Agenda Document Pack - Audit, Risk and Scrutiny Board - 21/09/2026
Renfrewshire Council · 21 September 2026
Back to Audit, Risk and Scrutiny Board — 21 September 2026 and its agenda
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14/09/2026 Notice of Meeting and Agenda Audit, Risk and Scrutiny Board Date Time Venue Monday, 21 September 2026 10:00 Council Chambers (Renfrewshire), Council Headquarters, Renfrewshire House, Cotton Street, Paisley, PA1 1AN Membership Councillor Andy Doig (Convener): Councillor Janis McDonald (Depute Convener): Councillor Jennifer Adam: Councillor Gillian Graham: Councillor Lisa-Marie Hughes: Councillor Robert Innes: Councillor James MacLaren: Councillor Will Mylet: Councillor Ben Smith: Webcasting of Meeting This meeting will be filmed for live or subsequent broadcast via the Council’s internet site – at the start of the meeting the Convener will confirm if all or part of the meeting is being filmed. To find the webcast please navigate to https://renfrewshire.public-i.tv/core/portal/home 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 Page 1 of 376
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14/09/2026 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 Page 2 of 376
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14/09/2026 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 Azets Report to those charged with governance – Renfrewshire Council Group Annual Accounts 2025/26 Report by Director of Finance & Resources. 5 - 122 2 Audited Annual Accounts 2025/26 – Renfrewshire Council Group Report by Director of Finance & Resources. 123 - 248 3 Azets report to those charged with governance – Coats Observatory Trust Annual Accounts 2025/26 Report by Director of Finance & Resources. 249 - 284 4 Audited Financial Statements 2025/26 Coats Observatory Trust Report by Director of Finance & Resources. 285 - 302 5 Best Value: Asset Management Thematic Report Report by Director of Finance & Resources. 303 - 356 6 2025/26 Complaints Handling Performance Report by Chief Executive. 357 - 376 7 Annual Review Programme - Presentation – Early Intervention and Prevention Presentation by Chief Executive. 8 Annual Review Programme - Presentation – Maintenance of Non-Council Infrastructure Presentation by Chief Executive. Page 3 of 376
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14/09/2026 Page 4 of 376
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1 PUBLIC ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 21 September 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Azets Report to those charged with governance - Renfrewshire Council Group Annual Accounts 2025/26 ___________________________________________________________________ 1. Summary 1.1 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 those statements provide a true and fair view of the financial position of the Council, and its income and expenditure for the year; and also whether they have been prepared in accordance with the Local Government (Scotland) Act 1973. 1.2 In accordance with International Auditing Standards (ISA260), the external auditor, Azets, is obliged to report to those charged with the governance of the organisation matters which have arisen in the course of the audit. 1.3 The attached ISA260 report from Azets outlines their findings from the audit of the 2025/26 the Renfrewshire Council Group accounts. 1.4 Under the Local Authority Accounts (Scotland) Regulations 2014, the Council must meet to consider the Annual Accounts and aim to approve those accounts for signature no later than 30 September. 1.5 Azets officers will attend the Audit, Risk and Scrutiny Board meeting to present their reports. 1.6 There were three material audit adjustments made to the annual accounts over the course of the audit. The figures and details are listed on page 87 of the Annual Audit Report, and can be explained as follows: Item 1 Page 5 of 376
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2 PUBLIC • Property Plant and Equipment – To reverse incorrect reclassification of two assets from Other Land and Buildings to Infrastructure as the assets remain separate to the land; • Property Plant and Equipment – To write down nil book value assets that the Council have not been able to verify; • Common Good Note – Renfrew Common Good understated short term deposits and revaluation reserve of fixed assets; 1.7 Other minor and presentational changes were also agreed, along with the disclosure changes outlined on page 88 of the Annual Audit Report. 1.8 The auditor has provided an indication of their view of the Council’s financial management in their wider scope review. In their judgement, risks exist to the achievement of operational objectives. This judgement appears to be related to 2025/26 financial performance, particularly in relation to Renfrewshire HSCP. Council officers do not agree with this judgement, and consider that the financial and budgetary control environment, financial planning processes and financial reporting operating across the Council is sound. __________________________________________________________________ 2. Recommendations 2.1 Members are requested to consider the attached report from Azets. ___________________________________________________________________ Implications of the Report 1. Financial The 2025/26 Annual Accounts demonstrate that the Council continues to operate services within the resources available, and in line with the relevant legislation. 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 Page 6 of 376
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3 PUBLIC 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 An audit opinion free from qualification demonstrates the Council’s compliance with the statutory accounting requirements set out in the Local Government (Scotland) Act 1973 and the Local Government in Scotland Act 2003. 5. Property/Assets There are no direct implications arising from the recommendations in this report. 6. Information Technology There are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights 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 There are no direct implications arising from the recommendations in this report. 11. Privacy Impact There are no direct implications arising from the recommendations in this report. Page 7 of 376
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4 PUBLIC 12. Cosla Policy Position There are no direct implications arising from the recommendations in this report. 13. Children’s Rights There are no direct implications arising from the recommendations in this report. 14. Climate Change There are no direct implications arising from the recommendations in this report. ___________________________________________________________________ Author: Christine McCourt, Head of Finance and Procurement christine.mccourt@renfrewshire.gov.uk Page 8 of 376
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OFFICIAL-SENSITIVE azets.co.uk 2025/26 Annual Audit Report to the Council and the Controller of Audit September 2026 azets.co.uk Renfrewshire Council Page 9 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 2 of 106 Table of Contents Key messages 3 Introduction 13 Financial statements audit 15 Wider scope of public audit 45 Best Value 73 Appendices 78 This report is for the benefit of the Council and is made available to the Controller of Audit for Scotland and Audit Scotland. This report has not been designed to be of benefit to anyone except for the Council, the Controller of Audit for Scotland and Audit Scotland. It should not be quoted in whole or in part without our prior written consent and should not be relied upon by third parties. No responsibility is assumed by Azets Audit Services to any third parties. We do not accept any responsibility for any loss occasioned to any third party acting, or refraining from acting, on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose. Page 10 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 3 of 106 www.azets.co.uk Key messages This report concludes our audit of Renfrewshire Council (“the Council”) and its Group for the year ended 31 March 2026. This section summarises the key findings and conclusions from our audit. Financial statements audit Audit opinion The annual accounts are to be considered and approved by the full Council on 24 September 2026. We expect to issue an unqualified opinion subject to completion of the work outlined below. Our audit work is ongoing but there are currently no matters which would require modification of our audit report, subject to the outstanding matters detailed below: • Resolution of enquiries with management relating to: - Debtors: Council tax debtor reconciliation - Asset valuation: follow up queries - Movement in reserve statement: follow up queries - Common good funds: sample evidence - Council Tax Account: follow up queries • Resolution of enquiries with third parties relating to: - Defined benefit pension testing: Pending receipt of the pension fund’s assurance letter from Strathclyde Pension Fund’s auditor in relation to Renfrewshire Council and Renfrewshire Leisure Ltd - Group testing: Renfrewshire Leisure Ltd expenditure testing from the component’s auditor - PPE revaluation: receipt of responses made to the internal valuer • Completion of work that is in progress where evidence has been received: - Consolidation and group reporting - Housing Revenue Account - Interest and other finance expenses (relating to service concession arrangement) Page 11 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 4 of 106 www.azets.co.uk - Service concession arrangements - Expenditure and funding analysis - Agency services • At the completion stages of the audit, we are required to undertake the following procedures: - Engagement manager and engagement lead review of the file and evidence therein - Receipt and review of the signed management representation letter - Review of the final amended signed statement of accounts and annual report - Response from management regarding subsequent events up to the date of the opinion Audit approach Our audit approach has been based on gaining an understanding of the Council’s control environment and has been risk based. This included: • An evaluation of the internal control environment, including the IT systems and controls; and • Substantive testing on significant transactions and material account balances, including the procedures outlined in this report in relation to our significant audit risks. On receipt of the unaudited accounts, we have clarified our audit approach as follows: • to apply a medium risk to the pay expenditure as this is the first year payroll reconciliations are undertaken for payroll accounts there is a likelihood that payroll included in the financial statements is either not complete or accurate. Key audit findings The Council has administrative processes in place to prepare the annual accounts and supporting working papers. We received the working papers to support the annual accounts in a timely manner. We obtained adequate evidence in relation to the significant audit risks identified in our audit plan. Page 12 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 5 of 106 www.azets.co.uk Subject to the outstanding matters outlined on page 3-5 of this report: The accounting policies used to prepare the financial statements are considered appropriate. We are satisfied with the appropriateness of the accounting estimates and judgements used in the preparation of the financial statements. All material disclosures required by relevant legislation and applicable accounting standards have been made appropriately. Audit adjustments Three audit adjustments have been identified and made through the course of the audit. No unadjusted misstatements were identified within the financial statements. Details of the adjusted misstatements and disclosure changes are included at Appendix 2. Internal controls The purpose of the audit was for us to express an opinion on the Council’s financial statements. The audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. Our audit is, therefore, not designed to identify all control weaknesses. No material weaknesses or significant deficiencies were noted in the Council’s internal controls during our audit. Page 13 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 6 of 106 www.azets.co.uk Wider scope of public audit Financial Management Financial management is concerned with financial capacity, sound budgetary processes and whether the control environment and internal controls are operating effectively. Auditor judgement Risks exist to the achievement of operational objectives Like all local authorities, financial management continues to remain challenging in the current funding and post-pandemic environment. The Council reported a small General Fund underspend of £0.2m (0.03% of budget) in 2025/26. Financial pressures from waste management, inflation, building repairs, social care and school staffing were largely offset by higher investment income, additional government funding and lower borrowing costs. Financial performance across services was mixed. A number of services recorded underspends and Adult Social Care reported a £5.7m deficit outturn, funded from Renfrewshire Health and Social Care Partnership (HSCP) reserves and therefore not impacting the General Fund. The Council's financial position remains resilient, with General Fund reserves of £159.4m, including £11.5m of unallocated reserves, above the approved minimum level of £10m. Council Tax collection improved slightly to 94.7%, although this remained below the 95% target. HRA reserves also increased from £6.9m to £7.9m. Capital expenditure remained within approved limits but was lower than planned, with spend of £44m (78%) against the housing programme budget and £111m (86%) against the General Fund capital programme. Delays arising from contractor availability, project complexity resulted in projects being reprofiled, although key education projects remained on track. Internal controls, governance and fraud prevention arrangements were assessed as effective, with no significant weaknesses identified. Participation in the National Fraud Y Page 14 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 7 of 106 www.azets.co.uk Initiative also identified notional savings and recoveries exceeding £1.6m. Financial Sustainability Financial sustainability looks forward to the medium and longer term to consider whether the Council is planning effectively to continue to deliver its services and the way in which they should be delivered. Auditor judgement Risks exist to the achievement of operational objectives The Council continues to face a challenging financial environment, with ongoing inflationary pressures, rising service demand and uncertainty over future local government funding. Although government funding increased during 2025/26 and 2026/27, these increases largely support existing commitments and are not sufficient to fully offset growing cost pressures. To improve financial resilience, the Council has maintained a prudent reserves strategy, with unallocated reserves remaining above the minimum approved level and the Financial Sustainability Fund increasing from £21.2m to £35.8m. These reserves provide flexibility to manage budget pressures and support financial stability while longer-term solutions are developed. Despite this, the Council's Medium-Term Financial Plan projects a significant funding gap of around £80m by 2030/31 before council tax decisions. Planned council tax increases and savings programmes will reduce this gap, but substantial service transformation, efficiencies and income generation measures will still be required to maintain a balanced and sustainable budget. On 26 February 2026, the Council approved a 7.5% council tax increase for 2026/27. Although a £6.3 million savings target had been set for 2026/27, only £2.8 million of recurring savings were included in the approved budget, as the remaining savings proposals required more time and certainty before implementation. Y Y Page 15 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 8 of 106 www.azets.co.uk A key risk remains the financial position of the HSCP, which is forecasting a budget gap of £5.1m in 2026/27. Continued reliance on reserves is reducing the Partnership's financial resilience and may create future funding pressures for the Council as a partner organisation. The Council's financial outlook is also sensitive to several uncertainties, including future pay settlements, government funding levels, increasing costs associated with social care, education, transport and net zero commitments, and growing service demand. As staffing costs represent the largest area of expenditure, even small increases in pay awards can have a significant financial impact. Financial sustainability therefore remains a significant strategic risk. While the Council has strengthened its reserves position and achieved a balanced budget for 2026/27, continued focus on long-term financial planning, delivery of savings and transformation programmes, and careful management of both revenue and capital resources will be essential to maintaining sustainable services. Vision, Leadership and Governance Vision, Leadership and Governance is concerned with the effectiveness of scrutiny and governance arrangements, leadership and decision making, and transparent reporting of financial and performance information. Auditor judgement Effective and appropriate arrangements are in place The Council has a clear strategic vision through its updated Council Plan and Community Plan, which support the vision of "Creating a fairer Renfrewshire built on innovation, wellbeing and opportunity". The plans set out clear priorities and outcomes focused on Place, Economy, Fairness, Environment and Organisational Values, providing a framework for service delivery and performance monitoring. The Council has effective governance arrangements in place, supported by a Local Code of Corporate Governance, clearly defined committee structures and strong scrutiny arrangements. G Page 16 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 9 of 106 www.azets.co.uk During 2025/26, the Council strengthened its performance management framework through the introduction of a dedicated officer Performance Board tasked with driving improvements to targeted areas of corporate performance. Risk management arrangements continue to operate effectively. Counter-fraud and whistleblowing arrangements were also updated during the year to reflect legislative changes and support good governance. Internal audit provided a reasonable assurance opinion on the adequacy and effectiveness of the Council's governance, risk management and internal control arrangements. Overall, effective and appropriate arrangements are in place for vision, leadership and governance, supporting the Council's ability to deliver its strategic objectives and manage risks effectively. Use of Resources to Improve Outcomes Audited bodies need to make best use of their resources to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. This includes demonstrating economy, efficiency, and effectiveness through the use of financial and other resources and reporting performance against outcomes. Auditor judgement Risks exist to the achievement of operational objectives The Council has a well-established performance management framework that links strategic priorities in the Council Plan to service-level improvement plans and operational performance monitoring. Performance is regularly reviewed through leadership and management structures, with reporting to Boards and the Corporate Management Team to support oversight and continuous improvement. Performance against the Local Government Benchmarking Framework (LGBF) 2024/25 was generally positive, with 57% of indicators showing improved or maintained performance. Longer-term trends show that improvements in 79% of all measures since the LGBF began, this is a higher proportion than any of the Council’s Family Group comparator councils. The Council performs strongly in areas including educational attainment, road condition, housing performance, delayed Y Y Y Page 17 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 10 of 106 www.azets.co.uk hospital discharges and carbon emissions. However, performance remains comparatively weaker in some areas, including school exclusions, customer satisfaction with street cleaning and refuse collection, council tax collection and crisis grant processing. These present opportunities for further improvement. The Council also demonstrates a consistent commitment to improving outcomes through its focus on fairness, equality and inclusion. Governance arrangements, community engagement, workforce development and targeted programmes are well embedded. We have performed a consideration of the fairness and equality theme during the 2025/26 audit. Overall, we concluded that the Council has appropriate arrangements within this area. Fairness and equality are embedded across the Council’s strategic planning, governance, workforce policies and service delivery, supported by strong leadership and effective oversight arrangements. The Council has also demonstrated continued progress in strengthening its equality framework and improving outcomes for communities and individuals who experience inequality or disadvantage. Best Value Definitions We use the following gradings to provide an overall assessment of the arrangements in place as they relate to the wider scope areas and reporting our findings on Best Value. The text provides a guide to the key criteria we use in the assessment, although not all of the criteria may exist in every case. Page 18 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 11 of 106 www.azets.co.uk Best Value Auditor judgement Effective and appropriate arrangement to secure Best Value are in place. The council have made progress in addressing recommendations raised from our previous work on Best Value thematic reviews. The newest review on assets management identified a number of low risk rating recommendations which are being addressed by the council. Effectiveness of performance reporting The council has appropriate arrangements in place in relation to performance reporting. Thematic review: Asset Management The council has appropriate strategies and capital programmes documents in place supported by strong governance structures. The council is able to deliver major complex capital projects despite the external pressures. The council works effectively with partners and communities to deliver its projects. Some scope for improvement exists in relation to the delivery of non-housing projects and reporting on outcomes. G Page 19 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 12 of 106 www.azets.co.uk There is a fundamental absence or failure of arrangements There is no evidence to support necessary improvement Substantial unmitigated risks affect achievement of corporate objectives. Arrangements are inadequate or ineffective Pace and depth of improvement is slow / needs to extend further Significant unmitigated risks affect the achievement of corporate objectives No major weaknesses in arrangements but scope for improvement exists Pace and depth of improvement are adequate Risks exist to the achievement of operational objectives Effective and appropriate arrangements are in place Pace and depth of improvement are effective Risks to the achievement of objectives are managed R O Y G Page 20 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 13 of 106 www.azets.co.uk Introduction Scope of audit The annual external audit comprises: • the audit of the financial statements and other reports included in the Council’s annual accounts, and • completion of the wider-scope audit and Best Value audit responsibilities set out in Audit Scotland’s Code of Audit Practice. We outlined the scope of our audit in our 2025/26 External Audit Plan, which we presented to the Audit, Risk and Scrutiny Board at the outset of our audit. This Annual Audit Report is designed to summarise the key findings and conclusions from our audit work. It is addressed to both the Council and the Controller of Audit for Scotland and presented to those charged with governance. Responsibilities The Council is responsible for preparing its annual accounts, including financial statements, which show a true and fair view of the results for the year and position at the year end, and for implementing appropriate internal control systems. We are responsible for carrying out the audit of the annual accounts in line with the requirements set out in the Code of Audit Practice issued by Audit Scotland. Our audit is directed towards forming and expressing an opinion on the financial statements that have been prepared by management with the oversight of the Audit, Risk and Scrutiny Board. Under the Code of Audit Practice, we are also required to consider the Council’s wider scope and Best Value arrangements and to report on our findings. However, our audit is not designed to test all internal controls or identify all areas of control weakness. As such, our work cannot be relied upon to disclose all errors or other irregularities, or to include all possible improvements in internal control that a more extensive examination might identify. The weaknesses or risks identified in this report are only those that have come to our attention during our normal audit work. Communication in this report of matters arising from the audit or of risks or weaknesses does not absolve management from its responsibility to address the issues raised and to maintain an adequate system of control. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance, including establishing and maintaining internal controls over the reliability of financial reporting, effectiveness and efficiency of operations and Page 21 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 14 of 106 www.azets.co.uk compliance with applicable laws and regulations. As auditors, we obtain reasonable, but not absolute, assurance that the financial statements, as a whole, are free from material misstatement, whether caused by fraud or error. We would like to thank all management and staff for their co-operation and assistance during our audit. Auditor independence International Standards on Auditing in the UK (ISAs (UK)) require us to communicate on a timely basis all facts and matters that may have a bearing on our independence. We confirm that we complied with the Financial Reporting Council’s (FRC) Ethical Standard. In our professional judgement, we remained independent, and our objectivity has not been compromised in any way. We set out in Appendix 1 our assessment and confirmation of independence. Adding value All of our clients quite rightly demand of us a positive contribution to meeting their ever- changing business needs. We add value by being constructive and forward looking, by identifying areas of improvement and by recommending and encouraging good practice. In this way we aim to promote improved standards of governance, better management and decision making and more effective use of public money. Any comments you may have on the service we provide would be greatly appreciated. Comments can be reported directly to any member of your audit team or to Audit Scotland. Openness and transparency This report will be published on Audit Scotland’s website www.audit-scotland.gov.uk. Page 22 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 15 of 106 www.azets.co.uk Financial statements audit Under International Standards on Auditing (UK) and the Code of Audit Practice on Local Authority Accounting in the United Kingdom 2025/26, we are required to report whether, in our opinion: • The financial statements give a true and fair view of the Council and Group’s financial position and income and expenditure for the period • The financial statements have been properly prepared in accordance with the Code of Practice on Local Authority Accounting in the UK 2025/26 (the 2025/26 Code), the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003 • The audited parts of the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014 • The information given in the Management Commentary is consistent with the financial statements and that report has been prepared in accordance with statutory guidance issued under the Local Government in Scotland Act 2003 • The information given in the Annual Governance Statement is consistent with the financial statements and that report has been prepared in accordance with the Delivering Good Governance in Local Government Framework (2016). We are also required to report on whether the other information included in the annual accounts (including the Management Commentary and Annual Governance Statement) is materially consistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Our audit opinion Opinion Basis for opinion Conclusions Financial statements We conduct our audit in accordance with applicable law and International Standards on Auditing. Our findings / conclusions to inform our opinion are set out in this section of our annual audit report. The Council’s annual accounts are due to be considered by the Council and approved for signature on 24 September 2026. Subject to the outstanding matters outlined on page 3-5 of this report, we anticipate issuing unqualified audit opinions. Pending completion of the work set out earlier in this report there Page 23 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 16 of 106 www.azets.co.uk Opinion Basis for opinion Conclusions are currently no matters which would require modification of our audit report. Going concern basis of accounting When assessing whether the going concern basis of accounting is appropriate, the anticipated provision of services is more relevant to the assessment than the continued existence of a particular public body. We assess whether there are plans to discontinue or privatise the Council’s functions. Our wider scope audit work considers the financial sustainability of the Council. Our understanding of the Council’s legislative framework and activities provides us with sufficient assurance that the Council will have continued provision of service for at least 12 months from the date of signing of our audit opinion. Subject to the outstanding matters outlined on pages 3-5 of this report, we expect that our audit opinion will be unmodified in this respect. Other information: Comprises the Annual Governance Statement and the Management Commentary, excluding the audited parts of the Remuneration Report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except to the extent We are required to consider whether the other information is materially inconsistent with the financial statements or with other knowledge obtained during the audit or otherwise appears materially misstated. Subject to the outstanding matters outlined on pages 3-5 of this report, we currently have nothing to report in this regard. Page 24 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 17 of 106 www.azets.co.uk Opinion Basis for opinion Conclusions explicitly stated in the opinions prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission: • The audited parts of the Remuneration Report • Management Commentary • Annual Governance Statement We plan and perform audit procedures to gain assurance that the audited parts of the Remuneration Report, Management Commentary and Annual Governance Statement and are prepared in accordance with relevant legislation and guidance. Subject to the outstanding matters outlined on pages 3-5 of this report, we expect to conclude that: • the audited parts of the Remuneration Report have been properly prepared; • the information given in the Management Commentary is consistent with the financial statements and has been properly prepared; • the information given in the Annual Governance Statement is consistent with the financial statements, has been prepared in accordance with the Delivering Good Governance in Local Government Framework (2016) and is consistent with our understanding of the Council gained through our audit. Page 25 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 18 of 106 www.azets.co.uk Opinion Basis for opinion Conclusions Matters reported by exception We are required to report on whether: • adequate accounting records have not been kept; or • the financial statements and the audited parts of the Remuneration Report are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have no matters to report. An overview of the scope of our audit The scope of our audit was detailed in our External Audit Plan, which was presented to the Audit, Risk and Scrutiny Board in March 2026. The plan explained that we follow a risk-based approach to audit planning that reflects our overall assessment of the relevant risks that apply to the Council and Group. This ensures that our audit focuses on the areas of highest risk (the significant risk areas). Planning is a continuous process, and our audit plan is subject to review during the course of the audit to take account of developments that arise. We carried out a further review of our risk assessment following receipt of the unaudited annual report and accounts. Our risk assessment was then updated to clarify our audit approach as follows: • to apply a medium risk to the pay expenditure as this is the first year payroll reconciliations are undertaken for payroll accounts there is a likelihood that payroll included in the financial statements is either not complete or accurate. In our audit, we test and examine information using sampling and other audit techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. This includes: Page 26 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 19 of 106 www.azets.co.uk • An evaluation of the Council and Group’s internal control environment, including the IT systems and controls; and • Substantive testing on significant transactions and material account balances, including procedures outlined in this report in relation to our key audit risks. Quality indicators We have applied a suite of quality indicators to assess the reliability of the Council’s financial reporting and response to the audit. We have highlighted any significant difficulties we have encountered during the audit, as required by auditing standards. Metric Grading (Mature / developing / significant improvement required) Commentary Quality and timeliness of draft financial statements Mature We received the unaudited financial statements in line with our agreed audit timetable. The financial statements were of a good standard. Revisions were provided promptly where required. Quality of working papers provided and adherence to timetable Developing We received supporting working papers in line with our audit timetable. The majority of these were of a good standard, and we have observed improvements across many areas compared with the prior year. There are however still some specific areas remaining where further enhancement of working papers is required to support our testing procedures including debtor and creditor listings. Details of the recommendation are included at Appendix 4. Page 27 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 20 of 106 www.azets.co.uk Metric Grading (Mature / developing / significant improvement required) Commentary Timing and quality of key accounting judgements Mature Pending completion of our work as set out on pages 3-5, we did not identify any issues with the timing and quality of key accounting judgements. Access to finance team and other key personnel Mature/ Developing We received full access to the finance team and other key personnel throughout the audit. The Finance team and other key personnel were available as agreed. A meeting with management’s experts (actuary and valuer) were arranged in advance and their engagement was helpful to the audit. However, some key personnel outside of the Finance team were not always able to promptly respond to requests and inquiries. Finance management was cooperative and supportive throughout the audit process, helping to maintain progress against the agreed timetable. Increased engagement during the year, including regular catch-up meetings and follow-up on outstanding matters, contributed to the efficient progression of the audit. Page 28 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 21 of 106 www.azets.co.uk Metric Grading (Mature / developing / significant improvement required) Commentary Quality and timeliness of the: • Remuneration Report • Management Commentary • Annual Governance Statement As well as the quality and timeliness of supporting working papers for those statements. Mature We received