/25 Renfrewshire Leisure Limited, trading as OneRen, is a company limited by guarantee formed in 2014 and registered as a charity in Scotland. Its principal place of business is the Lagoon Leisure Centre, 11 Christie Street, Paisley PA1 1NB. The charity provides leisure and culture facilities within Renfrewshire Council’s area to the general public and operates ten leisure centres within Renfrewshire plus a range of cultural service buildings, libraries and community halls. The objectives of the charity are to provide facilities for recreation, sport, cultural and other leisure activities for the benefit of the community in Renfrewshire. Any surplus generated by the charity is applied solely to its continuation and development. The accounts of the charity are published separately and may be obtained from the Chief Executive, Lagoon Leisure Centre, 11 Christie Street, Paisley PA1 1NB. The group comprehensive income and expenditure statement (CIES) includes total net comprehensive income for the year of £11.240m (2023/24 £4.377m restated) for OneRen, total net comprehensive expenditure for the year of £0.262m (2023/24 net comprehensive income of £2.751m) for the Paisley, Renfrew and Johnstone Common Good Funds, total net comprehensive income for the year of £0.227m (2023/24 net comprehensive expenditure of £0.182m restated) for Park Lane Developments (Renfrewshire) LLP, total net comprehensive income for the year of £0.036m (2023/24 £1.501m) for Paisley Museum Reimagined Limited and total net comprehensive income for the year of £0.352m (2023/24 £0.455m restated) for the Coats Observatory Trust. The group balance sheet includes net assets of £43.582m (2023/24 £32.342m restated) for OneRen, net assets of £42.343m (2023/24 £42.605m) for the Common Good Funds, net assets of £0.121m (2023/24 net liabilities of £0.106m restated) for Park Lane Developments (Renfrewshire) LLP, net assets of £1.200m (2023/24 £1.164m) for Paisley Museum Reimagined Limited and net assets of £1.845m (2023/24 £1.493m restated) for the Coats Observatory Trust. Strathclyde Concessionary Travel Scheme Joint Committee . comprises the twelve councils in the west of Scotland and oversees the operation of the concessionary fares scheme for public transport within its area. The costs of the scheme are met by a combination of funding from the twelve constituent councils and by direct grant funding from the Scottish Government. Strathclyde Partnership for Transport administers the scheme on behalf of the committee. In 2024/25, Renfrewshire Council contributed £0.332m or 8.11% of the committee’s estimated running costs (2023/24 £0.332m or 8.02%) and its share of the year-end net asset was £0.303m (2023/24 £0.417m restated) and is included in the group balance sheet. Copies of its accounts may be obtained from the Treasurer to Strathclyde Concessionary Travel Scheme, Strathclyde Partnership for Transport, 131 St. Vincent Street, Glasgow G2 5JF. Strathclyde Partnership for Transport was formed on 1 April 2006 as the successor to the Strathclyde Passenger Transport Authority. It is a joint committee of the twelve councils in the west of Scotland. In association with the related strategic development committees, the partnership’s remit includes the promotion of joint working to set out the policy framework for achieving the most effective management, development and integration of the transport network across boundaries in the medium to longer term through the Regional Transport Strategy. Renfrewshire Council contributed £2.955m or 8.22% to the committee’s estimated running costs in 2024/25 (2023/24 £2.914m or 8.02%) and its share of the year-end net asset was £44.072m (2023/24 £40.184m restated) and is included in the group balance sheet. Copies of its accounts may be obtained from the Treasurer to Strathclyde Partnership for Transport, 131 St. Vincent Street, Glasgow G2 5JF. Page 129 of 214
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111 Annual Accounts 2024/25 Strathclyde Partnership for Transport Renfrewshire Council’s Share Strathclyde Partnership for Transport Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 337.658 27.083 Long-term assets 367.769 30.227 194.061 15.565 Current assets 186.984 15.369 (27.947) (2.242) Current liabilities (16.326) (1.342) (2.769) (0.222) Long-term liabilities (2.213) (0.182) 501.003 40.184 Net assets 536.214 44.072 Income and Expenditure Summary 120.503 9.665 Income 115.145 9.464 84.497 6.777 Expenditure 83.326 6.849 36.006 2.888 Surplus for the year 31.819 2.615 As at 31 March 2024 (restated) As at 31 March 2025 2023/24 (restated) 2024/25 Renfrewshire Valuation Joint Board was formed in 1996 at local government re-organisation by Act of Parliament. Its principal place of business is Renfrewshire House, Cotton Street, Paisley PA1 1BF. The board maintains the electoral, council tax and non-domestic rates registers for the three councils of East Renfrewshire, Inverclyde and Renfrewshire. The board’s running costs are met by the three member councils. Surpluses or deficits on the board’s operations are shared between the councils. In 2024/25, Renfrewshire Council contributed £1.643m or 57.7% of the board’s estimated running costs (2023/24 £1.637m or 57.7%) and its share of the year-end net asset was £0.896m (2023/24 £0.570m restated) and is included in the group balance sheet. Copies of its accounts may be obtained from the Treasurer to the Renfrewshire Valuation Joint Board, Renfrewshire Council, Renfrewshire House, Paisley PA1 1JB. The following additional disclosures are required under accounting regulations for Renfrewshire Valuation Joint Board because it is a related party to the Council. Renfrewshire Valuation Joint Board Renfrewshire Council’s Share Renfrewshire Valuation Joint Board Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 0.162 0.093 Long-term assets 0.161 0.093 0.994 0.574 Current assets 1.542 0.890 (0.115) (0.066) Current liabilities (0.104) (0.060) (0.053) (0.031) Pension asset / (liability) (0.046) (0.027) 0.988 0.570 Net assets 1.553 0.896 Income and Expenditure Summary 2.934 1.694 Income 3.205 1.848 2.760 1.594 Expenditure 2.838 1.637 0.174 0.100 Deficit for the year 0.367 0.211 As at 31 March 2024 (restated) As at 31 March 2025 2023/24 (restated) 2024/25 The Public Bodies (Joint Working) (Scotland) Act 2014 established the framework for the integration of health and adult social care in Scotland. On 27 June 2015, Scottish Ministers legally established the Renfrewshire Health and Social Care Integration Joint Board (IJB) as a formal legal partnership between Renfrewshire Council and NHS Greater Glasgow and Clyde. Page 130 of 214
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112 Annual Accounts 2024/25 The IJB is responsible for the strategic planning of the functions delegated to it and for ensuring the delivery of its functions through the locally agreed operational arrangements. Copies of the financial statements for the IJB may be obtained from Chief Officer, Renfrewshire Health and Social Care Integration Joint Board, Renfrewshire House, Cotton Street, Paisley, PA1 1WB. Renfrewshire Integration Joint Board Renfrewshire Council’s Share Renfrewshire Integration Joint Board Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 26.076 13.038 Current assets 24.159 12.080 26.076 13.038 Net assets 24.159 12.080 Income and Expenditure Summary 395.015 197.507 Income 419.678 209.839 402.572 201.286 Expenditure 421.595 210.797 (7.557) (3.779) (Deficit)/Surplus for the year (1.917) (0.958) As at 31 March 2024 (restated) As at 31 March 2025 2023/24 (restated) 2024/25 Note G2: Non-material interest in other entities In addition to the combining entities detailed in note G1, the Council has a “significant interest” in a number of joint committees. The Council’s share of the net assets or liabilities of these joint committees is not material to the fair understanding of the financial position and transactions of the Council. Accordingly, the group accounts do not include these organisations. In the interest of transparency, the following disclosures are made concerning the business nature of each organisation. Scotland Excel is formed by agreement among local authorities throughout Scotland and is maintained through a joint committee comprising representatives from all of the member councils. Launched on 1 April 2008 as a centre of procurement expertise for the local government sector, it is the largest non-profit making purchasing agency in Scotland. Its aim is to help improve the efficiency and effectiveness of public sector procurement. Renfrewshire Council contributed £0.130m (3.3%) to the committee’s estimated running costs in 2024/25 (£0.130m in 2023/24). Glasgow and the Clyde Valley Strategic Development Planning Authority. The committee covers the eight councils within its area. Under the Town and Country Planning (Scotland) Act 1997, each member council not only has responsibilities for local planning matters in its area but also the strategic issues that cover the wider area of the Glasgow and Clyde valley. Accordingly, the committee prepares, monitors and reviews the Strategic Development Plan on behalf of member councils and liaises with central government, Scottish Enterprise and other bodies. Renfrewshire Council contributed £0.053m (12.5%) to the committee’s estimated running costs in 2023/24 (£0.068m in 2022/23). Glasgow City Region – City Deal Cabinet is a Joint Committee, the purpose of which is to determine the Strategic Development priorities for the Clyde Valley Region and to monitor and ensure the delivery of the City Deal programme as agreed between member authorities and the UK and Scottish Governments. The City Deal programme aims to deliver a £1.13 billion investment programme through 20 infrastructure projects and will drive innovation and growth through the support of the key sectors, including delivery of labour market and innovation programmes. The committee operates in an administrative / project management capacity and does not hold any assets or liabilities developed from the City Deal programme. Page 131 of 214
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113 Annual Accounts 2024/25 Note G3: Associates and joint ventures The aggregate value of the assets, liabilities, income and expenditure of the Council’s associates and joint ventures are shown in the two tables which follow. The net asset figure from these two tables combined (£12.080m + £45.271m = £57.351m) equates to the figure disclosed in the group balance sheet as ‘Investments in associates and joint ventures’. Aggregate of Joint Venture results Renfrewshire Council’s Share Aggregate of Joint Venture results Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 26.076 13.038 Current assets 24.159 12.080 26.076 13.038 Net assets 24.159 12.080 Income and Expenditure Summary 395.015 197.507 Income 419.678 209.839 402.572 201.286 Expenditure 421.595 210.797 (7.557) (3.779) (Deficit)/Surplus for the year (1.917) (0.958) As at 31 March 2024 (restated) As at 31 March 2025 2023/24 (restated) 2024/25 Joint ventures Aggregate of Associate results Renfrewshire Council’s Share Aggregate of Associate results Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 337.820 27.176 Long-term assets 367.930 30.320 200.960 16.613 Current assets 193.512 16.663 (28.768) (2.365) Current liabilities (17.679) (1.503) (2.822) (0.253) Pension asset / (liability) (2.259) (0.209) 507.190 41.171 Net assets 541.504 45.271 Income and Expenditure Summary 127.855 11.714 Income 122.728 11.667 91.740 8.731 Expenditure 92.006 8.960 36.115 2.983 Surplus for the year 30.722 2.707 As at 31 March 2024 (restated) As at 31 March 2025 2023/24 (restated) 2024/25 Associates Note on contingent assets, contingent liabilities and capital commitments The Council is unaware of any material contingent asset or contingent liability as at 31 March 2025 in relation to any of its associates or joint ventures. The Council is unaware that any commitments have been entered into by any of its associates or joint ventures as at 31 March 2025, either with the Council itself or with other parties. Page 132 of 214
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114 Annual Accounts 2024/25 Note G4: Material items of group income and expenditure In order to assist the reader in a better understanding of the impact of the inclusion of the results of the associates and joint ventures, the following tables provide an analysis of the Council’s share of the material amounts of income and expenditure disclosed in the group CIES. 2023/24 (restated) 2024/25 £m £m Share of (surplus) or deficit: (3.369) Subsidiaries: (1.824) 0.180 Paisley, Renfrew and Johnstone Common Good Funds 0.292 (0.455) Coats Observatory Trust (0.352) (1.775) OneRen (1.501) 0.182 Park Lane Developments (Renfrewshire) LLP (0.227) (1.501) Paisley Museum Reimagined Limited (0.036) (2.983) Associates: (2.707) (2.888) Strathclyde Partnership for Transport (2.615) 0.005 Strathclyde Concessionary Travel Scheme Joint Committee 0.119 (0.100) Renfrewshire Valuation Joint Board (0.211) Joint Venture: 3.779 Renfrewshire Health and Social Care Integration Joint Board 0.958 (2.573) Aggregate share of (surplus) or deficit (3.573) Share of other comprehensive (income) and expenditure: (5.533) Subsidiaries: (9.769) (2.931) Paisley, Renfrew and Johnstone Common Good Funds (0.030) (2.602) OneRen (9.739) 0.334 Associates: (1.393) 0.268 Strathclyde Partnership for Transport (1.273) (0.001) Strathclyde Concessionary Travel Scheme Joint Committee (0.005) 0.067 Renfrewshire Valuation Joint Board (0.115) (5.199) Aggregate share of other comprehensive (income) and expenditure (11.162) (7.772) Aggregate share of total comprehensive (income) and expenditure (14.735) Material items of group income and expenditure Note G5: Adjustments between group accounts and council accounts In the group movement in reserves statement, adjustments between group accounts and council accounts are required to bring the Council’s reserve balances back to the amount presented in the Council-only figures (before adjustments between accounting basis and funding basis under regulations). This is because intra-group transactions are eliminated when total comprehensive income and expenditure is calculated for the group. The adjustments between group accounts and council accounts can be analysed as follows: Page 133 of 214
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115 Annual Accounts 2024/25 2023/24 (restated) 2024/25 £m £m 0.158 Grants made by the Paisley, Renfrew and Johnstone Common Good Funds to Renfrewshire Council in contribution towards the funding of community events and projects 0.168 0.059 Governance costs charged to the Paisley, Renfrew and Johnstone Common Good Funds by Renfrewshire Council 0.059 (0.137) Interest income received from Renfrewshire Council by the Paisley, Renfrew and Johnstone Common Good Funds (0.186) (16.319) Service charge and other expenditure payable by Renfrewshire Council to OneRen (16.654) 0.512 Expenditure payable by OneRen to Renfrewshire Council 0.631 (0.768) Expenditure/(income) payable by/(to) Paisley Museum Reimagined Limited to/(by) Renfrewshire Council 0.023 (16.495) Total adjustments between Group accounts and Council accounts (15.959) Adjustments between Group accounts and Council accounts Note G6: Group financing and investment income and expenditure 2023/24 (restated) 2024/25 £m £m 21.196 Interest payable and similar charges 21.578 (8.360) Net interest on the net defined benefit liability 4.014 (8.545) Interest receivable and similar income (5.762) (0.315) Income and expenditure in relation to investment properties and changes in their fair values (0.315) (0.414) Other investment income (0.307) 3.562 Total financing and investment income and expenditure 19.208 Group financing and investment income and expenditure Note G7: Group Usable reserves 2023/24 (restated) 2024/25 £m £m (222.219) Council Usable Reserves - Note 7 (235.195) Group Usable Reserves: (24.995) Paisley, Renfrew and Johnstone Common Good Funds: unrestricted funds (24.705) (0.554) OneRen (1.641) (1.164) Paisley Museum Reimagined Limited (1.200) (3.269) Renfrewshire Health and Social Care Integration Joint Board (1.927) (252.201) Total Group Usable Reserves (264.668) Group Usable Reserves Page 134 of 214
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116 Annual Accounts 2024/25 Note G8: Group Unusable reserves Unusable reserves are those reserves that the Council is not able to utilise to provide services. Included within the total Group Unusable Reserves are the unusable reserves of the Council’s subsidiaries; also included is the Council’s share of the reserves of the associates and joint ventures within the group. 2023/24 (restated) 2024/25 £m £m (1,302.617) Council Unusable Reserves - Note 8 (1,321.997) Group Unusable Reserves: (5.879) Paisley, Renfrew and Johnstone Common Good Funds: financial instruments revaluation reserve (5.909) (11.731) Paisley, Renfrew and Johnstone Common Good Funds: revaluation reserve (11.729) (1.493) Coats Observatory Trust: revaluation reserve (1.845) (31.788) OneRen: pension reserve (41.941) 0.106 Park Lane Developments (Renfrewshire) LLP (0.121) Council share of the Reserves of associates and joint ventures: (40.184) Strathclyde Partnership for Transport (44.072) (0.417) Strathclyde Concessionary Travel Scheme Joint Committee (0.303) (0.570) Renfrewshire Valuation Joint Board (0.896) (9.769) Renfrewshire Health and Social Care Integration Joint Board (10.153) (1,404.342) Total Group Unusable Reserves (1,438.966) Group Unusable Reserves Note G9: Group investment properties The following items of income and expense have been accounted for in the ‘Financing and investment income and expenditure’ line in the group CIES: 2023/24 2024/25 £m £m (0.315) Rental income from investment property (0.315) (0.315) Net (gain) or loss (0.315) Group Investment Properties There are no restrictions on the Council’s ability to realise the value inherent in investment property, nor on the right to the remittance of income and the proceeds of disposal. With regards Common Good properties, the Council is obliged to observe the provisions of the Community Empowerment (Scotland) Act 2015 in terms of public consultation on disposal proposals; however, the right to the remittance of income and proceeds of disposal remains with the Common Good Funds. The following table summarises the movement in the fair value of investment properties during the year: 2023/24 2024/25 £m £m 2.014 Balance at 1 April 0.415 (1.593) Transfers from inventories and property, plant and equipment 0.000 (0.006) Other changes (0.006) 0.415 Balance at 31 March 0.409 Group Investment Properties Page 135 of 214
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117 Annual Accounts 2024/25 Note G10: Group Property, plant and equipment Council PPE (Note 9) Council share of Group PPE Total Group PPE £m £m £m Balance sheet net carrying amount at 31 March 2024 1,858.221 15.749 1,873.970 Assets reclassified (to) or from the “held for sale” category (2.492) 0.000 (2.492) Recognition of Right of Use Assets and Increase in PPP liability 20.215 0.000 20.215 Additions 119.440 0.352 119.792 Disposals (1.823) 0.000 (1.823) Depreciation (96.739) (0.593) (97.332) Impairment adjustments recognised in the CIES (2.934) 0.000 (2.934) Revaluation adjustments taken to the Revaluation Reserve 86.293 0.000 86.293 Revaluation adjustments recognised in the CIES (24.633) 0.000 (24.633) Balance sheet net carrying amount at 31 March 2025 1,955.548 15.508 1,971.056 Gross carrying amount at 31 March 2025 2,050.686 20.501 2,071.187 Accumulated depreciation at 31 March 2025 (330.614) (4.993) (335.607) Infrastructure assets 235.476 0.000 235.476 Balance sheet net carrying amount at 31 March 2025 1,955.548 15.508 1,971.056 Movements in 2024/25 Council PPE (Note 9) Council share of Group PPE Total Group PPE £m £m £m Balance sheet net carrying amount at 31 March 2023 1,797.350 14.909 1,812.259 Assets reclassified (to) or from the “held for sale” category 0.000 0.000 0.000 Other asset reclassifications 1.593 0.000 1.593 Additions 124.625 0.455 125.080 Disposals (1.531) 0.000 (1.531) Depreciation (90.812) 0.087 (90.725) Revaluation adjustments taken to the Revaluation Reserve 33.185 0.298 33.483 Revaluation adjustments recognised in the CIES (6.189) 0.000 (6.189) Balance sheet net carrying amount at 31 March 2024 1,858.221 15.749 1,873.970 Gross carrying amount at 31 March 2024 1,936.638 20.149 1,956.787 Accumulated depreciation at 31 March 2024 (306.453) (4.400) (310.853) Infrastructure assets 228.036 0.000 228.036 Balance sheet net carrying amount at 31 March 2024 1,858.221 15.749 1,873.970 Movements in 2023/24 (restated) Page 136 of 214
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118 Annual Accounts 2023/24 Note G11: Group heritage assets A valuation of the fair value of the Council’s Heritage Assets was carried out by an external valuer between October 2021 and March 2022, resulting in an increase of £4.883m. The value at 31 March 2025 was £44.404m (£44.404m in 2023/24). Included in this value are the civic regalia and equipment of the Paisley, Renfrew and Johnstone Common Good Funds, which have been externally valued on a present value insurance basis at £0.219m as at 31 March 2025 (£0.219 at 31 March 2024). Note G12: Group short-term debtors The balances detailed below are composed mostly of the debtors of the Council, to which the debtors of OneRen, Park Lane Developments (Renfrewshire) LLP and the Paisley, Renfrew and Johnstone Common Good Funds have been added. As at 31 March 2024 (restated) As at 31 March 2025 £m £m 5.871 Trade receivables 6.790 6.009 Prepayments 6.471 55.527 Other receivables 49.367 67.407 Total 62.628 Group Short-term Debtors Note G13: Group short-term creditors The balances detailed below are composed mostly of the creditors of the Council, to which the creditors of OneRen, Park Lane Developments (Renfrewshire) LLP and the Paisley, Renfrew and Johnstone Common Good Funds have been added. As at 31 March 2024 (restated) As at 31 March 2025 £m £m (29.213) Trade payables (13.730) (53.339) Other payables (55.645) (82.552) Total (69.375) Group Short-term Creditors Note G14: Amounts due between Renfrewshire Council and its associates and joint ventures An analysis of the amounts owing and owed between the Council and its associates and joint ventures, analysed into amounts relating to loans and amounts relating to other balances, is shown in the table below. As at 31 March 2024 As at 31 March 2025 £m £m Amounts owing to Renfrewshire Council: 1.703 Other balances 0.309 1.703 Total 0.309 Amounts owed by Renfrewshire Council: (26.103) Liability for Renfrewshire Integration Joint Board’s retained underspend (24.186) (0.962) Other balances (1.801) (27.065) Total (25.987) Page 137 of 214
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119 Annual Accounts 2023/24 Note G15: Group financial instruments Balance sheet carrying amounts of group financial instruments The following categories of financial instrument are carried in the group balance sheet. Additional qualitative information on the various categories of financial instruments can be found in Note 22: Financial Instruments. Long-term Current Long-term Current £m £m £m £m (238.592) (5.000) (232.050) (5.000) 0.000 (2.815) 0.000 (2.694) (238.592) (7.815) (232.050) (7.694) (20.000) (26.766) 0.000 (46.766) 0.000 (0.864) 0.000 (0.858) (0.339) (0.262) 0.000 (0.588) (20.339) (27.892) 0.000 (48.212) 0.000 (28.641) 0.000 (29.899) (258.931) (64.348) (232.050) (85.805) 0.000 (48.903) 0.000 (32.195) (61.763) (3.210) (75.183) (4.878) 0.000 0.000 (0.395) 0.000 (61.763) (52.113) (75.578) (37.073) Service concession and finance lease liabilities Financial guarantees Financial Liabilities included in Creditors As at 31 March 2024 (restated) Financial Liabilities At amortised cost: Trade payables Principal sum borrowed Accrued interest Total Public Works Loan Board (PWLB) borrowing Principal sum borrowed Accrued interest EIR adjustments Total non-PWLB borrowing (“market debt”) Borrowing from group entities Total Borrowing As at 31 March 2025 Carrying Amount Fair value Financial Assets Carrying Amount Fair value £m £m £m £m 20.101 20.101 Callable deposits in money market funds 1 13.128 13.128 3.707 3.707 Euro account balances with the Council’s banker 2 0.516 0.516 28.921 28.921 Investments in pooled funds 1 28.604 28.604 52.729 52.729 42.248 42.248 67.755 67.751 Fixed term deposits with UK local authorities 2 0.000 0.000 0.000 0.000 Fixed term deposits with UK building societies 2 17.534 17.534 7.571 7.571 Callable deposits with UK banks and building societies (including sterling current account balances with the Council’s banker) 2 (6.168) (6.168) 0.043 0.043 Imprest accounts held at council establishments 2 0.040 0.040 1.387 1.543 Loans made for service purposes 3 1.023 1.060 76.756 76.908 12.429 12.466 129.485 129.637 54.677 54.714 Financial assets measured at amortised cost: 0.754 n/a Trade receivables and prepayments: long-term 1.020 n/a 54.303 n/a Receivables and prepayments: short-term 46.746 n/a 55.057 47.766 Total Financial assets measured at fair value Total Financial assets measured at amortised cost Total financial assets for which fair value is disclosed Total financial assets for which fair value is not disclosed As at 31 March 2024 (restated) As at 31 March 2025 Fair value level Note: the figures in this table include accrued interest where this is applicable Page 138 of 214
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120 Annual Accounts 2023/24 Fair value of group financial instruments The fair value through other comprehensive income financial assets carried on the group balance sheet comprise the Council’s insurance fund investments and the investments of the Paisley and Renfrew Common Good Funds. The fair value of these investments equates to the market value of the investments as provided by the Council’s investment manager, LGT Wealth Management. In terms of the fair value measurement hierarchy the financial instruments measured at fair value are considered to be Level 1 being quoted prices (unadjusted) in active markets for identical assets or liabilities that the authority can access at the measurement date, Level 2 being inputs other than quoted prices that can be accessed at the measurement date, or Level 3 being unobservable inputs e.g. cashflow forecasts or estimated creditworthiness (see table below). Carrying Amount Fair value Financial Liabilities Carrying Amount Fair value £m £m £m £m Financial liabilities measured at amortised cost: (246.407) (220.126) Public Works Loan Board borrowing 2 (239.743) (189.683) (48.231) (53.523) Non-PWLB borrowing (“market debt”) 2 (48.211) (53.523) Other liabilities: (64.973) (119.570) Service concession and finance lease liabilities 3 (80.061) (80.061) 0.000 0.000 Financial guarantees 3 (0.395) (0.395) (359.611) (393.219) (368.410) (323.662) Financial liabilities measured at amortised cost: (28.641) n/a Borrowing from group entities (29.899) n/a (48.903) n/a Trade payables: short-term (32.195) n/a (77.544) (62.094) As at 31 March 2024 (restated) As at 31 March 2025 Fair value level Total financial liabilities for which fair value is disclosed Total financial liabilities for which fair value is not disclosed Carrying Amount Fair value Financial Assets Carrying Amount Fair value £m £m £m £m 20.101 20.101 Callable deposits in money market funds 1 13.128 13.128 3.707 3.707 Euro account balances with the Council’s banker 2 0.516 0.516 28.921 28.921 Investments in pooled funds 1 28.604 28.604 52.729 52.729 42.248 42.248 67.755 67.751 Fixed term deposits with UK local authorities 2 0.000 0.000 0.000 0.000 Fixed term deposits with UK building societies 2 17.534 17.534 7.571 7.571 Callable deposits with UK banks and building societies (including sterling current account balances with the Council’s banker) 2 (6.168) (6.168) 0.043 0.043 Imprest accounts held at council establishments 2 0.040 0.040 1.387 1.543 Loans made for service purposes 3 1.023 1.060 76.756 76.908 12.429 12.466 129.485 129.637 54.677 54.714 Financial assets measured at amortised cost: 0.754 n/a Trade receivables and prepayments: long-term 1.020 n/a 54.303 n/a Receivables and prepayments: short-term 46.746 n/a 55.057 47.766 Total Financial assets measured at fair value Total Financial assets measured at amortised cost Total financial assets for which fair value is disclosed Total financial assets for which fair value is not disclosed As at 31 March 2024 (restated) As at 31 March 2025 Fair value level *includes current account balances with the Council’s banker. Page 139 of 214
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121 Annual Accounts 2023/24 The short-term nature of cash and cash equivalents means that their fair value equates to their balance sheet carrying amount. Further qualitative information on the fair value of financial instruments can be found in Note 22. Items of income, expense, gain and loss relating to group financial instruments The following items of income, expense, gain and loss relating to group financial instruments are included within the lines ‘Financing and Investment income and expenditure’ and ‘(Surplus) or deficit from investments in equity instruments designated as ‘Fair Value through Other Comprehensive Income (OCI*)’ in the group CIES. 2023/24 Amortised cost Elected to Fair Value through OCI* Fair Value through Profit or Loss 2024/25 £m £m £m £m £m £m 16.186 Interest expense 0.000 0.000 0.000 16.932 16.932 3.549 Impairment losses 2.197 0.000 0.000 0.000 2.197 0.007 Fee expense 0.000 0.000 0.000 0.000 0.000 0.007 Other expense 0.000 0.423 0.000 0.000 0.423 19.749 Total expense in the Surplus / Deficit on the Provision of Services 2.197 0.423 0.000 16.932 19.552 (8.130) Interest income (4.045) 0.000 (1.711) 0.000 (5.756) (0.787) Dividend income 0.000 (0.828) 0.000 0.000 (0.828) 0.209 Other income 0.000 0.000 0.000 0.000 0.000 (8.708) Total income in the Surplus/Deficit on the Provision of Services (4.045) (0.828) (1.711) 0.000 (6.584) (1.954) Net (gain) or loss on revaluation 0.000 0.029 0.011 0.000 0.040 (1.954) (Surplus)/Deficit on the revaluation of financial assets 0.000 0.029 0.011 0.000 0.040 9.087 Net (Gain)/Loss for the year (1.848) (0.376) (1.700) 16.932 13.008 Financial Assets Financial liabilities at amortised cost Group Accounting Policies Introduction The Code of Practice on Local Authority Accounting in the United Kingdom 2024/25 (“the Code”) requires local authorities to consider their interests in all types of entity. This includes other local authorities or similar bodies defined in section 106 of the Local Government (Scotland) Act 1973, for example statutory bodies such as valuation boards. Authorities are required to prepare a full set of group accounts in addition to their own Council’s accounts where they have a material interest in such entities. Combining entities Renfrewshire Council’s group accounts consolidate the results of the Council with the results of the Paisley, Renfrew and Johnstone Common Good Funds; the Coats Observatory Trust administered by Renfrewshire Council; and seven other entities: 1. Renfrewshire Leisure Limited, trading as OneRen; 2. Paisley Museum Reimagined Limited; 3. Strathclyde Partnership for Transport; 4. Strathclyde Concessionary Travel Scheme Joint Committee; 5. Renfrewshire Valuation Joint Board; Page 140 of 214
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122 Annual Accounts 2023/24 6. Renfrewshire Health and Social Care Integration Joint Board. The Council has effective control over OneRen, Paisley Museum Reimagined Limited, the Paisley, Renfrew and Johnstone Common Good Funds and the Coats Observatory Trust administered by Renfrewshire Council (as sole trustee) and, as such, these are treated as subsidiaries in the Council’s group accounts, with assets, liabilities, reserves, income and expenses being consolidated line-by-line. The Council also holds 50% (£50) of the share capital of Park Lane Developments (Renfrewshire) LLP. Under the terms of the Partnership Agreement, the Council has enhanced voting rights and Park Lane Developments (Renfrewshire) LLP has no claim on the remaining assets should the partnership be wound up; therefore, the entity is treated as a subsidiary. Strathclyde Partnership for Transport and Strathclyde Concessionary Travel Scheme Joint Committee are included within the group accounts under the definition of associate, even though the Council holds less than 20% or more of the voting (or potential voting) power (which is the criterion normally used to confer significant influence). However, the view has been taken that the nature of the funding arrangements between the constituent Councils and these entities is sufficient to confer significant influence. Renfrewshire Valuation Joint Board is included within the group accounts as an associate because the Council does not have a controlling interest in the body in terms of the voting rights. Renfrewshire Council’s share of each associate’s net assets or liabilities is calculated based on the Council’s proportionate contribution to each associate’s annual revenue costs. The Council has no shares in, or ownership of, any of these three organisations, which are entirely independent of the Council under law and for taxation. The Public Bodies (Joint Working) (Scotland) Act 2014 established the framework for the integration of health and adult social care in Scotland. Scottish Ministers legally established the Renfrewshire Health and Social Care Integration Joint Board on 27 June 2015 as a formal legal partnership between Renfrewshire Council and NHS Greater Glasgow and Clyde. This entity is included as a joint venture in the Council’s group accounts. Renfrewshire Council’s share of the joint venture’s net liabilities is calculated based on the Council’s proportionate ordinary shareholding in the joint venture. Basis of preparation of group statements and going concern For the associates and joint ventures detailed above, the combination has been accounted for under the accounting conventions of the acquisition basis using the equity method, with the Council’s share of the net assets or liabilities of each entity incorporated and adjusted each year by the Council’s share of that entity’s results and the Council’s share of other gains and losses (recognised in the group CIES). For four of the combining entities the Council has a share in a net liability. The net liability position of both the Renfrewshire Valuation Joint Board and OneRen arises from the inclusion of liabilities related to the defined benefit pension schemes as required by IAS19 (which requires that pension liabilities reflect the long- term cost of paying post-employment benefits). For Park Lane Developments (Renfrewshire) LLP the net liability arises from long-term borrowing to fund regeneration work within and around the site of the former Arnott’s store in Paisley. All of the organisations noted above prepare their annual accounts on a going concern basis. Arrangements with the Council and other funders for the longer-term funding of Park Lane Developments (Renfrewshire) LLP are considered sufficient to meet future funding requirements. The Council will continue to support Paisley Museum Reimagined Limited until their anticipated revenue generation materialises. Page 141 of 214
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123 Annual Accounts 2023/24 Consideration for acquisition of associates’ net assets or liabilities The Council has acquired its share of the net assets of its associates for a nil consideration. There is no deferred or contingent purchase consideration. A fair value for its share of the net assets or liabilities of the three joint boards and committees at the point of acquisition and the post-acquisition results are unable to be accurately determined in view of the length of time since the transfer of these responsibilities at local government re- organisation in 1996 and the change in accounting for pensions under FRS17 in 2003/04. It is not possible to provide the fair value of the investment in the other combining entities of the Council as there are no published price quotations for these entities. No goodwill has been included in the group balance sheet in view of the length of time since acquisition, that no consideration was involved and that a fair value at the date of acquisition cannot now be properly assessed. Group boundary: non-material interests in other entities The Council has a significant interest in three joint committees that have not been included in the group accounts. The Council’s share of their net assets or liabilities is not material to the fair understanding of the financial position and transactions of the Council. In the interest of transparency, details of the business nature of each organisation are shown in notes G1 and G2. Inventories Inventories (generally consumable stock) are included in the group balance sheet at weighted average cost and the lower of cost or net realisable value: weighted average cost – Council’s stock; lower of cost or net realisable value – OneRen’s stock. The difference in valuation methods does not have a material effect on the results of the group given the levels of stockholdings in these entities. Post-employment benefits In common with Renfrewshire Council, all combining entities, except Park Lane Developments (Renfrewshire) LLP, participate in the Local Government Pension Scheme, which is administered locally by Glasgow City Council through the Strathclyde Pension Fund. The associates have accounting policies for pensions accounting that are consistent with those of the Council. Property, plant and equipment The basis of valuation across the combining entities is in accordance with the Code. Operational property, plant and equipment assets are shown at the lower of net replacement cost or net realisable value in existing use with the following exceptions: i) The Concessionary Travel Scheme Joint Committee has no fixed assets. ii) Strathclyde Partnership for Transport holds exceptional types of fixed assets in its balance sheet. Within intangible assets, there are subsidised bus contracts that are recorded at amortised cost. There are also “third-party” assets that are rolling stock and other public assets used by other transport operators but which the partnership has the power to direct to the benefit of the travelling public within the partnership’s operating area – these are held at historic cost. iii) OneRen uses the historic cost convention for its recent leasehold improvements, but this is considered a suitable proxy for market value in existing use on a replacement cost basis. OneRen also uses depreciated historic cost for its computers, plant, furniture and fittings rather than the Council’s depreciated replacement cost basis, however this is not considered to be material given the small values involved. Restrictions on the transfer of funds The Council’s share of the reserves of its associates is unusable in that it cannot be used to fund the Council’s services nor to reduce taxation. All associates are Page 142 of 214
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124 Annual Accounts 2023/24 entirely independent of the Council under law and for taxation. The Council is unable to access their reserves, whether classified as usable or otherwise in the associate’s own financial statements. Value Added Tax Value Added Tax paid by OneRen is accounted for within income and expenditure to the extent that it is irrecoverable from HM Revenue and Customs. Page 143 of 214
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Finance and Resources, Renfrewshire House, Cotton Street, Paisley PA1 1JB Telephone: 0300 300 0285 www.renfrewshire.gov.uk Page 144 of 214
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Appendix 3 RENFREWSHIRE COUNCIL COATS OBSERVATORY TRUST FUND SC019454 TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 1 APRIL 2024 to 31 MARCH 2025 Page 145 of 214
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Contents TRUSTEES’ REPORT ....................................................................... 1 TRUST ACCOUNTS FINANCIAL STATEMENTS OVERVIEW ............................... 3 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025 .... 4 STATEMENT OF BALANCES AS AT 31 MARCH 2025 ................................... 5 NOTES TO THE FINANCIAL STATEMENTS ................................................ 6 Page 146 of 214