the Remuneration Report Management Commentary and Annual Governance Statement in line with agreed timescales. The reports were all produced in line with mandated requirements. Volume and magnitude of identified errors Mature Pending completion of our work as set out on pages 3-5, we identified three adjusted misstatements on audit. We also identified some disclosure changes. Further details are set out in Appendix 2. There were no unadjusted misstatements. Significant risk areas and key audit matters Significant risks are defined by auditing standards as risks that, in the judgement of the auditor, require special audit consideration. In identifying risks, we consider the nature of the risk, the potential magnitude of misstatement, and its likelihood. Significant risks are those risks that have a higher risk of material misstatement. Audit procedures are designed to mitigate these risks. As required by the Code of Audit Practice and the planning guidance issued by Audit Scotland, we considered the significant risks for the audit that had the greatest effect on our audit strategy, the allocation of resources in the audit and directing the efforts of the audit Page 29 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 22 of 106 www.azets.co.uk team. These were defined as the ‘Key Audit Matters’ for the audit, as detailed in the tables below. Our audit procedures relating to these matters were designed in the context of our audit of the annual accounts as a whole, and not to express an opinion on individual balances, transactions or disclosures. Subject to the outstanding matters outlined on pages 3-5 of this report, we do not expect to modify our opinion on the Council’s annual accounts with respect to any of the risks described below. The table below summarises each significant risk and whether it reflects a fraud risk and/or Key Audit Matter. Detail behind each risk and the work undertaken is set out on the following pages. Risk area Financial statement / Assertion level risk Fraud risk Key Audit Matter Risk of material misstatement Outcome of work Management override of controls Financial statement Yes Yes Very High Subject to the outstanding matters outlined on pages 3-5 of this report, we found no evidence of fraud or error through management override of controls. Fraud in revenue recognition (Rebutted) Assertion level No No Low Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Fraud in expenditure recognition (Rebutted) Assertion level No No Low Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Valuation of other land and buildings Assertion Level No Yes High Subject to the outstanding matters outlined on pages 3-5 of this report, we have Page 30 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 23 of 106 www.azets.co.uk Risk area Financial statement / Assertion level risk Fraud risk Key Audit Matter Risk of material misstatement Outcome of work not identified any material issues in the valuation of council dwellings or other land and buildings. Valuation of council dwellings Assertion Level No Yes High Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material errors in the valuation of council dwellings or other land and buildings. Valuation of defined benefit pension fund asset/liability Assertion Level No Yes High Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material errors in the pension liability. Significant risks at the financial statement level These risks are considered to have a pervasive impact on the financial statements as a whole and potentially affect many assertions for classes of transaction, account balances and disclosures. Risk area Management override of controls (Council and Group) Significant risk description Auditing Standards require auditors to treat management override of controls as a significant risk on all audits. This is because management is in a unique position to perpetrate fraud by manipulating accounting records and overriding controls that otherwise appear to be operating effectively. Page 31 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 24 of 106 www.azets.co.uk Risk area Management override of controls (Council and Group) Although the level of risk will vary from entity to entity, this risk is nevertheless present in all entities. Specific areas of potential risk include manual journals, management estimates and judgements and one-off transactions outside the ordinary course of the business. This was considered to be a significant risk and Key Audit Matter for the audit. Risk of material misstatement: Very High How the scope of our audit responded to the significant risk Key judgement There is the potential for management to use their judgement to influence the financial statements as well as the potential to override controls for specific transactions. Audit procedures • Documented our understanding of the journals posting process at the Council and evaluated the design effectiveness of management controls over journals; • Analysed the journals listing for the year and determined the criteria for selecting high risk and/or unusual journals; • Tested high risk and/or unusual journals posted during the year and after the draft accounts stage back to supporting documentation for appropriateness and corroboration and to ensure approval had been undertaken in line with the Council’s journals policy; • Gained an understanding of the key accounting estimates and critical judgements made by management. We challenged key assumptions and considered for reasonableness and evaluated any indicators of bias which could result in material misstatement due to fraud; and • Evaluated the rationale for any changes made to accounting policies, estimates or significant unusual transactions. Key observations Subject to the outstanding matters outlined on pages 3-5 of this report we have not identified any indication of management override of controls in the year. Page 32 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 25 of 106 www.azets.co.uk Risk area Management override of controls (Council and Group) In line with the prior year, we identified from our journals testing undertaken that large batch journals with over 50 lines require no system approval. We have therefore carried forward a control recommendation in relation to the authorisation and review process of large journals. Details of the recommendation are outlined at Appendix 4. Page 33 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 26 of 106 www.azets.co.uk Significant risks at the assertion level for classes of transaction, account balances and disclosures Key risk area Fraud in revenue recognition – Rebutted (Council and Group) Risk description Material misstatement due to fraudulent financial reporting relating to revenue recognition is a presumed risk in ISA (UK) 240. The presumption is that the Council could adopt accounting policies or recognise income in such a way as to lead to a material misstatement in the reported financial position. Having considered the nature of the revenue streams at the Council, we consider that the risk of fraud in revenue recognition can be rebutted due to the following: • There is little incentive to manipulate revenue recognition; • Opportunities to manipulate revenue recognition are very limited; • The culture and ethical frameworks of local authorities mean that all forms of fraud are seen as unacceptable. Therefore, we do not consider this to be a significant risk for the Council and group. Inherent risk of material misstatement: Revenue (occurrence): Low How the scope of our audit responded to the risk Key judgements We have rebutted this risk as we have assessed there is low incentive or opportunity to manipulate revenue streams of the Council and Group. Audit procedures • We have performed standard audit procedures on these material transactions and balances. Key observations Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Page 34 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 27 of 106 www.azets.co.uk Key risk area Fraud in non-pay expenditure recognition – Rebutted (Council and Group) Risk description Practice Note 10 The Audit of Public Sector Financial Statements notes that for certain public bodies, the risk of manipulating expenditure could exceed the risk of the manipulation of revenue. We have therefore also considered the risk of fraud in expenditure at the Council. We have considered the risk of fraud in expenditure at the Council for all expenditure streams and concluded that there is not a significant risk. This is due to the low fraud risk in the underlying nature of the transactions, the high predictability of certain expenditure streams, such as payroll or interest, or the immaterial nature of the expenditure streams both individually and collectively. Our consideration of expenditure streams also included capital expenditure and similarly we concluded that there is not a significant risk. Capital expenditure transactions are likely to be larger and subject to more scrutiny, reducing the risk of improper recognition. Inherent risk of material misstatement: Expenditure (completeness): Low Accruals (completeness): Low How the scope of our audit responded to the risk Key judgements We have rebutted this risk as we have assessed there is low fraud risk in the underlying nature of the transactions, the high predictability of certain expenditure streams, such as payroll or interest, or the immaterial nature of the expenditure streams both individually and collectively. Audit procedures • We have performed standard audit procedures on these material transactions and balances. Key observations Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Page 35 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 28 of 106 www.azets.co.uk Key risk area Fraud in non-pay expenditure recognition – Rebutted (Council and Group) Key risk area Valuation of other land and buildings (key accounting estimate) (Council and Group) Significant risk description Revaluation of the Council’s operational land and buildings should be performed in line with the revised revaluation requirements for 2025/26 onwards set out in the Code of Practice on Local Authority Accounting in the UK (the CIPFA Code). The Council has adopted the following approach to its land and buildings valuations for 2025/26 onwards: rolling five-year programme with use of indexation in intervening years, to ensure compliance with the revised requirements set out in the CIPFA Code. Management has an internal team of qualified valuers and engage the services of an external qualified valuer, who are Regulated Members of the Royal Institute of Chartered Surveyors (RICS) to undertake these valuations as of 31 March 2026. The Council have also engaged further experts to support on the provision of appropriate indices for land and buildings, to ensure compliance with the CIPFA Code requirements. The valuations and index uplifts involve a wide range of assumptions and source data and are therefore sensitive to changes in market conditions. ISAs (UK) 500 and 540 require us to undertake audit procedures on the use of management’s valuation experts and the methods, assumptions and source data underlying the fair value estimates. This represents a key accounting estimate made by management within the financial statements due to the size of the values involved, the subjectivity of the measurements and the sensitive nature of the estimate to changes in key assumptions. We have therefore identified the valuation of other land and buildings as a significant risk. We further pinpoint this risk to specific assets, or asset types, on receipt of the draft financial statements and the year-end updated Page 36 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 29 of 106 www.azets.co.uk Key risk area Fraud in non-pay expenditure recognition – Rebutted (Council and Group) asset valuations to those assets where the in-year valuation movements falls outside of our expectations, there are significant changes to any of the key assumptions or the year-end valuation is considered material. This was considered to be a significant risk and Key Audit Matter for the audit. Inherent risk of material misstatement: Other land and buildings (valuation): High How the scope of our audit responded to the significant risk Key judgements Councils are required to revalue property, plant and equipment with sufficient regularity to ensure that the carrying amount does not differ materially from the current value at 31 March. Audit procedures • Evaluated management processes, controls and assumptions for the calculation of the estimates, the instructions issued to the valuation experts and the scope of their work; • Evaluated the competence, capabilities and objectivity of the valuation expert; • Considered the basis on which the valuations and indexation uplifts were carried out and challenged the key assumptions applied; • Evaluated the reasonableness of the valuation movements for any assets revalued during the year, with reference to market data; • For any unusual or unexpected valuation movements, tested the information used by the valuer to ensure it is complete and consistent with our understanding; • Ensured revaluations made during the year have been input correctly to the fixed asset register and the accounting treatment within the financial statements is correct; Page 37 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 30 of 106 www.azets.co.uk Key risk area Fraud in non-pay expenditure recognition – Rebutted (Council and Group) • Evaluated the assumptions made by management for any assets not revalued during the year and how management are satisfied that these are not materially misstated; • Engaged our own valuations expert, where necessary, to assess any judgmental assumptions used that underpinned the final valuations. Key observations Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Key risk area Valuation of council dwellings (key accounting estimate) (Council and Group) Significant risk description Revaluation of the Council’s council dwellings should be performed in line with the revised revaluation requirements for 2025/26 onwards set out in the Code of Practice on Local Authority Accounting in the UK (the CIPFA Code). Revaluation of council dwellings should be performed with sufficient regularity so that carrying amounts are not materially misstated. The Council values the full portfolio of council dwellings every 5 years with an annual review completed in intervening years to advise whether there has been a change in the value of housing stock since the last full revaluation. A full revaluation of council dwellings was undertaken during the 2025/26 financial year. Management engage the services of a qualified valuer, who is a Regulated Member of the Royal Institute of Chartered Surveyors (RICS) to undertake these valuations as of 31 March 2026. The valuations involve a wide range of assumptions and source data and are therefore sensitive to changes in market conditions. ISAs (UK) 500 and 540 require us to undertake audit procedures on the use of management’s valuation experts and the methods, assumptions and source data underlying the fair value estimates. This represents a key accounting estimate made by management within the financial statements due to the size of the values Page 38 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 31 of 106 www.azets.co.uk Key risk area Valuation of council dwellings (key accounting estimate) (Council and Group) involved, the subjectivity of the measurements and the sensitive nature of the estimate to changes in key assumptions. We have therefore identified the valuation of council dwellings as a significant risk. This was considered to be a significant risk and Key Audit Matter for the audit. Inherent risk of material misstatement: Council dwellings (valuation): High How the scope of our audit responded to the significant risk Key judgements Councils are required to revalue property, plant and equipment with sufficient regularity to ensure that the carrying amount does not differ materially from the current value at 31 March. Audit procedures • Evaluated management processes, controls and assumptions for the calculation of the estimates, the instructions issued to the valuation experts and the scope of their work; • Evaluated the competence, capabilities and objectivity of the valuation expert; • Considered the basis on which the valuations were carried out and challenged the key assumptions applied; • Evaluated the reasonableness of the valuation movements for any assets revalued during the year, with reference to market data; • For any unusual or unexpected valuation movements, tested the information used by the valuer to ensure it is complete and consistent with our understanding; • Ensured revaluations made during the year have been input correctly to the fixed asset register and the accounting treatment within the financial statements is correct; • Evaluated the assumptions made by management for any assets not revalued during the year and how management are satisfied that these are not materially misstated; Page 39 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 32 of 106 www.azets.co.uk Key risk area Valuation of council dwellings (key accounting estimate) (Council and Group) • Engaged our own valuations expert, where necessary, to assess any judgmental assumptions used that underpinned the final valuations. Key observations Subject to the outstanding matters outlined on page 3-5 of this report, we have not identified any material issues in relation to this risk. Key risk area Pension asset/liability (key accounting estimate) (Council and Group) Significant risk description An actuarial estimate of the net defined pension liability/asset is calculated on an annual basis under IAS 19 ‘Employee Benefits’, and on a triennial funding basis, by an independent firm of actuaries with specialist knowledge and experience. The triennial estimates are based on the most up to date membership data held by the pension fund and a roll forward approach is used in intervening years, as permitted by the Code of Practice on Local Authority Accounting in the UK. The calculations involve a number of key assumptions, such as discount rates and inflation and local factors such as mortality rates and expected pay rises. The estimates are highly sensitive to changes in these assumptions and the calculation of any asset ceiling when determining the value of a pension asset. ISAs (UK) 500 and 540 require us to undertake audit procedures on the use of external experts (the actuary) and the methods, assumptions and source data underlying the estimates. This represents a key accounting estimate made by management within the financial statements due to the size of the values involved, the subjectivity of the measurement and the sensitive nature of the estimate to changes in key assumptions. We have therefore identified the valuation of the net pension liability/asset as a significant risk. This was considered to be a significant risk and Key Audit Matter for the audit. Page 40 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 33 of 106 www.azets.co.uk Key risk area Pension asset/liability (key accounting estimate) (Council and Group) Inherent risk of material misstatement: Pension (valuation): High How the scope of our audit responded to the significant risk Key judgements Pension valuations are highly subjective and based upon actuarial estimation. Given the scale of these assets and liabilities, these can be sensitive to small changes in the assumptions informing the calculations, which increases risk of potential material error. Audit procedures • Evaluated management’s process for the calculation of the estimate, the instructions issued to management’s expert (the actuary) and the scope of their work; • Evaluated the competence, capabilities and objectivity of the actuary; • Assessed the controls in place to ensure that data provided to the actuary by the Council and their pension fund was accurate and complete; • Evaluated the methods, assumptions and source data used by the actuary in their valuations, with the support of an auditors’ expert • Tested the consistency of the pension fund asset and liability and disclosures in the notes to the core financial statements with the actuarial report from the actuary; • Evaluated whether any asset ceiling was appropriately considered when determining the value of any pension asset included in the financial statements; and • Obtaining assurances from the pension fund auditor as to the controls surrounding the validity and accuracy of membership data; contributions data and benefits data sent to the actuary by the pension fund and the fund assets valuation in the pension fund financial statements; and ensured pension valuation movement in the year and related disclosure have been correctly reflected in the financial statements. Page 41 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 34 of 106 www.azets.co.uk Key risk area Pension asset/liability (key accounting estimate) (Council and Group) Key observations Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Other risks This section summarises conclusions in relation to other identified risks which, although not considered to be significant, required specific consideration during the audit, or were risks otherwise identified during the course of the audit Other risk area Pay expenditure (Council and Group) Risk description This is the first year full payroll reconciliations were undertaken for payroll accounts, therefore there is a risk that payroll included in the financial statements is either not complete or accurate. Inherent risk of material misstatement: Pay expenditure (Completeness & Accuracy): Medium How the scope of our audit responded to the risk Audit procedures • Tested a sample of starters, leavers and amendments to ensure new starters exist, leavers have left and changes in circumstances have been processed correctly; • Carried out a substantive analytical procedure to assess the completeness and accuracy of pay expenditure; • Performed a proof in total for employer social security and employer pension contribution costs; • Performed substantive testing of pay expenditure transaction outside the normal payroll transaction from the payrun using tests of detail by ensuring they can be traced to appropriate supporting evidence. Key observations We have not identified any material issues in relation to this risk. Materiality Materiality is an expression of the relative significance of a matter in the context of the financial statements as a whole. A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditor’s report. The assessment of Page 42 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 35 of 106 www.azets.co.uk what is material is a matter of professional judgement and is affected by our assessment of the risk profile of the Council and the needs of users. We review our assessment of materiality throughout the audit. Whilst our audit procedures are designed to identify misstatements which are material to our audit opinion, we also report any uncorrected misstatements of lower value errors to the extent that our audit identifies these. Our initial assessment of materiality for the group financial statements was £18.1 million and the Council’s financial statements was £18 million. On receipt of the 2025/26 unaudited financial statements, we reassessed materiality and the initial assessment is still appropriate. We consider that our assessment has remained appropriate throughout our audit. Group £million Council £million Overall materiality for the financial statements 18.100 18.000 Performance materiality (75% of materiality) 13.575 13.500 Trivial threshold 0.905 0.900 Materiality Our assessment is made with reference to the Group and Council’s gross expenditure. We consider this to be the principal consideration for users of the financial statements when assessing financial performance. Our assessment of materiality equates to approximately 2% of gross expenditure as disclosed in the 2024/25 audited financial statements. The financial statements are considered to be materially misstated where total errors exceed this value. Performance materiality Performance materiality has been set at 75% of overall materiality (adjusted to take into account the Council’s component materiality allocation for the group accounts). This is based on the internal control environment of the Council and reflects our risk assessed knowledge of the potential for errors occurring. It is intended to reduce, to an acceptably low level, the probability that cumulative undetected and uncorrected misstatements exceed materiality for the financial statements as a whole. Page 43 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 36 of 106 www.azets.co.uk Trivial misstatements Trivial misstatements are matters that are clearly inconsequential, whether taken individually or in aggregate and whether judged by any quantitative or qualitative criteria. Individual errors above this threshold are communicated to those charged with governance. In addition to the above, we consider any areas for specific lower materiality. We have determined that no specific materiality levels needed to be set for this audit. Common Good Funds Materiality Our initial assessment of materiality for the common good funds was £197,000 for Common Good Fund (CGF) Paisley, £1,500 for CGF Johnstone, and £1,104,000 for CGF Renfrew. On receipt of the 2025/26 unaudited financial statements, we reassessed materiality levels and updated as below, with the CGF Johnstone remaining unchanged from the planning. We consider that our assessment has remained appropriate throughout our audit. Overall Materiality £ Performance Materiality £ Trivial Threshold £ CGF Paisley 242,000 181,500 12,100 CGF Johnstone 1,500 1,125 100 CGF Renfrew 1,174,000 880,500 58,700 Page 44 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 37 of 106 www.azets.co.uk Group audit The Council is also required to prepare group accounts. 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; and Glasgow City Region – City Deal Cabinet. These entities have not been consolidated on the grounds of materiality. We have reviewed managements consideration of this decision and confirm that it is appropriate. As group auditors under ISA (UK) 600 we are required to obtain sufficient appropriate audit evidence regarding the financial information of the components and regarding the consolidation process to express an opinion on whether the group financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework. The significant risks identified at the Council are set out in this report. There are no additional significant risks identified in any of the other components above in respect of the Group audit. Note that a component may require a statutory audit under UK or overseas company law irrespective of whether an audit is required for group reporting purposes. Management should therefore satisfy themselves that all UK and overseas company law requirements are adhered to on a component-by-component basis. The table below sets out our approach to the components within the group and our audit findings in respect of each component. Page 45 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 38 of 106 www.azets.co.uk We revisited our planning group assessment, following receipt of the unaudited accounts and our assessment was updated as follows; Component Scope Planned audit approach Audit findings Renfrewshire council Full Scope Full scope statutory audit As set out in this annual audit report. Subject to the outstanding matters outlined on pages 3-5 of this report, we expect to issue an unqualified audit opinion. Renfrewshire Leisure Ltd Specific Scope Specific procedures performed – 1. Pension asset/liability 2. Expenditure Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any findings in relation to the planned audit approach. (*) Common Good Funds Specific Scope Specific procedures performed – 1.Long-term investments 2.Property, plant and equipment Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any findings in relation to the planned audit approach. Paisley Museum Reimagined Ltd None No procedures planned. N/A (*) Park Lane Developments (Renfrewshire) LLP None No procedures planned. N/A (*) Coats Observatory Trust None No procedures planned. N/A (*) Strathclyde Partnership for Transport Specific Scope Specific procedures performed – Subject to the outstanding matters outlined on pages 3-5 of this report, we have Page 46 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 39 of 106 www.azets.co.uk Investments in associates and joint ventures not identified any findings in relation to the planned audit approach. Strathclyde Concessionary Travel Scheme Joint Committee None No procedures planned. N/A Renfrewshire Valuation Joint Board None No procedures planned. N/A (*) Renfrewshire Health and Social Care Integration Joint Board Specific Scope Specific procedures performed – Investments in associates and joint ventures Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any findings in relation to the planned audit approach. AMIDS Renfrewshire LLP None No procedures planned. N/A (*) Azets Audit Services perform separate statutory audits of these accounts which are not related to the group accounts audit. Definitions: Full Scope: Design and perform further audit procedures on the entire financial information of the component. Specific Scope: Design and perform further audit procedures on one or more classes of transactions, account balances or disclosures. None: No further audit procedures required. Page 47 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 40 of 106 www.azets.co.uk Audit differences Audit differences identified during the audit, identified during the audit are detailed in Appendix 2. We also identified disclosure and presentational adjustments during the audit, which have been reflected in the final set of financial statements and are disclosed in Appendix 2. Internal controls As part of our work we considered internal controls relevant to the preparation of the financial statements such that we were able to design appropriate audit procedures. Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify any control weaknesses, we report these at Appendix 3. These matters are limited to those which we have concluded are of sufficient importance to merit being reported. Follow up of prior year recommendations We followed up on progress in implementing actions raised in the prior year as they relate to the audit of the financial statements. Full details of our findings are included in Appendix 4. Other communications We set out below details of other matters which we, as auditors, are required by auditing standards and the Code to communicate to those charged with governance. Matter Audit commentary and findings Significant matters on which there was disagreement with management There were no significant matters on which there was disagreement with management. Significant management judgements which required additional audit work and / or where there was disagreement over the judgement and / or where the judgement is significant enough that we are required to report it to those charged with governance before they consider their approval of the accounts At the time of writing this report, there were no major transactions that required special accounting consideration. Page 48 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 41 of 106 www.azets.co.uk Matter Audit commentary and findings Prior year adjustments identified At the time of writing this report, there were no prior year adjustments found by the audit team. However, there were restatements to the account identified by the Council’s finance team, which were all disclosed in the unaudited accounts, including the following; • Restatement of PPE note: Following a review of the Council's asset componentisation policy under the CIPFA Code of Practice, certain assets previously recorded within Vehicles, Plant, Furniture and Equipment have been reclassified to Council Dwellings or Other Land and Buildings. This change reflects the assessment that these assets are building components forming part of the properties, rather than separate plant or equipment assets. • Restatement of Common Good Funds Paisley and Renfrew Income and expenditure statement: During 2024/25, following a review of historical title and legal advice, the Council reclassified £1.090m of property from Council assets. This was reflected in the reserves balance directly in the prior year. However, it should have been recorded as income in the prior year. • Restatement of Group accounts: Upon receiving the audited accounts of the Group's components, the Page 49 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 42 of 106 www.azets.co.uk Matter Audit commentary and findings consolidation was revised to incorporate the final audited figures. Concerns identified in the following: • Consultation by management with other accountants on accounting or auditing matters • Matters significant to the oversight of the financial reporting process • Adjustments / transactions identified as having been made to meet an agreed system position / target No concerns were identified. Accounting policies The accounting policies used in preparing the financial statements are unchanged from the previous year with the exception of property, plant, and equipment valuation. Our work included a review of the adequacy of disclosures in the financial statements and the appropriateness of the accounting policies adopted by the Council. Subject to the outstanding matters outlined on pages 3-5 of this report, the accounting policies, which are disclosed in the financial statements, are in line with the CIPFA LASAAC Code Practice on Local Authority Accounting in the UK 2025/26 (the ‘CIPFA Code’) and are considered appropriate. Key judgements and estimates As part of the planning stages of the audit, we identified the accounting estimates made by management and determined which of those are key to the overall financial statements. Consideration was given to non-current asset valuations, valuation of pension assets and liabilities. Other than council dwelling and other land and building valuations and the valuation of pension assets/liabilities we have not determined the accounting estimates to be significant. See the section above on “Significant risks at the assertion level for classes of transaction, account balances and disclosures” for detailed findings in relation to key accounting estimates. Page 50 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 43 of 106 www.azets.co.uk We reviewed the key estimates and judgements that management made in respect to the identified key accounting estimates for indication of bias and assessed whether the judgements used by management are reasonable. Subject to the outstanding matters listed on pages 3-5 of this report, we have concluded that those key accounting estimates were balanced and appropriate. Presentation and disclosures Subject to the outstanding matters outlined on page 3-5 of this report; on the basis of the work carried out as at the date of writing this report, there are no significant financial statements disclosures that we consider should be brought to your attention. All the disclosures required by relevant legislation and applicable accounting standards have been made appropriately. Fraud and suspected fraud We have previously discussed the risk of fraud with management and the Audit, Risk and Scrutiny Board. We have not been made aware of any material incidents in the period. No issues have been identified during the course of our audit. Our work as auditor is not intended to identify any instances of fraud of a non-material nature and should not be relied upon for this purpose. Non-compliance with laws and regulations As part of our standard audit testing, we have reviewed the laws and regulations impacting the Council. There are no indications from this work of any significant incidences of non- compliance or material breaches of laws and regulations. You have not made us aware of any significant incidences of non-compliance with relevant laws and regulations The Local Authority Accounts (Scotland) Regulations 2014 As part of our audit we reviewed the Council’s compliance with the Local Authority Accounts (Scotland) Regulations 2014, in particular with respect to regulations 8 to 10 as they relate to the annual accounts. Overall, we concluded that appropriate arrangements were in place to comply with these Regulations. Written representations A letter of management representations has been requested from the Council. These are to be approved at the same time as the financial statements are approved by the Audit, Risk and Scrutiny Board, signed by the director of finance and resources, and will be provided to us before we complete our audit and issue our auditor’s report. Page 51 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 44 of 106 www.azets.co.uk Related parties We are not aware of any related parties or related party transactions which have not been disclosed. Confirmations from third parties We are awaiting receipt of the pension fund assurance letter in relation to OneRen and the Council from the auditor of the Strathclyde Pension Fund. Page 52 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 45 of 106 www.azets.co.uk Wider scope of public audit Reflecting the fact that public money is involved, public audit is planned and undertaken from a wider perspective than in the private sector. The wider-scope audit specified by the Code of Audit Practice broadens the audit of the accounts to include consideration of additional aspects or risks in areas of financial management; financial sustainability; vision, leadership and governance; and use of resources to improve outcomes. Financial management Financial management is concerned with financial capacity, sound budgetary processes and whether the control environment and internal controls are operating effectively. Auditor judgement Risks exist to the achievement of operational objectives Financial performance and revenue performance against budget 2025/26 Revised Budget £m Actual £m Variance £m Chief Executive's Service 30.217 30.195 0.022 Children's Services 273.812 275.837 (2.025) Environment, Housing and Infrastructure 78.346 78.047 0.299 Finance and Resources 51.124 50.893 0.231 Miscellaneous Services 19.907 18.243 1.664 Adult Services* 112.122 112.122 0.000 Net Expenditure 565.528 565.337 0.191 Revenue Support Grant (368.933) (368.933) 0.000 Council Tax Income (108.199) (108.204) 0.005 Y Page 53 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 46 of 106 www.azets.co.uk 2025/26 Revised Budget £m Actual £m Variance £m Non-Domestic Rates Income (108.844) (108.844) 0.000 Funding (585.976) (585.981) 0.005 Contribution to General Fund Balances (20.448) (20.644) 0.196 Source: Renfrewshire Council Unaudited Annual Accounts 2025-26 * For Adult Services, there was a planned drawdown from HSCP reserves of £5.710m. This does not impact on the Council's General Fund balance, so is omitted from this presentation. The Council reported a small General Fund underspend of £0.2m as at 31 March 2026. While actual funding was in line with the revised budget, the underspend was mainly due to lower- than-budgeted net expenditure across services. Although the General Fund for 2025/26 faced budget pressures from rising waste management costs, inflation affecting vehicle parts and specialist contractors, increased public building repair expenses, higher children's social care costs, and staffing pressures in schools, these additional costs were largely offset by higher investment income, additional funding for packaging waste disposal, and lower-than- budgeted loan charges for the learning estate. This resulted in an underspend equivalent to 0.03% of the budget. The Council's largest category of expenditure is staffing. In 2025/26, a two-year national pay settlement was agreed for local government workers, providing pay increases of 4.0% for 2025/26 and 3.5% for 2026/27. In recognition of the challenging financial environment, the Scottish Government provided councils with additional funding to support this pay settlement in 2025/26. For Renfrewshire, this amounted to £2.6m, covering an additional 1% for 2025/26 only. Adult social care experienced a year-end overspend of £5.7m, which reduced the reserves of the Renfrewshire Health and Social Care Partnership (HSCP), which operates these services. As this overspend was funded through the use of HSCP reserves, it did not impact the Council's General Fund balance. The Council fell just short of its target in-year Council Tax collection rate of 95% in 2025/26, achieving a creditable 94.7%. This represented an improvement on the 2024/25 collection rate of 94.5%. Page 54 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 47 of 106 www.azets.co.uk The Council's General Fund balance as at 31 March 2026 was £159.4m, of which £147.9m had been earmarked for specific purposes, leaving unallocated reserves of £11.5m. The level of unallocated reserves is consistent with the recommended minimum balance of £10m agreed by the Council in September 2020 and subsequently reconfirmed as a core financial planning principle. The Council considers this level of reserves to be appropriate given the financial risks it currently faces. While the table above shows the service position, the Council also monitors revenue budget performance by Policy Board, as set out below. Policy Board Revised Annual Budget £000 Actual Annual Outturn £000 Budget Variance (Adverse) or Favourable £000 Budget Variance (Adverse) or Favourable % Communities and Housing Services 14,924 13,712 1,212 8% Education and Children's Services 268,553 271,384 -2,831 -1% Infrastructure, Land and Environment 40,647 41,099 -452 -1% Finance, Resources and Customer Services 100,376 98,155 2,221 2% Adult Services 112,122 117,832 -5,710 -5% Planning and Climate Change 625 606 19 3% Economy and Regeneration 3,621 3,562 59 2% Leadership (Chief Executive's Service) 24,660 24,697 -37 0% GENERAL SERVICES NET EXPENDITURE 565,528 571,047 -5,519 -1% Page 55 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 48 of 106 www.azets.co.uk Policy Board Revised Annual Budget £000 Actual Annual Outturn £000 Budget Variance (Adverse) or Favourable £000 Budget Variance (Adverse) or Favourable % Housing Revenue Account (HRA) - - - 0% NET EXPENDITURE 565,528 571,047 -5,519 -1% Source: Council meeting 22 June 2026: Renfrewshire Council revenue budget monitoring statement 2025/26 1 April 2025 to 31 March 2026 The key variances movements were due to the following factors: - Communities & Housing: £1.2m underspend, mainly due to staff vacancies within Housing and Justice Social Work, together with savings arising from a review of overhead costs. - Education & Children's Services: £2.8m overspend, driven largely by higher-than- anticipated school staffing and operating costs. - Finance, Resources & Customer Services: £2.2m underspend, reflecting lower property repair costs, higher-than-budgeted school meal income, and savings on energy costs, rates relief, and loan charges. - Adult Service: £5.7m overspend, driven largely by primarily by rising costs of external care-at-home packages due to increasingly complex needs of patients discharged from hospital, alongside additional overspends in supported living and carers' respite services caused by growing demand and client needs. Housing revenue account (HRA) The Housing Revenue Account (HRA) balance as at 31 March 2026 was £7.9m, an increase from £6.9m in the previous year. The Council considers this to be a prudent level of unallocated reserves for the HRA, helping to mitigate the impact of unforeseen risks and providing a degree of resilience against forecast financial pressures arising from the prevailing economic climate. Although property repairs and maintenance costs, including voids management, significantly exceeded budget, this was offset by lower capital financing charges and higher interest receivable as a result of increased interest rates during the year. Consequently, a contribution of £1.0m was made to reserves. Page 56 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 49 of 106 www.azets.co.uk Statutory reserves Opening balance £m Contribution to Reserves £m Use of Reserves £m Closing balance £m Insurance Fund 3.029 0.137 - 3.166 DHN Repair and Renewal Fund 0.186 0.372 - 0.558 Reservoir Repair Fund 0.358 0.015 - 0.373 Education Capital Items 1.407 0.285 -0.275 1.417 Investment Capital Fund 79.028 2.993 -21.63 60.391 Total 84.008 3.802 -21.905 65.905 Source: Renfrewshire Group Unaudited Annual Accounts 2025/26 Statutory reserves totalled £65.905m as at 31 March 2026, representing a net decrease of £18.103m during the year. This reduction primarily reflects resources committed to supporting the Council's capital investment programme. Capital expenditure On 27 February 2025, the Council approved a Housing Capital Investment Programme of £56m and a General Fund Capital Investment Programme of £129m for 2025/26. Capital expenditure during the year was affected by contractor availability, project complexity, and inflationary pressures on construction and professional service costs. As a result, both programmes were reprofiled during the year. Actual expenditure totalled £44m on housing projects, representing approximately 78% of the approved budget, and £111m on General Fund projects, representing approximately 86% of the approved budget. Capital expenditure remained within the overall spending limits approved by the Council. The Non-Housing Capital Programme was reprofiled on 1 May 2025 and approved by the Council at that time. To support the 2025/26 capital programme, the Council undertook £64m of new long-term PWLB external borrowing. The level of cash balances held by the Council remained consistent with its daily cash flow requirements, treasury management activities, and capital investment plans. The increase in cash balances compared with 31 March 2025 was partly attributable to the receipt of grant funding for the AMIDS South project towards the end of the financial year. Page 57 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 50 of 106 www.azets.co.uk The actual Capital Financing Requirement (CFR) as at 31 March 2026 was £650.9m, which was within the approved Authorised Limit of £702.0m. The Council's external borrowing has been used solely to finance capital investment. Net external debt stood at £417.2m as at 31 March 2026, compared with the approved Operational Boundary of £674.0m. The actual ratio of financing costs to net revenue stream (General Fund) for 2025/26 is 2.8%. The Council's borrowing costs remain among the lowest of Scottish local authorities, are considered affordable, and are aligned with the Council's medium- to long-term financial strategy. Capital projects The purpose of the narrative below is to update on the progress of the council’s significant capital projects. School projects School Progress An update on the above schools development progress was presented to the Education and Children’s Services Policy Board meeting in May 2026: • The project to deliver a new Paisley Grammar School Community Campus was completed on 20 August 2026. It was delivered on time and on budget. • Advance works on Park Mains High School Extension & Internal Interventions has begun in March 2026 to prepare the site and complete groundworks ahead of the main construction phase. The project is on track for completion by August 2027. • Thistle Primary School remains on track to complete in the summer of 2027. School capital and revenue costs The gross capital cost of building a new primary school and the Park Mains High School extension has remained as last reported and expected to be c.£82m, with c.£18m of contribution expected from the developer, reducing to net capital cost of £64m. The gross cost is allocated as follows: • £45m for new primary school in Dargavel (named as Thistle Primary School) • £37m for the Park Mains High School extension (to be reduced by the developer contribution). The Council plans to borrow for the Park Mains High School extension, and to fund the build of the new Thistle Primary School from the investment capital fund (reserves). This fund has had reserves at £60.4m and is held by the Council to support the Council’s capital investment programme and to support the Council manage its long-term debt position. Page 58 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 51 of 106 www.azets.co.uk Clyde Waterfront & Renfrew Riverside (CWRR) project The Clyde Waterfront & Renfrew Riverside (CWRR) project, which the Renfrew Bridge was a significant component of, was a long-term large-scale infrastructure project for the Council as part of the City Deal programme. Originally approved as part of City Deal in late 2014, there were a few adjustments to the timelines and budget, for which approval was obtained in accordance with both the Council’s and the Glasgow City Region governance. The City Deal programme was within the remit of the Leadership board and reported into the City Deal & Infrastructure programme board, chaired by the Chief Executive and consisting of senior officers. The original project timeline was site start 2018 and completion by end 2020. However, due to delays in planning the timeline was ultimately extended out and coupled with extended tender process during COVID which included a negotiated tender stage contractor stated on site in November 2021 and completed in May 2025. The CWRR project commenced in 2024/25 with an initial budget of £78.3m. The budget has been extended due to a budget transfer from another City Deal project, increased costs resulting from the delay in statutory processes as mentioned above, and inflationary pressures experienced including impact on steel pricing resulting in the new budget of £117.7m. The actual spend is £117m against the £117.7m revised budget. Treasury management The Council actively manages treasury risks to minimise its exposure to financial market volatility and protect funding for services. It follows CIPFA’s Code of Treasury Management and has policies covering credit, liquidity, and market risks. The strategy aims to balance risk with returns or costs. The Treasury Management Strategy Statement (TMSS) was approved by the Council on 27 February 2025 with a mid-year update on 11 December 2025. The Council’s borrowing strategy is prudent and to firstly use internal cash balances to finance the Capital Investment Programme, as borrowing rates have continued to remain persistently high throughout the financial year. Given the changing climate and the risks inherent in economic forecasts, a cautious approach was taken during the year regarding treasury operations, with market conditions regularly monitored and borrowing plans adjusted accordingly. Overall, the Council’s total net external long-term borrowing increased by £57.4m, all from PWLB borrowing. This additional borrowing was undertaken to maintain appropriate cash Page 59 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 52 of 106 www.azets.co.uk balances in support of the Capital Investment Programme. Borrowings from Common Good funds increased by £0.5m and other partner bodies increased by £6.3m. Temporary investments held by the Council increased by £42.4m. The increase in investments is due to the new PWLB borrowing, together with grant income received (Levelling Up Fund) at the end of the financial year. No debt rescheduling was undertaken during the year. The Council’s policy is to ensure that no 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. The Council complies with this policy. Systems of internal control We have evaluated the Council’s key financial systems and internal financial controls to ensure internal controls are operating effectively to safeguard public assets. We did not identify any significant weaknesses in the Council’s accounting and internal control systems during our audit. Prevention and detection of fraud and irregularity The Council is responsible for establishing arrangements for the prevention and detection of fraud, error and irregularities, bribery and corruption. We have reviewed the arrangements and concluded that there are appropriate arrangements for the prevention and detection of fraud, error and irregularities. National fraud initiative The National Fraud Initiative (NFI) is a counter-fraud exercise co-ordinated by Audit Scotland working together with a range of Scottish public bodies to identify fraud and error. The most recent NFI exercise commenced in 2024, the resulting matches were received from December 2024 onwards. The investigation of those matches is undertaken by the Counter Fraud Officers or service staff and is nearing completion. The Council engages well with the NFI exercise and the chief internal auditor has concluded that the Council’s arrangements with respect to NFI are satisfactory. The Council uploaded all relevant data for the 2024 NFI exercise by the timescale of 31 October 2024. The Council risk assessed the matches and is progressing with investigations. Page 60 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 53 of 106 www.azets.co.uk To date £272,309 of corrections and overpayments and a further £225,786 in relation to single person discounts of have been identified from the 2024/25 National Fraud Initiative and these overpayments are in the process of being recovered from claimants. In addition, £1.1m of notional savings have been identified with the majority relating to housing tenancies, housing applications and blue badges. During the year, we have completed a brief information return assessing the participation of the Council. With an overall assessment of green (entirely satisfactory). The return was submitted to Audit Scotland according to the deadline of February 2026. The Audit Scotland’s NFI report 2026 was published in August 2026. Page 61 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 54 of 106 www.azets.co.uk Financial sustainability Financial sustainability looks forward to the medium and longer term to consider whether the Council is planning effectively to continue to deliver its services and the way in which they should be delivered. Auditor judgement Risks exist to the achievement of operational objectives Significant audit risk Our audit plan identified a significant risk in relation to financial sustainability under our wider scope responsibilities: Financial sustainability (extract from 2025/26 External Audit Plan) The Council continues to consider its medium-term financial planning through its financial outlook and medium-term financial plan, which are regularly presented to the full Council. The most recent medium-term financial plan update was presented to the full Council in February 2026. The latest cumulative forecast indicates a budget gap of £c.80million over the period 2026/27 to 2030/31 prior to council tax decisions. Assuming a 5.0-6.5% council tax increase in over this period, this would reduce the funding gap to c£40m. The scale of the projected funding shortfall demonstrates the continuing structural financial challenge facing the Council over the medium term. At the time of drafting this report the Council is still to approve its 2026/27 revenue budget at its February 2026 meeting. The budget estimates total expenditure of £622.794million with a deficit of £2.121million, prior to any council tax decisions. The deficit could be temporarily addressed through the use of the financial sustainability fund. The financial sustainability fund estimated balance as of 31 March 2026 is £34.199 million. The fund was established for this primary reason, to support the financial position of the Council in circumstances where, in the short term, savings have not been generated at the scale or pace required to ensure financial balance. In 2025/26, the Financial Sustainability Fund benefited from the second (and final) year of low employer pension contributions. The overall council General Fund balance is forecast to be £146.285million at 31 March 2026 (£138.769million in prior year). The majority of the reserves and funds are ring Y Page 62 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 55 of 106 www.azets.co.uk Financial sustainability (extract from 2025/26 External Audit Plan) fenced for specific purposes, with the unallocated reserves standing at £10.280million, equivalent to 1.9% of the Council budgeted net expenditure. Council agreed in September 2025 a £6.3m savings target for 2026/27 to maintain recurring financial balance over the medium term. Directors and their management teams have been developing options to deliver savings at this scale; however, the implementation of proposals is now expected to be phased towards future years. Based on work undertaken by services to date, and that for which specific plans are being developed over the next two years, the Council estimates that £2.8m of savings can be confidently incorporated into the 2026/27 base budget. The Scottish Government’s draft budget announced in January 2026 allocated £493million to the Council, representing a 5% increase (£23.6million) on the prior year allocation. After adjusting for new responsibilities, areas of growing responsibility and other conditional aspects of the settlement, this provides a like-for like comparison to 2025/26 where the Council’s underlying core grant has increased by £11.9m (2.5%). Pay inflation remains a significant financial risk. The Scottish Government’s medium-term public sector pay policy indicates a 9% increase over the period 2025/26 to 2027/28, with flexibility for employers to configure three-year proposals within this range. The current agreed pay deal leaves only 2.5% of this envelope for 2027/28. The Council has highlighted a timing disconnect between its ability to develop recurring savings and the pace at which the cost pressures are emerging. The medium-term financial plan projects increasing annual funding gaps over the planning period before mitigating actions are implemented. The Council recognises that future financial balance will require a combination of recurring savings, service redesign, income generation, and potentially further council tax increases. There remains uncertainly regarding future Scottish Government settlements, ongoing cost pressures, and the financial sustainability of Renfrewshire Integration Joint Board. The Council acknowledges that while short-term reserve utilisation can assist in managing in- year pressures, underlying structure deficits must be addressed on a recurring basis to ensure long-term financial sustainability. Our detailed findings on the Council’s financial framework for achieving long term financial sustainability are set out below. Page 63 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 56 of 106 www.azets.co.uk Financial landscape Throughout 2025/26, the Council's financial monitoring reports continued to highlight the uncertain outlook for local government finances. Whilst inflation fell from a peak of 3.8% (CPI) in summer 2025 to 3.3% in March 2026, wider economic and political uncertainty continued to impact the operating environment. Cost pressures, particularly those relating to pay, energy and the delivery of frontline services, remained significant throughout the year. To strengthen its financial resilience, the Council has continued to maintain a prudent reserves strategy. In 2020, Council approved a target to restore unallocated reserves to a minimum balance of £10 million to help manage unforeseen financial pressures. During 2025/26, a further £1 million was added to reserves in recognition of continued volatility in energy and food costs. The Scottish Government's Medium Term Financial Strategy, published in June 2025, highlighted a projected overall funding, not specifically for Local Government shortfall of £4.7 billion by 2029/30, reflecting the expectation that future spending commitments will exceed available resources. This presents a challenging funding outlook for local government, with the potential for real-terms reductions in future settlements. For 2025/26, Renfrewshire Council received an underlying increase in core grant funding of £9.9m (2.3%) compared with the previous year. The Council also received £4.8m of additional funding from the Scottish Government to support the increased cost of employer National Insurance contributions from April 2025. Looking ahead, the 2026/27 local government settlement allocated £493m to the Council, representing an increase of £23.6m (5.0%) on the previous year. After adjusting for additional responsibilities and other conditional funding requirements, the underlying increase was £11.9m (2.5%). Despite these funding increases, the Council continues to face substantial medium-term financial pressures. The Medium-Term Financial Plan presented to Council in February 2026 estimated a cumulative funding gap of approximately £80m between 2026/27 and 2030/31 before any decisions on council tax. Forecast council tax increases of between 5.0% and 6.5% over this period would reduce the gap to around £40m; however, significant savings and service transformation will still be required to maintain a sustainable financial position. On 26 February 2026, the Council approved a 7.5% increase in council tax for 2026/27 and reaffirmed its commitment to delivering approximately £20 million of savings over the medium term. A savings target of £6.3 million had previously been agreed for 2026/27; however, due to the complexity and lead-in time required to implement savings proposals, only £2.8 million of recurring savings were considered sufficiently certain to be reflected in the approved budget. Page 64 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 57 of 106 www.azets.co.uk The Council's Financial Sustainability Fund increased from £21.2m at 31 March 2025 to £35.8m at 31 March 2026. The purpose of the fund is to provide flexibility and support financial stability where savings are not delivered at the pace or scale necessary to maintain budget balance. Key medium-term pressures A significant risk to the Council's future financial sustainability remains the financial position of the Renfrewshire Health and Social Care Partnership (HSCP). The Integration Joint Board is forecasting a budget gap of £5.1 million in 2026/27. While reserves are expected to be used to address this shortfall in the short term, balances are projected to fall to approximately £6m by year end, reducing the Partnership's ability to manage future financial pressures. Under the Integration Scheme, any future inability to set a balanced budget could require additional financial support from partner organisations, including Renfrewshire Council. The newest HSCP report forecasts a significant cumulative recurring budget gap of c£14m for 2027/28. Pay inflation remains a further area of financial risk. The Scottish Government's medium-term public sector pay policy provides for increases of up to 9% over the period 2025/26 to 2027/28. However, following the current pay agreement, only 2.5% of this provision remains available for 2027/28, creating uncertainty over future pay settlements and associated budget pressures. Following approval of the Scottish Government's final Budget in February 2026, the Council approved revisions to its 2026/27 Revenue and Capital Budgets in May 2026. The update included additional recurring expenditure of £0.225m and one-off expenditure of £7.8m. Additional funding was also received to support the Real Living Wage, with £0.507 million subsequently passed to the HSCP. As a result of the council tax increase, additional government funding and the planned use of £1.2 million from reserves, the projected revenue budget deficit of £2.1m was eliminated, resulting in a balanced budget for 2026/27. The Council also revised its 2026/27 Capital Plan, increasing planned investment from £495 million to £499 million to reflect a number of changes following the budget meeting. Financial sustainability remains a significant risk for the Council due to the increasing service demand and the financial challenges facing the HSCP, the scale of the projected medium- term funding gap, continued inflationary and pay pressures and uncertainty surrounding future government funding. Page 65 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 58 of 106 www.azets.co.uk Medium term financial outlook The medium-term financial challenge and financial gap has been considered by the Council numerous times as the budget gap poses an increasing risk to the Council’s delivery of services over the medium-term. The Council will potentially move into a position of using its reserves in the medium term to cover budget gaps but recognises this is not sustainable. In the short term the 9.5% increase in council tax for 2025/26 and 7.5% in 2026/27 helps to close the budget gap, but further years will require either continuing increases, savings or other income generation. The medium-term forecast was presented to the Council during September 2025. Medium term financial plan Item 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m 2029/30 £m 2030/31 £m Opening budget gap 9.3 (2.6) 7.7 16.8 26.0 34.4 New pressures 58.3 26.5 32.6 38.6 47.5 54.7 Savings (8.3) (1.4) (1.4) (1.5) (1.6) (1.7) Increase in SG revenue grant (41.9) (9.3) (5.8) (4.0) (4.0) (4.0) Budget gap prior to council tax decisions 8.0 15.8 25.4 33.1 41.9 49.0 CT increase (10.6) (8.0) (8.6) (7.1) (7.5) (8.0) Remaining budget gap (2.6) 7.7 16.8 26.0 34.4 41.0 Source: Financial Outlook and Medium-Term Financial Plan at September 2025 It is clear from the above forecast that the Council will have to face difficult choices to address this gap including: reduce planned spend ; generate savings to offset the forecast increase in cost; or increase income. For context, to close the gap completely by increasing council tax would have required a 13.5% increase in 2026/27 (each 1% increase in council tax generates c£1.1m). The most likely solution will be a combination of each of these. The Council is aware that there would also be a short-term option of utilising reserve balances to temporarily close the gap, however the underlying financial gap would remain to be addressed on a recurring basis. Page 66 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 59 of 106 www.azets.co.uk Key assumptions The medium-term plan from September 2025, updated in February 2026 contains a good level of detail and is based on a number of assumptions and uncertainties, including: • The Scottish Government revenue support grant is likely to incorporate only very moderate increases over the next few years, giving no assurance that the local government settlement in future years will reflect a sufficient degree of increase to address core budget pressures. • The current and forecast challenging financial position of Renfrewshire IJB, and consequent potential impact on the Council financial position is an increasing concern. • Assumed moderate growth in revenue settlement over the medium term, with additional slight improvement anticipated based on the relative population growth of Renfrewshire. For context, when the Medium-Term Financial Plan at September 2025 was prepared, the 2024 mid-year estimate for population in Renfrewshire was published in late August and shows Renfrewshire’s population has increased and stands at 189,170, an increase of 2,020 (1.1%) on 2023 and above the national rate of 0.7%. The 2025 mid-year estimate for population in Renfrewshire was published in late July and shows Renfrewshire’s population has increased again and now stands at 189,270, an increase of 660 (0.3%) on 2024 and above the national rate of just under 0.1%. This is seen as a positive factor by the Council as the area attracts new people, supporting economy, but on the other hand can create other challenges for the ageing population, schools and local services. • The most recent local government pay settlement for non-teaching staff agreed was 4% in 2025/26 and 3.5% in 2026/27. When the Medium-Term Financial Plan at September 2025 was prepared, the pay settlement for teachers was yet to be agreed for 2025/26 and while assumed at 3% there was consideration of the 4% already agreed for non- teaching staff. The pay is the largest element of Council cost, so small movements will impact the total cost (1% increase in total pay equals to almost c£3.8m increase in cost). Pay settlement for teachers was later agreed of 4.0% for 2025/26 and 3.25% for 2026/27. • The Council is facing further uncertainty and pressures on a few areas which will depend on future funding confirmation: reduced class contact time for teachers (potential cost of £3-4m per year), lifecycle maintenance and net zero will likely increase the cost, and school transport cost has increased significantly in the recent years indicating further increases possible. • The IJB reported a 2025/26 forecast year-end overspend position of £6.2m, expected to be funded from IJB reserve balances. Ongoing utilisation of reserves to fund future overspends creates a risk that IJB reserves may be depleted in the short to medium term. This creates the risk that Renfrewshire IJB will seek additional funds in the coming years from NHS Greater Glasgow & Clyde and Renfrewshire Council. Page 67 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 60 of 106 www.azets.co.uk The detail of the assumptions used in preparation of the medium term financial plan is presented below: Core medium term plan assumptions Assumption 2026/27 % 2027/28 % 2028/29 % 2029/30 % 2030/31 % Pay award 3.5 3 2.5 2.5 2.5 Non-pay inflation 0 0 0 0 0 Contract inflation 3 2 2 2 2 Revenue grant 1.2 1.2 1 1 0 Council tax (rate) 6.5 6.5 5 5 5 Council tax (base) 1.2 0.9 0.9 0.8 0.8 Source: Financial Outlook and Medium-Term Financial Plan at September 2025 The medium-term Financial Outlook was updated on 26 February 2026. The Council’s medium-term financial outlook remains challenging despite a modest increase in funding from the Scottish Government. While the 2026/27 local government settlement was reported as increasing nationally by £592m, most of this funding is tied to existing and new obligations such as pay awards, leaving only around £235m of additional flexible funding. Renfrewshire Council’s revenue grant has increased to £493m, representing a like- for-like rise of £11.9m (2.5%) compared with 2025/26 after adjusting for new responsibilities. However, rising costs, particularly pay and service demand pressures, continue to outpace funding growth. The Scottish Government revenue support grant is likely to incorporate only very moderate increases over the next few years. Additional concerns include the financial position of Renfrewshire Health and Social Care Partnership and the impact this could have on Council finances. Looking further ahead, the Council estimates a funding gap of approximately £80m by 2030/31 before any Council Tax decisions are made. Assuming Council Tax increases of 5.0% to 6.5% over the period, this gap could reduce to around £40m, but substantial savings will still be required. The Council has continued its strategy of planning on a medium-term basis, implementing transformation and savings measures to address budget pressures, and it is Page 68 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 61 of 106 www.azets.co.uk recommended that any new recurring spending commitments are matched by sustainable savings or additional income to maintain long-term financial sustainability. Cost improvement plans Renfrewshire Council has previously been advised that since 2010, transformation, efficiency and corporate financing savings in the region of £190m (up to 2025/26), have been achieved, meaning that the Council’s ability to generate further recurring transformation and efficiency savings at this scale without impacting on service delivery or quality will be increasingly challenging. Additionally, over the last decade, nationally set directives as part of grant settlements as well as local priorities, have protected spend in key areas such as Education and Social Care, which constitute around two thirds of the Council’s budget. While transformation and the opportunity for increased efficiency will continue to be key priorities, it is likely that material service reductions and spending cuts across all services could be necessary if the Council is to remain financially sustainable and also create the financial circumstances to allow longer term strategic investment in the Council’s property estate and infrastructure. Council agreed in September 2025 a £6.3m savings target for 2026/27 as a route to maintaining recurring financial balance over the medium term. Directors and their management teams have been developing options to deliver savings at this scale; however, the implementation of proposals is now expected to be phased towards future years. Based on work undertaken by services to date, and that for which specific plans are being developed over the next two years, £2.8m of savings were incorporated into the 2026/27 base budget. Savings targeted from early intervention, the strategic review of culture and leisure services and income growth will not be achieved within the original planned timeline. Departmental savings targets are also proving very challenging to achieve