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Renfrewshire Council Coats Observatory Trust Fund Trustees’ Report P a g e | 1 Trustees’ Report 1. Introduction Renfrewshire Council acts as sole trustee for the Coats Observatory Trust Fund which has charitable status and is registered with the Office of the Scottish Charity Regulator (OSCR): The financial statements of the Trust are included in this report: The principal address of the Trust Fund is: Renfrewshire Council Finance and Resources Renfrewshire House Cotton Street Paisley PA1 1JB Renfrewshire Council administers the Trust Fund and separately accounts for it. Renfrewshire Council was established by the Local Government (Scotland) Act 1994 and came into being on 1 April 1996. The Council provides a wide range of public services such as education, children’s social services, environmental services, council housing and economic regeneration. The Trust Accounts do not form part of Renfrewshire Council’s single entity balance sheet, although under s222 of the Local Government (Scotland) Act 1973, the property of the Trust “vest[s] in” the relevant local authority. However, the Trust Fund accounts are included within the group accounts of the Council. A copy of the group accounts can be obtained from the address above, or on the Council’s website at www.renfrewshire.gov.uk. Independent Auditors: Azets Titanium 1 King's Inch Place Renfrew Glasgow PA4 8WF Trustees Guidance provided by OSCR indicates that those who have “general control and management” of the charity are the charity trustees. Decisions regarding the general control and management of the Trust Fund are made by the Finance, Resources and Customer Services Policy Board (FRCSPB), which has delegated authority from the Council in this regard; but ultimately control rests with the full Council of elected members. We have therefore interpreted the above guidance as meaning that all elected members of Renfrewshire Council are charity trustees. The following individuals were the Trustees of the Trust Fund in their capacity as elected members of Renfrewshire Council during the 2024/25 financial year: Page 147 of 214
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Renfrewshire Council Coats Observatory Trust Fund Trustees’ Report P a g e | 2 Jennifer Adam Neill Graham Jamie McGuire Fiona Airlie-Nicolson John Gray Marie McGurk Stephen Burns Anne Hannigan Iain McMillan Jacqueline Cameron John Hood John McNaughtan Lorraine Cameron Lisa-Marie Hughes Kevin Montgomery Michelle Campbell Robert Innes Sam Mullin Graeme Clark Alec Leishman Will Mylet Carolann Davidson Bruce MacFarlane Iain Nicolson Eddie Devine James MacLaren Jim Paterson Andy Doig Kenny MacLaren Emma Rodden Audrey Doig Mags MacLaren John Shaw Alison Ann-Dowling Colin McCulloch Ben Smith Chris Gilmour Janis McDonald Andy Steel Edward Grady Cathy McEwan Gillian Graham David McGonigle Day to day management of the Trust Fund is delegated to the Director of Finance and Resources of Renfrewshire Council. All of these trustees are normally elected or re-elected at local government elections. By-elections are held to elect new members in the event of existing members vacating their position. New members automatically become trustees of this fund. 2. Structure, Governance and Management The Coats Observatory Fund was inherited by the local authority in early 1963 from the Paisley Philosophical Society. The Council, as trustees, owns the buildings comprising the Coats Observatory. These buildings are leased to OneRen at nil consideration. History The original purpose of the Trust when it was set up was: “for the upkeep of Coats Observatory equipment”. This purpose was relevant while there were cash funds available; however these funds have been exhausted, and only the property assets remain. Governance and Management The Council is required to make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. The Director of Finance and Resources has been designated as that officer in Renfrewshire Council. They manage the affairs of the Council to secure the economic, efficient and effective use of resources and safeguard its assets and those of any charitable trust it controls. Given the Trust Fund is controlled by the Council, these specific provisions are supplemented by general provisions relating to the administration of local authority monies, i.e. the duty to obtain best value. The Director of Finance and Resources has responsibility for ensuring an effective system of internal financial control is maintained and operated. This system of internal financial control can only provide reasonable and not absolute assurance that assets are safeguarded, transactions are recorded and properly authorised, and that material errors or irregularities are either prevented or would be detected within a timely period. The system of internal financial control is based on a framework of regular Page 148 of 214
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Renfrewshire Council Coats Observatory Trust Fund Trustees’ Report P a g e | 3 management information, financial regulations, administrative procedures and a system of delegation and accountability. The Director of Finance and Resources is responsible for keeping proper accounting records which are up to date and which ensure that the financial statements comply with the Charities Accounts (Scotland) Regulations 2006(as amended) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16th July 2014. Decisions regarding the operation, assets, processes or policies of the Trust Fund are delegated by the Council to the Finance, Resources and Customer Services Policy Board (FRCSPB). Risk The Trustees have overall responsibility for the Trust Funds’ system of internal control. This system is designed by senior management to ensure effective and efficient operation, including financial reporting and compliance with laws and regulations. The Trustees acknowledge that such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. 3. Financial Review The Trust Fund has no explicit reserves policy. The Trust Fund is not in deficit and no donations to the Fund are solicited. Since 2021, the assets of the Trust have been under refurbishment as part of the Paisley Museum Reimagined project, funded by Renfrewshire Council. This is disclosed within the Statement of Financial Activities. 4. Future Plans Given there are no cash funds remaining, nor are any anticipated, the Council will explore with OSCR the future of the charity, always considering the ongoing sustainability of the Observatory and ensuring appropriate governance arrangements remain in place. The £45m Paisley Museum Reimagined project will create a new, world-class museum space, shaped by and for the people of Paisley. As part of this project, expected to complete in 2025, the Observatory is currently under refurbishment and will open to the public with improved accessibility upon completion. A full revaluation of the Observatory will be carried out when it is reopened. The Trustees wish to thank the Renfrewshire Council officers involved in producing the Report and Financial Statements. Signed: Alastair MacArthur Director of Finance and Resources Renfrewshire Council Date: On behalf of the Trustees: Councillor John Shaw Convener – Finance, Resources and Customer Services Policy Board Renfrewshire Council Date: Page 149 of 214
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 3 Trust Accounts Financial Statements Overview 1. Introduction The following pages detail the Statement of Financial Activities, the Statement of Balances and relevant Notes to the Accounts, as required by the Charities Accounts (Scotland) Regulations 2006. A Cash Flow Statement is not required as the charity is classified as a small charity as defined in the Charities Statement of Recommended Practice (SORP) and therefore is exempt from producing a Cashflow Statement. 2. Statement of Financial Activities The Statement of Financial Activities provides an analysis of the income and expenditure for the period. If applicable, the Statement would also show any movements in relation to fixed assets 3. Statement of Balances The Statement of Balances reconciles the cash and bank balances at the beginning and end of the financial year with the surpluses or deposits shown in the Statement of Financial Activities. The Coats Observatory is classed as an Asset Under Construction, which means there is a pause in depreciation until the asset is back in use. 4. Notes to the Accounts Notes to the accounts expand on or explain the information contained in the Statement of Financial Activities and the Statement of Balances. Page 150 of 214
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 4 Statement of Financial Activities for the year ended 31 March 2025 2023/24 2024/25 Total Note Unrestricted Restricted Total £ £ £ £ Income (455,269) Donation from Renfrewshire Council re refurbishment of Trust assets 2 0 (352,221) (352,221) Expenditure 0 Expenditure relating directly to charitable activities 0 0 0 455,269 Expenditure relating to Trust assets 2 0 352,221 352,221 0 Surplus / (deficit) for period 0 0 0 Page 151 of 214
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 5 Statement of Balances as at 31 March 2025 As at 31 March 2024 As at 31 March 2025 Total Note Unrestricted Restricted Total £ £ £ £ Fixed Assets Assets Under Construction Buildings at Coats Observatory, Paisley 965,804 Opening balance 0 1,421,073 1,421,073 455,269 Additions 1 0 352,221 352,221 1,421,073 Closing balance 0 1,773,294 1,773,294 Other Assets Land at Coats Observatory, Paisley 72,200 Opening balance 0 72,200 72,200 0 Additions 1 0 0 0 72,200 Closing balance 0 72,200 72,200 1,493,273 0 1,845,494 1,845,494 Represented By 1,493,273 Restricted Funds 0 1,845,494 1,845,494 1,493,273 0 1,845,494 1,845,494 Signed Signed Alastair MacArthur Councillor John Shaw Director of Finance and Resources Convenor – Finance, Resources and Customer Services Policy Board Renfrewshire Council Renfrewshire Council Date Date Page 152 of 214
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 6 Notes to the Financial Statements 1. Accounting Policies Introduction The Financial Statements for the year ended 31 March 2025 have been prepared in accordance with the Accounting and Reporting by Charities : Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).They are designed to give a true and fair view of the financial performance and position of the Trust Fund and comparative figures for the previous financial year are provided. There are no significant departures from accounting standards other than that outlined specifically below. The accounting concepts of “materiality” and “going concern” have been considered in the application of accounting policies. In this regard the materiality concept means that information is included where the information is of such significance as to justify its inclusion. The accounts have been prepared on a going concern basis. The going concern concept assumes that the Trustees will not significantly curtail the scale of the charities’ operations, however it is anticipated that the Observatory Fund will not continue indefinitely. This has been no impact on the financial statements as the assets of the Fund comprise solely of the Observatory buildings which are independently valued. The accounts have been prepared using the accruals basis whereby total income and expenditure have been recorded when they were earned or incurred. The accounts have been prepared under the historic cost convention, other than changes resulting from the revaluation of certain categories of assets. The following accounting policies used in its preparation have been reviewed following the introduction of Financial Reporting Standard 18 “Accounting Policies” (FRS18). Fund Accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Incoming/Outgoing Resources Recognition of incoming resources All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Recognition of expenditure All expenditure is accounted for on an accruals basis. Page 153 of 214
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 7 Charitable Activities Decisions regarding the way the Trust Funds’ income is spent are taken by the Finance, Resources and Customer Services Policy Board of Renfrewshire Council, whose membership comprises 15 of the trustees of the Trust Fund. Costs of Generating Funds The cost of administering the Trust Fund is borne entirely by Renfrewshire Council. Governance Costs Governance costs, where applicable, include the: • costs of the preparation and examination of statutory accounts; • cost of any legal advice to trustees on governance or constitutional matters; and • cost of administering grants. Assets The Fund includes the land and buildings of Coats Observatory, Paisley. The latest valuations were carried out in 2021/22 for the office and 2020/21 for the observatory. Depreciation is paused due to the asset being categorised as an Asset Under Construction during the period of refurbishment (commenced in June 2021) currently underway as part of the Paisley Museum Reimagined project. Refurbishment spend is disclosed as asset additions in the Statement of Balances. The assets will be revalued when the refurbishment is complete. 2. Analysis of income/expenditure The value of expenditure represents an estimate of in-year spend on the Paisley Museum Reimagined project that relates directly to the refurbishment of the Coats Observatory and associated buildings. The spend was directly incurred by Renfrewshire Council, but the property is owned by the Trust, so corresponding income has been disclosed as though donated to the Trust to fund the related spend. 3. Trustees’ remuneration and expenses Neither the trustees of the Trust Fund nor any associated person connected with them have received any remuneration for their services. Further, no directly incurred expenses were reimbursed to the trustees during the period (nil in 2024/25). 4. Related parties During the period, the Council also acted as the banker for the Trust Fund and all transactions, incoming and outgoing, are made via the Council’s bank accounts. There are no outstanding balances due to or from Renfrewshire Council nor were there any direct cash transactions during 2024/25. Page 154 of 214
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___________________________________________________________________ To: Council On: 26 June 2025 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Treasury Management Annual Report for 2024/25 ___________________________________________________________________ 1. Summary 1.1 It is a requirement of the Local Government Investments (Scotland) Regulations 2010 that a report outlining the treasury management activity undertaken during the year is presented to Council at the end of each financial year. 1.2 This report meets the requirements of these regulations, as well as the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code). 1.3 All aspects of the Treasury Policy Statement were complied with in 2024/25. ___________________________________________________________________ 2. Recommendations 2.1 It is recommended that the Council notes the Treasury Management Annual Report for 2024/25. _________________________________________________________ 3. Review of 2024/25 Treasury Activities 3.1 Treasury Portfolio Position at 31 March 2025 The Council's external borrowing position at the beginning and end of the last financial year was as follows: Item 4 Page 155 of 214
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Borrowing Position as at 31 March 2024 Borrowing Position as at 31 March 2025 Change £ m (a) Average Interest Rate £ m (b) Average Interest Rate (a) - (b) Long-term Borrowings Public Work Loans Board (PWLB) Fixed Interest 243.59 3.84% 237.05 3.80% (6.54) Market Loans 46.77 4.70% 46.77 4.70% 0.00 Total Long-term 290.36 3.98% 283.82 3.95% (6.54) Short-term Borrowings Common Good Funds 3.27 4.30% 4.05 4.20% 0.78 Other Partner Bodies 26.51 4.30% 29.80 4.20% 3.29 Total Short-term 29.78 4.30% 33.85 4.20% 4.07 Total Borrowings 320.14 3.99% 317.67 3.96% (2.47) Temporary Investments 97.22 5.51% 23.04 4.45% (74.18) _________________________________________________________ 4. Review of Borrowing and Investment Outturn for 2024/25 4.1 Overall, the Council’s total external borrowings decreased by £2.47m. There was a decrease in borrowing through the PWLB by £6.54m, although this was partially offset by an increase in short-term borrowing within the Council group. 4.2 Temporary investments (cash) held by the Council decreased by £74.18m; this is attributable to several factors, such as higher spending through the capital programme, and Non-Domestic Rates refunds following the retrospective revaluation of some accounts. _________________________________________________________ 5. Review of Borrowing Strategy during 2024/25 5.1 The strategy for 2024/25 was approved by Council on 29 February 2024. Based on the Council’s planned programme of investments and interest rate forecasts for the year, the Council’s borrowing strategy was to firstly use internal cash balances to finance the Capital Investment Programme. 5.2 This strategy was prudent, as borrowing rates have continued to remain high throughout the financial year. Page 156 of 214
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5.3 Given the evolving economic climate, and the risks inherent in economic forecasts, a cautious approach was taken during the year regarding treasury operations. The Director of Finance and Resources monitored interest rates and adopted a pragmatic strategy based upon the following principles to manage interest rate risks: • if there was considered to be a significant risk of a sharp FALL in long and short-term rates (e.g. due to a marked increase of risks around relapse into recession or of risks of deflation), then long-term borrowings would have been postponed, and potential rescheduling from fixed rate funding into short-term borrowing would have been considered. • if there was considered to be a significant risk of a sharp RISE in long and short-term rates than initially expected (e.g. due to the rate of increase in central bank rates, an increase in world economic activity or a sudden increase in inflationary risk), then the portfolio position would have been re- appraised. Fixed rate funding would have been considered whilst interest rates were lower than forecast over next few years. _________________________________________________________ 6. Review of Investment Strategy and Investment Outturn for 2024/25 6.1 In carrying out investment activities, the Council will have regard to the Local Government Investment (Scotland) Regulations 2010, the accompanying Scottish Government Finance Circular 5/2010 and the CIPFA Treasury Management in the Public Services Code of Practice and Cross-Sectoral Guidance Notes (“the Treasury Management Code”). The Council’s investment priorities are: • the security of capital; and • liquidity of its investments. The Council’s investment policy was outlined in the Council’s Annual Investment Strategy Report 2024/25 which was approved by Council on 29 February 2024. This policy set out the Council’s approach for choosing investment categories and counterparties and is based on credit ratings provided by the three main credit rating agencies, supplemented by additional market data (such as rating outlooks, credit default swaps, bank share prices etc.). 6.2 The expectation for interest rates within the Treasury Management Strategy for 2024/25 was that the Bank Rate had peaked and would gradually reduce throughout the financial year. Page 157 of 214
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However, as the year progressed, economic factors meant that the reduction in the interest rates did not happen as quickly as anticipated. It is now expected that the interest rate will drop to 3.50% by December 2026. 6.3 During 2024/25, the Council only invested with institutions listed in the Council’s approved Counterparty list and in the permitted investment categories. The investment activity during the year conformed to the approved strategy, and the Council had no liquidity issues. 6.4 The table below shows interest rates achieved by the Council on its temporary investments during the year and, for comparison, the benchmark rate. Temporary investments - internally managed 2023/24 2024/25 Average Investment £182.99m £111.27m Actual rate of return 4.30% 5.07% Benchmark return 4.97% 4.90% 6.5 The actual rate of return was higher than the benchmark figure because the Council had several fixed-term deposits at a higher rate of interest that continued beyond the Bank Rate interest rate reductions. However, it is expected that during 2025/26 there will be little difference between these two figures as the Council utilises more short-term deposit options. 6.6 The current Treasury Strategy remains appropriate to the Council’s ongoing financial, investment and treasury requirements, and supports the Council’s overall financial position, investment priorities and medium-term financial forecasts. While a refreshed strategy was recently approved on 27 February 2025, it is continually being reviewed to ensure, as the economic and political landscape changes and as the Council’s financial strategy develops, that borrowing and investments are managed to accommodate both short to medium-term treasury requirements, and also to ensure that best value is secured from longer term investment in instruments appropriate for this purpose, and consistent with the Council’s risk profile. Page 158 of 214