after more than a decade of year on year savings being taken. Capital programme Non-Housing Capital Investment Programme Capital Investment Programme for projects across all service areas of the Council, except Council Housing, is now presented as a 10-year rolling programme. The Council approved the programme on 26 February 2026 and the programme was updated on 14 May 2026. The Scottish Government’s draft 2026/27 budget provides Renfrewshire Council with a General Capital Grant of £11.7m, a reduction of £0.4m from the core funding in previous year. Across Scotland, recurring capital funding for local government has fallen by 14% on a Page 69 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 62 of 106 www.azets.co.uk like-for-like basis, limiting the ability of councils to invest in new assets and maintain existing infrastructure. Given the limited prospects for generating capital receipts through asset sales, the Council is expected to rely more heavily on borrowing to fund capital investment. However, increased borrowing will result in revenue pressures. As capital grant allocations beyond 2026/27 have not yet been confirmed, the Council has assumed an annual grant of £12m in future years, in line with the Scottish Government’s Spending Review, which projects flat cash capital funding over the next five years. The revised Capital Plan 2026/27 to 2035/36 budget is presented below. Capital Plan 2026/27 to 2035/36 Draft Budget £000s Revised Budget £000s Change £000s Major Programmes Schools Estate Programme 263,159 261,759 -1,400 Schools Transformation & ICT 8,300 8,300 - Lagoon Internal Play Centre 500 500 - Leisure Facilities Upgrade Programme - 2,000 2,000 Active Sports Pavilions Upgrades - 200 200 Skoobmobile replacement - 300 300 Community Halls Refurbishment 680 680 - City Deal Projects 2,140 2,140 - AMIDS South 42,683 42,683 - Paisley Museum 4,359 4,359 - Town Centre Regeneration 2,300 2,300 - Place Based Fund 723 723 - Asset Lifecycle Maintenance Programmes Page 70 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 63 of 106 www.azets.co.uk Capital Plan 2026/27 to 2035/36 Draft Budget £000s Revised Budget £000s Change £000s General ICT Replacement 8,150 8,150 - Buildings Capital Lifecycle 34,633 34,633 - Traffic Management 226 226 - Private Sector Housing Grant 7,500 7,500 - Vehicle Replacement 22,320 22,320 - Roads & Footpaths 86,627 86,627 - Other projects 10,508 14,008 3,500 Total Planned Spend 494,808 499,408 4,600 Funded by: 000s 000s 000s Prudential Borrowing 243,707 243,707 - Total Borrowing 243,707 243,707 - General Capital Grant 119,706 119,706 - BAE contribution (Park Mains) 18,000 18,000 - Usable Capital Receipts 26,842 26,842 - Capital Funded from Current Revenue (CFCR) 86,553 91,153 4,600 Total Resource Availability 494,808 499,408 4,600 Source: Council meeting 14 May 2026 Revenue and Capital Budget Update 2026/27 Capital Plan 2026/27 to 2035/36 Page 71 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 64 of 106 www.azets.co.uk Housing Capital Investment Plan The HRA operates a rolling 30-year Business Plan model which is the standard operating practice amongst local authorities and Registered Social Landlords. The 30-year basis of the model reflects the need for a long term planned approach to the replacement of major items such as rewiring and central heating aligned to the lifecycle of the element. The Council plans to deliver a total investment of £337.3m in the Council’s housing stock over the 5-year period. It is anticipated that this level of investment will attract £51.2m of government grant for new builds and this results in a net capital programme amounting to £286.1m. The programme includes allowances for new build homes, related Scottish Government grants, regeneration and renewal, and the planned investment programmes required to ensure council house stock is maintained at the appropriate standards. Page 72 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 65 of 106 www.azets.co.uk Vision, leadership and governance Vision, Leadership and Governance is concerned with the effectiveness of scrutiny and governance arrangements, leadership and decision making, and transparent reporting of financial and performance information. Auditor judgement Effective and appropriate arrangements are in place Vision The Council Plan articulates the Council’s vision, priorities and strategic outcome. The Council’s vision to 2027, as described in the Council Plan is: ‘Creating a fairer Renfrewshire built on innovation, wellbeing, and opportunity’. The Council Plan strategic outcomes are used to underpin the Council’s internal and external communication and engagement and these align to their organisational values. The Plan has five main strategic outcomes: Place, Economy, Fair, Green and Living our values. The Council Plan covers the period 2022 to 2027 and was revised during 2024. The Community Plan covers the period 2017 to 2027 and serves as Renfrewshire’s Local Outcomes Improvement Plan. The Council works with local partners to achieve a Renfrewshire that is Thriving, Well, Fair and Safe. Corporate leadership team The Council senior team consists of the Chief Executive, three Directors of departments, Chief Executive of partner organisation OneRen, and Chief Officer of the HSCP. Governance arrangements The Council’s 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. The Council has approved and adopted a Local Code of Corporate Governance and publishes information on how it complies with that Code. The Audit, Scrutiny and Risk Board (ARSB) is an independent-chaired committee made up of nine councillors from across all political parties. It oversees audit, scrutiny, risk management and governance arrangements, monitors progress against audit recommendations, reviews service performance, and makes recommendations to the Council. Changes being made regarding governance arrangement in the year are as follows: Page 73 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 66 of 106 www.azets.co.uk Service Delivery, Performance and Governance To strengthen its performance management the Council established an officer-led Performance Board in 2025/26, chaired by the Director of Environment, Housing and Infrastructure. The new Board oversees service performance and improvement activity. It reviews the Council Plan scorecard and other performance information quarterly, escalating issues to the Corporate Management Team where additional scrutiny is required, and driving an improvement agenda across Council services. Elected Members and Employees The employee Code of Conduct was updated as part of the People Strategy, with a revised version approved by the Members’ in June 2026. Risk Management During 2025/26, the Council continued to strengthen its risk management arrangements by implementing recommendations from an independent Willis Towers Watson review, which found the Council’s approach to be well established with strong governance and a positive risk culture. Key developments included approval of an updated Risk Matters policy and strategy in May 2026 and the transfer of the risk and insurance function to the Head of Business Services, Risk and Safety. Counter fraud The whistleblowing policy which was revised in April 2026 and approved by the Finance, Resources and Customer Services Policy Board to reflect the disclosure protections being brought in as part of the Employment Rights Act 2025 reforms. Internal audit The internal audit service operates in accordance with the Public Sector Internal Audit Standards 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. Regular reviews of the Council’s governance arrangements are undertaken by internal audit. The programme of work undertaken by internal audit during 2025/26 identified three occasions where a limited assurance level was given in relation to the internal control, risk management and governance objectives for the specific areas of each audit review. 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 risk identified. 85% of all internal audit recommendations followed up during the year have been implemented by the due date which is an improved position from last year. Page 74 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 67 of 106 www.azets.co.uk The internal audit opinion for 2025/26 was, “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”. This opinion is consistent with prior years. Internal audit presented results of their activity for 2025/26; 90.1% of the internal audit plan was completed against a target of 90%. We consider internal audit work during our risk assessment and on an ongoing basis. Leadership programme Following completion of the SOLACE Leadership Development Programme and evaluation of all three cohorts, the Council undertook a review of its approach to leadership development. The review drew on a range of internal and external evidence sources, including programme evaluation, employee feedback, Best Value activity, organisational insight from the Council's Cultural Assurance Model (CAM) and Risk Assurance Model (RAM), engagement with Scottish local authority Organisational Development networks, and participation in the Improvement Service's Local Government Leadership Success Profile pilot. The review identified the key leadership themes and development priorities required to support delivery of the Council's future objectives and has informed the design of the Council's new Leadership Development Framework. Alongside this review, the Council has continued to invest in leadership capability through a range of corporate and service-based activities. Chief Officer Team Away Days are held regularly throughout the year and focus on strategic leadership priorities including public service reform, financial sustainability, resilience, organisational change, community planning and place-based service delivery. The Council's Our Leaders Forum also brings together approximately 125 senior managers several times each year to support leadership learning, organisational awareness and cross-Council collaboration. During 2025/26, forum topics included consultation and engagement, supportive leadership conversations, workforce wellbeing, Connected Communities, Council planning, Artificial Intelligence, and organisational change. Flexible management development opportunities also continue to be available through programmes such as Lead to Succeed, service-based initiatives, topic- specific development activity, and a broad range of instructor-led and digital learning opportunities, with almost 7,000 leadership and management e-learning completions recorded during 2025/26. Drawing on the findings of the review, wider organisational learning and external benchmarking, the Council has designed a new Leadership Development Framework to provide a clear and consistent approach to building capability across the organisation. The framework introduces a four-tier model covering development from frontline supervisors to Page 75 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 68 of 106 www.azets.co.uk Chief Officers and provides flexible, personalised learning pathways aligned to individual development needs and Council priorities. It covers areas including governance, people management, organisational culture, wellbeing, strategic leadership, organisational change, workforce planning, partnership working, digital capability and continuous improvement, supported through a blend of workshops, e-learning, webinars, self-directed learning and Chartered Management Institute (CMI) accredited modules. The framework is designed to strengthen management and leadership capability across the organisation and support future succession planning. Subject to approval by the Corporate Management Team, implementation of the new framework will commence during 2026/27, introducing a flexible, predominantly on-demand development offer complemented by targeted workshops and accredited learning. For the first time, this will provide a single leadership development offer covering all management levels across the Council, c1200 staff, with a clear development pathway from frontline supervisors through to Chief Officers. Page 76 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 69 of 106 www.azets.co.uk Use of resources to improve outcomes Audited bodies need to make best use of their resources to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. This includes demonstrating economy, efficiency, and effectiveness through the use of financial and other resources and reporting performance against outcomes. Auditor judgement Risks exist to the achievement of operational objectives Performance Management Arrangements The Council has a performance framework to measure against its 2022-27 Council Plan objectives. A high level summary of the Framework is presented below: Source: The Council’s internal documentation The framework assumes 6 monthly reporting to Leadership Board with performance indicators against action progress grouped by Council Plan strategic outcomes. These outcomes have also one cross-cutting theme - Improving outcomes for children and families. Service Improvement Plans (SIP) at each service level were also given a new format to make them aligned with the above. The reporting is done on a 6 monthly basis to relevant Boards Y Page 77 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 70 of 106 www.azets.co.uk including an annual outturn report. All performance indicators and actions in the Council Plan Framework are included in SIPs. The next stage of performance reporting is at operational level with a range of service- specific performance reporting across Council to the appropriate Policy Board, together with statutory performance reports. Local Government Benchmark Framework (LGBF) is scrutinised by the Performance Board. Reports on the LGBF are reported to the Audit Risk and Scrutiny Board at least twice a year, with the last report provided in May 2026. These documents are then used to create public performance reporting in user friendly formats, and by using interactive presentations, case studies and dashboards. Statutory performance information The Accounts Commission’s 2024 Statutory Performance Information Direction, effective from 1 April 2025, requires councils to publish performance information in a way that allows comparisons over time and between councils. This supports councils’ Best Value responsibilities and enables stakeholders to assess and benchmark performance. The Council has made proper arrangements for preparing and publishing its statutory performance information in accordance with the Direction. The information reported on the Council’s website is the Council’s response to meeting the requirements. Local Government Benchmarking Framework The Local Government Benchmarking Framework (LGBF) is a high-level benchmarking tool which allows local authorities to compare their performance across a wide range of key service areas such as education, housing, and adult social care. Renfrewshire Council has participated in the development of the LGBF since its inception in 2010 and the framework has expanded to comprise 108 indicators. The most recent period available through LGBF is 2024/25 and demonstrates that the overall performance improved in the majority of the areas as presented in the exhibit below. Page 78 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 71 of 106 www.azets.co.uk Source: Local Government Benchmarking Framework website The council’s overall performance is generally positive, with good progress being made and sustained across the Council Plan priority areas. The council is demonstrating improved or sustained performance across 57% of the 108 indicators published to date. Renfrewshire Council ranks in the top 8 councils for 32 indicators, and in the bottom 8 for 16 indicators. Areas where the Council have strong relative performance include pupil attainment at levels 5 and 6 and in numeracy at primary school level, hospital readmissions and delayed discharges, the condition of Class A and B roads, rent arrears, the time taken for non-emergency housing repairs, some financial sustainability measures, and CO2 emissions from electricity, gas and transport. Areas where Renfrewshire ranks in the bottom quarter include school exclusions, satisfaction rates on street cleaning and refuse collection, council tax collection, and crisis grant processing. Fairness and Equality Audit Scotland has requested that we carry out audit work on the Council’s arrangements relating to the best value theme of fairness and equality at least once during the audit appointment. Under the statutory Best Value framework, councils are required to Page 79 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 72 of 106 www.azets.co.uk demonstrate continuous improvement across a set of national themes, including fairness and equality. Overall, we concluded that Renfrewshire Council demonstrates achievement of the Best Value theme of Fairness and Equality. Fairness, equality, diversity and inclusion are embedded throughout the Council's strategic planning, governance arrangements, workforce policies, service delivery and continuous improvement activities. There is clear evidence of leadership commitment, structured oversight, engagement with communities and employees, and a strong focus on improving outcomes for people who experience inequality or disadvantage. The Council has continued to strengthen its commitment to equality, diversity and inclusion through its values, governance arrangements and the Fairer Renfrewshire Programme, which coordinates activity to reduce poverty, tackle inequalities and improve opportunities for local people. Oversight is provided through the Fairer Renfrewshire Sub-Committee, Leadership Board and dedicated officer groups, ensuring equality remains a key strategic priority. During 2025/26, significant progress included the appointment of an Equalities Development Officer, development and approval of the Equality Outcomes 2025-29 Action Plan, and further improvements to Equality and Human Rights Impact Assessment processes. The Council also continued to review and strengthen workforce policies, promote equal pay, and invest in equality, diversity and inclusion training, with high levels of staff participation. The Council has maintained a consistent focus on community engagement, working with a range of representative groups to ensure services reflect the needs of diverse communities. It also progressed targeted initiatives supporting care experienced people, children and young people, BSL users, carers and employees, while expanding trauma-informed practice across the organisation, including through the recently launched Your Voice Matters programme. Performance and progress are monitored through established governance and reporting arrangements, supported by the Corporate Improvement Plan and Council Plan. Together, these demonstrate the Council’s ongoing commitment to embedding equality, fairness and inclusion across services, decision-making and organisational culture. Page 80 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 73 of 106 www.azets.co.uk Best Value We are required to evaluate and report on the performance of the Council in meeting its Best Value duties. Our work in 2025/26 included the following: • Follow up: our work followed up on Accounts Commission findings, Controller of Audit recommendations and any outstanding improvement actions reported in Best Value Assurance Reports, Best Value thematic reports and Annual Audit Reports. Our work reflects the Council’s self-assessment against outstanding improvement actions and findings will be based on the Council’s current arrangements for delivering best value. • Risk based approach to Best Value themes: we pay due regard to the Council’s arrangements in respect of the seven Best Value themes in identifying any significant risks. • Assessed the effectiveness of performance reporting: the best value theme, effective use of resources, includes an expectation that councils report effectively on their performance. Councils should be able to demonstrate a trend of improvement over time in delivering their strategic priorities. • Thematic review of asset management: we are required to report on Best Value or related themes prescribed by the Accounts Commission. The thematic work for 2025/26 focused on how well the councils are managing their assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change. We also contributed to Controller of Audit reports, as and when required. As set out in the Code of Audit Practice 2021, Best Value audit is integrated with other wider- scope annual audit work. Therefore, in addition to the work set out in the remainder of this section, Best Value work has informed the content and conclusions set out in respect of our wider scope responsibilities. Page 81 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 74 of 106 www.azets.co.uk The Council’s response to the Best Value Controller of Audit (CoA) Report and Accounts Commission findings Risks to the achievement of objectives are managed The Controller of Audit reports to the Accounts Commission on each council’s performance in meeting its Best Value duties at least once over the five-year audit appointment. Auditors are required to include judgments on the pace and depth of continuous improvement in the council as part of their wider scope work to contribute to these reports. 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 and the report was presented to the Council on 26 June 2025. During 2024/25 we were working with the Controller of Audit to allow preparation and finalisation of the Best Value report for the Council. This report is based on previous reporting on the Council as prepared by Azets and the Controller of Audit. The report was largely positive and stated that Renfrewshire Council has a strong commitment to improving, including creating a positive culture, supporting its staff to develop as leaders, and focusing on engaging with residents. The report noted that the Council must now talk to them about tough spending decisions that lie ahead. It highlighted the Council’s commitment to leadership and creating a positive working culture across services, welcomed positive response to the issues associated with the Dargavel school, expressed interest in the Cultural Assurance Model, outlined good examples of activities enabling and supporting community engagement. The report also commented on prudent financials and financial sustainability, commented on existence of the complex capital programme and member development in place, it referred to the areas of strong performance (education). There was no suggestions or further recommendations being made. G Page 82 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 75 of 106 www.azets.co.uk Thematic review: Asset Management The thematic work for 2025/26 was on asset management. Auditors were required to consider how councils are managing their assets to ensure high-quality services whilst also responding to challenges around financial sustainability and climate change. We reported our conclusions in a separate report. Key findings are detailed below. To what extent does the council have a clear asset management strategy and plans that align with its corporate objectives, new ways of working, the changing needs of its population, and net zero commitments? Auditor judgement Effective and appropriate arrangements are in place, with small improvements possible The council’s recent, fully integrated Corporate Asset Management Strategy provides a clear corporate framework for asset management. There is a strong link between assets, service delivery, financial sustainability and Net Zero, consistent with CIPFA guidance on integrated capital and asset planning. The Strategy supports the Council’s Net Zero by 2030 commitment by embedding decarbonisation, energy efficiency and low-carbon investment across buildings, fleet and service transformation, reinforced through robust governance and regional collaboration. The Council demonstrates a clear understanding of both short-term budget pressures and long-term financial sustainability and explicitly links these to its ability to invest in, maintain and rationalise assets. Reporting on affordability could be further strengthened by including sensitivity analysis. To what extent do the council’s governance and accountability Auditor judgement No major weaknesses in arrangements but scope for improvement exists Y G Page 83 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 76 of 106 www.azets.co.uk arrangements support effective asset management? The council has strong governance arrangements for asset management, with clear corporate oversight, integration with financial planning, and structures to allow effective member and officer scrutiny. Reporting is regular and transparent, and improving in quality, supported by robust risk management. The council has demonstrated the ability to deliver major strategic projects in the challenging post-COVID environment amid widespread cost, inflation and supply chain pressures. Performance has been especially strong in the delivery of housing projects. However, these pressures have continued to affect elements of the wider capital programme, contributing to recurring underspends and rephasing. This suggests further opportunities to strengthen delivery planning, capacity and project readiness, particularly in non-housing projects. Over the past year, the council has improved reporting to members by providing greater detail on project variances in monitoring reports and making wider use of options and recommendations. While asset performance is generally strong for operational buildings and with housing indicators available showing an improvement trend. To what extent does the council have a robust approach to working with partners and Auditor judgement Effective and appropriate arrangements are in place, with small improvements possible G Page 84 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 77 of 106 www.azets.co.uk communities in managing its assets? The council demonstrates strong and well- established partnership working across regional, local and organisational levels, with clear alignment to strategic priorities such as net zero, infrastructure and economic growth. Collaboration with other councils and partners has enabled large-scale delivery, access to funding and shared risk, while internal joint working supports services sharing buildings and more efficient use of assets. Community engagement is extensive and embedded across major programmes, with structured processes and good transparency, including robust arrangements for community asset transfer. The council made use of co- design and co-delivery approaches for some of its projects. The council has effective cross-service collaboration structures in place with senior management team as members of the key capital projects boards. All areas for improvement and associated recommendations are included in Appendix 3. Page 85 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 78 of 106 www.azets.co.uk Appendices Appendix 1: Responsibilities of the Council and the Auditor 79 Appendix 2: Audit differences identified during the audit 87 Appendix 3: Action plan 90 Appendix 4: Follow up of prior year recommendations 96 Page 86 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 79 of 106 www.azets.co.uk Appendix 1: Responsibilities of the Council and the Auditor Responsibilities of the Council The Council 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. The Director of Finance and Resources has been designated as that officer. The Director of Finance and Resources is responsible for the preparation of the Council’s annual accounts in accordance with proper practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (the Code). Area Council responsibilities Corporate governance The Council is responsible for establishing arrangements to ensure the proper conduct of its affairs including the legality of activities and transactions, and for monitoring the adequacy and effectiveness of these arrangements. Those charged with governance should be involved in monitoring these arrangements. Financial statements and related reports The Council has responsibility for: • preparing financial statements which give a true and fair view of the financial position of the Council and its group and its expenditure and income, in accordance with the applicable financial reporting framework and relevant legislation • maintaining accounting records and working papers that have been prepared to an acceptable professional standard and support the balances and transactions in its financial statements and related disclosures • preparing and publishing, along with the financial statements, an annual governance statement, management commentary (or equivalent) and a remuneration report that is consistent with the disclosures made in the financial statements and prepared in accordance with prescribed requirements. Management commentaries should be fair, balanced and understandable. Page 87 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 80 of 106 www.azets.co.uk Area Council responsibilities Management is responsible, with the oversight of those charged with governance, for communicating relevant information to users about the Council and its financial performance, including providing adequate disclosures in accordance with the applicable financial reporting framework. The relevant information should be communicated clearly and concisely. The Council is responsible for developing and implementing effective systems of internal control as well as financial, operational and compliance controls. These systems should support the achievement of its objectives and safeguard and secure value for money from the public funds at its disposal. The Council is also responsible for establishing effective and appropriate internal audit and risk-management functions. Standards of conduct for prevention and detection of fraud and error The Council is responsible for establishing arrangements to prevent and detect fraud, error and irregularities, bribery and corruption and also to ensure that its affairs are managed in accordance with proper standards of conduct. Financial position The Council is responsible for putting in place proper arrangements to ensure its financial position is soundly based having regard to: • Such financial monitoring and reporting arrangements as may be specified; • Compliance with statutory financial requirements and achievement of financial targets; • Balances and reserves, including strategies about levels and their future use; • Plans to deal with uncertainty in the medium and long term; and • The impact of planned future policies and foreseeable developments on the financial position. Best value The Council has a specific responsibility to make arrangements to secure Best Value. Best Value is defined as continuous improvement in the Page 88 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 81 of 106 www.azets.co.uk Area Council responsibilities performance of the body’s functions. In securing Best Value, the Council is required to maintain an appropriate balance among: • The quality of its performance of its functions • The cost to the body of that performance • The cost to persons of any service provided by it for them on a wholly or partly rechargeable basis. In maintaining that balance, the Council shall have regard to: • Efficiency • Effectiveness • Economy • The need to meet the equal opportunity requirements. The Council should discharge its duties in a way which contributes to the achievement of sustainable development. In measuring the improvement of the performance of a local government body’s functions for the purposes of this section, regard shall be had to the extent to which the outcomes of that performance have improved. The Scottish Government’s Statutory Guidance on Best Value (2020) requires bodies to demonstrate that they are delivering Best Value in respect of seven themes: 1. Vision and leadership 2. Governance and accountability 3. Effective use of resources 4. Partnerships and collaborative working 5. Working with communities 6. Sustainability 7. Fairness and equality. The Community Empowerment (Scotland) Act 2015 is designed to help empower community bodies through the ownership or control of land and buildings, and by strengthening their voices in decisions about public services. Page 89 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 82 of 106 www.azets.co.uk Auditor responsibilities Code of Audit Practice The Code of Audit Practice (the Code) describes the high-level, principles-based purpose and scope of public audit in Scotland. The Code outlines the responsibilities of external auditors and it is a condition of our appointment that we follow it. Our responsibilities Auditor responsibilities are derived from the Code, statute, International Standards on Auditing (UK) and the Ethical Standard for auditors, other professional requirements and best practice, and guidance from Audit Scotland. We are responsible for the audit of the financial statements and the wider-scope and Best Value responsibilities explained below. We act independently in carrying out our role and in exercising professional judgement. We report to the Council and others, including Audit Scotland, on the results of our audit work. Weaknesses or risks, including fraud and other irregularities, identified by auditors, are only those which come to our attention during our normal audit work in accordance with the Code and may not be all that exist. Wider scope audit work Reflecting the fact that public money is involved, public audit is planned and undertaken from a wider perspective than in the private sector. The wider scope audit specified by the Code broadens the audit of the accounts to include additional aspects or risks in areas of financial management; financial sustainability; vision, leadership and governance; and use of resources to improve outcomes. Page 90 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 83 of 106 www.azets.co.uk Financial management Financial management means having sound budgetary processes. Audited bodies require to understand the financial environment and whether their internal controls are operating effectively. Auditor considerations Auditors consider whether the body has effective arrangements to secure sound financial management. This includes the strength of the financial management culture, accountability, and arrangements to prevent and detect fraud, error and other irregularities. Financial sustainability Financial sustainability means being able to meet the needs of the present without compromising the ability of future generations to meet their own needs. Auditor considerations Auditors consider the extent to which audited bodies show regard to financial sustainability. They look ahead to the medium term (two to five years) and longer term (over five years) to consider whether the body is planning effectively so it can continue to deliver services. Vision, leadership and governance Audited bodies must have a clear vision and strategy and set priorities for improvement within this vision and strategy. They work together with partners and communities to improve outcomes and foster a culture of innovation. Auditor considerations Auditors consider the clarity of plans to implement the vision, strategy and priorities adopted by the leaders of the audited body. Auditors also consider the effectiveness of governance arrangements for delivery, including openness and transparency of decision-making; robustness of scrutiny and shared working arrangements; and reporting of decisions and outcomes, and financial and performance information. Page 91 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 84 of 106 www.azets.co.uk Use of resources to improve outcomes Audited bodies need to make best use of their resources to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. This includes demonstrating economy, efficiency and effectiveness through the use of financial and other resources, and reporting performance against outcomes. Auditor considerations Auditors consider the clarity of arrangements in place to ensure that resources are deployed to improve strategic outcomes, meet the needs of service users taking account of inequalities, and deliver continuous improvement in priority services. Best Value Appointed auditors have a duty to be satisfied that local government bodies have made proper arrangements to secure best value. Our work in respect of the Council’s best value arrangements is integrated into our audit approach, including our work on the wider scope areas as set out in this report. Audit quality The Auditor General and the Accounts Commission require assurance on the quality of public audit in Scotland through comprehensive audit quality arrangements that apply to all audit work and providers. These arrangements recognise the importance of audit quality to the Auditor General and the Accounts Commission and provide regular reporting on audit quality and performance. Audit Scotland maintains and delivers an Audit Quality Framework. The most recent audit quality report can be found at Quality of public audit in Scotland: Annual report 2025/26 Independence and ethics The Ethical Standards and ISA (UK) 260 require us to report full and fair disclosure of matters relating to our independence. In accordance with our profession’s ethical requirements and further to our audit plan issued confirming audit arrangements we confirm that there are no Page 92 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 85 of 106 www.azets.co.uk further facts or matters that impact on our integrity, objectivity and independence as auditors that we are required or wish to draw to your attention. We consider an objective, reasonable and informed third party would take the same view. We confirm that Azets Audit Services and the engagement team complied with the FRC’s Ethical Standard. We confirm that all threats to our independence have been properly addressed through appropriate safeguards and that we are independent and able to express an objective opinion on the financial statements. In particular: Non-audit services: Separate teams within Azets provides the following services to two of the Council subsidiaries (Paisley Museum Reimagined Ltd, Renfrewshire Leisure Ltd): tax returns/compliance and preparation of the accounts. The fees for these services add up to c.£3,710. We have considered the following threats to independence could be present as a result of non-audit services: self-review, self-interest, management. Accounts preparation services is a straightforward process of the client trial balances being imported and statutory accounts being produced. Any adjustments will be put forward to the clients management for approval before they are made. Accounts are prepared using clients trial balances, any adjustments are agreed with management before posting and second manager review of accounts will be undertaken. We assess the risk of management, self-interest and self-review is mitigated due to the fact that the: audit of subsidiaries is performed by separate audit teams led by a different responsible individuals; preparation of the accounts is an admin task with no judgement applied and adjustment approved by management; impact on group audit of Paisley Museums Reimagined is not significant and normally the Council group audit team would perform specific procedures as required on pension asset of Renfrewshire Leisure Ltd; the fees for preparation of the accounts are significantly lower than audit fees. We assess the risk of management, self-interest and self-review mitigated due to the fact that the separate team members work on the tax computation and audit which is reviewed by separate manager/partner/director. Tax fees are substantially lower than the audit fees. Contingent fees: No contingent fee arrangements are in place for any services provided. Gifts and hospitality: We have not identified any gifts or hospitality provided to, or received from, any member of the Council, senior management or staff and members of the audit team. Page 93 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 86 of 106 www.azets.co.uk Relationships: We have no other relationships with the Council, its directors, senior managers and affiliates, and we are not aware of any former partners or staff being employed, or holding discussions in anticipation of employment, as a director, or in a senior management role covering financial, accounting or control related areas. Our period of total uninterrupted appointment as at the end of 31 March 2026 was four years. Audit fees The total fees charged to the Council for the provision of services in 2025/26 were as follows. Prior year fees are also shown for comparative purposes: 2025/26 2024/25 Auditor remuneration (expected fee level) £311,220 £299,830 Auditor remuneration (above expected fee level) £31,120 £38,464 Pooled costs £10,730 £7,530 Contribution to Performance Audit and Best Value work (PABV) costs £81,090 £79,800 Sectoral cap adjustment £65,430 £61,830 Total audit fee £499,590 £487,454 The audit fees charged reconcile to the fees disclosed in the financial statements. Page 94 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 87 of 106 www.azets.co.uk Appendix 2: Audit differences identified during the audit We are required to inform the Council of any significant misstatements within the financial statements presented for audit that have been discovered during the course of our audit whether or not the financial statements have been adjusted by management. Adjusted misstatements Details of items corrected following discussions with management are as below. Current year audit adjustments (Council and Group Accounts) No Detail Comprehensive Income and Expenditure Statement Balance Sheet Dr / (Cr) £million Dr / (Cr) £million 1. To reverse incorrect reclassification of one asset from Other Land and Buildings to Infrastructure as the asset remains separate to the land. 11.900 (11.900) 2. To write down nil net book value asset that cannot be verified by the Council. 4.439 (4.439) Net impact on reserves – increase / (decrease) - - Total reserves per the unaudited financial statements (Group) 1,887.779 1,887.779 Revised reserves per the audited financial statements (Group) 1,887.779 1,887.779 Page 95 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 88 of 106 www.azets.co.uk Common Good No Detail Comprehensive Income and Expenditure Statement Balance Sheet Dr / (Cr) £’000 Dr / (Cr) £’000 1. Common Good – Renfrew Understated short-term deposits and revaluation reserve fixed assets 434 (434) Net impact on reserves – increase / (decrease) - - Unadjusted misstatements We have not identified any unadjusted misstatements to report. Misclassification and disclosure changes Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the Council. We identified a number of reclassification adjustments and some minor presentational issues in the financial statements, and these have all been amended by management. Details of all disclosure changes amended by management following discussions are as below. Adjusted No Detail 1. Minor presentational, formatting and disclosure issues. We proposed a number of minor changes and narrative amendments to improve the presentation of the accounts including a change to comparative figures. 2. Updated Note 4: Expenditure and income analysed by nature to match with supporting evidence. 3. Updated Note 25: Related parties to provide further clarity on the classification of the remaining balance and updated figure to match with supporting evidence. Page 96 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 89 of 106 www.azets.co.uk No Detail 4. Updated Note 6: Adjustment between accounting basis and funding basis under regulations and Note 8: Capital Adjustment Account movement due to incorrect treatment of a reserve drawdown in the year. 5. Updated Note 22: Nature and extent of risks arising from Financial Instruments - Credit risk - Sundry Income Debt Past Due, to match with the supporting evidence 6. Updated exit package cost disclosure- one employee moved from the £300,001 to £350,000 band to the £350,001 to £400,000 band. Unadjusted We have not identified any unadjusted misclassification and disclosure changes to report. Prior year unadjusted misstatements There were no unadjusted misstatements reported in the prior period. Page 97 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 90 of 106 www.azets.co.uk Appendix 3: Action plan Our action plan details the weaknesses and opportunities for improvement that we have identified during our 2025/26 audit. The recommendations are categorised into three risk ratings: • Significant deficiency • Other deficiency • Other observation Financial statements 1. Going concern assessment Other observation Observation The Council has considered the going concern assumption for the Group however this has not been formally documented.. As the Group comprises several component entities, the Council should undertake a documented assessment to determine whether each component is expected to continue providing services for at least 12 months from the date of signing the financial statements. The assessment should also consider any potential impact on the Group's going concern status and financial position. Implication In the absence of a formal documented Group going concern assessment, the Council may be unable to demonstrate that all component entities are expected to continue providing services for at least 12 months from the date the financial statements are signed. This increases the risk that matters affecting individual components, and consequently the Group as a whole, are not identified, appropriately evaluated, or adequately disclosed, resulting in an unsupported Group going concern conclusion. Recommendation The Council should document its formal Group going concern assessment on an annual basis Page 98 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 91 of 106 www.azets.co.uk 1. Going concern assessment Other observation Management response A statement will be developed for inclusion in Group accounting working papers from 2026/27. Responsible officer: Head of Finance and Procurement Implementation date: April 2027 2. Review of nil net book value assets Other deficiency Observation Our sample of five fully utilised (depreciated) assets totalling £4.4m consisted of items which could not be verified as they were originally documented on older records which the Council no longer accesses. Therefore, the Council has removed these from the fixed asset register. The Council has a number of 'legacy' assets in their asset register which are due to be reviewed for existence. The Council is planning to undertake this exercise over the next year and it is due to be completed by 2027/28. Implication The inability to verify the existence of fully depreciated assets due to a lack of supporting records increases the risk that the fixed asset register contains assets which no longer exist, have been disposed of, or are otherwise inaccurately recorded. Recommendation The Council should complete its planned review of legacy assets to verify the existence and continued use of fully depreciated assets, removing any assets that cannot be substantiated. Progress should be monitored regularly to ensure completion by 2027/28 and to maintain an accurate fixed asset register. Management response The planned review of legacy assets will continue during 2026/27 to enhance the accuracy of the fixed asset register. Responsible officer: Head of Finance and Procurement Implementation date: 31 March 2027 Page 99 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 92 of 106 www.azets.co.uk 2. Review of nil net book value assets Other deficiency 3. Land and Building Valuation Ratios Other observation Observation During our testing of asset valuations, we identified that the internal valuation team applies land and building split ratios that differ from those used by the external valuers. Management was unable to provide a documented rationale for these differences, as the ratios have been carried forward from a historic methodology. We are satisfied this does not have a material impact on the financial statements. Implication There is a risk that the allocation between land and buildings may not accurately reflect current valuations, potentially impacting related calculations such as depreciation. We are satisfied the impact is not material on the financial statements. Recommendation The Council should review the methodology underpinning the internally derived land and building split ratios and document the rationale for using them in place of externally provided valuation information. If the Council decides to retain the internal methodology, it should review the individual asset ratios to ensure they appropriately reflect the current split between land and building values, supporting the accuracy of asset valuations and depreciation calculations. Management response The Council will review and document the internal methodology for applying the land and buildings split to valuations. Responsible officer: Estates Lead Implementation date: 31 March 2027 Page 100 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 93 of 106 www.azets.co.uk Thematic review Sensitivity analysis affordability reporting Other observation Observation The council’s reporting on affordability of capital projects and asset management should consider providing additional scenario/risk analysis to show the impact of changes in inflation and interest rates or the impact of changes in demand for services. Implication This will provide users of the report with a greater understanding of the potential consequences factors out with the council’s control could bring. Recommendation We recommend that the Council should consider developing its reporting further. Management response This detailed reporting is done at project level when business cases are being brought before elected members for approval. The Business Case format will be reviewed to assess whether further sensitivity analysis is required. Responsible officer: Strategic Change Manager Implementation date: 31 December 2026 Timelines reporting on capital projects Other observation Observation Individual projects are reported to individual thematic council Boards and include details of performance against the budget in monetary terms and explanations of any in-year adjustments. Implication The explanations for variances in these reports could be further strengthened by including timelines for each individual project which would allow more focused scrutiny. Page 101 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 94 of 106 www.azets.co.uk Timelines reporting on capital projects Other observation Recommendation We recommend that the Council should consider developing its reporting further. Management response Capital monitoring reports will be reviewed in advance of the next financial year. Reporting of timelines will be considered for major projects (e.g. over £5m) and not cyclical programmes. Responsible officer: Head of Finance and Procurement Implementation date: 31 July 2027 Budget setting and management process Other observation Observation The Council should review whether further enhancement can be made to capital forecasting and reporting arrangements. In particular, it should consider strengthening the distinction in reporting between genuine underspends, project rephasing and changes in project scope. Implication These improvements would enhance the transparency and reliability of capital programme reporting, support more effective member scrutiny and provide greater assurance that annual budgets reflect realistic expectations of project delivery. Recommendation We recommend that the Council should consider developing its budget setting and management process in line with the recommendation. Management response Capital budget monitoring is reported to policy boards regularly throughout the financial year. Any updates to the phasing of spend related to the timing of the project is reported here. Genuine underspends and overspends are reported as they Page 102 of 376
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 95 of 106 www.azets.co.uk Budget setting and management process Other observation arise, both via procurement reporting and policy board reports on individual projects. Responsible officer: Director of Finance and Resources Implementation date: n/a Page 103 of 376
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Appendix 4: Follow up of prior year recommendations As part of our audit work we have followed up on control weaknesses and recommendations either raised in last year’s Annual Audit Report or carried forward from prior years. Financial statements 1. IT general controls (2024/25) Other observation Issue Our specialist Technology Risk team reviewed the design and implementation of IT general controls in the key systems impacting preparation of the financial statements and identified a few areas for improvement in relation password, active directory and undertaken testing of incident management planning. (As this is a public report and for reasons of IT/control sensitivity, we have provided specific details to the Council separately). There is a risk of system issues adversely impacting the control environment and/or financial statements. Recommendation We recommend that the specific IT points identified are addressed. Auditor update 2025/26 We have provided a specific update to the Council’s management separately. No significant control weaknesses or recommendations have been raised. Outcome Action in progress. Recommendation remains open. 2. Unapproved posted journal (2024/25) Other observation Issue We identified from our journals testing undertaken that large batch journals with over 50 lines require no system approval and therefore can be posted and approved by individuals who hold relevant access. This is due to a system issue where there are too many line items for approval within the system. Page 104 of 376
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2. Unapproved posted journal (2024/25) Other observation Management have mitigating controls in place to review period end budgetary controls where any significant variances against budget are investigated and followed up. As these specific journals do not required approval, this could mean that someone could post inappropriate or fraudulent journals without review or authorisation. As part of our testing of management override of controls we have not identified any instances of inappropriate or fraudulent journal postings during the financial year. Recommendation Management should strengthen controls over large batch journals by introducing an independent approval requirement (e.g., manual secondary review) before posting. Auditor update 2025/26 We appreciate that management have confirmed they are comfortable with this risk and have other mitigating controls in place however we are required to report to members any control weaknesses we identify on an annual basis to ensure they are content with management’s response on the matter. Work will be undertaken at the Council to assure that the batch process is only used where necessary. Internal policy has been drafted in the Finance team that outlines guidance/recommended practice in relation to journal operation and authorisation, and separation of duties but needs further consultation to understand the outside- Finance impact of recommendations. Responsible officer: Head of Finance and Procurement Implementation Revised Date: FY2026/27 Outcome Action in progress. Recommendation remains open. Page 105 of 376
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3. Payroll transaction approval (2024/25) Other observation Issue For one of the payroll transactions, we noted that one individual prepared the payroll run and also authorised this. There was no additional review by another team member. Based on the journals selected for audit testing we did not identify any instances of inappropriate journals being posted to the finance system. There is a risk of inappropriate journals postings where there is not a secondary review process of journals. Recommendation Management should strengthen controls over journals by introducing an independent approval requirement (e.g., manual secondary review) before posting. Auditor update 2025/26 The processes around payrun operation and signing of the associated BACS payment has been reviewed, with further separation of duties and checks now in place. Alerts and processes within the ERP system are already in place to mitigate any risk of fraudulent bank account changes. Outcome Action completed. Recommendation closed. 4. Common Good Funds - Property register (2024/25) Other observation Issue At the time of producing the Unaudited Accounts, there were still some assets under investigation as to whether they belonged to the Common Good. This was highlighted on the public asset register. There is a risk that misclassification of assets could lead to inaccurate financial reporting and regulatory non- compliance. Recommendation We recommend a decision is reached to determine whether these are Common Good assets and if not, update the Common Good Property register. Auditor update 2025/26 The opinion of King’s Counsel that six of the seven properties under investigation are confirmed as Common Page 106 of 376
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4. Common Good Funds - Property register (2024/25) Other observation Good assets, and will be adjusted in the fixed asset register. The Common Good Note in the audited accounts 2024/25 was updated to reflect this change. 2025/26 there is no outstanding investigation. Outcome Action completed. Recommendation closed. 5. Common Good Funds – Rental arrangements review (2024/25) Other observation Issue Renfrewshire Council administers the Common Good Fund for Renfrew on its behalf. Not all rental properties have their rental fees reviewed and updated on regular basis. The absence of documented regular rents reviews creates uncertainty over the financial return to the fund. Recommendation While the Common Good Fund cannot enter into formal lease agreements, the rents should be subject to periodic review to confirm that they remain appropriate, transparent, and provide a fair return to the fund. Auditor update 2025/26 These arrangements are being reviewed as part of the Common Good Governance Framework under development during 2026/27. Responsible officer: Principal Estates Surveyor Revised implementation date: 31 December 2026 Outcome Action in progress. Recommendation remains open. 6. Quality of working papers (2024/25) Other observation Issue Our review of the working papers identified that some of the documentation provided for audit was not always presented in a clear or easily navigable format. To support improvements in this area, we delivered a training session this year and provided feedback and suggestions to the finance team and other officers in advance of the audit. Page 107 of 376
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6. Quality of working papers (2024/25) Other observation While progress has been made, further enhancements to the clarity and structure of some of the working papers below would help reduce the extent of follow-up queries, thereby supporting a more efficient audit process. In particular, the reconciliation of the trial balance to the accounts could be presented in a more structured format, with manual adjustments more clearly identified and supported by sufficient explanation and evidence. Similarly, the debtor and creditor listings provided to audit presented the opening balance plus movements however per audit requirements we require a detailed breakdown of all closing balances as at 31 March. In addition, ongoing work on the reconciliation of revalued and non-revalued assets to the fixed asset register took longer than anticipated. These issues can lead to delays in the audit process, increase the risk of misstatements within the financial statements, and reduce the efficiency of the overall audit review. Recommendation We recommend that working papers be standardised and presented with improved clarity. Reconciliations should clearly identify manual adjustments, supported by explanations and appropriate evidence. Debtor and creditor listings should be reformatted to ensure all closing balances are presented. In addition, reconciliations between revalued and non-revalued assets and the fixed asset register should be prepared in advance and shared earlier in the audit cycle. Auditor update 2025/26 The reconciliation of the trial balance to the accounts format has been revised post discussion with management throughout the year and we are satisfied with the updated format. However, debtor and creditor listings still require further enhancement as some debtor and creditor types only show the opening balance and in year movements and not a breakdown of the year end closing balance which is required to perform audit testing. Page 108 of 376
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6. Quality of working papers (2024/25) Other observation Responsible officer: Corporate Finance Manager Revised implementation date: FY 2026/27 Outcome Action in progress. Recommendation remains open. 7. Asset Classification (2024/25) Other observation Issue As part of our audit procedures, we reviewed the Council’s approach to the classification of components within property, plant and equipment (PPE), specifically in relation to council dwellings and schools. The Council currently classifies certain components (such as kitchens, heating systems, and other fixtures and fittings) under the Vehicles, Plant, Furniture and Equipment (VPFE) asset class. While this treatment reflects management’s interpretation of the applicable accounting standards, our view based on IAS 16 and the CIPFA Code of Practice on Local Authority Accounting is that such components form part of the primary asset classes (i.e. “Council Dwellings” or “Other Land and Buildings”) as they share the same nature and use in the authority’s operations. The issue identified gives rise to an increased risk of misstatement or classification error. Recommendation We recommend that the Council reviews its classification policy for asset components within council dwellings and schools, with a view to either: •Aligning the treatment to ensure that components remain within the primary asset class, or •Enhancing disclosures and policy documentation to clearly explain the rationale for classifying components separately. Auditor update 2025/26 Review was carried out and decision was made to reassess components classified within VPE to either Council Dwellings or Other Land and Building. This was done as a restatement to the opening balances of 2024/25 rather than an in year transfer. Page 109 of 376
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7. Asset Classification (2024/25) Other observation Outcome Action completed. Recommendation closed. 8. Payroll reconciliation (2023/24) Other observation Issue The Council has a number of payruns running at different frequencies. However, there is no year-end reconciliation in place between the ledger and payroll systems to ensure that the figures in the financial statements reconcile to the payroll system. There is a risk that the ledger is not complete or accurate when reflecting payroll figures and impacting on the financial statements. Recommendation We recommend that the Council performs regular reconciliation between the ledger and payroll. Auditor update 2025/26 A payroll reconciliation process has been developed, agreed and implemented between Payroll Services Manager and Finance. Outcome Action completed. Recommendation closed. Wider Scope 1. Appraisals and business cases reporting (2024/25) Other observation Issue There is a risk of system issues adversely impacting the control environment and/or financial statements. Recommendation We recommend that the council considers how it presents options to the members to improve decision making effectiveness and openness. Auditor update 2025/26 The Council has further strengthened its approach to the development of business cases and the project management processes associated with these, including reporting arrangements. An officer Transformation Board has been established which regularly reviews the development and progress of a range of significant corporate and service projects across the council, with Page 110 of 376
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1. Appraisals and business cases reporting (2024/25) Other observation regular reporting to both the Corporate Management Team and Leadership Board on the issues discussed. The Transformation Board approach is informed by an agreed ‘gateway’ approach which includes clear stages projects must adhere to in terms of identifying requirements, clarifying scope, considering options for how objectives can be met and clearly defining how delivery will be achieved. The regular reporting of business cases to allow elected member decision-making can clearly be demonstrated in examples such as the business case framework approach for the learning estate (see report to the Education and Children’s Service Policy Board in May 2025); and the progression of an AI business case which will enable broad AI-enabled transformation across the Council as reported to the Leadership Board in April 2026. Outcome Action completed. Recommendation closed. 2. Capital budgeting and monitoring (2024/25) Other observation Issue The actual levels of the initial budgets utilisation percentage were quite low in relation to initial budgets for both housing and non-housing spend. Over optimistic assumptions can lead to under delivery of the capital programme. Recommendation We recommend that the capital budget setting process be revisited to ensure future estimates better reflect prevailing market conditions and delivery capacity. Auditor update 2025/26 Our work in this area has been covered through our reporting of the Best Value Thematic of asset management as summarised within this report. Action taken by management in setting the 2025/26 non- housing capital budget resulted in the spend v budget gap reducing to 14% (38% in 2024/25); for the 2026/27 budget process, we are unable to measure the impact of this until 2026/27 and therefore recommendation remains open. Page 111 of 376
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3. Financial sustainability (2022/23) Other observation Issue The medium term financial challenge and financial gap has been considered by the Council numerous times, but no clear options have been presented or decisions made as to how to address those challenges. The Council now needs to make difficult spending priority decisions to secure financial sustainability going forward. This poses an increasing risk to the Council’s delivery of services over the medium term and we would recommend addressing as a priority. Recommendation To present the Council with a range of options and services implications. Auditor update 2025/26 The Council’s senior management team continues to identify options for further savings and service transformation, for agreement by elected members in setting future annual revenue budgets. Outcome Action completed. Recommendation closed. Best Value 1. Transformation- Links to corporate objectives (2024/25) Other observation Issue We are satisfied that links exist between the Council’s corporate objectives and the transformation plans and while we note there is alignment between transformation programme objectives and the corporate plan outcomes, these were not formally mapped against each other. Recommendation We recommend that the Council should consider demonstrating the links between the transformation 2. Capital budgeting and monitoring (2024/25) Other observation Responsible officer: Head of Finance and Procurement Implementation date: FY 2026/27. Outcome Action in progress. Recommendation remains open. Page 112 of 376
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1. Transformation- Links to corporate objectives (2024/25) Other observation programme and its corporate plan with more clarity to help demonstrate measurement of impact of the transformation plan against the corporate plan. Auditor update 2025/26 A schematic has been developed to map Transformation projects to Council priorities, this links to the oversight work of the Transformation Board and is outlined in the Transformation Report for Leadership Board in February 2026. Corporate reports on transformation will also denote alignment with Council Plan priorities. Outcome Action completed. Recommendation closed. 2. Transformation- Reporting to the Leadership Board (2024/25) Other observation Issue We note that the timescales and financial impact or expected savings is provided for some of the projects in the reporting to the Leadership Board, but not for all. As different projects mature in their progress the Council should ensure consistency of the reporting it presents in its updates on the transformation programme. Also, while the Council develops its strategy and savings plan it should report timing, savings, cost and benefits expected to measure against those. Recommendation We recommend that the Council continues to update its reporting to the Leadership Board to improve high level oversight. Auditor update 2025/26 Update report provided to the Leadership Board in February 2026, followed by more detailed AI transformation report in April 2026. Six monthly reports will continue to be submitted to the Leadership Board and the format has been developed to address the auditor recommendations Outcome Action completed. Recommendation closed. Page 113 of 376