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Note: SONIA (Sterling Overnight Index Average) is based on actual transactions and reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions and other institutional investors. _________________________________________________________ 7. Debt Rescheduling 7.1 Whilst it was considered, no debt rescheduling was undertaken during the year, as the differential between PWLB new borrowing rates and premature repayment rates meant that this would not have been economical. _________________________________________________________ 8. Compliance with Treasury Limits 8.1 The Prudential Code for Capital Finance in Local Authorities, which came into force on 1 April 2004, allows greater local flexibility for investment decisions that are informed and supported by a suite of performance indicators. The 2024/25 indicators were approved by Council on 29 February 2024 and an update reported to the Council on 12 December 2024. 8.2 The Council’s overall performance on these indicators provides a firm basis for the monitoring and control of capital investment and borrowing and for determining that it is affordable. Certain headline indicators are sub-divided per recommended best practice into two programmes: Housing and Non- housing. 8.3 The key performance indicators for Treasury are: 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% Interest Rates Temporary Investment Rates Renfrewshire Vs Comparator (Backward looking 7 day SONIA rate) SONIA Renfrewshire Page 159 of 214
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• An Operational Boundary for the Council’s external borrowing (the upper limit for the aggregate external borrowing needed), and an Authorised Limit for the Council’s external borrowing, being the upper limit of aggregate external borrowing that is affordable and prudent; • A ratio of financing costs to net revenue stream (an affordability measure for debt repayments); and • An upper limit for fixed rate borrowing maturing within the short, medium, and long-term, to ensure that the Council is not exposed to a significant re-financing requirement in the short to medium term. In addition, it is a requirement of the Council's Treasury Policy Statement that the maximum amount of long-term borrowing maturing in any one year will be no more than 15%, and the maximum amount of long-term borrowing maturing in any five-year period will be no more than 45%. The objective of these limits is to ensure that the Council is not exposed to a significant re-financing requirement over a short period when interest rates could be relatively high. 8.4 The main source of the Council’s borrowing is from the Public Works Loan Board (PWLB). The borrowing rates are based on, and are determined by, the yield on UK Government bonds (gilts). The main influences on gilt yields are Bank Rate, inflation expectations, and movements in US treasury yields. 8.5 Gilt yields continued to be volatile during 2024/25. At 31 March 2025, all gilt yields (1-5 years) ranged between 5.02% and 5.17%, while the 10-year and 25-year yields were 5.66% and 6.18%, respectively. 8.6 For PWLB rates, the various margins for borrowing are as follows: - • Standard Rate is gilt plus 100 basis points (G+100bps) • Certainty Rate is gilt plus 80 basis points (G+80bps) • Local Infrastructure Rate is gilt plus 60bps (G+60bps) • HRA Rate is gilt plus 40bps (G+40bps) 8.7 There is likely to be a gradual fall in short-dated gilt yields and PWLB rates over the next two years as the Bank Rate is forecast to gradually fall from 4.50% in March 2025 to around 3.50% in December 2026. 8.8 External Borrowing at the Year-end The Council’s aggregate external debt was contained within both the Operational Boundary and the Authorised Limit. The final outturn position compared to the prudential limits forecast at 12 December 2024 is as follows: Page 160 of 214
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2023/24 Outturn 2024/25 Borrowing Limits 2024/25 Outturn £m £m £m 357.99 Aggregate external debt of the Council at 31 March 2023 397.68 553 Operational Boundary 598 571 Authorised Limit 624 8.9 Ratio of Financing Costs to Net Revenue Stream This indicator is expressed as a proportion. Both the Housing and Non- housing programme were within the forecasts at 12 December 2024. 2023/24 Outturn 2024/25 Estimated Ratio 2024/25 Outturn % % % 27.68 Housing 28.59 22.70 3.13 Non-Housing 3.47 2.88 8.10 Fixed Rate Borrowing Maturing within the Short, Medium and Long-term This indicator is expressed as a proportion of the total debt of the Council. The maturity profile of the Council’s external debt is well within the approved limits. The outturn position, compared to the mid-year approved limits, is as follows: 2023/24 Outturn 2024/25 Approved Upper Limits 2024/25 Outturn % % % Short-term 1.72 Under 12 months 15 1.76 Medium term 1.72 12 months and within 24 months 15 0.00 0.00 24 months and within 5 years 45 0.00 0.01 5 years and within 10 years 50 6.52 Long-term 96.55 10 years and above 100 91.72 8.11 Long-Term Borrowing Maturity Profile During the financial year, the Council operated within the treasury limits set out in the Council’s Treasury Policy Statement and Treasury Management Strategy Statement. The Council's debt maturity profile at 31 March 2025 was within these limits. Page 161 of 214
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The table below shows the maturity profile of the Council’s long-term borrowing. The solid black line shows the debt maturing, and therefore requiring to be replaced, during each year up to 2072. The lighter broken line shows the debt maturing in the prospective five-year period for each year up to 2072. All years are below 40% and well within our policy limits. 0% 10% 20% 30% 40% 50% 2025/2026 2027/2028 2029/2030 2031/2032 2033/2034 2035/2036 2037/2038 2039/2040 2041/2042 2043/2044 2045/2046 2047/2048 2049/2050 2051/2052 2053/2054 2055/2056 2057/2058 2059/2060 2061/2062 2063/2064 2065/2066 2067/2068 2069/2070 Maturity Profile - Spread of Debt From 2025/26 through to 2071/72 1 Year % of total limit 5 Year % of total limit Page 162 of 214
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___________________________________________________________________ Implications of the Report 1. Financial As described in the report; the Treasury Management Strategy Statement, treasury management and prudential indicators all assist in providing assurance that the Council’s treasury management activities and longer term spending plans are affordable, prudent, and sustainable. 2. HR & Organisational Development There are no direct implications arising from the recommendations in this report. 3. Community/Council Planning Community Plan Our Renfrewshire is thriving The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy, and our future The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Building strong, safe, and resilient communities Tackling inequality, ensuring opportunities for all Creating a sustainable Renfrewshire for all to enjoy Ongoing revenue and capital budget monitoring is a tool to enable good financial management so that the Council has resources now and in the future for continued service delivery. Working together to improve outcomes 4. Legal There are no direct implications arising from the recommendations in this report. 5. Property/Assets The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT, infrastructure, and plant and equipment. 6. Information Technology There are no direct implications arising from the recommendations in this report. Page 163 of 214
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7. Equality & Human Rights While new areas of spend may impact on particular groups, any such impact would be assessed prior to the spend being incurred, therefore there are no direct implications arising from the recommendations in this report. 8. Health & Safety There are no direct implications arising from the recommendations in this report. 9. Procurement There are no direct implications arising from the recommendations in this report. 10. Risk The report outlines a range of measures taken during the course of 2024/25 to manage treasury risks and the risks associated with investment regulations in respect of the borrowing and investment activity of the Council, along with measures to manage these risks. 11. Privacy Impact There are no direct implications arising from the recommendations in this report. 12. Children’s Rights There are no direct implications arising from the recommendations in this report. 13. Climate Change There are no direct implications arising from the recommendations in this report. 14. Cosla Policy Position - N/A _________________________________________________________ List of Background Papers: Non-Housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2024/25 – 2028/29, Council, 29 March 2024. Treasury Management and Prudential Indicators Mid-Year Review 2024/25, Council 12 December 2024 ___________________________________________________________________ Author: Christine McCourt, Head of Finance and Procurement Page 164 of 214
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___________________________________________________________________ To: Council On: 26 June 2025 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Accounts Commission - Best Value Audit Report ___________________________________________________________________ 1. Summary 1.1 The duty of Best Value applies to all public bodies in Scotland and requires organisations to ensure that there is good governance and effective management of resources, whilst also ensuring activities focus on improvement and deliver the best possible outcomes for the public. 1.2 A Controller of Audit Best Value report for Renfrewshire Council has been prepared by Audit Scotland and was considered by the Accounts Commission on 15 May 2025. Following this, the Accounts Commission published their findings on 5 June 2025. 1.3 Appended to this paper is the covering report outlining the Commission’s findings and the Controller of Audit Best Value report. This was a very positive report and the key points to note are outlined in section 4. In line with statutory requirements, Council is asked to consider the findings from the Controller of Audit Best Value report. 1.4 The work underpinning these reports has been undertaken as part of the ongoing audit activity by the Council’s external auditors, Azets, which is regularly reported to Audit, Risk and Scrutiny Board, including a recent ‘Interim Update Report’ which was considered in April 2025. Best Value and associated improvement activity is also regularly reported to Leadership Board with the last update provided in February 2025. 1.5 Elected members will note that there are no formal recommendations for the Council to action in relation to the reports, however in line with our core value “We Value Learning”, officers have highlighted a number of activities which will be progressed by the organisation through its ongoing Corporate Item 5 Page 165 of 214
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Improvement Plan within section 5 of the report. The majority of these actions have been identified through previous audits and self-assessment activities. Progress in terms of implementation of the plan will continue to be reported to Leadership Board on a 6 monthly basis. ___________________________________________________________________ 2. Recommendations 2.1 It is recommended that members: • note and accept the Accounts Commission’s findings noting officer feedback outlined at section 4. • Agree that improvements identified through the Best Value audit process will be incorporated into the existing Corporate Improvement Plan and reported to the Leadership Board on a 6 monthly basis. • Note the next update on the Corporate Improvement Plan will be provided to Leadership Board in September 2025. ___________________________________________________________________ 3. Background 3.1 Renfrewshire Council has a well-established commitment to delivering Best Value and continuous improvement, underpinned by a programme of self- assessment and reflecting a wide range of external audit, scrutiny and inspection processes that the organisation participates in. 3.2 Regular reports to Leadership Board have outlined the changes in the national Best Value methodology, particularly the introduction of annual thematic reviews and also the preparation for Renfrewshire Council’s ‘full’ Best Value report, also known as a Controller of Audit Report. 3.3 All local authorities in Scotland are subject to a Controller of Audit Best Value Report within the rolling five-year programme. These are prepared by Audit Scotland, considered by the Accounts Commission, and reflect all audit work carried out by external auditors since the new auditing cycle commenced in 2022/23. 3.4 For Renfrewshire Council, our external auditors are the auditing firm Azets. Alongside the standard thematic reviews and annual audit reporting, auditing work considered within the scope of this Controller of Audit Best Value report has included following up on audit recommendations related to the previous section 102 reporting on Dargavel. 3.5 Officers and Elected Members have engaged extensively with Azets, who have in turn worked closely with Audit Scotland to support the Controller of Audit to prepare her report. As noted above, this report was considered by the Accounts Commission on 15 May 2025 and their findings were published on 5 June 2025. Page 166 of 214
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3.6 As part of the statutory process, all Elected Members were provided with a copy of the report when this was published on 5 June 2025, and the Best Value report and Commission findings are required to be considered through a meeting of the Council within 3 months of the publication date. 3.7 Members of the Accounts Commission also visited Renfrewshire Council earlier this month, to discuss the report and to set out the Commission’s expectations in terms of monitoring progress as part of the annual audit process. 4. Key findings 4.1 As noted in the Account Commissions’ findings, the Commission welcomed the Best Value Report on Renfrewshire Council and made a number of observations. The findings and full report are attached as Appendix 1 to the report. 4.2 The Commission: • Welcomed the Council’s ‘commitment to leadership and creating a positive working culture across all services’. The Commission also recognised the Cultural Assurance Model, developed by Renfrewshire Council in partnership with the Improvement Service, and was keen this was shared with other local authorities. • Were ‘pleased to see that the Council has responded positively’ to the previous issues raised in relation to Dargavel school provision and noted the approach to highlighting the costs associated with this. • Highlighted the range of good examples of community engagement and noted it was ‘clear that the Council is working hard to build trust and confidence with all communities’ across Renfrewshire. • Commended the prudent financial management of the Council while noting the challenge around increasing demand and cost pressures, including for Renfrewshire’s Integration Joint Board. It also noted the importance of the next phase of the Council’s transformation programme to tackle the budget challenge. • Recognised the scale and ambition of the Council’s capital programme and the importance of continuing to address any delivery issues. • Welcomed the ‘comprehensive approach to leadership development’ and were ‘pleased to see’ the Elected Member development programme, including for Members of the Audit, Risk and Scrutiny Board, whilst highlighting the importance that Members undertake training where offered. Page 167 of 214
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• Highlighted areas of nationally strong performance, including educational attainment, positive destinations and delayed discharge and noted the importance of continuing to closely monitor the impact of difficult decisions on performance and for our communities. 4.3 Following an assessment by officers, it is recommended that the report and Commission findings are accepted by Elected Members. The findings are assessed as being broadly reflective of areas identified within our own organisational self-assessment processes, or through recent inspection and external scrutiny exercises involving the Council which have highlighted very positive assessments of leadership, culture and performance. 4.4 The Commission’s findings also reflect the context in which local authorities are operating, as outlined in several recent national reports, including the national report on the Local Government Benchmarking Framework, and the Accounts Commission’s own recent report on Local Government Budgets 2025/26. They provide a helpful focus on key areas of activity that must be progressed in relation to transformation and consultation and engagement with communities in relation to these financial challenges. 4.5 Elected members are asked to note that representation was made to the Secretary for the Accounts Commission in relation to Finding 5, which notes: “We recognise the council’s ambitious and complex capital programme, but the council must address the delivery issues that have affected the programme in previous years. The programme impacts the council’s revenue budget, so delays and slippage come at a cost to investment in service delivery” 4.6 It is suggested that the finding infers that delivery issues relating to the capital programme in recent years were within the control of the organisation, and unfortunately fails to recognise the significant impact that both COVID and the Ukraine war and various other geo-political events had on construction market supply chains and the availability of core construction materials such as steel, timber and bitumen for example. Such major global events and their impact on major construction projects during this period affected projects across all sectors in the UK and there was limited actions available to the Council to mitigate their impact on Council projects at that time. 4.7 Whilst projects may on occasion be impacted by local delivery issues, the Controller of Audit report on Best Value provides additional context which is not reflected in the Accounts Commission finding on this issue. At paragraphs 60 and 61 of the report attached at Appendix 1, the content reflects the extra- ordinary supply chain issues experienced in 22/23, with programme delivery returning to stronger performance in 23/24: 60. The council’s ability to fully deliver its capital programme within the originally planned timescales has been impacted by a number of factors, including the complexity of the works, the cost of materials, supply chain issues and availability of contractors. Page 168 of 214
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61. In 2022/23, capital projects with a value of around £42 million (25 per cent of the capital programme) had to be re-profiled. In 2023/24 just 6.5 per cent of the programme was reprofiled into later years. Given the scale of the council’s ongoing capital programme, delivery to plan is likely to remain a challenge. 4.8 This position was reinforced to Commission members at its local meeting with representatives from the Council on 18 June, in addition to the recognition that the organisation to continue to ensure that it has the skills, capacity and capabilities required to deliver its future capital investment programmes. 4.9 At this meeting, feedback was also provided to the Accounts Commission on the Best Value Audit process itself. It was noted that there were some areas of the Best Value Audit process where, in line with the methodology utilised, evidence of progress could not be considered by the Accounts Commission due to timing of reporting. It was felt that overall this impacted the ability of the Council to evidence its commitment to continuous improvement and Best Value. 4.10 Overall, there are no formal recommendations set out by the Accounts Commission in relation to report. Relevant progress updates specific to the Section 102 reporting on Dargavel will continue to be reported to the Audit, Risk and Scrutiny Board and the Education and Children’s Services Policy Board as usual. 5. Priority areas of focus and next steps 5.1 A core value of Renfrewshire Council is ‘We Value Learning’ and the Council has a well-established programme of self-assessment to learn and improve. This helps to ensure that all elements of Best Value are being delivered and drives forward corporate improvement activities in line with our commitment to continuous improvement as an organisation. 5.2 There has been a significant amount of audit, scrutiny and inspection activity supported by the organisation and many colleagues across all services over the past 18 months. Across this work, there has been a wide range of positive examples and best practice identified, along similar themes to the Accounts Commission’s findings. For example, the Adult Support and Inspection report noted ‘strategic leadership for adult support and protection was accomplished with elements that were sector leading’. The Joint Inspection of Services for Children and Young People at Risk of Harm report noted the ‘well-developed collaborative culture and staff, managers, and leaders (who) worked positively together across agencies’. Education inspectors commented on Additional Support Needs Parent Ambassadors who felt ‘they have a genuine voice’. 5.3 Whilst there are no formal recommendations from the Controller of Audit Best Value Report, areas of interest have been highlighted by the Accounts Commission. On the whole, these align with areas already identified as part of the preparation for the Best Value process or the self-assessment activity which has underpinned it. Page 169 of 214