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© Azets 2026. All rights reserved. Azets refers to Azets Audit Services Limited. Registered in England & Wales Registered No. 09652677. VAT Registration No. 219 0608 22. Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Moving forward with confidence info@azets.co.uk | azets.co.uk Page 114 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC My Ref: AM/CB Contact: Alastair MacArthur Telephone Number: 0300 300 0285 E Mail: alastair.macarthur@renfrewshire.gov.uk Azets Audit Services Quay 2 139 Fountainbridge Edinburgh EH3 9QG Dear Sirs Renfrewshire Council Financial Statements for the year ended 31 March 2026 This representation letter is provided for the purpose of expressing an opinion as to whether the Council and the Group’s financial statements present a true and fair view, in all material respects, in accordance with applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (the 2025/26 Code). I confirm that to the best of my knowledge and belief having made such inquiries as I considered necessary for the purpose of appropriately informing myself: Financial Statements i. I have fulfilled my responsibilities as Section 95 Officer for the preparation of the Council’s financial statements in accordance with applicable law and UK adopted international accounting standards, as interpreted and adapted by the 2025/26 Code, for being satisfied that they give a true and fair view and for making accurate representations to you. ii. I have complied with the requirements of all statutory directions affecting the Council and Group and these matters have been appropriately reflected and disclosed in the financial statements. iii. I have considered whether accounting transactions have complied with the requirements of the Housing (Scotland) Act 1987 in respect of the Housing Revenue Account. iv. The financial statements are free of material misstatements, including omissions. I have reviewed and approved all audit adjustments made in the financial statements. (See appendix 1 for details of such audit adjustments). Page 115 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC v. All prior year adjustments of which I am aware have been made to the financial statements and these are appropriately disclosed in the financial statements. (See appendix 1 for details of such adjustments). vi. I have reviewed and approved all disclosures made in the financial statements and I am not aware of any other matters which require disclosure in order to comply with the requirements of UK adopted international accounting standards, as interpreted and adapted by the 2025/26 Code (A summary of the main disclosure changes is at appendix 1). vii. No uncorrected misstatements were identified during the audit and the prior years. viii. The Council and Group has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non- compliance. There has been no non-compliance with requirements of any regulatory authorities that could have a material effect on the financial statements in the event of non-compliance. ix. I acknowledge my responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error, and I believe that I have appropriately fulfilled these responsibilities. x. I am satisfied that the methods, data and significant assumptions used by the Council in making accounting estimates, including those measured at fair value, are appropriate to achieve recognition, measurement and disclosure that is reasonable in accordance with the 2025/26 Code. I am satisfied that the material judgements used in the preparation of the financial statements are soundly based, in accordance with the 25/26 Code and adequately disclosed in the financial statements. I understand my responsibilities include identifying and considering alternative methods, assumptions or source data that would be equally valid under the financial reporting framework, and why these alternatives were rejected in favour of the estimate used. There are no other material judgements that need to be disclosed. xi. I confirm that all necessary information has been provided to our management expert, as external valuers and the Council’s Estates team as internal valuers, to ensure that the valuation of land and buildings and council dwellings and where relevant right of use assets, is accurate and complete. The valuations of these assets have all been prepared in accordance with the requirements of the 2025/26 Code. xii. I confirm that I am satisfied that the actuarial assumptions underlying the valuation of pension scheme assets and liabilities for IAS19 Employee Benefits disclosures are consistent with my knowledge. I confirm that all settlements and curtailments have been identified and properly accounted for. I also confirm that all significant post-employment benefits have been identified and properly accounted for. Page 116 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC xiii. The Council has satisfactory title to all assets disclosed in the accounts. The Council has no plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities as at 31 March 2026 reflected in the financial statements. xiv. The Council has complied with all aspects of ring-fenced grants that could have a material effect on the Council and Group’s financial statements in the event of non-compliance. xv. Except as disclosed in the financial statements: a. there are no unrecorded liabilities, actual or contingent; b. none of the assets of the Council has been assigned, pledged or mortgaged; c. there are no material prior year charges or credits, nor exceptional or non- recurring items requiring separate disclosure. xvi. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of applicable law, accounting standards and the 2025/26 Code. xvii. All events subsequent to the date of the financial statements and which require adjustment or disclosure have been adjusted or disclosed. xviii. Actual or possible litigation and claims have been accounted for and disclosed in accordance with the requirements of UK adopted international accounting standards, and as interpreted and adapted by the Code. xix. I believe that the Council and Group’s financial statements should be prepared on a going concern basis. I do not expect the Council or Group to demise in its current organisational form; however, my basis for going concern acknowledges that if that situation arose the services would be transferred to another public sector body. I believe that no further disclosures relating to the Council’s ability to continue as a going concern need to be made in the financial statements. Information Provided xx. I have provided you with: a. access to all information of which I am aware that is relevant to the preparation of the Council and Group’s financial statements such as accounting records, and all other records requested; b. additional information that you have requested from us for the purpose of your audit; and c. unrestricted access to persons within the Council (via remote arrangements where necessary), from whom you determined it necessary to obtain audit evidence. Page 117 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC xxi. I have communicated to you all deficiencies in internal control of which management is aware. xxii. All transactions undertaken by the Council and Group have been recorded in the accounting records and are properly reflected in the financial statements. xxiii. I have disclosed to you the results of my assessment of the risk that the financial statements may be materially misstated as a result of fraud. xxiv. I have disclosed to you all information in relation to known fraud or suspected fraud that I am aware of and that affects the Council or Group and involves: a. management; b. employees who have significant roles in internal control; or c. others where the fraud could have a material effect on the financial statements. xxv. I have disclosed to you all information in relation to instances of, or allegations of fraud, or suspected fraud, affecting the financial statements communicated by employees, former employees, analysts, regulators or others. xxvi. I have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. xxvii. I have disclosed to you the identity of the Council and Group’s related parties and all the related party relationships and transactions of which I am aware. xxviii. I have disclosed to you all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. xxix. I acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as I am aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. I have taken all the steps that I ought to have taken in order to make myself aware of any relevant audit information and to establish that you are aware of that information. Management Commentary xxx. The disclosures within the Management Commentary fairly reflect my understanding of the Council and Group’s financial and operating performance over the period covered by the financial statements. Annual Governance Statement xxxi. I am satisfied that the Annual Governance Statement fairly reflects the Council’s risk assurance and governance framework and I confirm that I am not aware of Page 118 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC any significant risks or weaknesses in governance or internal control that are not disclosed within the Statement. Remuneration Report xxxii. I am satisfied that the disclosures within the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Wider Scope xxxiii. I have made you aware of any issues that could affect your Wider Scope reporting responsibilities, including any external or internal reports which highlight weaknesses in our arrangements for securing economy, efficiency and effectiveness in our use of resources. Approval The approval of this letter of representation was minuted by the Council at its meeting on 24 September 2026. Yours faithfully Signature: Name: Alastair MacArthur Position: Director of Finance and Resources Date: Page 119 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC Appendix 1 Adjusted misstatements Current year audit adjustments (Council and Group Accounts) No Detail Comprehensive Income and Expenditure Statement Balance Sheet Dr / (Cr) £million Dr / (Cr) £million 1. To reverse incorrect reclassification of one asset from Other Land and Buildings to Infrastructure as the asset remains separate to the land. 11.900 (11.900) 2. To write down nil net book value asset that cannot be verified by the Council. 4.439 (4.439) Net impact on reserves – increase / (decrease) - - Total reserves per the unaudited financial statements (Group) 1,887.779 1,887.779 Revised reserves per the audited financial statements (Group) 1,887.779 1,887.779 Common Good No Detail Comprehensive Income and Expenditure Statement Balance Sheet Dr / (Cr) £’000 Dr / (Cr) £’000 1. Common Good – Renfrew Understated short-term deposits and revaluation reserve fixed assets 434 (434) Net impact on reserves – increase / (decrease) - - Misclassification and disclosure changes - Adjusted No Detail 1. Minor presentational, formatting and disclosure issues. We proposed a number of minor changes and narrative amendments to improve the presentation of the accounts including a change to comparative figures. 2. Updated Note 4: Expenditure and income analysed by nature to match with supporting evidence. Page 120 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC No Detail 3. Updated Note 25: Related parties to provide further clarity on the classification of the remaining balance and updated figure to match with supporting evidence. 4. Updated Note 6: Adjustment between accounting basis and funding basis under regulations and Note 8: Capital Adjustment Account movement due to incorrect treatment of a reserve drawdown in the year. 5. Updated Note 22: Nature and extent of risks arising from Financial Instruments - Credit risk - Sundry Income Debt Past Due, to match with the supporting evidence 6. Updated exit package cost disclosure- one employee moved from the £300,001 to £350,000 band to the £350,001 to £400,000 band. Prior year adjustments • Restatement of PPE note: Following a review of the Council's asset componentisation policy under the CIPFA Code of Practice, certain assets previously recorded within Vehicles, Plant, Furniture and Equipment have been reclassified to Council Dwellings or Other Land and Buildings. This change reflects the assessment that these assets are building components forming part of the properties, rather than separate plant or equipment assets. • Restatement of Common Good Funds Paisley and Renfrew Income and expenditure statement: During 2024/25, following a review of historical title and legal advice, the Council reclassified £1.090m of property from Council assets. This was reflected in the reserves balance directly in the prior year. However, it should have been recorded as income in the prior year. • Restatement of Group accounts: Upon receiving the audited accounts of the Group's components, the consolidation was revised to incorporate the final audited figures. Page 121 of 376
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1 PUBLIC ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 21 September 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Audited Annual Accounts 2025/26 - Renfrewshire Council Group ___________________________________________________________________ 1. Summary 1.1. The 2025/26 unaudited Annual Accounts were approved by Council on 22 June 2026. 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 those statements provide a true and fair view of the financial position of the Council, and its income and expenditure for the year; and also whether they have been prepared in accordance with the relevant regulations. 1.2. The audited annual accounts are now presented for noting and for recommendation to the Council that the audited accounts be approved. 1.3. There were three material adjustments made to the annual accounts over the course of the audit, along with other presentational and disclosure changes. These are detailed in Azets’ Annual Audit report, presented at agenda item 1. ___________________________________________________________________ 2. Recommendations 2.1. Members are asked to note the attached 2025/26 Audited Annual Accounts; and to recommend to Council that they be approved. Item 2 Page 123 of 376
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2 PUBLIC ___________________________________________________________________ Implications of the Report 1. Financial – The 2025/26 Annual Accounts demonstrate that the Council continues to operate services within the resources available, and in line with the relevant legislation. 2. HR & Organisational Development – none directly arising from this report. 3. Community/Council Planning – none directly arising from this report. 4. Legal – An audit opinion free from qualification demonstrates the Council’s compliance with the statutory accounting requirements set out in the Local Government (Scotland) Act 1973 and the Local Government in Scotland Act 2003. 5. Property/Assets – none directly arising from this report. 6. Information Technology – none directly arising from this report. 7. Equality & Human Rights – none directly arising from this report. 8. Health & Safety – none directly arising from this report. 9. Procurement – none directly arising from this report. 10. Risk – none directly arising from this report. 11. Privacy Impact – none directly arising from this report. 12. Cosla Policy Position – none directly arising from this report. 13. Children’s Rights – none directly arising from this report. 14. Climate Risk – none directly arising from this report. ___________________________________________________________________ Author: Christine McCourt, Head of Finance and Procurement Page 124 of 376
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1 PUBLIC Contents Management Commentary ................................ 2 Statement of Responsibilities .......................... 17 Annual Governance Statement ........................ 18 Remuneration Report ...................................... 29 Independent auditor’s report ........................... 36 Comprehensive Income and Expenditure Statement ...................................................... 40 Movement in Reserves Statement .................... 41 Balance Sheet................................................. 42 Cashflow Statement ........................................ 43 Note 1: Expenditure and Funding Analysis......... 44 Note 2: Financing and investment income & expenditure .................................................... 46 Note 3: Taxation and non-specific grant income 46 Note 4: Expenditure and income analysed by nature ............................................................ 46 Note 5: Grant income ...................................... 47 Note 6: Adjustment between accounting basis and funding basis under regulations ....................... 48 Note 7: Usable reserves ................................... 49 Note 8: Unusable reserves ............................... 52 Note 9: Property, Plant and Equipment ............. 56 Note 10: Heritage Assets ................................. 59 Note 11: Assets held for sale ............................ 59 Note 12: Intangible assets ............................... 59 Note 13: Capital expenditure and capital financing ...................................................................... 60 Note 14: Service Concession Arrangements...... 61 Note 15: Leases .............................................. 63 Note 16: Inventories ........................................ 63 Note 17: Cash and cash equivalents ................. 64 Note 18: Debtors ............................................. 64 Note 19: Creditors .......................................... 65 Note 20: Provisions ......................................... 65 Note 21: Financial Instruments ........................ 66 Note 22: Nature and extent of risks arising from Financial Instruments ..................................... 70 Note 23: External audit costs ........................... 73 Note 24: Agency services ................................. 73 Note 25: Related parties .................................. 74 Note 26: Pension schemes accounted for as defined contribution schemes ......................... 76 Note 27: Defined benefit pension schemes ....... 76 Note 28: Contingent liabilities .......................... 82 Note 29: Events after the balance sheet date .... 82 Note 30: Accounting Standards Issued not Adopted ......................................................... 82 Note 31: Accounting Policies – Renfrewshire Council .......................................................... 83 Note 32: Judgements in Applying Accounting Policies .......................................................... 95 Note 33: Assumptions made about the future .. 96f Common Good Funds ..................................... 97 Housing Revenue Account ............................... 99 Council Tax Income Account .......................... 101 Non-Domestic Rates Income Account ............ 103 Group Accounts ............................................ 104 Notes to the Group Accounts .......................... 107 Group Accounting Policies ............................. 119 Page 126 of 376
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2 PUBLIC Management Commentary The purpose of the Management Commentary is to present an overview of Renfrewshire Council’s performance during the 2025/26 financial year and to help readers understand its financial position at 31 March 2026. In addition, it outlines the main issues and risks that may impact the performance of the Council in the future. 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 serves a population of 189,170, with a mix of larger urban centres and smaller villages. The Council 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. These partners are part of the Council’s wider Group, with partnerships spanning a number of organisations to varying degrees, as follows: During 2025/26, Renfrewshire Council was organised into four services, as follows: The services that the Council provides include: Environment, Housing and Infrastructure Includes the management of roads and transportation, housing services, public protection, waste, neighbourhood services, fleet, facilities management and sustainability. Finance and Resources Provides services such as legal, HR, ICT and finance, to elected members and other parts of the Council, as well as services to the public, including council tax, and customer and advice services. Children's Services Responsible for schools and education services, children and family social work, and justice social work services. Chief Executive's Service Responsible for the development of corporate policy, as well as partnerships, social inclusion, planning, economic development, regeneration, communications and marketing. Page 127 of 376
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3 PUBLIC 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: 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 Aligned to our Council Plan is our transformation programme, Reshaping Renfrewshire, which explores how we can continue to deliver our vision, as articulated in the Council Plan, within the context of the financial challenges facing local authorities in Scotland. At its heart are the two goals of ensuring a financially sustainable long-term future and improving outcomes for our communities. Each of the four Council services prepares a Service Improvement Plan, demonstrating how they will each contribute to the delivery of the Council Plan. Work is underway to refresh the Community Plan and the Council Plan for 2027-2032. 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 25 September 2025, with a further update on 26 February 2026. These reports highlight the continued challenging financial and economic environment the Council is facing, predominantly linked to high levels of cost growth, coupled with lower real terms income growth. 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 challenging financial outlook. On 26 February 2026, the Council decided to increase council tax for 2026/27 by 7.5%. At that time, it was reported to Council that it is estimated to be facing a £40m funding gap over the period to 2028/29, before any decisions on council tax. The Council therefore continues to target cost reductions and savings of around £20m over the medium term, and financial sustainability and stability risks remain high going into 2026/27. It should be noted that these forecasts do not include the potential impact of any additional Council support for the Renfrewshire Health and Social Care Partnership, whose financial Page 128 of 376
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4 PUBLIC outlook creates a significant financial risk for the Council. Further detail is provided later in the Financial Outlook and Key Risks section. Information on the year-end financial position of the Council at 31 March 2026 is detailed in the Financial Performance section. Review of the Year The Council reports on its progress delivering the Council Plan every six months, and the most recent report can be found here. We also publish 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 across the 108 indicators included in the Local Government Benchmarking Framework (LGBF). A detailed report on Renfrewshire’s performance against the LGBF indicators is considered by our Audit, Risk and Scrutiny Board every six months. Some of the key achievements we have reported on during 2025/26 are detailed below under each of our strategic themes. Key Achievements 2025/26 Place: Our new river crossing – the Renfrew bridge opened in May 2025, connecting communities on either side of the Clyde. The bridge has quickly proved to be a vital transport link, with 3.5 million journeys being recorded within the first year of opening. Our town centre regeneration plans are progressing, with a new Vision for Johnstone developed, construction underway for a new civic square in Erskine, designs being produced for the transformation of the former Brown Institute site in Renfrew, and some initial designs for landscape enhancements in the Linwood Lade area being prepared. Economy: We have continued to support our young people into post-school positive destinations and now have the second highest percentage of positive leaver destinations in Scotland, with 97.9% of our school leavers continuing with education, or moving into training or employment. The Events Programme for 2025 exceeded targets across all key performance indicators. Events delivered across the year included new events in Renfrew, Erskine, and Linwood as a result of a broader ‘five towns’ approach within the new events strategy, and new community events partnership group. The events programme generated an estimated £4.5m in economic impact. The Council’s Procurement and Economic Development teams continue to work together to support local businesses to bid for Council contracts and related work. A draft Local Supply Chain Engagement Strategy has been developed and aims to strengthen engagement with Renfrewshire’s business community, increase local supplier participation in public procurement, and improve supplier awareness, capability and readiness for public sector opportunities. Fair: A new round of participatory budgeting was delivered specifically for Council tenants. In its first year, £150,000 was made available for Renfrewshire residents to suggest projects that would improve local neighbourhoods, with tenants then voting on those to be funded. This was the first of a three-year programme with £600,000 to be distributed in total. Attainment figures for this year show that the poverty- related attainment gap has narrowed for both literacy and numeracy, and this continues to be a priority for the Council. The Council and its partners continue to work together to progress the Fairer Renfrewshire Programme, with a strong shared focus currently on the local response to cost-of-living inequality. A Fairer Renfrewshire Action Plan, agreed by the Leadership Board in December 2025, sets out the priority actions that will be progressed to tackle poverty and inequality in Renfrewshire. Green: Our Carbon Management Plan 2025-2030 was developed, setting out how we intend to reduce our emissions over the next five years. Renfrewshire Council already performs strongly relative to other Page 129 of 376
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5 PUBLIC local authorities in relation to emissions from electricity, gas and transport, as reflected in performance measures included in the Local Government Benchmarking Framework. We are participating in a regional approach to Electric Vehicle Charging, working with neighbouring authorities on procuring infrastructure. We invested £15m during the year to improve the energy efficiency of our housing stock through improved insulation, new triple glazing and solar panels. Living Our Values: As part of our focus on Best Value, the Council was subject to a Controller of Audit Best Value Report which was published in summer 2025. This was a very positive report, with no formal recommendations for the Council. ‘Areas of focus’ identified by the Accounts Commission have been added to the Corporate Improvement Plan and were detailed in a report to Council on 26 June 2025. A progress report was taken to the Leadership Board in September and work continues across all elements of the improvement agenda. We continue to have a strong focus on employee wellbeing, Initiatives in 2025/26 included the delivery of Men’s Mental Health awareness events in our Underwood Road depot, a series of ‘RenTalks’ for staff covering issues as varied as advice on personal finances and on raising teenagers, updated HR policies on equality, diversity and inclusion and respect at work, and the continued provision of services such as Time for Thriving. We carried out an extensive programme of engagement with local residents; over 1,000 people took part in interview-led surveys on perceptions of local services and Council priorities, and this was supplemented with an online survey and focus groups. We used the findings to create an action plan and intend to repeat the exercise in future years, as part of our ongoing commitment to improving our dialogue with residents and communities through future engagement opportunities. Improving Outcomes for Children and Young People: Construction is nearing completion on the Paisley Grammar School Community Campus and it will welcome pupils in August for the new 2026/27 school year. A programme of engagement activities on the next steps of our Learning Estate Strategy is planned for the remainder of this year. The Promise continues to be embedded within service planning and delivery through our active and expanding Promise Keeper network. There are currently 407 Promise Keepers working across the local authority - comprising staff, elected members, the HSCP, and partner agencies. The Keep The Promise in Renfrewshire Action Plan 2026–29 provides the route map for the next phase of implementing The Promise. 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 2025/26, 13 of our indicators met or exceeded their target, two narrowly missed the target, and two were behind target. There are four indicators for which 2025/26 data is not yet available. Council services also track additional performance indicators through their Service Improvement Plans. In 2025, the Council established an officer Performance Board to provide additional senior scrutiny over Council-wide performance. The board supports intensive improvement work and cross- Council working, and in its first year has had a particular focus on planning and building standards, customer interactions, and staff absence. This approach has allowed improvement plans to be developed and delivered in short time frames and is anticipated this will positively impact performance indicators in 2026/27. Our areas of strong performance include: • Supporting people into sustained employment; • Supporting new business start-ups; • Reducing CO2 emissions from public lighting; Page 130 of 376
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6 PUBLIC • Completing homeless duties within our target timescales; • Uptake of free school meals in primary schools; • Providing community-based placements for Looked After Children. Other areas where LGBF data indicates we have strong relative performance include: • pupil attainment at levels 5 and 6 and in numeracy at primary school level; • hospital readmissions and delayed discharges; • the condition of Class A and B roads; • rent arrears; • the time taken for non-emergency housing repairs; • financial sustainability measures; and • CO2 emissions from electricity, gas, and transport. Areas for Improvement and Development We narrowly missed our annual targets in the following areas: • The percentage of Council housing meeting Scottish Housing Quality Standards; and • The percentage of LGBF indicators where Renfrewshire Council’s performance is in the top half of Scottish Councils. There are two measures which are further behind target - one relates to affordable housing and is partly due to a change in how funding is being used, and the other is in relation to staff sickness absence, with a council-wide programme of work underway to address this. The Local Government Benchmarking Framework (LGBF) provides an opportunity for Scottish local authorities to consider their performance relative to other councils. The latest LGBF data relates to 2024/25, and although the Improvement Service have noted that the pace of improvement is slowing across the whole sector, Renfrewshire Council has improved performance on 58 out of the 92 available indicators, and increased the proportion that rank in the top 8 best performing councils. Longer-term trends show that improvements in 79% of all measures since the LGBF began, and this is a higher proportion than any of our Family Group comparator councils. The chart below shows the trend in performance – both absolute and relative to other councils – in the years since the pandemic. Page 131 of 376
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7 Annual Accounts 2025/26 PUBLIC 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. Working Towards Net Zero by 2030 Renfrewshire Council’s Public Bodies Climate Change Duties reported a 4.27% emissions reduction compared with the previous year, and overall annual emissions reduction of 66.23% against the 2012/13 baseline. In November 2025, Renfrewshire Council’s Carbon Management Plan 2025-2030 was approved and published. The Plan sets out several projects across key service areas which will contribute to significant reduction in emissions over the next 5 years. These areas include Waste, Transport, Utilities, Street Lighting and Business Travel. Continued 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: • The Council is developing outline business cases for two potential district heat networks DHN): one in Paisley, and one extending the existing AMIDS DHN to Glasgow Airport. DHNs strongly support clean energy solutions and reduced emissions on a large scale. • Year 1 of the project to upgrade and expand Building Management systems (BMS) across public buildings has been completed. This will support more energy efficient buildings and practices and reduce the Council’s emissions as a result. Year 2 projects will look at further BMS improvements and solar array expansion. • Development of the new Paisley Grammar Community Campus is nearing completion and has been built to Passivhaus standard, maximising clean energy supported by air source heat pump heating, and solar array. Sustainable Transport: • The project to accelerate the delivery of public EV Charging Infrastructure, aiming to install over 3,000 additional charge points over the coming years in collaboration with the Glasgow City Region, has progressed to procurement stage to appoint a new Charge Place Operator to take this work forward. • 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. This is a commitment in the Council’s approved Carbon Management Plan. Circular Economy: • Exploring opportunities to maximise recycling, building on successful recycling initiatives across the school estate. An initial public buildings project is close to completion on the implementation of full recycling facilities within Renfrewshire House, followed by Underwood Road Depot. Resilient Place: • The development of an Adaptation Plan for Renfrewshire is underway supported by extensive engagement, which has taken place with internal services and external stakeholders. Once drafted, the plan will be opened for public consultation prior to being finalised. • Nature Restoration projects continue to be delivered including Restoring Renfrewshire Rivers and Biodiversity Action in Renfrewshire. Potential biodiversity sites that maximise biodiversity related benefits, in line with Nature Network corridors, are currently being identified. Page 132 of 376
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8 Annual Accounts 2025/26 PUBLIC 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 2026, the mean gender pay gap for Renfrewshire Council was -0.81% in favour of female (-0.52% at 31 March 2025). Key Financial Ratios The following tables provide information regarding the financial performance of the Council in 2025/26 and the affordability of its ongoing commitments: Mean gender pay gap in hourly pay -0.81% Mean hourly salary £22.33 £22.15 Female Male Workforce demographics 73.45% 26.55% Female Male Employee Head Count 6,373 2,304 Female Male Page 133 of 376
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9 Annual Accounts 2025/26 PUBLIC 2024/25 Estimate Actual Actual Reserves Uncommitted General Fund reserves as a % of budgeted net expenditure 1.8% 2.0% 1.9% Reflects the level of funding available to meet unplanned expenditure and manage financial risk Movement in uncommitted General Fund balance n/a 9.7% 0.0% Reflects contribution to Unallocated balance in-year Council Tax In-year collection rate 95.0% 94.7% 94.5% Reflects the Council’s effectiveness in collecting Council Tax debt Council Tax income as a proportion of total taxation and non-specific grant income 18.5% 18.5% 18.3% 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) £697.0m £650.9m £599.6m External debt £492.0m £417.2m £397.7m Ratio of financing costs to net revenue stream (General Fund) 2.7% 2.8% 2.9% Financial Indicator 2025/26 Commentary 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. Financial Performance Primary Financial Statements The annual accounts summarise the Council’s transactions for the year, its financial position at 31 March 2026, 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 2025/26 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 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 Page 134 of 376
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10 Annual Accounts 2025/26 PUBLIC 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 2025/26, increases in waste costs, high inflation on vehicle parts and specialist contractors, and public building repairs, have featured in regular budget monitoring reports throughout the financial year. Further pressures emerged through the year relating to children’s social care, and staffing costs within schools. These pressures have been offset by increased investment income, additional funding relating to packaging waste disposal, and an underspend in loan charges budgeted for the learning estate, culminating in an overall service underspend against budget of £0.191m (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 2025/26 a two-year national pay settlement was agreed for local government workers, of 4.0% for 2025/26 and 3.5% for 2026/27. In recognition of the challenging financial environment, the Scottish Government provided councils with additional funding to support this pay settlement in 2025/26. For Renfrewshire, this amounted to £2.6m. Adult social care had a planned year-end deficit of £5.7m, which decreased the reserves of the Renfrewshire Health and Social Care Partnership, who operate 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 The Council fell just short of its target in-year council tax collection rate of 95% in 2025/26, returning a creditable 94.7%, which was an improvement on the 2024/25 collection rate. Income from Council Tax marginally over-recovered by £0.005m. After adjusting for this over-recovery in Council Tax revenues, the final position for the Council’s General Fund balance at 31 March 2026 was an underspend of £0.196m. Revised Budget Actual Variance £m £m £m Chief Executive's Service 30.217 30.195 0.022 Children's Services 273.812 275.837 (2.025) Environment, Housing and Infrastructure 78.346 78.047 0.299 Finance and Resources 51.124 50.893 0.231 Miscellaneous Services 19.907 18.243 1.664 Adult Services 112.122 112.122 0.000 Net Expenditure 565.528 565.337 0.191 Revenue Support Grant (368.933) (368.933) 0.000 Council Tax Income (108.199) (108.204) 0.005 Non-Domestic Rates Income* (108.844) (108.844) 0.000 Funding (585.976) (585.981) 0.005 Contribution to General Fund Balances (20.448) (20.644) 0.196 2025/26 *The Council collected £101.7m directly from local businesses with £7.1m due from the Scottish Government National Non- Domestic Rates Pool. Page 135 of 376
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11 Annual Accounts 2025/26 PUBLIC 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 2025 Usable Reserves As at 31 March 2026 £m £m 138.769 General Fund Balance 159.414 6.933 Housing Revenue Account 7.973 5.485 Capital Receipts Reserve 4.122 84.008 Other Statutory Funds 65.905 235.195 Total 237.414 The General Fund balance of £159.4m will be carried forward to 2026/27. Of this balance, £147.9m has been earmarked for a particular purpose, as outlined in Note 7: Usable reserves. This leaves unallocated reserves of £11.5m (2.0% 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, in order to mitigate adverse risks anticipated in public finances over the short to medium term. Housing Revenue Account The balance on the Housing Revenue Account (HRA) as at 31 March 2026 has increased to £7.9m. 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 £1.0m. 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 2027. 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 27 February 2025, the Council approved the housing capital investment programme for 2025/26 of £56m; and the General Fund capital investment programme for 2025/26 of £129m. 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 £44m for housing capital investment and £111m 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 2025/26 capital programme. Page 136 of 376
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12 Annual Accounts 2025/26 PUBLIC During the course of 2025/26 there was £64m of new long-term external borrowing to support the capital programme. The level of cash balances available to the Council remains consistent with daily cash requirements, treasury and capital investment plans. The increase in cash balances compared to 31 March 2025 is attributable in part to receipt of grant funding for the AMIDS South project late in the financial year. 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 21: 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 27 February 2025 with a mid-year update on 11 December 2025. The TMSS for 2025/26 can be found on the Council Committee Management Information System at: http://renfrewshire.cmis.uk.com. 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 2026 was £650.9m, within the approved Authorised Limit of £702.0m. The Council’s external borrowings have only been applied for capital investment purposes, with the Council’s net external debt being £417.2m at 31 March 2026 compared to the approved Operational Boundary of £674.0m. The Council’s costs of borrowing remain one of the lowest of all Scottish local authorities, are affordable, and align to the Council’s medium to long-term financial strategy. It is anticipated that borrowing costs as a proportion of net revenues will increase in future years as planned investment, predominantly in the learning estate, is completed. The Council’s non-housing financing costs were 2.8% as a proportion of the Council’s non-housing net revenue stream. Housing related financing costs as at 31 March 2026 were 19.5% of net Page 137 of 376
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13 Annual Accounts 2025/26 PUBLIC housing revenues, lower than the budgeted level of 24.5%. 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 £109m in their assessment of the Council’s share of the actuarial position of the local government pension fund as at 31 March 2026. 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. The assessment provides only a snapshot as at 31 March 2026 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 2025/26, this has adjusted the value of the pension asset shown in the balance sheet from £865m to nil. The value of Unfunded liabilities at the same date is £64m. A potential change to pension rules is outlined in Note 28: 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 20: 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 £3.2m for uninsured claims. Any contingencies that cannot yet be accurately quantified are outlined in Note 28: 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; and Glasgow City Region – City Deal Cabinet. Financial Outlook and Key Risks Financial Sustainability The Financial update reports throughout 2025/26 outlined continued uncertainty for local government finances. In 2020, the Council agreed Page 138 of 376
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14 Annual Accounts 2025/26 PUBLIC to replenish unallocated reserves to a threshold of £10m in order to address the risks of significant and unplanned cost pressures that may emerge over the medium term. In light of expected energy and food price volatility in the short term, a further £1m has been contributed in 2025/26. The Council continued to feel the impact of global political and economic change during 2025/26, and though general inflation did reduce from its peak of 3.8% (CPI) in summer 2025, it increased again in March 2026 to 3.3%. The Scottish Government most recently published its Medium Term Financial Strategy (MTFS) on 25 June 2025, 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 and an estimated funding gap of £4.7 billion by 2029/30. The outlook for the local government settlement is likely to face real terms cuts over the Spending Review period. As outlined in the Revenue Estimates 2025/26 report to Council in February 2025, after adjusting for new responsibilities, areas of growing responsibility and other conditional aspects of the settlement to provide a like-for-like comparison to 2025/26, the underlying core grant for Renfrewshire Council increased by £9.9m (2.3%). Following the Council meeting, the Scottish Government announced further funding to help offset the rise in employers' National Insurance from 1 April 2025. Renfrewshire’s share of this funding was £4.793m. 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 2026, the central forecast is a financial gap of £40m by the end of 2028/29, before any decisions on council tax increases. 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. 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 £3.832m which is added to the previous surplus brought forward. The Page 139 of 376
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15 Annual Accounts 2025/26 PUBLIC total net asset value improved by £3.832m, driven largely by an increase in investments of £3.007m. 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 subject to increased inflationary risk. The total net asset value of the Observatory Trust increased by £0.523m owing to investment in the Observatory as part of the Paisley Museum Reimagined project. 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 risks identified as Very High for the year ahead are detailed below. Risk Mitigating Actions Tackling health, wellbeing, and low- income inequalities In Renfrewshire, we seek to address persistent inequality driven by poverty, the disproportionate impact of the cost-of-living crisis on low-income households, and ongoing changes to welfare reforms through strong partnership working; through our Fairer Renfrewshire programme; through specific programmes to tackle local priorities; through national programmes such as the Scottish Attainment Challenge; and through building community capacity. A number of workstreams under the Connected Communities initiative will seek to address such unequal outcomes over the short to medium term. Partnership Financial Sustainability In common with other Scottish partnerships, the Renfrewshire Health and Social Care Partnership (HSCP) is facing significant financial pressures. Its Integration Joint Board (IJB) is currently forecasting a budget gap in 2026/27 of £7.2m. IJB reserve balances are expected to bridge this gap, but in doing so will close the 2026/27 year with reserve balances of c£6m, which will not be sufficient to cover anticipated 2027/28 budget pressures, and leaves no reserves available for future years. The Integration Scheme that governs the IJB states that should it be unable to achieve a balanced budget for future years, it would be required to seek additional funding from its partner bodies, including the Council. 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. The requirement to publish trade union facility‑time information arose under the Trade Union (Facility Time Publication Requirements) Regulations 2017. Following repeal of the relevant provisions of the Trade Union Act 2016 under the Employment Rights Act 2025, this statutory duty ended in February 2026. The organisation therefore no longer publishes facility‑time data for periods ending after that date. Page 140 of 376
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16 Annual Accounts 2025/26 PUBLIC 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 Alan Russell Alastair MacArthur Leader of the Council Chief Executive Director of Finance and Resources Page 141 of 376
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17 Annual Accounts 2025/26PUBLIC 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 24 September 2026. 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 2026. Alastair MacArthur Director of Finance and Resources Page 142 of 376
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18 Annual Accounts 2025/26 PUBLIC 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: Corporate Governance • 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. • The Council facilitates policy and decision making through a policy board structure. • 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 Partnerships and the Head of Corporate Governance respectively and the Council’s Leadership Board. In terms of One Ren specifically, the Head of Policy and Partnerships and Head of Finance and Procurement also sit on the One Ren board as Council appointed observers. A review of services commissioned by the Council from One Ren is ongoing, and as part of this process all related service and operational agreements are subject to review. • Seven Local Partnerships are in operation and have identified local priorities. Decision making Page 143 of 376
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19 Annual Accounts 2025/26 PUBLIC including that relating to relevant grants is delegated to each Local Partnership through a Lead Officer appointed by the Council, through the Chief Executive. Strategic Policy and Planning • 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 the Council and its 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 would be progressed by partners. • Work has recently commenced on the refresh of both plans, with a view to these being finalised by September 2027. Service Delivery and Performance Management • 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. • The Council has developed a performance management framework and uses the Pentana Portal to co-ordinate and host all performance information. • A Performance Board was established in 2025 and chaired by the Director of Environment, Housing and Infrastructure. This is an officer group with all services represented and its focus is to drive improvements in performance corporately and across Council services. Service areas can be referred for a ‘deep dive’ exercise providing access to peer support and other resources to improve performance; referrals may be from the teams themselves or from senior leadership. • Regarding Performance Monitoring, the Council Plan scorecard is considered alongside other performance information each quarter by the Performance Board (established in 2025) and areas requiring additional scrutiny can be referred up to the Corporate Management Team (CMT). The CMT has access to the Pentana portal which is updated quarterly and shows performance against all Council Plan indicators and followed up with an in-depth look at performance in one service particular area of interest at regular intervals. Performance scrutiny sessions between the Chief Executive and Directorate teams are undertaken, typically twice a year. • 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 to 6 monthly in accordance with the 2025/26 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 requirement. • A revised Business Continuity Policy is in operation and services have business continuity plans in place. Page 144 of 376
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20 Annual Accounts 2025/26 PUBLIC Elected Members and Employees • The Council has adopted a code of conduct for its employees which is currently under review as part of the Council’s People Strategy implementation. A revised code is expected to be presented to Members for approval in the autumn 2026. 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. • Comprehensive arrangements are in place to ensure members and officers are supported by appropriate training and development, including a range of mandatory training which all staff undertake. • Registers of interests for elected members and senior officers are maintained and published on the Council’s website. Risk Management • Renfrewshire Council has a well-established approach to risk management with many positive features. During 2025/2026 the council has been progressing the recommendations from an external review undertaken the previous year. Of note, an updated Risk Matters (combined risk policy and strategy), has been prepared and approved by the Audit, Risk and Scrutiny Board in May 2026. Additionally, during 2025/2026, the risk and insurance function moved out of Internal Audit Services and is now under the leadership of the Head of Business Services, Risk and Safety. • Risks continue to be 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 continue to be available to all staff. Our innovative approach for business-as- usual risks (BaURAM © Renfrewshire Council) has now completed 3 years of operation and continues to provide valuable insight to how specific risks are being managed in practice across all areas of the council. Information Governance • 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, including the Information Security Group. The Managing Solicitor (DPO) is the statutory Data Protection Officer. Cyber Security and Counter Fraud • Cyber-attacks are growing in both frequency and sophistication; with the evolving threat landscape being further influenced by geopolitical factors, which have increased the risk of cyber-attacks against UK public sector organisations. While no system or internal control can offer absolute protection, the Council has implemented a comprehensive, multi-layered 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 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 and in addition the Council has a Cyber Incident Response Team (CIRT) contract in place, providing access to specialist external expertise in the event of a cyber incident. This Page 145 of 376
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21 Annual Accounts 2025/26 PUBLIC includes support for incident triage, containment and eradication, digital forensics, threat intelligence, and recovery ensuring that, alongside internal capabilities, the Council can respond effectively to incidents, minimise disruption to services, and meet regulatory and reporting obligation. • 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 in November 2024. • The Council’s approach to ‘whistleblowing’ is outlined in the whistleblowing policy which was revised in April 2026 and approved by the Finance, Resources and Customer Services Policy Board to reflect the disclosure protections being brought in as part of the Employment Rights Act 2025 reforms. A session on the policy was delivered to the Council’s senior manager forum in early 2026 to promote awareness and understanding. This governance framework has been in place at Renfrewshire Council for the year ended 31 March 2026. 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. 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 an independent elected member, its role includes: • 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 2025/26 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). Page 146 of 376
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22 Annual Accounts 2025/26 PUBLIC 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 2025/26 outturn compares favourably with 2024/25, with only one limited assurance score in the Information Handling module compared to six limited assurances over six modules. 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. A Transformation Board (officer group) has been established to provide strategic oversight of the Reshaping Renfrewshire programme. Chaired by the Director of Finance and Resources, this group has a membership of senior officers across the Council and reviews the progress of all major projects and programmes across the organisation, explores and manage interdependencies, shares learning and Page 147 of 376
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23 Annual Accounts 2025/26 PUBLIC supports the management and prioritisation of resources across the programme. The Council continues to recognise the need to exercise strong financial management arrangements to manage the financial pressures common to all local authorities and it 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 8 outstanding actions still in progress, most of a longer-term nature, with target dates up to December 2026. Work to refresh the initial engagement will be undertaken by the end of 2026/27 to ensure that improvement work continues to be focused, relevant and effective. The Council continues to manage a number of very significant issues 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 and geopolitical uncertainty and volatility, which has significantly increased costs and impacted supply chains utilised 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 and Action Plan. This remains under regular review, most recently to consider the impacts of the conflict in the middle east in terms of local household income as well as in relation to the Council and its expenditure. • 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 both the short and medium term. • Demand pressures on Council services continue to be experienced particularly in relation to areas such as housing and homeless services and the provision of support through, for example, the Scottish Welfare Fund. • New and emerging policy developments at a Scottish and UK government level, including in relation to employment legislation, immigration, education provision including reduced class contact time and the public service reform agenda in Scotland, particularly in relation to health and social care and education. • Responding to the changing needs of our local population, particularly in relation to migration and asylum, support for refugee resettlement and overall population growth which is projected to continue into the longer term. • Continuing to embed new ways of working across all aspects of our service delivery. This includes building on new working practices following the pandemic through hybrid and flexible working opportunities, as well as embracing the opportunities that can be realised through new advances such as AI. • Progressing the next phase of the Council’s transformation journey – Reshaping Renfrewshire which will focus on improving outcomes for local communities and residents, whilst addressing the ongoing financial challenges facing the Council over the medium term. The programme also has a strong focus on delivering against key corporate priorities such as place shaping – focusing on investment in infrastructure such as housing and our learning estate. • Building trust and engagement mechanisms with local stakeholders is a particular priority for the Council strategically and at a service level. Building on our consultation and engagement strategy and the results from our resident research, a strong commitment has been made to strengthening the Council’s approach to listening and engaging authentically with citizens and communities. It is recognised that trust in public sector authorities is reducing, and the Council will Page 148 of 376
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24 Annual Accounts 2025/26 PUBLIC need to respond positively to address this, including by tackling issues such as mis/dis/mal information. • Regardless of the Council’s technical preparedness for a cyber-attack, the threat remains acute and present, as evidenced by successful attacks on other public sector organisations, with the risk of significant impact on council operations. Audit Scotland 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. These reviews have included leadership and governance, workforce innovation and transformation. The thematic review in 2026 will consider asset management. The Council has received positive reports in relation to each of the thematic reviews which have each been presented to the Audit Risk and Scrutiny Board by the Council’s external auditors, Azets. Following a report to the Accounts Commission in 2024 in relation to Dargavel Primary School and the related s102 process, the Council was notified 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. The Best Value Audit process was undertaken during 2025, with findings being reported in May 2025 by the Accounts Commission. Overall the report was very positive with it being noted that: ‘Renfrewshire Council has a strong commitment to improving, including creating a positive culture, supporting its staff to develop as leaders, and focusing on engaging with residents. It must now talk to them about tough spending decisions that lie ahead.’ The 2024/25 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 implemented and the agreed actions are currently being progressed. The external auditors, Azets, provided an unqualified audit opinion on the 2024/25 annual accounts and concluded in their annual audit report that the vision, leadership and governance arrangements were effective and appropriate. Regular reviews of the Council’s governance arrangements are undertaken by internal audit. The programme of work undertaken by internal audit during 2025/26 identified three occasions where a limited assurance level was given in relation to the internal control, risk management and governance objectives for the specific areas of each audit review. 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 risk identified. In addition, internal audit conducted two investigative reviews of grant funding given to community organisations and these identified that the Council governance arrangements for grants were unsatisfactory and the Council’s grant conditions required to be reviewed. This is being progressed by Senior Management. 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 85% of recommendations were implemented by the due date, 14% had passed their original due date and revised implementation dates have now been set and 1% were superseded. Of the 33 recommendations followed up that were deemed to be critical, 27 have been fully implemented and 6 has been partially implemented. Revised Page 149 of 376
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25 Annual Accounts 2025/26 PUBLIC implementation dates have been agreed for each of the partially implemented 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 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. Forward look on governance Three main developments have been identified which are likely to further strengthen governance arrangements in the forthcoming year: At the Leadership Board on 29 April 2026, it was agreed that the Council will progress the AI Transformation Programme 2026 -2030 Business Case. As part of that process various elements of governance and Elected Member oversight were agreed. This included the creation of three specific officer groups each dealing with specific matters arising from the project. The AI Strategic Programme Officer Board (chaired by the Chief Executive) will provide the overall strategic direction and oversight of the project, with key responsibilities including, approving programme priorities, ensuring alignment with corporate and service strategies, monitoring delivery progress, managing financial oversight and accountability, and reviewing risks and mitigation plans. The AI Programme Delivery Team (chaired by the Programme Lead) will coordinate day-to-day activity, working closely with services to plan, test, deploy and optimise AI solutions, with key responsibilities including coordinating technical delivery, managing sprint cycles and deployment plans, ensuring compliance with governance decisions, supporting services with implementation activities, and monitoring early impact and usage data. The Ethics and Assurance Board (chaired by the Head of Corporate Governance) will ensure responsible AI deployment with key responsibilities including reviewing Data Protection Impact Assessments, ensuring GDPR compliance, upholding ethical AI principles, monitoring fairness, transparency and accountability, and ensuring human oversight in all critical decision-making processes. To ensure Elected Member oversight of the project it was agreed that regular updates on the AI Transformation Programme 2026 – 2030 will be brought to the Leadership Board at appropriate key junctures as the overall programme is progressed over the next 3+ years, and that a 6-monthly ‘AI Transparency Report’ will also be brought to the Leadership Board outlining AI tools used by the Council, the purpose and function of each system, any data-protection or equality assessments undertaken, changes since the previous report, and any identified risks, mitigations or recommendations for future deployment.” Following on from the Internal Audit investigative reviews of grants, management acknowledged that the processes for awarding of grants throughout the Council to third party organisations were inconsistent and that the Council’s Conditions of Grant required updating. A governance review of grant processes is therefore planned to commence in 2026/27. Reflecting the approach set out and reported through the Reshaping Renfrewshire Transformation and Change Programme to the Council’s Leadership Board in February 2026, evaluation findings from the leadership programme, alongside insights from the Cultural Assurance Model (CAM), are being used to inform a more targeted and risk-based approach to leadership development for line managers and senior officers across the Council. This represents a move away from time-limited development programmes towards a more sustained focus on leadership capability as an enabler of effective governance and Page 150 of 376
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26 Annual Accounts 2025/26 PUBLIC assurance. Leadership development activity will prioritise the behaviours and capabilities that evidence shows have the greatest impact on performance, assurance, and team climate. As part of this next phase, a new managers’ induction module will be introduced to provide a consistent foundation for colleagues taking on management responsibilities within the Council. The module will support new starters to understand their role in managing performance, risk, governance and assurance from the outset, while existing managers will also be encouraged to complete it to reinforce core expectations. This approach recognises transition into management as a point of heightened organisational risk and supports more consistent managerial accountability and assurance across services. In parallel, work is underway to design a dedicated development offer for newly appointed Chief Officers, whether recruited internally or externally. This programme will provide structured, assessment- informed development alongside coaching and mentoring, supporting effective transition into role, early establishment of leadership authority, and understanding of the Council’s organisational, governance and cultural context. The intention is to launch the programme in autumn 2026 as part of a more coherent, end-to-end leadership development pathway that supports succession planning, long- term organisational resilience, and strengthened corporate governance. Work, planning for the next local government elections and the new council in 2027, has commenced throughout the Council and a highly experienced group of staff will lead and deliver workstreams that support electoral event with integrity. In addition, our external auditors Azets will undertake planned annual best value audit activity in Summer 2026, with a key focus on the Council’s activities in relation to Fairness and Inequality. Any related findings will be reported as per the standard process through the Annual Audit report in September 2026. 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 Undertake review of Council’s conditions of grant and produce updated internal guidance on grants management processes. Head of Policy and Partnerships December 2027 Implement actions arising from the Audit, Risk and Scrutiny Board Member’s self-assessment which are detailed in the ARSB Annual Report, reported to Council in May 2026. Head of Corporate Governance/Chief Auditor March 2027 Update on Previous Action Plans The agreed actions will be subject to review to identify the progress being made in implementing these actions. Page 151 of 376
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27 Annual Accounts 2025/26 PUBLIC 2024/25 Action Plan Agreed action Progress Update 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 All recommendations are incorporated as actions within the Council’s agreed Corporate Improvement Plan. Updates on progress are reported on a 6 monthly basis to Leadership Board. The last update was provided in February 2026 and noted the majority of actions were now complete with a small number of longer term actions being implemented on an ongoing basis, but within agreed deadlines. Chief Executive & Director of Finance and Resources Complete Implement the new Statutory Performance Information Direction in line with statutory timescales All requirements relating to the new SPI Direction have been fully implemented – this includes amendments to our public performance report and increased frequency of reporting of Local Government Benchmarking data to Audit Risk and Scrutiny Board. Head of Policy and Partnerships Complete Address the improvement action arising from the independent review of the Council’s Risk Management Arrangements All agreed recommendations are being taken forward and are incorporated into the Strategic Risk Management Development Plan. The progress of this plan is monitored over the life cycle of the Risk Management Policy and progress is reported as part of the Annual Report. Director of Finance and Resources Complete 2023/24 Action Plan Agreed action Progress Update Responsible person Date Implement improvement plan arising from the Corporate Self-Assessment Exercise. With one exception , all of these actions have been completed. The development of a webpage on transformation is currently being progressed. Head of Policy and Partnerships September 2026 Page 152 of 376
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28 Annual Accounts 2025/26 PUBLIC Agreed action Progress Update Responsible person Date 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. Recommendations have been actioned, with one ongoing (the procurement and implementation of a H&S management system) which is progressing. Director of Finance and Resources Complete 2022/23 Action Plan All the agreed improvement actions are now complete. Assurance Subject to the above, and on the basis of the assurances provided, we consider the governance and internal control environment operating during 2025/26 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. Cllr Iain Nicolson Alan Russell Leader of the Council Chief Executive Page 153 of 376
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29 Annual Accounts 2025/26 PUBLIC 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. It should be noted that due to the commencement of Section 66 of the Employment Rights Act 2025, public bodies in Scotland are no longer required to include disclosures in their annual report or accounts relating to Trade Union Facility Time. As a result, this section (formerly section 9) is now removed from the Remuneration Report. 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 4.0% pay award in 2025/26. In December 2025, Council Leaders (through COSLA) implemented a new pay framework for Scottish local authority Chief Executives. In line with the Council’s established pay relationships, this had a consequential impact on the salary levels of Chief Officers whose pay is linked to the Chief Executive. 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 2025. The salary for the Leader of the Council in 2025/26 was £50,063 per annum (£42,698 in 2024/25) and the salary for the Provost was £37,548 per annum (£32,024 in 2024/25). 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 2025/26 being £444,705 per annum; and whose salaries individually must be on a specified scale, in 2025/26 £25,028 to £37,458. 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 £36,885 per annum in 2025/26); four Regulatory Board Conveners (salary of £29,924 in 2025/26); Chair of OneRen Board and Chair of Integration Joint Board (salary of £36,885 in 2025-26); Chair of Valuation Joint Board (salary of £28,207 in 2025/26), and one Leader of the Opposition (salary of £29,924 in 2025/26). 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. Page 154 of 376
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30 Annual Accounts 2025/26 PUBLIC • 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 2026, 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 2025/26. 2024/25 Total Remuneration Total Remuneration £ £ 181,134 Alan Russell Chief Executive 184,806 144,953 Alastair MacArthur Director of Finance and Resources 149,498 143,953 Gordon McNeil Director of Environment, Housing & Infrastructure 149,498 138,112 Janie O'Neil Director of Children's Services 149,498 608,152 Total 633,300 Senior employees Name Post held 2025/26 In 2025/26, there was no renumeration received by Senior Officers in connection with election activities. In 2024/25 this was £10,996. 2024/25 2025/26 Total Remuneration Total Remuneration £ £ 120,016 Victoria Hollows 125,534 120,016 125,534 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 as 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 2026, whether or not those amounts were actually paid or received within that period and relate only to the Senior Councillor posts indicated. Page 155 of 376
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31 Annual Accounts 2025/26 PUBLIC 2024/25 2025/26 Total Remuneration Name Position held Total Remuneration £ £ 42,698 Iain Nicolson Leader Of the Council 50,063 32,024 Lorraine Cameron Provost 37,548 30,746 Michelle Campbell Policy Board Convener 36,885 30,746 Marie McGurk Policy Board Convener 36,885 30,746 Jim Paterson Policy Board Convener 36,885 30,746 Emma Rodden Policy Board Convener 36,885 30,746 John Shaw Policy Board Convener 36,885 30,746 Andy Steel Policy Board Convener 36,885 25,522 Stephen Burns Regulatory Board Convener 29,924 25,522 Andy Doig Regulatory Board Convener 29,924 25,522 Cathy McEwan Regulatory Board Convener 29,924 25,522 John McNaughtan Regulatory Board Convener 29,924 30,746 Jennifer Adam Chair/Vice Chair IJB 36,885 30,746 Lisa-Marie Hughes Chair, OneRen 36,885 25,522 Iain McMillan Leader of largest opposition group 29,924 448,300 532,311Total 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 2024/25 Up to £27,500 5.5% Up to £27,000 £27,501 to £33,600 7.25% £27,001 to £33,000 £33,601 to £46,100 8.5% £33,001 to £45,300 £46,101 to £61,400 9.5% £45,301 to £60,400 Over £61,401 12% Over £60,401 Tiered contribution rates on whole time pay 2025/26 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 156 of 376
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32 Annual Accounts 2025/26 PUBLIC 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 2026 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). 2025/26 2024/25 Pension Lump Sum Pension Lump Sum £ £ £000 £000 £000 £000 Alan Russell Chief Executive 11,965 11,541 97 118 11 13 Alastair MacArthur Director of Finance and Resources 9,682 9,412 75 89 8 9 Gordon McNeil Director of Environment, Housing & Infrastructure 9,682 9,412 61 41 7 4 Janie O'Neil Director of Children's Services 9,679 9,129 18 0 3 0 41,008 39,494 251 248 29 26Total Senior Employees Name Post held In-year pension contributions by Renfrewshire Council Accrued pension benefits as at 31 March 2026 Change in accrued pension benefits since 31 March 2025 2025/26 2024/25 Pension Lump Sum Pension Lump Sum £ £ £000 £000 £000 £000 Victoria Hollows Chief Executive, OneRen 8,131 7,939 58 57 7 4 8,131 7,939 58 57 7 4 Senior Employees of Subsidiary Bodies Name Post held In-year pension contributions by Renfrewshire Leisure Accrued pension benefits as at 31 March 2026 Change in accrued pension benefits since 31 March 2025 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. Page 157 of 376