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5.4 A summary of the key areas of focus is detailed in the table below: Area of focus Commentary Embed Cultural Assurance Model approach into cycle of continuous improvement 5 priority actions identified from the Cultural Assurance Model have already been included in the Corporate Improvement Plan and where relevant have been included in Service Improvement Plans. Further work is planned over the year to reflect further on this work and the findings from the Employee Engagement Survey, aligning and building on these insights. Share Cultural Assurance Model with others Renfrewshire Council continues to work closely with the Improvement Service as we share our experience of developing the model and the benefits of undertaking this work. A workshop with a national professional group took place earlier this month and a number of local authorities have expressed an interest in the model. As this work is mainstreamed into the Improvement Service’s PSIF offer for all member organisations, Renfrewshire Council officers will continue to make themselves available to champion this work. Watching brief on highlighting costs associated with Thistle Primary School and extension to Park Mains High School As with all revenue pressures the Council is facing, the additional operating costs of both the Thistle Primary and Park Mains High School are incorporated into the council’s medium term financial forecasts with an update expected to be provided to the Council meeting in September. Capital costs for both projects are reported to the Education and Children’s Services Policy Board every reporting cycle, on an individual basis giving Elected Members and the public full information on both cost and progress with the works and both projects are fully funded and included within existing financial plans. Evidence community engagement within decision making, policy development and service planning Following the approval of the Consultation and Engagement policy at Leadership Board earlier this year, which sets out standards and guidance for planning, conducting and learning from public engagement. It is intended to support greater consistency in the approach to public engagement, to promote data-sharing across the Council, and to help build trust with communities Page 170 of 214
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Area of focus Commentary and other stakeholders. A newly established Consultation and Engagement Co-ordination Group will provide strategic oversight and guidance, and drive improvement activity. Updates will be provided to the Leadership Board on a six-monthly basis. The findings from the Residents Survey will also support decision making and service planning, acting as a baseline for future engagement and priority setting. Address any delivery issues in relation to capital programme Officers recognise the challenges in delivering Renfrewshire’s capital programme - the programme is ambitious, diverse and complex. Officers will continue to regularly assess delivery progress and update Elected Members through the relevant Policy Boards. It will be important that the Council continues to appropriately resource the scale of capacity and skills as part of the teams established to deliver major programmes moving forward and this in particular is being built into the planning for delivery of the developing strategic investment in the Learning Estate. Encourage all Elected Members to undertaken training The Council uses a combination of an intensive induction programme following each Local Government election and a targeted annual development programme for Elected Members. This is supplemented by bespoke training opportunities throughout the year. This approach is regularly reviewed to keep pace with the changing context and key areas of interest identified by Elected Members. Training opportunities are also offered in different formats – in person, hybrid, online and as a recorded training seminar available at a time to suit. A suite of training materials is also provided to enhance the content, and opportunities for training and development through organisations such as the Improvement Service are also shared and promoted. Feedback is sought from the annual Members Development Week and the programme adjusted to reflect this. Plans are already in development for the Members Development Week 2025, and also for the Members Induction Programme following the 2027 local government elections. Page 171 of 214
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Area of focus Commentary A range of training options continue to be utilised by Members, including Board-specific training, such as for the Audit, Risk and Scrutiny Board. Continue to monitor performance and the impact of decisions on service performance and wider community outcomes A programme of work strengthening the Council’s approach to performance scrutiny has already been commenced. This includes the establishment of an officer performance group to drive improved performance across Council Plan strategic outcomes, explore the LGBF and other benchmarking in more depth and undertake ‘deep dives’ on Council-wide performance, with a particular focus on outcomes and the golden thread between performance and priorities. Scope to develop presentation of options appraisals and business case development (from CofA report). The Council already makes extensive use of options appraisal and business case development as part of major investment projects and has an established business case and options appraisal process as part of its corporate project management framework to support the development and delivery of projects across the Council. To further strengthen this, officers will undertake a review of the existing corporate guidance, Board reporting arrangements and will benchmark with approaches adopted by other Scottish local authorities to identify specific areas of best practice and recommended improvement actions to be adopted into existing arrangements. Financial Reporting of Savings The Council will continue to consider where improvements in financial reporting could be made, recognising our commitment to transparency. Currently, where Council agrees a saving, this is baselined within opening departmental budgets, therefore any non-delivery will result in a reportable overspend to the relevant Policy Board. Further, additional reporting of savings delivery arising from the Reshaping Renfrewshire Programme will be built into the major financial strategy reports brought forward twice a year by the Director of Finance and Resources. Page 172 of 214
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5.5 Actions have already been incorporated into the Corporate Improvement Plan, and into Service Improvement Planning processes reflecting these areas. A progress update on the full Corporate Improvement Plan will be reported to Leadership Board in September 2025. Progressing improvement activity in relation to Best Value is also an action in the Council Plan Performance Framework and locally in the Chief Executive’s Service Improvement Plan. 5.6 Progress on Best Value continues to be reviewed as part of the normal ongoing audit cycle. The Best Value thematic report on transformation and Annual Audit Report for 2024/25 are being progressed by Azets and will be reported to Board later this year. ___________________________________________________________________ Implications of the Report 1. Financial – there are no financial implications, however the report and the appendix reference to the financial pressures for the organisation and the financial reporting in relation to this. 2. HR & Organisational Development – none 3. Community/Council Planning – our commitment to Best Value and the delivery of many of the activities (including self-assessment) is clearly established within our Council Plan, particularly through the Living Our Values strategic priority. The covering report also directly references an action in the Council Plan in relation to delivering improvement activity. 4. Legal - none 5. Property/Assets – none 6. Information Technology - none 7. Equality and Human Rights – there are no negative impacts on equality groups or potential for infringement of individuals’ human rights arising from the recommendations contained in the report. 8. Health and Safety - none 9. Procurement – none 10. Risk – none 11. Privacy Impact – none 12. COSLA Policy Position – none 13. Climate Risk – none 14. Children’s Rights - none Author: Pauline Moss, Strategy, Policy and Insight Manager Chief Executive’s Service Page 173 of 214
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Best Value Renfrewshire Council Prepared by the Controller of Audit June 2025 Page 175 of 214
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2Best Value: Renfrewshire Council Contents Key facts 3 Commission findings 4 Controller of Audit report 6 Appendix 1 17 Appendix 2 18 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility. Page 176 of 214
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3Key facts Key facts 104 Square miles 186,540 Population 8,506 Workforce 43 Elected members 20 SNP, 13 Labour, 4 Independent, 3 Conservatives, 2 Reform, 1 Liberal Democrat (SNP minority administration) £33m Forecast cumulative budget gap for 2026/27 and 2027/28 (before council tax increases) £513.6m Net revenue budget/expenditure 2023/24 £176m Capital budget 2023/24 (General Fund £146m HRA £30m) Page 177 of 214
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4 1. Chapter title Commission findings Commission findings The Accounts Commission welcomes and endorses the Controller of Audit’s report on Best Value in Renfrewshire Council (presented at page 6), and the reports and recommendations made by the auditors. Following consideration of these reports at its meeting on 15 May, the Commission has made the findings presented below: 1 The council’s commitment to leadership and creating a positive working culture across all services is to be welcomed. We were interested to see the development of the ‘Cultural Assurance Model’ in partnership with the Improvement Service. We encourage the council to ensure that this self-assessment approach is now bedded in as part of its cycle of continuous improvement, that it continues to focus on addressing the specific improvement areas identified in its staff survey, and that the model is shared with others. 2 We are pleased to see that the council has responded positively to issues raised by the Controller of Audit in previous reports and welcome the auditors’ approach to highlighting the costs associated with the new primary school in Dargavel and the extension to Park Mains High School, on which we will keep a watching brief. 3 There are good examples of activities that are enabling and supporting community engagement across Renfrewshire. A refreshed approach to consultation and engagement is now in place across the council and although it’s early days, it is clear that the council is working hard to build trust and confidence with all communities across the region. Ensuring openness and transparency with communities will be essential as tough decisions require to be taken and we will expect to see evidence of community engagement flowing through into decision- making, policy development and service planning. 4 The council has managed its finances prudently and worked hard over the years to smooth the impact of fluctuating funding settlements. This has included building up reserves which have been used to protect services, balance budgets, and support investment in assets but this is not sustainable over the long term. Increasing demand and costs mean the council is now facing significant financial pressures in areas like health and social care, and Renfrewshire’s Integration Joint Board’s (IJB) reserves are expected to be exhausted by the end of 2025/26. The next phase Page 178 of 214
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Commission findings 5 of the council’s transformation plan – Reshaping Renfrewshire – aligned to its medium-term financial plan, is now central to addressing its growing budget gap (including within the IJB) and reducing its reliance on reserves. 5 We recognise the council’s ambitious and complex capital programme, but the council must address the delivery issues that have affected the programme in previous years. The programme impacts the council’s revenue budget, so delays and slippage come at a cost to investment in service delivery. 6 As well as a comprehensive approach to leadership development, we are pleased to see a programme of member development in place, especially in audit, risk, and scrutiny. All members should be encouraged to undertake training, given the skills needed to navigate an increasingly complex and challenging external environment and to take the tough decisions that lie ahead. 7 We will continue to watch the council’s performance with interest, especially in areas like education where attainment and positive destinations are among the best and its costs per pupil are among the lowest in Scotland. The council’s delayed discharges from hospital (age 75+) and hospital readmission rates are lower than the Scottish and ‘family group’ averages, but difficult decisions are now required within the IJB, given the financial position. It is important that the council continues to monitor the impact of its decisions on service performance and wider outcomes for communities. Page 179 of 214
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6Controller of Audit report Controller of Audit report Introduction 1. This report is made by the Controller of Audit to the Commission under Section 102(1) of the amended Local Government (Scotland) Act 1973. It is based on evidence collected in the 2022/23 and 2023/24 annual audits of the council, with the latter reported in October 2024. Appendix 1 (page 17) includes links to the 2022/23 and 2023/24 Annual Audit Reports (AAR) and Appendix 2 (page 18) includes a link to the Best Value Statutory Guidance. 2. The reporting of Best Value is undertaken through the annual audit of each council and includes detailed work focusing on a Scotland-wide theme. The Best Value theme for 2022/23 was councils’ leadership of the development of new local strategic priorities while the 2023/24 theme focused on workforce innovation. 3. The Best Value theme for 2024/25 is Transformation and how councils are redesigning and delivering more efficient services to achieve planned outcomes. The work undertaken by the auditor at the council was not complete in time to be covered here and will be reported on as part of the 2024/25 annual audit. Pace of continuous improvement 4. Renfrewshire Council remains committed to the principles of Best Value and has made good progress on previous improvement actions identified in Best Value reports. 5. The council has also put in place arrangements to address the issues raised by the Controller of Audit, and the Accounts Commission in response to Controller of Audit s102 reports, on council failings in relation to Dargavel Primary School. 6. The recent follow-up audit in relation to community engagement and culture change identified some scope for further improvement in how the council reports options appraisal outcomes and business case assessments. Page 180 of 214
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Controller of Audit report 7 Best Value Assurance Report (BVAR) follow-up 7. The council last received a BVAR in August 2017. The report made seven recommendations for improvement in areas such as cross- party working, community engagement, partnership working, financial sustainability, workforce planning and governance arrangements. The auditor has reported good progress against improvement actions, with all recommendations now complete. Leadership review 8. Leadership in the development of new local strategic priorities was the subject of Best Value thematic work in 2022/23. The auditor was satisfied that council arrangements in place to demonstrate Best Value under each reported area of the 2022/23 thematic review were appropriate. 9. In their recent follow-up report, the auditor reported they are satisfied that the council has demonstrated evidence of a positive corporate culture and continues to take a range of actions aimed at supporting further development of openness and transparency. The auditor has also noted an improved level of scrutiny at Audit, Risk and Scrutiny Board in their 2024/25 interim report on culture and community engagement. 10. The Council Plan 2022-27 was refreshed in June 2024 and includes a vision of ‘Creating a fairer Renfrewshire built on innovation, wellbeing and opportunity’. The council’s intention with the refreshed plan was to sharpen its focus on key priority areas and update actions and performance indicators to better facilitate measurement of progress. The auditor will consider the refreshed plan as part of the 2024/25 audit. 11. The council introduced a Leadership Development Programme developed by the Society of Local Authority Chief Executives (SOLACE) based on their discussions with the key stakeholders within the council. Three cohorts of the council’s leaders and managers have now been through the programme. Additional deep-dive training took place during 2023/24 for all key officers at a variety of grades on governance. 12. Elected member training takes place on a regular basis throughout the year with an annual development week also provided. Training needs are kept under review to keep pace with the changing council context, key areas of interest, and identified needs. A range of training formats are used, and a suite of training materials is made available. Opportunities for training and development through organisations such as the Improvement Service are also shared and promoted. Page 181 of 214
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Controller of Audit report 8 13. In December 2024, the council launched a new self-assessment approach focused on organisational culture. This Cultural Assurance Model (CAM) was developed in partnership with the Improvement Service and based on the Public Service Improvement Framework which has been used in the council for over 15 years. 14. The model explores organisational culture across the four key themes of Leadership; People (employees); Collaborating, learning and listening; and Ethics and governance. The first phase of the CAM programme included a targeted survey of the Chief Officers Team, the Our Leaders Forum (third-tier managers) and the staff forums across the four council services. 15. The overall findings from the targeted CAM survey show respondents reflecting on a positive organisational culture at the council, alongside some areas for improvement that the council is exploring further. Just over a quarter of respondents identified that further improvements could be made in relation to feeling able to raise concerns about any aspect of work, and the transparency and accountability around decision-making. 16. As part their recent audit work, auditors specifically met with council members and officers to consider their relationships. Auditors found that members and officers work well together in a constructive and appropriately challenging culture which supports good overall decision- making. However, their analysis of board papers indicates some scope for the council to further develop how it presents options appraisal and business case development in supporting effective council decision- making and achieving transparency and openness in decision-making processes. Citizen and community engagement 17. Previous statutory reports have highlighted specific concerns relating to engagement regarding Dargavel Primary School. The auditor reports that good progress has been made with the development of consultation and community engagement including a refresh of the council’s overall approach, with appropriate arrangements established or in place to support effective governance and scrutiny of those revised arrangements. 18. Community empowerment, wealth and wellbeing are reflected in the strategic priorities underpinning the Council Plan and the council has worked collaboratively to deliver a place-based approach to digital exclusion, with work being recognised in the joint Accounts Commission and Auditor General report on Tackling digital exclusion in 2024. Page 182 of 214
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Controller of Audit report 9 19. A revised Consultation and Engagement Policy was approved by the Leadership Board in February 2025, which replaces an existing engagement strategy and toolkit. It provides best practice guidance for council officers and services who plan and conduct public consultation and engagement. 20. The introduction of a Consultation and Engagement Coordination Group, chaired by the head of policy and partnerships, should help strengthen the application of the new policy. This group will provide strategic oversight, guidance and approval of the consultation and engagement activity, and review operational progress against the policy on an annual basis. 21. Updates on consultation and engagement will be provided to the council’s Leadership Board as part of the six-monthly updates currently provided on the Council Plan. Services will also provide an update on consultation activities progressed through service improvement planning processes and reports to relevant policy boards. 22. The auditor highlights a number of activities at the council which are enabling and supporting community engagement including: • A range of surveys have been undertaken with residents throughout the year. • A Connected Communities model has been developed which will seek to strengthen the way in which the council works with communities. • Engagement on the Housing Led Regeneration and Renewal Programme has been implemented. • You Decide – a participatory budgeting programme has been in place for three years. • A ‘Celebrating Renfrewshire’ fund designed by, and for, young people to have direct say on local area projects. This has been operating for five years, with over 10,000 votes and 400 projects delivered. • The Community Asset Transfer Policy and Sustainable Communities Fund enables direct community engagement across a range of council investment decisions. 23. The auditor will monitor the council’s progress with community engagement as part of their 2024/25 audit. Page 183 of 214
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Controller of Audit report 10 Effectiveness of performance reporting 24. The auditor has found performance management arrangements at the council to be robust and generally good. Systems for monitoring and reporting overall performance are good, and the council is developing arrangements to better evidence the relationship between strategic objectives, budget decision-making and performance outcomes in future performance reports. 25. The council’s Performance Framework for the Council Plan was approved in December 2022 and refreshed in June 2024. The Framework contains 37 high-level actions to be achieved in the next five years, with 34 performance indicators to measure progress. 26. Performance is monitored through quarterly performance reporting to the Corporate Management Team. The chief executive also holds performance scrutiny meetings with each directorate team twice a year, and the council plans to introduce a new performance board in April 2025 to help drive further improvements to service level performance. Performance is reported to elected members through Service Improvement Plans and Council Plan performance reports (six-monthly) and ad hoc operational performance updates for service areas. 27. Local Government Benchmarking Framework (LGBF) data is also reported to the Audit Risk and Scrutiny Board and made available to the public through the council’s Public Performance Reporting website page which includes presentations, dashboards and narrative. Reported performance 28. The council reported progress against the Council Plan and its five strategic outcomes (Place, Economy, Fair, Green, and Living our values) in December 2024. The progress report covered the 37 high-level actions, and 34 performance and data indicators outlined in the Council Plan. 29. Of the council’s chosen indicators, 20 have targets, with the remainder providing additional contextual information. Of the 20 indicators with targets, nine are meeting or exceeding the target, four are narrowly missing the target, and seven are behind target. 30. A review of all LGBF indicators shows that 67 of the 107 (63 per cent) available indicators have improved since the base year, three (three per cent) have stayed the same and 37 (35 per cent) have declined. 31. Of the 107 LGBF indicators, 76 are classed as performance indicators, 20 relate to costs and 11 to satisfaction. Seventy-four per cent of performance indicators, 50 per cent of cost indicators, and one satisfaction indicator have improved since the base year. Page 184 of 214
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Controller of Audit report 11 32. The council has 57 per cent of its LGBF performance indicators in the top two quartiles of council performance, having fallen slightly from 63 per cent in the base year. 33. The council reported on 19 education performance indicators for 2023/24 in a report to the Education and Children’s Service’s Policy Board in May 2024. One performance indicator has been on target, seven were below target and 11 were within ten per cent of the target, but still below it. When considering the long-term trends of those indicators, 13 report a downward trend, four an upward trend, with the remaining two either not comparable or without any change. 34. LGBF education performance measures show that the council remains in the top ten councils for 14 out of 18 indicators, with the four remaining indicators better than or close to the national average. The council had the fifth lowest cost per secondary school pupil in Scotland in 2023/24. Workforce planning 35. The auditor concluded that the council has appropriate workforce planning strategies and other policies in place, with a flexible approach to new ways of working and an awareness of the need for further improvement in this area. 36. The council’s People Strategy 2021-26 was updated in 2023 to align its themes with the new Council Plan strategic priorities. The focus of the updated strategy being: • improve employee experience to evolve the council’s culture • workforce planning to support service redesigns • Equality, diversity, and inclusion. 37. At the beginning of 2024, the council established a Corporate Workforce Planning Group, consisting of heads of services to drive and monitor the Council’s People Strategy priorities and outcomes. 38. The People and Development function is currently being reviewed to ensure it is able to deliver on the potential requirements of the new People Strategy under development. A stronger link to financial management is planned for the new strategy. 39. Responsibility for management of the workforce is delegated to individual services. Workforce risk assessment, operational priorities and implementation, and monitoring are undertaken though service improvement plans. Page 185 of 214
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Controller of Audit report 12 40. The auditor has identified some scope for improvement in how the council tracks progress against both its strategy and individual service plans. Clarity over the status of individual strategy objectives could be improved, with wider use of measurable performance indicators. Reporting in service improvement plans provides limited information on progress against People Strategy objectives. 41. The council has developed a suite of people metrics to inform workforce update reports to elected members and to support standardised annual reporting of progress against the People Strategy. A report on council workforce demographics and people metrics was taken to the Finance, Resources and Customer Service Policy Board in February 2025. 42. The council offers a blended working approach which allows eligible employees to work from a combination of home and office work, in line with the requirements of their specific service and role. There is also a flexi-time scheme for staff allowing start and finish times to be varied out with core working hours. 43. A staff survey was carried out in June 2021 to capture how staff were feeling and coping, coming out of Covid restrictions, and a new staff engagement survey was undertaken in September 2024. Around 2,000 (or 23 per cent) of the council’s total staff (of around 8,500) responded to the latest survey. The lower than targeted response rate may be attributable in part to separate surveys issued by the Care Inspectorate to staff working in children’s and adult social work services, as part of an independent inspection process. The Care Inspectorate survey confirmed an overall positive view from the workforce in these areas. 44. The results of the latest staff survey were largely positive, with some areas for improvement identified. Each council service has developed their own bespoke action plan to address agreed key areas for improvement. Newly established employee engagement forums in each service will support their senior management teams to progress these actions and drive improvements. 45. Appropriate arrangements are in place to enable the delivery of the council’s digital strategy and as noted at paragraph 18, the council has been recognised for its collaborative approach to digital exclusion. A number of automatic processes to drive efficiency and innovation have been implemented and a variety of digital training is offered to staff. The council recognises that a further assessment of digital skills is needed, and the creation of capacity to enable the review, exploration and development of digital opportunities remains a challenge. 46. The council works collaboratively with neighbouring councils, the Scottish Government, and local partners. And continues to explore opportunities for further collaboration. This includes leading the delivery Page 186 of 214
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Controller of Audit report 13 of major infrastructure projects through the Glasgow City Region City Deal, fulfilling the lead authority role for Scotland Excel and joint venture arrangements with private sector organisations. 47. The council can cite a number of ongoing collaboration arrangements including one with Inverclyde Council, East Renfrewshire Council, and West Dunbartonshire Council to deliver a civil contingencies service, which supports business continuity and emergency planning across the four council areas. Financial management and sustainability 48. The auditor has concluded that the council has appropriate financial monitoring arrangements in place with no significant weaknesses in financial controls identified. 49. The Accounts Commission has previously encouraged the council to ensure it is reporting transparently on the financial impact of decisions linked to school provision in Dargavel. The council have confirmed that the capital projects for both the Park Mains High School extension and the new Dargavel Primary School are reported to the Education and Children’s Services Policy Board. The council has also indicated that the revenue costs will be captured as part of their standard arrangements for annual budget-setting, monitoring and medium- to longer-term financial planning. The auditor will continue to keep this work under review. 50. In 2022/23, the council reported the use of £4.9 million of general fund reserves to support services, with a further £9.8 million utilised in 2023/24. The council reported overspends against revised base budgets, prior to the planned use of earmarked reserves, of £6.1 million and £2.6 million for 2022/23 and 2023/24 respectively. Overspends were driven by inflationary pressures and increased costs in various service areas including children’s, environment, housing, and infrastructure services. 51. Total useable reserves increased by £21.6 million in 2022/23, following the use of financial flexibilities in relation to service concession arrangements, and fell in 2023/24 by £13.9 million to £222.2 million. When reserves are expressed as a proportion of annual budget, the council has a relatively high level of usable reserves, ranked behind just three other councils (including Orkney and Shetland councils) at the end of 2023/24 (LGBF indicators). 52. A large part of the council’s reserve balance, £86 million at the end of 2023/24, is held in a capital fund which is earmarked to support investment in assets. The council has approved using £45 million of this balance to finance a new Dargavel Primary School. Page 187 of 214
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Controller of Audit report 14 53. Of the £117.6 million general fund balance at 31 March 2024, £107.3 million was committed or earmarked for specific purposes and £10.3 million remained uncommitted. The council maintains a policy minimum of £10 million of uncommitted reserves (just over two per cent of net expenditure) held for emergency purposes. Key financial information is included in Exhibit 1. Exhibit 1. Renfrewshire Council – key financial information 2022/23 (£m) 2023/24 (£m) 2024/25 (£m) 2025/26 (£m) Budget-setting Budget gap 9 16.4 16.1 8.9 Additional investment 5.6 1.8 2 9.2 14.6 18.1 18.1 18.1 Planned to be met via: • Savings and flexibilities 10 9.6 8.9 7 • Use of reserves 1.7 2.4 4.3 0.4 • Additional council tax/funding 2.9 (3%) 6.1 (6%) 4.9 10.6 (9.5%) Actual Proportion of savings delivered n/a1 Reserves (after earmarking adjustments) Forecast Use of/(contribution to) total reserves (21.6) 13.9 1.8 Total usable reserves carried forward 236.1 222.2 220.4 General fund 127.4 117.6 120.5 Earmarked 117.1 107.3 110.2 Uncommitted 10.3 10.3 10.3 1. Savings non-delivery is reported by exception for areas of service overspend only. Source: Council accounts, committee papers and council provided figures Page 188 of 214
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Controller of Audit report 15 54. Included in the £107.3 million earmarked general fund balance at the end of 2023/24 were amounts of £48.8 million for loan charge flexibility, £13.2 million for financial sustainability, £10.7 million for service modernisation and reform, and £10.6 million in an employability fund. 55. When the council set the budget for 2024/25, the planned use of general fund reserves to close the budget gap was £2.3 million. The council is currently projecting that the actual use of reserves will be lower at £0.5 million (January position reported April 2025). However, there is a £3.7 million overspend forecast for health and social care which will fall on Integration Joint Board (IJB) reserves. Council finances could be impacted by future health and social care overspends once IJB reserves are exhausted. 56. Before the 2025/26 budget was set, the council forecast a budget gap of between £25 million and £40 million for the three years 2025/26, 2026/27 and 2027/28 (inclusive of additional costs associated with the new Dargavel Primary School). The council tax increase approved for 2025/26 was 9.5 per cent which resulted in a balanced budget for that year. The council now estimates a cumulative budget gap of £33 million by 2027/28, this is prior to any council tax increases. 57. The proportion of the council’s in-year planned savings that have been delivered does not form part of the council’s routine reporting. Non-delivery of savings is reported on an exceptions basis where service overspends are identified. The council has reported that £190 million of savings have been delivered since 2011. 58. In January 2025, the council outlined the next major phase (Phase 5) of its long-term transformation programme – Reshaping Renfrewshire – (covering the period up to 2028). The scale of savings to be delivered from the programme will be updated in the medium-term financial plan in September 2025. Difficult decisions on spending priorities may be necessary. Delivery of the capital programme 59. The auditor reported, in their 2023/24 report, that the council has an ambitious £730 million capital programme in place over the next five years, for both housing and non-housing programmes. 60. The council’s ability to fully deliver its capital programme within the originally planned timescales has been impacted by a number of factors, including the complexity of the works, the cost of materials, supply chain issues and availability of contractors. 61. In 2022/23, capital projects with a value of around £42 million (25 per cent of the capital programme) had to be re-profiled. In 2023/24 just 6.5 per cent of the programme was reprofiled into later years. Given the scale of the council’s ongoing capital programme, delivery to plan is likely to remain a challenge. Page 189 of 214
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Controller of Audit report 16 62. The council’s capital financing requirement increased by £81 million in 2022/23 and by £68 million in 2023/24 with a closing balance of £510 million at the end of 2023/34. £29.2 million of this increase is attributable to the use of financial flexibilities. 63. The council’s ratio for debt financing cost to net revenue stream is below average for the general fund at 3.1 per cent (against a national average of 5.8 per cent). The ratio for the HRA is higher at 27.7 per cent (against a national average of 20 per cent). Page 190 of 214
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17Appendix 1 Appendix 1 Audit reports Annual Audit Reports 2022/23 and 2023/24 Each Annual Audit Report comprises: • significant matters arising from the audit of the council’s Annual Accounts • conclusions on the council’s performance in meeting its Best Value duties • conclusions on the wider scope areas that frame public audit as set out in the Code of Audit Practice 2021: – Financial management, financial sustainability, vision leadership and governance, use of resources to improve outcomes. 2022/23 Annual Audit Report Renfrewshire Council November 2023 2023/24 Annual Audit Report Renfrewshire Council October 2024 Interim follow-up audit report on the council’s approach to community engagement and culture change 2024/25 The auditor’s interim report includes their findings on the follow-up of issues identified in previous controller of audit reports on Dargavel Primary School. 2024/25 Interim Report Renfrewshire Council April 2025 Page 191 of 214
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18Appendix 2 Appendix 2 Best Value Statutory Guidance The Local Government in Scotland Act 2003 introduced a statutory framework for Best Value for local authorities. The Best Value duties set out in the Act are: • to make arrangements to secure continuous improvement in performance (while maintaining an appropriate balance between quality and cost); and, in making those arrangements and securing that balance, to have regard to economy, efficiency, effectiveness, the equal opportunities requirement and to contribute to the achievement of sustainable development • to achieve break-even trading accounts, subject to mandatory disclosure • to observe proper accounting practices • to make arrangements for the reporting to the public of the outcome of the performance of functions. Page 192 of 214
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Best Value Renfrewshire Council Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 Email: info@audit.scot www.audit.scot ISBN 978 1 915839 72 5 Page 193 of 214
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To: Council On: 26 June 2025 Report by: Director of Environment, Housing & Infrastructure and Director of Finance & Resources Heading: Governance Arrangements 1. Summary 1.1 The Council currently has a programme for flag flying and for lighting up buildings. The programme for flag flying is one that has been approved by Council over the years. 1.2 The new Renfrew Bridge has lighting and could be included in the structures that are lit up as part of the Council’s programme of lighting up for certain events. 1.3 Upon reviewing the lighting up of buildings programme to consider the bridge, there are now a number of light up events that have evolved from one off events, to annual events. On review if was felt relevant to bring a report to Council for approval to formalise the lighting up programme as a whole. 1.4 This report also sets out a number of Board nominations by the Labour Group to fill the vacancies created following the resignation of Councillor McGuire from that group. 2. Recommendations Council is asked to: 2.1 Agree the 5 structures and programme of events for lighting up of Council buildings as set out in appendix 1 of the report. 2.2 Note for information and awareness the programme of flag flying as detailed appendix 2. Item 6 Page 195 of 214
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2.3 Approve the following nominations by the Labour Group: Councillor Grady will fill the vacancy on the Planning and Climate Change Policy Board Councillor Clark will fill the vacancy on the Communities & Housing Policy Board Councillor Mullin will fill the vacancy on the Economy & Regeneration Policy Board Councillor McCulloch to replace Councillor Montgomery on the Renfrewshire Valuation Joint Board Councillor McDonald will fill the vacancy as a substitute member on Renfrewshire Valuation Joint Board. 2.4 Agree an appointment to the single vacancy that has been created on the Licensing Board. Should no nominations be submitted in respect of the Licensing Board, Council is asked to consider reducing the total membership of that Board from the current number of 10. 3. Background Scheme of Delegated Functions 3.1 The delegations to light up a building/property or to fly a flag resides under the Council’s scheme of delegated functions, with a new request to be brought to and agreed by Council. 3.2 The Council has historically lit up the following buildings: Renfrew Town Hall, Bascule Bridge, Renfrew, Houston Square Bandstand, Johnstone Tweedie Hall, Linwood 3.3 These buildings are lit up as they have the technology to change colours and patterns to support the various events. 3.4 The Renfrew bridge is equipped with similar technology that will allow it to be included within the programme for light up events throughout the year. Board Memberships 3.5 Councillor McGuire has resigned from the Labour Group. This has created a vacancy on each of the Boards on which he had been nominated by the Labour Group as a member. Councillor McGuire was also a substitute member on the Renfrewshire Valuation Joint Board. 3.6 Accordingly, the Labour Group has proposed the following nominations to fill these vacancies: Councillor Grady will fill the vacancy on the Planning and Climate Change Page 196 of 214
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Policy Board Councillor Clark will fill the vacancy on the Communities & Housing Policy Board Councillor Mullin will fill the vacancy on the Economy & Regeneration Policy Board Councillor McDonald will fill the vacancy as a substitute member on the Renfrewshire Valuation Joint Board 3.7 The Labour Group has also proposed that Councillor McCulloch replace Councillor Montgomery on the Renfrewshire Valuation Joint Board. 3.8 A single vacancy exists on the Licensing Board Board as a result of Councillor McGuire’s resignation from the Labour Group. In relation to the Licensing Board vacancies, in terms of the Licensing (Scotland) Act 2005 the Licensing Board shall consist of not fewer than 5 and not more than 10 members as may be determined by the Council. All members of the Board require to undertake a course of training accredited by the Scottish Ministers within three months of their appointment to the Licensing Board, whether or not they have been Licensing Board members before. Assessment of training shall be undertaken under exam conditions. Prior to the resignation of Councillor McGuire, the Licensing Board had ten elected members, being five administration members, three Labour Group members and two Reform Group members. Should no nominations be submitted in respect of the Licensing Board, Council is asked to consider reducing the total membership of that Board from the current number of 10. Implications of the Report 1. Financial – none 2. HR & Organisational Development – none 3. Community/Council Planning – none 4. Legal – none 5. Property/Assets – The report sets out the lighting and flags programme on Council owned properties. 6. Information Technology – none 7. Equality & Human Rights - The recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of Page 197 of 214
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individuals’ human rights have been identified arising from the recommendations contained in the report as it relates to the Council’s existing Scheme of Delegations. 8. Health & Safety – none 9. Procurement – none 10. Risk – none 11. Privacy Impact – none 12. CoSLA Policy Position – none 13. Children’s Rights – none. 14. Climate Risk – n/a List of Background Papers 1) Council report of 26 September 2024 – Governance Arrangements 2) Council report of 1 May 2025 – Governance Arrangements Author: Gerard Hannah, Head of Climate, Public Protection and Roads Email: gerard.hannah@renfrewshire.gov.uk Page 198 of 214
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APPENDIX 1 Renfrewshire Civic Building Lighting 2025 Renfrewshire Council has architectural lighting at 5 locations across Renfrewshire. These are: 1. Renfrew Town Hall 2. Bascule Bridge, Renfrew 3. Houston Square Bandstand, Johnstone 4. Tweedie Hall, Linwood 5. Renfrew Bridge, Renfrew The architectural lighting has the ability to be a static colour or scrolling across different colours. The current building lighting arrangements for 2025 are detailed below. Following a Council motion on 9 May 2024, the colours of the Ukraine Flag were shown when there are no other lighting events as detailed below: Date Month Event Colour (s) Frequency 4th February World Cancer Day Orange Annual 18th February Girl Guide Movement Blue Annual 20th February Care Day Red Annual 8th March International Women's Day Purple Annual 10th March No Smoking Day (British Heart Foundation) Red Annual 27th March Earth Hour No Lights Annual 1st April Testicular Cancer Awareness Blue Annual 11th April World Parkinson's Day Blue Annual 28th April International Workers Memorial Day Purple Annual 1st May World Prostate Cancer Day Blue Annual 12th May Fibromyalgia Awareness Campaign Purple Annual 17th May Nerve Tumours UK Light Blue Annual 27th May Lyme Disease Awareness Green Annual 31st May Prader Willi Syndrome Association Orange Annual 14th June World Blood Donor Day Red Annual 21st-27th June MND Awareness Blue Annual 28th June Armed Forces Day Red/White/Blue Annual 4th July Mesothelioma Action Day Blue Annual 7th July 30th year Srebrenica Anniversary Green One-Off 25th July World Drowning Prevention Day Blue Annual 1st September Polycystic Ovary Syndrome (PCOS) Teal Annual 5th September Blood Cancer UK Red Annual 26th September MacMillan Cancer Support - Coffee Morning Green Annual 1st - 4th October Breast Cancer Awareness Pink Annual 10th October Fragile X Syndrome awareness Blue Annual 15th October Baby Loss Awareness Wave of Light Pink / Blue Annual 25th October PoTS Awareness Purple Annual 28th - 31st October Halloween Green/Red/Orange Annual 5th - 14th November Remembrance Week Red Annual 22nd November 22q11 Awareness Red Annual 25th - 29th November Gender Based Violence Orange/Purple Annual 30th November St Andrews Day Blue/White Annual 1st-10th December Gender Based Violence Orange/Purple Annual 11th - 31st December Christmas Red/Green/White Annual Page 199 of 214
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APPENDIX 2 Renfrewshire Flag Flying 2025 Renfrewshire Council has flags at 3 locations across Renfrewshire with 3 flagpoles at each location. These are: 1. Renfrewshire House 2. Renfrew Town Hall 3. Houston Square, Johnstone Throughout the year, the Saltire Flag and the Union Flag are flown on 2 of the flagpoles with the 3rd interchanging as per previous motions to Council. The current flag flying arrangements for 2025 are detailed below. Following a Council motion on 9 May 2024, the Palestine Flag and the Ukraine Flag are flown for 2 months alternatively when there are no other flags flying as detailed below: Date Reason Flag flown 14 February 2025 International Brigades Day International Brigades Flag 10 March 2025 Commonwealth Day Commonwealth Flag 28 April 2025 International Workers Memorial Day Lower Flags to half mast 9 May 2025 Europe Day EU Flag 17 May 2025 International Day against Homophobia, Biphobia and Transphobia Rainbow Flag June 2025 (month) Pride Month Rainbow Flag 20 June 2025 Armed Forces Day Armed Forces Flag 3 September 2025 Merchant Navy Day Red Ensign Flag 9 November 2025 Armistice Sunday Lower Flags Page 200 of 214
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To: Council On: 26 June 2025 Report by: Director of Finance & Resources Heading: AUDIT, RISK & SCRUTINY BOARD ANNUAL REPORT 2024/25 1 Summary 1.1 The Chartered Institute of Public Finance and Accountancy (CIPFA) guidance recommends that all audit committees should “prepare an annual report that provides assurance to all those charged with governance that it fulfils its purpose and can demonstrate its impact.”. (Audit Committees Practical Guidance for Local Authorities and Police, published by CIPFA in 2022). 1.2 This annual report provides assurance to the Council, through the detailed activity, that it has complied with best practice guidance, in relation to the CIPFA position statement 2022, in demonstrating its effectiveness in providing a foundation for sound corporate governance. 1.3 Taking the CIPFA guidance into account, the reporting dates for this Annual Report is from 1 April 2024 to 31 March 2025 and provides an overview of the Audit, Risk & Scrutiny Board (the Board) activity during the financial year 2024/25 and a summary of key developments. 1.4 This report has been prepared to inform Renfrewshire Council of the work carried out by, and the impact of, the Audit, Risk & Scrutiny Board and provides details of the Board’s membership and attendance. It sets out how the Board has fulfilled its remit and provides assurance to those charged with governance that it has fulfilled its purpose and demonstrated its impact. 1.5 The annual report is timed to support the annual review of governance and preparation of the Annual Governance Statement. This enables the Board to take stock of the assurances it has received and the extent to which its own performance has contributed to governance arrangements. 1.6 This annual report highlights the issues considered by the Board during 1 April 2024 to 31 March 2025 when the Audit, Risk & Scrutiny Board met seven times. The report was submitted to the Board in terms of the Council’s Code of Corporate Governance. Item 7 Page 201 of 214
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1.7 At each meeting, the Board considered significant findings from Internal Audit reports together with monitoring the progress made by management in completing agreed actions to improve the Council’s control environment. It also considered the status of external audit action plans arising from external audit reports received and the external audit annual plan for 2024/25 from the external auditors in March 2025. 2 Recommendations (a) That Council notes that the Audit, Risk & Scrutiny Board has, in relation to the CIPFA position statement 2022, complied with best practice guidance in relation to demonstrating its effectiveness in providing a foundation for sound corporate governance; and (b) That the Audit, Risk & Scrutiny Board Annual Report 2024/25 be noted. 3 Background and Context 3.1 Remit and Role of the Board The Audit, Risk & Scrutiny Board is a key component of the Council’s governance framework. Its purpose is to provide an independent and high-level focus on the adequacy of governance, risk and control arrangements. The Board’s role in ensuring that there is sufficient assurance over governance risk and control gives greater confidence to all those charged with governance that those arrangements are effective. The Board has oversight of both internal and external audit together with financial and governance reports, helping to ensure that there are adequate arrangements in place for both internal challenge and public accountability. 3.2 Scrutiny enables Members to review decisions, policies and performance that affect the Council and helps to ensure that the services and policies meet the Council’s aims and standards. The scrutiny process not only provides a means of reviewing the Council’s own services but enables examination of services provided by other organisations on issues causing public concern. 3.3 In order to fulfil the remit, the Board sought assurance on the adequacy and effectiveness of the Council’s systems of governance, risk management and internal control to ensure efficient operations and the highest standards of probity and accountability. This was achieved through reports received from Internal Audit, other Council functions and External Audit with focus in particular on internal control and governance. Page 202 of 214
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4 Core Functions of the Audit Committee 4.1 The core functions of the Audit, Risk & Scrutiny Board reflects both standard practice for audit committees across all sectors and the specific legislative and professional standards requirements for local authorities. The CIPFA Position Statement sets out the core functions of the audit committee as follows. Supporting the establishment and maintenance of good governance, risk management and control arrangements. Supporting accountability and public reporting, in particular the financial statements and the annual governance statement, and other statements that accompany the financial statements. Supporting the establishment and maintenance of good arrangements for internal audit and external audit. 4.2 The Audit, Risk & Scrutiny Board met seven times during 2024/25 comprising meetings on 20 May, 19 August, 23 September, 22 October, 4 November 2024, 20 January and 17 March 2025 respectively, to consider reports relevant to the Audit cycle and other matters as deemed appropriate. 4.3 Pre agenda meetings were also held ahead of the Board meetings involving the Convenor, Depute Convenor and appropriate officers to allow for informal discussion, briefing Members on key issues, and facilitating a more efficient and informed decision-making process. 4.4 All Pre agenda meetings were held using the Microsoft Teams platform to allow remote participation. The Board meetings were held on a hybrid basis, with members and officers able to attend in-person or via Microsoft Teams, and were webcast for live and retrospective viewing by the public on the Council's live- streaming website. 5 Membership of the Board, Political Balance and Attendance 5.1 In accordance with Renfrewshire Council’s Procedural Standing Orders, membership of the Audit Committee should comprise of nine Elected Members drawn from all the political parties/independent Members represented on the Council, having regard to the party balance on the Council (three Administration/six opposition groups/parties/independent Members). The quorum of the Audit, Risk & Scrutiny Board is three Elected Members. 5.2 Councillor Gray resigned from the Conservative Group and left the Audit, Risk & Scrutiny Board on 5 March 2025. This created a vacancy on the Board on which he had been nominated by the Conservative Group as a member. At the Council meeting held on 1 May 2025 Councillor Mylet was appointed to the vacancy on the Board. 5.3 The membership and attendance of the Audit, Risk & Scrutiny Board in 2024/25 are as follows: Page 203 of 214
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ELECTED MEMBER PARTY POSITION APPOINTED TO BOARD MEETINGS ATTENDED POSSIBLE NO OF MEETING TO ATTEND Andy Doig IND Convener June 2022 6 7 J McDonald LAB Depute- Convener (appointed Feb 2024) June 2022 7 7 J Adam SNP Member June 2022 7 7 G Graham LAB Member December 2024 2 2 L Hughes SPN Member June 2022 7 7 R Innes SNP Member June 2022 7 7 J MacLaren CONS Member June 2022 7 7 B Smith LAB Member February 2024 7 7 W Mylet IND Member 1 May 2025 0 0 C Gilmour LAB Left Board 12 December 2024 June 2022 5 5 J Gray REFORM Left Board 5 March 2025 June 2022 6 6 5.4 The Convener is an independent Member, and the Depute Convener is from an opposition party. In terms of the Council’s Procedural Standing Orders, Members have been drawn from the political parties represented on the Council on a proportionate basis, having regard to party balance on the Council. It should be noted that members of the Leadership Board and members who are Conveners of another Board may not be Members of the Audit, Risk & Scrutiny Board. 5.5 CIPFA advises that “Elected Members of local authorities are part of the body charged with governance and bring knowledge of the organisation, its objectives and policies to the Audit committee”. Members with experience in scrutiny or standards offer additional knowledge of activity, risks and challenges affecting those areas. Ideally, the selection of Elected Members to the audit board will take account of aptitude and experience. 5.6 The Cross-Party Working Group report on governance submitted to Council on 29 February 2024, suggested that additional support to the Board, perhaps through external independent membership, particularly from a finance/accounts background, may be appropriate. Members of the Audit, Risk & Scrutiny Board considered this matter at a development session on 26 February 2024. They agreed it would be appropriate for there to be an option for the Board to appoint up to two individuals as non-voting lay members where they identified any need for specific assistance or any deficiencies in areas of experience of Board Members was identified by them . The Board’s request to change the Guidelines for Operation of the Audit, Risk & Scrutiny Board was agreed at the Council Meeting of 9 May 2024. The Board has not sought to recommend any specific appointment to Council since this change was agreed. Page 204 of 214
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5.7 At a development session held on 26 February 2024, members considered whether it would be beneficial to recruit independent/lay members to supplement the Audit, Risk and Scrutiny Board in particular areas. 5.8 At the Audit, Risk & Scrutiny Board held on 18 March 2024, the members considered a report entitled CIPFA Audit Committee Guidance – Self Assessment and Action Plan. The report proposed that “the Board may appoint up to 2 individuals as non-voting lay members to bring access to external expertise, knowledge or experience, as necessary. Lay members should be appointed by the Council after a recommendation from an interview panel chaired by the Convenor of the Audit, Risk and Scrutiny Board. Lay members should not be a member of any political party. This was agreed and subsequently included in the “Guidelines for Operation of the Audit, Risk & Scrutiny Board”. 5.9 Attendance by Officers at the Board Meetings 6 The Audit, Risk & Scrutiny Board meetings were attended by the Chief Auditor, Head of Corporate Governance and the Director of Finance & Resources. Other senior officers also attended meetings as appropriate for items of business for which their presence was relevant. Representatives from the Council’s external auditors - Azets Scotland, the external auditors, were also present at all of the meetings. Governance Arrangements 6.1 Internal control, governance and risk management arrangements are in place to help ensure the Council makes appropriate use of its resources and powers. The Audit, Risk & Scrutiny Board is a key component of governance. Its purpose is to provide an independent and high-level focus on the adequacy of governance, risk and control arrangements and the Board plays an important role in supporting leadership teams and elected representatives and helps the Council to achieve its priorities. 6.2 The Audit, Risk & Scrutiny Board is different from the Council’s Policy Boards. It is politically neutral with the Convener and Depute Convener being selected from either different parties or being non-affiliated. The role of the Convener is undertaken from outwith the Administration and Party Whips do not apply. The Board reports to the full Council. 6.3 There is a wide-ranging set of arrangements to support the running of the Council in place and these are reassessed each year by Internal Audit and reported through the Board. It should be noted that the Council’s external audit arrangements have never flagged any material issues with governance arrangements in the Council, however, there are always opportunities to improve and strengthen governance arrangements. 6.4 The Terms of Reference for the Board differ from other Policy Boards as there is no general delegation on specific service performance monitoring. The Board has specific delegations:- Page 205 of 214
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Audit: Including acting as the Council’s Audit Committee Corporate Governance: The Council’s code of corporate governance Risk Management: Including approval of the risk management strategy Monitoring and Reviewing Service Delivery Performance, Policies and Practices Community Leadership through Monitoring of Other Public Bodies Standards and Ethics: in relation to Elected Members Written Intimations: Specific requests from Members of the Board 7 Audit, Risk & Scrutiny Board Activity and Issues considered by the Board during 2024/25 7.1 Audit of Accounts - The Board at a special meeting held on 22 October 2024 considered a report relative to the audit of the Council’s 2023/24 accounts. The report intimated that the 2023/24 unaudited Annual Accounts were approved at the meeting of the Council held on 27 June 2024. Each year the Council's appointed external auditors carry out an audit of the Council’s financial statements and provide an opinion as to whether the statements provide a true and fair view of the financial position of the Council and its income and expenditure for the year; and whether they had been prepared in accordance with the relevant regulations. The report advised that there was one material adjustment made to the annual accounts over the course of the audit in relation to an amendment to the value of the Council’s pension asset disclosed in the 2022/23 Balance Sheet, owing to the exclusion of unfunded liabilities. Other minor and presentational changes were also agreed. 7.2 Annual Internal Audit Plan 2025/26 – The Board at the meeting held on 17 March 2025 agreed a risk-based internal audit plan for 2025/26. The plan considered the outcomes of the internal corporate and service risk identification and evaluation processes, and the current business environment. In addition to undertaking work which would provide assurance on the robustness of key internal controls, the plan sought to reflect the key priorities and challenges for the Council. The report set out the methods that had been employed to facilitate production of the Plan and the influencing factors that had been considered in the assessment of the current business environment and the priority areas of audit. Progress on the 2024/25 annual audit plan and summaries on the findings and conclusions of each audit assignment were reported to the Board on a quarterly basis. 7.3 External Audit and External Audit Plan 2023/24 – The Board at the meeting held on 17 March 2024 considered a report which outlined Azets’ approach to the audit of the 2024/25 annual accounts and the Coats Observatory to assess whether they provided a true and fair view of the financial position of the Council, and whether they had been prepared in accordance with proper accounting practice. The plan outlined the responsibilities of Azets and the Council, their assessment of key challenges and risks and the approach and timetable for completion of the 2024/25 audit. Page 206 of 214
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At the meeting of the Board on 23 September 2024, Azets, the External Auditor, submitted a Best Value Thematic report as part of the annual audit process. The report noted that the Accounts Commission had directed auditors to report on workforce innovation and how councils responded to workforce challenges. The report outlined the external auditors’ (Azets) findings in relation to questions posted by the Audit Commission. Key messages were highlighted and findings and suggested areas for improvement were detailed. The report also included an indication of planned management actions in response to the recommendations made by Azets. 7.4 Summary of Internal Audit Activity in Partner Organisations - Members of the Audit, Risk & Scrutiny Committee expressed an interest in the outcomes of audits undertaken in partner organisations. A proposed revision to the Audit, Risk & Scrutiny Board’s Terms of Reference, to facilitate this, was agreed at a meeting of the Council on 4 May 2024. The Board considered quarterly reports which provided Members with a summary of the internal audit arrangements within each partner body. 7.5 Internal Audit Findings – The Board considered quarterly reports on the findings of internal audit in terms of national guidance produced by CIPFA on the implementation of audit committee principles in Scottish local authorities, in line with which internal audit submitted regular reports on the findings of audit work to the Board based on the work of internal audit and detailing the key issues arising. 7.6 Internal Audit and Counter Fraud Progress and Performance – The Board considered regular reports which detailed progress and performance in terms of delivery of the audit plans for the internal audit and counter fraud teams. The Director of Finance & Resources had set annual targets to demonstrate continuous improvement. In terms of counter fraud, due to the diverse nature of fraud referrals, no formal performance targets had been established and the outcomes from investigations were monitored and reported on a regular basis by the Council’s management. 7.7 Actions Monitoring Report - Dargavel Primary School – The Board, at meetings held on 20 May, 19 August, 23 September and 4 November 2024 considered action monitoring reports relating to Dargavel Primary School. Following the findings of an independent review into the circumstances of the errors in planning and delivery of primary school provision in the Dargavel area, a SMART action plan had been developed which detailed the Council’s response. Each report provided an update in relation to the Bowles independent review report, the Accounts Commission S.102 report, and the actions related to the report of the Cross-Party Working Group. At the Board meeting of 4 November 2024, the Board agreed to receive periodic reports concerning school roll projections and learning estate planning over the whole Council area and the associated financial impacts of those matters. 7.8 Strategic, Corporate and Service Risks – The Board, at meetings held on 20 May and 4 November 2024, considered the latest position in managing the Council’s risks entering the respective quarters of the financial year. Page 207 of 214
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7.9 Annual Complaints Handling 2024/25 – The Board at the meeting held on 20 January 2025 considered a report which detailed complaints received by the Council from 1 April 2023 to 31 March 2024 and how this information had been used to ensure that the Council delivered high quality, efficient and responsive services. A summary was included of the numbers and types of complaints received; responded to within timescales; customer satisfaction monitoring; and key complaint areas including what was being done to address the issues raised. The report advised that 10,025 complaints had been received in 2023/24 compared with 9,155 in 2022/23. The report detailed the performance of key indicators, and highlighted improvements made to the complaints handling process over the past year to ensure that complaints were handled well. 7.10 Corporate Governance – The Board, at its meeting held on 17 March 2025 considered a report by the Chief Auditor which reviewed the adequacy and effectiveness of the revised Local Code of Corporate Governance. Internal Audit carried out a sample check of the evidence used to demonstrate compliance and confirmed that the Council complied with the requirements of the Local Code of Corporate Governance. In addition, it was evident that the Local Code had been subject to review and updates in line with developments in best practice and any revised Council Policies. At the same meeting on 17 March 2025 the Audit, Risk & Scrutiny Board considered a report by the Chief Executive which reviewed the Council’s Local Code of Corporate Governance 2024 and provided evidence of how the Council complied with the Code. The evidence presented within the report demonstrated that strong governance arrangements had remained and were in place within the Council, and that Councillors and Officers were working together to lead and manage the Council in order to provide vital public services. Annual Reports by other Bodies 7.11 Audit Scotland Reports – during the period covered by this report, there were six reports submitted from Audit Scotland: Local Government in Scotland – The National Fraud Initiative in Scotland 2024; Tackling Digital Exclusion; A summary of a recent Audit Scotland Report on Transformation in Councils; Alcohol and Drugs Services; and Local Government Financial Bulletin 2023/24 Each report highlighted key points and the Council’s position where available. 7.12 Scottish Public Services Ombudsman (SPSO) – Annual Report 2023/24 – The Board at the meeting held on 20 January 2025 considered a report which highlighted that the health sector was the sector which the SPSO received most complaints, with local authority cases receiving the second highest number. The report advised that information received separately from the SPSO indicated that the number of complaints determined by the SPSO was 54, compared with 35 in 2022/23. The report noted that there were 58 cases received (these included cases carried forward from the previous year). Of the 54 complaints determined during the period, one went to investigation stage. Page 208 of 214
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8 Annual Programme of Reviews 8.1 The guidelines suggest that in relation to (a) scrutiny of service delivery and performance and (b) monitoring and reviewing service delivery, performance, policies and practices, the Board may select particular areas for investigation as part of its annual programme, thereafter making recommendations to the Council. 8.2 In relation to the Council's role in community leadership, the guidelines recognise that this is not clear cut and requires to be considered carefully to ensure that the respective functions and responsibilities of other public bodies are not compromised but that the Board allows the Council to provide a forum for an informed public debate on these issues. Current Reviews 8.3 The 2024/25 Annual Programme was agreed at the Audit, Risk & Scrutiny Board on 20 May 2024. The following reviews went forward as part of the Annual Programme: • Neighbour Disputes; • Lack of house and garden maintenance by some tenants and residents; and • Lead Piping in Public and Private Housing in Renfrewshire. • Cyber Security • City Deal Governance and Arrangements 8.4 The review on neighbour disputes was presented to the Board on 23 September 2024 and noted by Council on 12 December 2024. 8.5 The review of lack of house and garden maintenance by some tenants and residents is currently underway by Lead Officer Maurice Gilligan and Members will receive a briefing on his findings at the Audit, Risk & Scrutiny Board to be held on 18 August 2025. 8.6 A presentation was given to the Board on 19 August 2024 in relation to City Deal Governance and Arrangements. 8.7 A presentation was given to the Board on 20 May 2024 in relation to Cyber Security Future Programme of Reviews 8.8 The Lead Piping in Public and Private Housing in Renfrewshire review is still outstanding and should be added to the list of Reviews for 2025/26. 8.9 The External Auditors have suggested that in relation to the scrutiny of service delivery and performance, that the Audit, Risk & Scrutiny Board select particular areas for investigation as part of its annual programme. At the annual assessment/development session held in 2024 it was agreed that officers would assist Members to develop the Board’s annual programme of reviews to ensure that due consideration was given to the corporate risks and priorities. Page 209 of 214
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8.10 During the development session held on Monday 19 May 2025, the scheduled review of the Annual Programme for 2025/26 was not fully covered due to the session overrunning its allocated time. As a result, it was agreed that the remaining discussion on this topic would be addressed via email to ensure continuity and thoroughness. The outcome of this discussion will be reported to the Audit, Risk & Scrutiny Board to be held on 23 September 2025. 8.11 It should be noted that Members still have the ability to submit written intimations to the Board to consider matters they would like reviewed. 9 Delivering Effectiveness and Strengthening the Audit Board 9.1 The Audit Committee is a key part of an organisation’s governance arrangements and one of its key roles is ensuring that there is sufficient assurance over the governance risk and control framework. It can be a valuable resource for the whole organisation. 9.2 The Chartered Institute of Public Finance and Accountancy (CIPFA) guidance, which was published in late 2022 for local authority Audit Committees aims to support Audit Committee members in fulfilling their role on the Audit Committee. 9.3 The guidance promotes that regular self-assessment against the key principles should be undertaken, to support the planning of the audit committee work programme and training plans and also inform the annual report. 9.4 Where an audit committee has a high degree of performance against the good practice principles, it is an indicator that the committee is soundly based and has in place a knowledgeable membership. These are the essential factors in developing an effective audit committee. 9.5 The Guidelines for Operation of the Audit, Risk & Scrutiny Board - Role of Members, was consequently amended in 2024 to recommend that all Members of the Audit, Risk and Scrutiny Board undertake an annual assessment of knowledge and skills which would be used to develop an annual training and development programme, as recommended in the CIPFA guidance. The Terms of Reference and the Guidelines for the Operation of the Audit, Risk & Scrutiny Board were also updated to formalise this change. 9.6 At a development session of the Audit, Risk and Scrutiny Board held on 16 May 2025 the Board carried out its annual self-assessment of the operation of the Audit Board against the CIPFA Position Statement and Audit Committee Guidance. 9.7 The development session on 16 May 2025 looked in depth at: • CIPFA Guidance on Audit Committees • 2024 Action Plan Update • 2025 Self-Assessment • Members Development Programme Arising from the self-assessment, an action plan was drawn up which is attached as Appendix 1. Page 210 of 214
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9.8 It should be noted that the capabilities of new Members of the Board are cultivated through development and focuses on providing the new Members with the necessary knowledge and skills to effectively contribute to their roles. The induction programme aims to ensure Members understand their responsibilities, the council's structure, and the Audit, Risk & Scrutiny Board's specific functions. Key components of the induction programme include: • Understanding of the Board’s functions: • Review of relevant legislation and protocols: • Training on audit and risk management principles: • Understanding of scrutiny processes: • Briefings on key policies and procedures 9.9 At the self-assessment session held on 16 May 2025 Audit members agreed to formalise this induction plan for new members and to reissue the knowledge and skills framework. 9.10 During the week of 7 October 2024 Members undertook briefings and skills workshops. The development programme included examining the latest guidance in the Local Code of Conduct for Councillors. 9.11 A wide range of briefings and other training was offered to Elected Members during 2024/25. A training record is kept by Committee Services. Topics of particular relevance to the Scrutiny & Audit committee included: Audit, Risk & Scrutiny Committee briefings Date No. of Members attending Member’s Attendance Cyber Security 20 May 2024 9 Andy Doig, McDonald, Adam, Gilmour, Gray, Hughes, Innes, J MacLaren and Smith Governance Arrangements for City Regions 19 August 2024 9 Andy Doig, McDonald, Adam, Gilmour, Gray, Hughes, Innes, J MacLaren and Smith Development Session on Financial Management and an Overview of Financial Reporting 18 November 2024 9 Adam, Andy Doig, Gilmour, Gray, Hughes, Innes, J MacLaren, McDonald and Smith. Annual self-assessment of the operation of the Audit Board against the CIPFA Position Statement and Audit Committee Guidance. 16 May 2024 6 Andy Doig, McDonald, Mylet, Graham, Hughes, J MacLaren Governance arrangements and the value of good governance 16 May 2025 8 Adam, Andy Doig, G Graham, Hughes, MacLaren, McDonald, Smith, Mylet. The role of External Audit 19 May 2024 8 Adam, Andy Doig, G Graham, Hughes, MacLaren, McDonald, Smith, Mylet. 9.12 Where individual Members indicated specific development requirements, it has been agreed that the Chief Auditor would arrange for one-to-one meetings to determine how best to support each Member’s development. Page 211 of 214
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Implications of the Report 1. Financial – none. 2. HR & Organisational Development – none. 3. Community/Council Planning – none. 4. Legal – as set out in the report 5. Property/Assets – none. 6. Information Technology – none. 7. Equality & Human Rights The Recommendations contained within this report have been- assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety – none. 9. Procurement – none. 10. Risk – none 11. Privacy Impact - none 12. Climate Risk - none 13. Cosla Policy Position – none. 14. Children’s Rights – none List Of Background Papers Cross Party Working Group Review of Governance Arrangements – Council, 29 February 2024 CIPFA Audit Committee Guidance – Self Assessment and Action Plan – Audit, Risk & Scrutiny Board, 24 March 2024. Guidelines for Operation of the Audit, Risk & Scrutiny Board Author: Carol MacDonald, Senior Committee Services Officer, Finance & Resources. email: carol.macdonald@renfrewshire.gov.uk Page 212 of 214
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Appendix 1 CIPFA Audit Committee Guidance - Self-assessment Action Plan – May 2025 No. Action Action Owner Progress Completion date 1 Establish the mechanism and reporting arrangements for the Council to hold the Audit Committee to account. Head of Corporate Governance The reporting mechanism for holding the Audit Committee to account was previously agreed as being through the Annual Report. The Annual Report should be amended to include confirmation that the ARSB complies with the CIPFA Position Statement 2022. and should be agreed by the ARSB for submission to the Council. May 2025 Functions of the Committee 2 Consider the remit for the Board in relation to scrutiny of major capital projects. Director of Finance and Resources It was determined that there was no requirement to amend the Term of Reference in this regard as the powers were already delegated. Members agreed that the process introduced during the year was adequate and should continue. This involves a briefing sessions on major capital projects in the first instance and then Members can submit a request for further information to be submitted to the ARSB if required. May 2025 Membership and Support 3 A programme of training for members would be developed follow the completion of the Knowledge and Skills Framework from the CIPFA guidance. Chief Auditor The previous development programme has now been completed. Knowledge and skills assessments are to be reissued to all ARSB members for completion and a new development programme will be drawn up. Where individual members have indicated specific development requirements the interim Chief Auditor will arrange for 1-1 meetings to determine how best to support each members development. August 2025 Head of Corporate Governance/ Chief Auditor A formal induction programme is to be developed for any new members. August 2025 Effectiveness of the Committee 4 It was agreed that officers would assist members to develop the Boards annual programme of reviews to ensure that due consideration is given to the corporate risks and priorities. Director of Finance and Resources A Programme of Reviews will be drawn up following the annual session with officers and members to consider strategic and corporate risks and Council priorities. August 2025 Page 213 of 214
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