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33 Annual Accounts 2025/26 PUBLIC 6. Councillors’ remuneration The Council paid the following amounts to its elected members (councillors) during the year. 2025/26 2024/25 Pension Lump Sum Pension Lump Sum £ £ £000 £000 £000 £000 Iain Nicolson Leader Of the Council 3,239 2,822 13 3 1 0 Michelle Campbell Policy Board Convener 2,386 2,032 5 0 1 0 Marie McGurk Policy Board Convener 2,386 2,032 7 0 1 0 Jim Paterson Policy Board Convener 2,386 2,032 6 0 1 0 Emma Rodden Policy Board Convener 2,386 2,032 5 0 1 0 John Shaw Policy Board Convener 2,386 2,032 6 0 1 0 Andy Steel Policy Board Convener 2,386 2,032 6 0 1 0 John McNaughtan Regulatory Board Convener 1,936 1,687 5 0 1 0 Stephen Burns Regulatory Board Convener 1,936 1,687 5 0 1 0 Andy Doig Regulatory Board Convener 1,936 1,687 5 0 1 0 Jennifer Adam Chair/Vice Chair IJB 2,386 2,032 6 0 1 0 Lisa-Marie Hughes Chair, OneRen 2,386 2,032 6 0 1 0 Iain McMillan Leader of largest opposition group 1,936 1,687 2 0 0 0 Total 30,071 25,826 77 3 12 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 2026 Change in accrued pension benefits since 31 March 2025 2024/25 2025/26 £ £ 1,051,873 Salaries 1,262,442 917 Travel costs – reimbursed 1,609 5,456 Travel costs – paid directly by the Council 6,473 2,951 Training and Conferences 4,033 0 Telephone and information technology expenses – reimbursed 53 2,983 Telephone and information technology expenses – paid directly by the Council 2,508 1,064,180 Total 1,277,118 The public record of members' salaries, allowances and expenses for 2025/26 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. Page 158 of 376
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34 Annual Accounts 2025/26 PUBLIC 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 2025/26, in bands of £5,000; and also details of the number of those employees highlighted who left the employment of the Council during 2025/26. 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 228 159 387 £50,000 to £54,999 550 125 675 65 64 129 £55,000 to £59,999 81 98 179 102 58 160 £60,000 to £64,999 75 39 114 84 47 131 £65,000 to £69,999 89 48 137 76 13 89 £70,000 to £74,999 70 24 94 27 19 46 £75,000 to £79,999 70 22 92 9 7 16 £80,000 to £84,999 9 6 15 3 4 7 £85,000 to £89,999 8 5 13 6 1 7 £90,000 to £94,999 2 1 3 1 6 7 £95,000 to £99,999 6 3 9 1 2 3 £100,000 to £104,999 0 2 2 2 4 6 £105,000 to £109,999 4 2 6 0 0 0 £110,000 to £114,999 0 6 6 0 5 5 £115,000 to £119,999 0 0 0 0 0 0 £125,000 to £129,999 0 6 6 0 0 0 £130,000 to £134,999 0 1 1 0 1 1 £135,000 to £139,999 0 0 0 0 2 2 £140,000 to £144,999 0 0 0 0 0 0 £145,000 to £149,999 0 3 3 0 1 1 £170,000 to £174,999 0 0 0 0 0 0 £175,000 to £179,999 0 1 1 604 393 997 964 392 1,356 2024/25 2025/26 In 2025/26, there was one employee that was only included in this table because they left and received a termination payment (six in 2024/25). 8. Exit Packages The Council has agreed a number of exit packages in 2025/26 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 Page 159 of 376
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35 Annual Accounts 2025/26 PUBLIC 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: 2025/26 2024/25 Future Life expectancy at age 65 – males 20.8 years 20.5 years Future Life expectancy at age 65 – females 24.2 years 24.1 years Pension increase rate 3.00% 2.80% Discount Rate 6.20% 5.80% Value Value £m £m £0 - £20,000 0 0.000 6 0.046 £20,001 - £40,000 0 0.000 2 0.059 £40,001 - £60,000 2 0.103 4 0.203 £60,001 - £80,000 0 0.000 2 0.145 £80,001 - £100,000 1 0.083 2 0.176 £100,101 - £150,000 0 0.000 3 0.365 £150,101 - £200,000 2 0.325 3 0.497 £200,001 - £250,000 1 0.239 0 0.000 £350,001 - £400,000 1 0.353 0 0.000 Total 7 1.103 22 1.491 Exit Package Cost 2025/26 2024/25 Number of Employees Number of Employees Cllr Iain Nicolson Alan Russell Leader of the Council Chief Executive Page 160 of 376
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36 Annual Accounts 2025/26 PUBLIC Independent auditor’s report to the members of Renfrewshire Council and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements We certify that we have audited the financial statements in the annual accounts of Renfrewshire Council and its group for the year ended 31 March 2026 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the Group and Council-only Comprehensive Income and Expenditure Statements, Movement in Reserves Statements, Balance Sheets, Cash Flow Statements, the Council-only Common Good Funds Income and Expenditure Statement, the Council-only Common Good Funds Balance Sheet, the Council- only Housing Revenue Account Income and Expenditure Statement, the Movement on the Housing Revenue Account Statement, the Council Tax Income Account, and the Non-Domestic Rates Income Account, and notes to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (the 2025/26 Code). In our opinion the accompanying financial statements: give a true and fair view of the state of affairs of the council and its group as at 31 March 2026 and of the income and expenditure of the council and its group for the year then ended; have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2025/26 Code; and have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003. Basis for opinion We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We were appointed by the Accounts Commission on 18 May 2022. Our period of appointment is five years, covering 2022/23 to 2026/27. We are independent of the council and its group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the council. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern basis of accounting We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the ability of the council and its group to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. Page 161 of 376
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37 Annual Accounts 2025/26 PUBLIC These conclusions are not intended to, nor do they, provide assurance on the current or future financial sustainability of the council and its group. However, we report on the council’s arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website. Risks of material misstatement We report in our Annual Audit Report the most significant assessed risks of material misstatement that we identified and our judgements thereon. Responsibilities of the Director of Finance and the Council for the financial statements As explained more fully in the Statement of Responsibilities, the Director of Finance and Resources is responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the Director of Finance and Resources determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Director of Finance and Resources is responsible for assessing the ability of the council and its group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the operations of the council and its group. The Council is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: using our understanding of the local government sector to identify that the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003 are significant in the context of the council and its group; inquiring of management as to other laws or regulations that may be expected to have a fundamental effect on the operations of the council and its group; inquiring of the management and the Convener of the Audit, Risk and Scrutiny Board concerning the policies and procedures of the council and its group regarding compliance with the applicable legal and regulatory framework; discussions among our audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the council’s controls, and the nature, timing and extent of the audit procedures performed. Page 162 of 376
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38 Annual Accounts 2025/26 PUBLIC Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Reporting on other requirements Opinion prescribed by the Accounts Commission on the audited parts of the Remuneration Report We have audited the parts of the Remuneration Report described as audited. In our opinion, the audited parts of the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Other information The Director of Finance and Resources is responsible for the other information in the annual accounts. The other information comprises the Management Commentary, Annual Governance Statement, Statement of Responsibilities and the unaudited parts of the Remuneration Report. Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Management Commentary and Annual Governance Statement to the extent explicitly stated in the following opinions prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Management Commentary and Annual Governance Statement In our opinion, based on the work undertaken in the course of the audit: the information given in the Management Commentary for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with statutory guidance issued under the Local Government in Scotland Act 2003; and the information given in the Annual Governance Statement for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Delivering Good Governance in Local Government: Framework (2016). Matters on which we are required to report by exception We are required by the Accounts Commission to report to you if, in our opinion: adequate accounting records have not been kept; or the financial statements and the audited parts of the Remuneration Report are not in agreement with the accounting records; or Page 163 of 376
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39 Annual Accounts 2025/26 PUBLIC we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Conclusions on wider scope responsibilities In addition to our responsibilities for the annual accounts, our conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in our Annual Audit Report. Use of our report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Rebecca Lister, (for and on behalf of Azets Audit Services), Quay 2 139 Fountainbridge Edinburgh EH3 9QG Date: Page 164 of 376
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40 Annual Accounts 2025/26 PUBLIC 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 327.708 (18.179) 309.529 321.085 (17.542) 303.543 201.092 (91.120) 109.972 Environment, Housing and Infrastructure 243.065 (131.541) 111.524 106.403 (44.855) 61.548 Finance and Resources 100.357 (43.886) 56.471 48.457 (10.357) 38.100 50.385 (10.347) 40.038 13.177 (13.191) (0.014) Miscellaneous Services 17.594 (16.782) 0.812 182.574 (73.487) 109.087 Adult Services 187.721 (73.668) 114.053 879.411 (251.189) 628.222 920.207 (293.766) 626.441 1.033 0.000 1.033 (Gain)/Loss on the disposal of non-current assets 8 3.107 0.000 3.107 25.807 (5.741) 20.066 Financing and investment income and expenditure 2 25.739 (2.793) 22.946 0.000 (562.381) (562.381) Taxation and non-specific grant income 3 0.000 (631.866) (631.866) 906.251 (819.311) 86.940 949.053 (928.425) 20.628 (86.295) 8 (221.173) 0.058 8 (0.179) (31.118) 27 (15.128) (117.355) Other comprehensive (income) and expenditure (236.480) (30.415) Total comprehensive (income) and expenditure (215.852) (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 2024/25 2025/26 Children’s Services Chief Executive’s Service Deficit 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 165 of 376
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41 Annual Accounts 2025/26 PUBLIC 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. 2025/26 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 2025 138.771 6.933 3.573 85.920 235.197 1,320.054 1,555.251 Movement in reserves during the year (10.043) (10.585) 0.000 0.000 (20.628) 236.480 215.852 22.168 16.975 0.000 0.000 39.143 (39.143) 0.000 Transfers to / (from) other statutory reserves 7 (0.524) 0.000 0.524 0.000 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 2.047 0.000 0.000 0.000 2.047 (2.047) 0.000 Adjustments between accounting basis and funding basis under regulations 6 6.995 (5.350) 0.000 (19.990) (18.345) 18.345 0.000 20.643 1.040 0.524 (19.990) 2.217 213.635 215.852 Balance at 31 March 2026 159.414 7.973 4.097 65.930 237.414 1,533.689 1,771.103 Increase / (Decrease) in year Total Comprehensive Income and Expenditure Adjustments to Usable Reserves permitted by accounting standards Comparative movements in 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 117.620 6.164 3.428 95.007 222.219 1,302.617 1,524.836 Movement in reserves during the year (70.062) (16.878) 0.000 0.000 (86.940) 117.355 30.415 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 53.207 2.737 0.000 (9.041) 46.903 (46.903) 0.000 21.151 0.769 0.145 (9.087) 12.978 17.437 30.415 Balance at 31 March 2025 138.771 6.933 3.573 85.920 235.197 1,320.054 1,555.251 Increase / (Decrease) in year Total Comprehensive Income and Expenditure Adjustments to Usable Reserves permitted by accounting standards Page 166 of 376
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42 Annual Accounts 2025/26 PUBLIC Balance Sheet The balance sheet shows the value as at 31 March 2026 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 2025 As at 31 March 2026 £m Note £m 1,955.001 Property, plant and equipment 9 2,221.377 44.186 Heritage assets 10 44.186 1.189 Intangible assets 12 0.690 4.391 Long-term investments 21 4.707 2.002 Long-term debtors 18 1.820 2,006.769 2,272.780 2.492 Assets held for sale 11 0.000 17.534 Short-term investments 21 24.623 1.060 Inventories 16 1.165 62.480 Short-term debtors 18 75.104 5.505 Cash and cash equivalents 17 40.800 89.071 141.692 (89.745) Short-term borrowing 21 (71.081) (70.339) Short-term creditors 19 (112.834) (0.406) Short-term provisions 20 (0.567) (160.490) (184.482) (77.581) Long-term creditors 19 (73.551) (5.230) Long-term provisions 20 (6.786) (232.050) Long-term borrowing 21 (314.756) (65.238) Other long-term liabilities 27 (63.794) (380.099) (458.887) 1,555.251 1,771.103 Alastair MacArthur (235.195) Usable reserves 7 (237.414) (1,320.056) Unusable reserves 8 (1,533.689) (1,555.251) (1,771.103)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 22 June 2026 and the audited accounts were authorised for issue on 24 September 2026. Page 167 of 376
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43 Annual Accounts 2025/26 PUBLIC 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. 2024/25 2025/26 £m £m (86.940) Net surplus/(deficit) on the provision of services (20.628) Adjustment for non-cash movements: 125.191 Depreciation, amortisation, impairment and revaluations 106.492 (11.462) Increase/(decrease) in creditors 41.900 4.237 (Increase)/decrease in debtors (12.442) 0.227 (Increase)/decrease in inventories (0.105) 21.876 Pension (liability)/asset 13.684 3.013 Carrying amount of non-current assets sold 7.876 0.285 Other non-cash items charged to the net surplus or deficit on the provision of services 1.717 (25.010) Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities (51.332) 31.417 Net cash flows from operating activities 87.162 Net cash flows from investing activities : (123.212) Purchase of property, plant and equipment, investment property and intangible assets (155.489) (1.980) Proceeds from the sale of property, plant and equipment, investment property and intangible assets (3.679) 50.093 Proceeds from short-term and long-term investments (7.226) 27.091 Other receipts from investing activities 55.011 Net cash flows from financing activities (4.737) Cash payments for the reduction of the outstanding liability relating to right of use assets and on-balance sheet PFI /PPP contracts (4.526) (2.628) Repayment of short-term and long-term borrowing 64.042 (23.956) Net increase/(decrease) in cash and cash equivalents 35.295 29.461 Cash and cash equivalents at the beginning of the reporting period 5.505 5.505 Cash and cash equivalents at the end of the reporting period 40.800 The Net cash flow from operating activities above includes the following elements of interest paid and received: 2024/25 2025/26 £m £m (5.741) Interest received (2.793) 16.213 Interest paid 15.883 4.919 Interest element of right of use and PPP payments 4.663 15.391 17.753 Interest Paid and Received Page 168 of 376
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44 Annual Accounts 2025/26 PUBLIC 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. 2025/26 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 275.837 14.050 13.656 303.543 Environment, Housing and Infrastructure 77.006 15.118 19.400 111.524 Finance & Resources 50.893 4.019 1.559 56.471 Chief Executive's Service 30.195 5.551 4.292 40.038 Miscellaneous Services 18.243 (17.667) 0.236 0.812 Adult Services 112.122 1.931 0.000 114.053 Net cost of services 564.296 23.002 39.143 626.441 Other income and expenditure (585.981) (19.832) 0.000 (605.813) (Surplus) / Deficit (21.685) 3.170 39.143 20.628 Opening General Fund and HRA balance (145.702) Less (Surplus) / Deficit in the year (21.685) Closing General Fund and HRA at 31 March 2026 (167.387) 2025/26 Adjustments for capital purposes Net change for the pensions adjustments Other differences Total Adjustments £m £m £m £m Children's Services 18.485 3.782 (8.217) 14.050 Environment, Housing and Infrastructure 14.238 4.347 (3.467) 15.118 Finance & Resources 1.882 2.202 (0.065) 4.019 Chief Executive's Service 4.907 0.792 (0.148) 5.551 Miscellaneous Services 1.303 (3.537) (15.433) (17.667) Adult Services 0.003 2.069 (0.141) 1.931 Net Cost of Services 40.818 9.655 (27.471) 23.002 Other income and expenditure (51.381) 4.029 27.520 (19.832) Total adjustments between accounting basis and funding basis (10.563) 13.684 0.049 3.170 • 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. • 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 Page 169 of 376
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45 Annual Accounts 2025/26 PUBLIC 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. 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 34.850 16.958 309.529 Communities and Housing Services 69.902 22.675 17.395 109.972 Environment & Infrastructure 47.537 12.088 1.923 61.548 Finance & Resources 28.330 7.155 2.615 38.100 Chief Executive's Service 25.322 (25.559) 0.223 (0.014) Miscellaneous Services 106.810 2.277 0.000 109.087 Net cost of services 535.622 53.486 39.114 628.222 Other income and expenditure (543.643) 1.271 0.000 (541.282) (Surplus) / Deficit (8.021) 54.757 39.114 86.940 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) * For a split of this balance between the General Fund and the HRA, see the Movement in Reserves Statement. 2024/25 Adjustments for capital purposes Net change for the pensions adjustments Other differences Total Adjustments £m £m £m £m Children's Services 38.142 6.372 (9.664) 34.850 Environment, Housing and Infrastructure 19.208 7.021 (3.554) 22.675 Finance & Resources 2.208 3.738 6.142 12.088 Chief Executive's Service 5.965 1.389 (0.199) 7.155 Miscellaneous Services (6.350) (4.755) (14.454) (25.559) Adult Services 0.003 4.097 (1.823) 2.277 Net cost of services 59.176 17.862 (23.552) 53.486 Other income and expenditure (27.119) 4.014 24.376 1.271 Total adjustments between accounting basis and funding basis 32.057 21.876 0.824 54.757 Page 170 of 376
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46 Annual Accounts 2025/26 PUBLIC Note 2: Financing and investment income & expenditure 2024/25 2025/26 £m £m 21.793 Interest payable and similar charges 21.710 4.014 Net interest on the net defined benefit liability 4.029 (5.741) Interest receivable and similar income (2.793) 20.066 Total 22.946 Note 3: Taxation and non-specific grant income 2024/25 2025/26 £m £m (97.701) Income from Council Tax and community charge (108.204) (107.505) Distribution from the national non-domestic rate pool (108.844) (330.084) General Revenue Grant from the Scottish Government (359.807) (27.091) Capital grants and contributions (55.011) (562.381) Total (631.866) 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. 2024/25 2025/26 £m Note £m Expenditure 381.264 Employee benefits expenses 395.348 412.071 Other service expenses 418.371 86.076 Depreciation, amortisation, impairment 106.491 25.807 Interest Payments 2 25.736 1.033 (Gain) /Loss on the disposal of assets 8 3.107 906.251 Total expenditure 949.053 Income (251.189) Fees, charges and other service income (293.767) (5.741) Interest and investment income 2 (2.793) (205.206) Income from council tax and non-domestic rates 3 (217.048) (357.175) Government grants and contributions 3 (414.817) (819.311) Total income (928.425) 86.940 (Surplus) or deficit on the provision of services 20.628 Page 171 of 376
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47 Annual Accounts 2025/26 PUBLIC Note 5: Grant income The Council credited the following grants, contributions and donations direct to services in the CIES during 2025/26. 2024/25 2025/26 £m £m 37.802 Housing benefit 29.325 0.643 Housing benefit and Council Tax administration 0.653 1.029 Discretionary Housing Payment 0.486 0.600 Private sector housing grant 0.750 0.460 Education Maintenance Allowance 0.421 0.000 Gaelic Education 0.065 0.021 School Milk 0.451 4.663 Pupil Equity Fund 4.663 6.620 Other Education 3.788 3.363 Justice Social Work 4.404 12.254 Adult Services 12.254 2.369 Employability 4.167 3.526 Other grants 8.355 73.350 Total 69.782 Page 172 of 376
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48 Annual Accounts 2025/26 PUBLIC 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 (49.173) (17.293) 0.000 0.000 66.466 Amortisation of intangible assets (0.883) 0.000 0.000 0.000 0.883 Capital grants and contributions applied 44.922 10.089 0.000 0.000 (55.011) Revenue expenditure funded from capital under statute (0.523) 0.000 0.000 0.000 0.523 Amounts of non-current assets written off on disposal or sale as part of the gain or loss on disposal to the CIES (2.947) (0.160) 0.000 0.000 3.107 Insertion of items not charged to the CIES: Statutory provision for the repayment of Loans Fund & Finance Lease principal 5.597 7.969 0.000 0.000 (13.566) Capital expenditure charged against the General Fund and HRA Balances 8.888 5.602 18.626 0.000 (33.116) Transfer of cash sale proceeds credited as part of the gain or loss on disposal to the CIES 0.000 0.000 0.000 (3.679) 3.679 Use of the Capital Receipts Reserve to finance new capital expenditure 0.000 0.000 0.000 5.043 (5.043) 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 0.104 0.000 0.000 (0.402) Reversal of items relating to retirement benefits debited or credited to the CIES (29.351) (1.659) 0.000 0.000 31.010 Employer’s pension contributions and direct payments to pensioners payable in the year 16.685 0.641 0.000 0.000 (17.326) 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 (0.508) 0.057 0.000 0.000 0.451 Total adjustments (6.995) 5.350 18.626 1.364 (18.345) Usable reserves Unusable reserves2025/26 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 173 of 376
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49 Annual Accounts 2025/26 PUBLIC 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 (67.936) (17.292) 0.000 0.000 85.228 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 (1.015) (0.018) 0.000 0.000 1.033 Insertion of items not charged to the CIES: Statutory provision for the repayment of Loans Fund & Finance Lease principal 3.893 9.105 0.000 0.000 (12.998) 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 (38.880) (1.958) 0.000 0.000 40.838 Employer’s pension contributions and direct payments to pensioners payable in the year 18.357 0.605 0.000 0.000 (18.962) 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 (1.361) 0.035 0.000 0.000 1.326 Total adjustments (53.207) (2.737) 7.008 2.033 46.903 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 reserves2024/25 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 99. Page 174 of 376
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50 Annual Accounts 2025/26 PUBLIC As at 31 March 2025 As at 31 March 2026 £m £m (138.769) General Fund Balance (159.414) (6.933) Housing Revenue Account Balance (7.973) (5.485) Capital Receipts Reserve (4.122) (84.008) Other Statutory Funds (65.905) (235.195) Total (237.414) 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 2025/26. Balance at 1 April 2024 Transfers out Transfers in Balance at 31 March 2025 Transfers out Transfers in Balance at 31 March 2026 £m £m £m £m £m £m £m Insurance Fund 2.901 0.000 0.128 3.029 0.000 0.137 3.166 DHN Repair and Renewal Fund 0.186 0.000 0.000 0.186 0.000 0.372 0.558 Reservoir Repair Fund 0.341 0.000 0.017 0.358 0.000 0.015 0.373 Revenue statutory funds 3.428 0.000 0.145 3.573 0.000 0.524 4.097 Education Capital Items Fund 1.454 (0.279) 0.232 1.407 (0.275) 0.285 1.417 Investment Capital Fund 86.035 (8.714) 1.707 79.028 (21.630) 2.993 60.391 Capital statutory funds 87.489 (8.993) 1.939 80.435 (21.905) 3.278 61.808 Total 90.917 (8.993) 2.084 84.008 (21.905) 3.802 65.905 • 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 2024 Sale proceeds Capital exp funded Balance at 31 March 2025 Sale proceeds Capital exp funded Balance at 31 March 2026 £m £m £m £m £m £m £m Capital Receipts Reserve 7.518 1.980 (4.013) 5.485 3.679 (5.042) 4.122 Page 175 of 376
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51 Annual Accounts 2025/26 PUBLIC 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 £11.476m represents 2.0% of the Council’s net annual running costs. Balance at 1 April 2024 Transfers out Transfers in Balance at 31 March 2025 Transfers out Transfers in Balance at 31 March 2026 £m £m £m £m £m £m £m Alcohol and Drugs Commission 0.767 (0.139) - 0.628 (0.628) - - City Deal 1.903 (1.007) 0.654 1.550 (0.577) 0.745 1.718 Civil Contingencies Shared Service 0.126 (0.032) 0.025 0.119 (0.034) - 0.085 Clydeplan Unfunded Pension - - - - (0.011) 0.157 0.146 Connected Communities - - - - - 0.215 0.215 Culture Bid Legacy 2.009 (0.621) 0.438 1.826 (0.657) 0.208 1.377 Development Contribution – Paisley Town Centre0.519 (0.265) - 0.254 - 1.200 1.454 Digital Infrastructure 1.441 (1.000) - 0.441 - - 0.441 Early Years Change Fund 2.100 - - 2.100 - - 2.100 Employability 10.590 - 0.110 10.700 (0.375) - 10.325 Environment & Infrastructure 0.790 (0.250) 0.300 0.840 (0.006) 0.113 0.947 Fairer Renfrewshire Programme 2.855 (0.542) 0.023 2.336 (1.089) 0.410 1.657 Financial Sustainability Fund 13.244 (5.116) 13.069 21.197 (1.374) 16.010 35.833 Fly Tipping Enforcement - (0.200) 0.250 0.050 (0.050) - - Homelessness (Housing First) - - - - - 0.337 0.337 Investment Zone Funding - - - - - 0.908 0.908 Learning Estate Support Fund - - 2.000 2.000 (0.291) 2.200 3.909 Leisure: Inclusive Play Facility 0.007 - - 0.007 (0.007) - - Loan Charges Flexibility Fund 48.759 - 14.897 63.656 - 1.000 64.656 Local Authority Economic Recovery 0.100 - - 0.100 (0.100) - - Local Heat and Energy Efficiency - - 0.036 0.036 (0.036) 0.014 0.014 Local Place Plans - - - - (0.059) 0.100 0.041 Oakshaw Heritage Trail - - 0.050 0.050 (0.050) - - Paisley Town Centre Heritage Asset 0.334 (0.334) - - - - - Planning Enforcement - - 0.120 0.120 (0.022) - 0.098 Private Sector Housing Grant 2.308 (0.141) - 2.167 - 0.780 2.947 Pupil Equity Fund 0.524 - 0.137 0.661 (0.131) - 0.530 Resettlement and Asylum Fund 1.429 (0.537) 0.247 1.139 (1.290) 0.151 - School Music Participation 0.276 (0.179) 0.162 0.259 - 0.021 0.280 Service Modernisation and Reform 10.662 (0.756) 0.269 10.175 (1.436) 3.839 12.578 Sustainable Communities Fund 0.394 (0.163) 0.028 0.259 - 0.026 0.285 Villages Improvement Fund 0.200 (0.064) - 0.136 (0.038) - 0.098 Welfare Reform 0.999 (0.713) 0.666 0.952 (0.585) 0.086 0.453 Year end flexibility: Children's Services 5.005 (2.110) 1.837 4.732 (0.677) 0.451 4.506 General Fund: Ring-fenced 107.341 (14.169) 35.318 128.490 (9.523) 28.971 147.938 Unallocated Balance 10.279 - 10.279 - 1.197 11.476 Total General Fund Balance 117.620 (14.169) 35.318 138.769 (9.523) 30.168 159.414 Housing Revenue Account 6.164 (0.298) 1.067 6.933 (1.013) 2.053 7.973 Ring-fenced elements of the General Fund Balance Page 176 of 376
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52 Annual Accounts 2025/26PUBLIC 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 2025 As at 31 March 2026 £m £m (813.454) Revaluation Reserve (991.009) 65.238 Pension Reserve 63.794 (589.856) Capital Adjustment Account (624.360) 10.283 Financial Instruments Adjustment Account 9.881 (0.500) Financial Instruments Revaluation Reserve (0.679) 8.233 Employee Statutory Adjustment Account 8.684 (1,320.056) Total Unusable Reserves (1,533.689) 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 177 of 376
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53 Annual Accounts 2025/26PUBLIC As at 31 March 2025 As at 31 March 2026 £m £m (768.193) Balance at 1 April (813.454) (86.293) Upward revaluation of non-current assets (221.173) 39.114 Difference between fair value depreciation and historic cost depreciation 39.145 1.918 Accumulated (gains) / losses on disposal of non-current assets transferred to the Capital Adjustment Account 4.473 (45.261) Movement in Year (177.555) (813.454) Balance at 31 March (991.009) 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 2025 As at 31 March 2026 £m £m 74.480 Balance at 1 April 65.238 (787.413) Actuarial (gains) / losses on pension assets and liabilities (880.441) 756.295 Restriction to Asset Ceiling 865.313 40.838 Reversal of items relating to retirement benefits debited or credited to the surplus or deficit on the provision of services in the CIES 31.010 (1.383) Effect of business combinations and disposals 0.000 (17.579) Employer’s pension contributions payable in the year (17.326) 65.238 Balance at 31 March 63.794 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 178 of 376
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54 Annual Accounts 2025/26PUBLIC 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 2025 As at 31 March 2026 £m £m (625.941) Balance at 1 April (589.856) Reversal of items relating to capital expenditure charged to the CIES: 85.228 Charges for depreciation, impairment and revaluation losses of non-current assets 66.466 0.848 Amortisation of intangible assets 0.883 0.352 Revenue expenditure funded from capital under statute 0.523 1.980 Non-current assets sale proceeds 3.679 1.033 (Gain)/Loss on disposal of non-current assets charged to the CIES 3.107 (1.918) Adjusting amounts written out of the Revaluation Reserve (4.473) 87.523 Net written out amount of non-current assets consumed in the year 70.185 Capital financing applied in the year: (4.013) Use of the Capital Receipts Reserve to finance new capital expenditure (5.043) (27.192) Capital grants and contributions credited to the CIES that have been applied to capital financing (55.011) (14.404) Loans Fund and Finance Lease principal repayments (13.566) (21.132) Capital expenditure charged against the General Fund and Housing Revenue Accountbalances (33.116) 15.303 Adjustment for Service Concession Arrangements 2.047 (51.438) (104.689) (589.856) Balance at 31 March (624.360) 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 Page 179 of 376
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55 Annual Accounts 2025/26PUBLIC interest rate 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. 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 2025 9.219 1.053 0.011 10.283 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) 0.000 (0.013) Balance at 31 March 2026 8.830 1.040 0.011 9.881 Financial Instruments Adjustment Account 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 2025 As at 31 March 2026 £m £m (0.558) Balance at 1 April (0.500) 0.058 Downward/(Upward) revaluation of investments (0.179) (0.500) Balance at 31 March (0.679) Financial Instruments Revaluation Reserve Page 180 of 376
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56 Annual Accounts 2025/26PUBLIC 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 2025 As at 31 March 2026 £m £m 6.907 Balance at 1 April 8.233 (6.907) Settlement or cancellation of accrual made at the end of the prior year (8.233) 8.233 Amounts accrued at the end of the current year 8.684 8.233 Balance at 31 March 8.684 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 6/2025 extended the temporary measures until 31 March 2027. 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 2027 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 2027 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 181 of 376
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57 Annual Accounts 2025/26PUBLIC 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 2025 844.137 612.096 45.018 235.476 196.036 22.238 1,955.001 116.964 Other Reclassifications 0.000 (1.572) 0.753 108.697 (107.878) 0.000 0.000 0.000 Additions 38.544 4.764 10.857 15.875 85.065 0.000 155.105 3.937 Disposals (0.832) (2.995) (0.009) 0.000 0.000 (0.458) (4.294) 0.000 Depreciation (33.317) (42.967) (7.455) (12.591) 0.000 (0.121) (96.451) (9.441) Revaluation adjustments taken to the Revaluation Reserve 196.636 21.350 (0.079) 0.000 0.000 3.266 221.173 0.000 Revaluation adjustments recognised in the CIES 0.000 (7.829) 0.000 0.000 0.000 (1.328) (9.157) (1.081) Balance sheet net carrying amount at 31 March 2026 1,045.168 582.847 49.085 347.457 173.223 23.597 2,221.377 110.379 Gross carrying amount at 31 March 2026 1,045.168 685.051 127.227 n/a 173.223 25.890 2,056.559 126.772 Accumulated depreciation at 31 March 2026 0.000 (102.204) (78.142) n/a 0.000 (2.293) (182.639) (16.393) Infrastructure Assets 0.000 0.000 0.000 347.457 0.000 0.000 347.457 0.000 Balance sheet net carrying amount at 31 March 2026 1,045.168 582.847 49.085 347.457 173.223 23.597 2,221.377 110.379 Movements in 2025/26 Page 182 of 376
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58 Annual Accounts 2025/26PUBLIC 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 2024 766.932 643.505 47.638 228.036 149.695 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 3.440 (0.042) 0.464 (10.869) (0.001) (1.090) 0.000 Recognition of Right of Use Assets and Increase in PPP liability 0.000 20.136 0.659 0.000 0.000 0.000 20.795 20.215 Additions 27.532 5.067 7.914 18.604 60.144 0.179 119.440 2.991 Disposals (1.204) (0.310) (0.005) 0.000 0.000 (0.304) (1.823) 0.000 Depreciation (31.260) (44.541) (9.226) (11.628) 0.000 (0.121) (96.776) (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 9.601 0.406 0.000 0.000 0.067 86.293 11.454 Revaluation adjustments recognised in the CIES 0.000 (24.802) 0.166 0.000 0.000 0.003 (24.633) (16.395) Balance sheet net carrying amount at 31 March 2025 844.137 612.096 45.018 235.476 196.036 22.238 1,955.001 116.964 Gross carrying amount at 31 March 2025 844.137 698.658 127.029 n/a 196.036 27.450 1,893.310 142.166 Accumulated depreciation at 31 March 2025 0.000 (86.562) (82.011) n/a 0.000 (5.212) (173.785) (25.202) 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 844.137 612.096 45.018 235.476 196.036 22.238 1,955.001 116.964 Movements in 2024/25 (restated) *During 2024/25 the Council reclassified £1.090m of property from Council assets to the Paisley Common Good Fund (£0.285m) and the Renfrew Common Good Fund (£0.805m). This reclassification was undertaken following a review of historical title and legal advice confirming the assets formed part of the Common Good. Following a review of the Council’s asset componentisation policy in line with the CIPFA Code of Practice on Local Authority Accounting, certain assets previously classified within Vehicles, Plant, Furniture and Equipment have been reassessed as more appropriately recognised as either Council Dwellings or Other Land and Buildings. Reflecting that the assets meet the definition of building components rather than stand-alone plant. The opening net balances of the 2024/25 values have been restated to reflect this. Page 183 of 376
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59 Annual Accounts 2025/26PUBLIC Note 10: Heritage Assets A valuation of the fair value of the Council’s Heritage Assets was last carried out by an external valuer in 2021/22. In the five years prior to 2025/26, there were no acquisitions, donations, or disposals of Heritage Assets. The value at 31 March 2026 was £44.186m (£44.186m at 31 March 2025). 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 88. 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: Assets held for sale The following table summarises the movement in the fair value of assets held for sale during the year: 2024/25 2025/26 £m £m 0.100 Opening balance at 1 April 2.492 Assets reclassified as held for sale: 2.492 Other Land and Buildings 0.000 (0.100) Assets sold (2.492) 2.492 Closing balance at 31 March 0.000 Assets Held for Sale Note 12: 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. The movement on intangible asset balances during the year is shown in the following table. 2024/25 2025/26 £m £m Balance at 1 April 5.927 Gross carrying amount 6.060 (4.203) Accumulated amortisation (4.871) 1.724 Net carrying amount at 1 April 1.189 0.313 Additions: purchases 0.384 (0.180) Disposals 0.000 0.180 Disposal amortisation 0.000 (0.848) Amortisation for the year (0.883) 1.189 Net carrying amount at 31 March 0.690 Comprising: 6.060 Gross carrying amount 6.444 (4.871) Accumulated amortisation (5.754) 1.189 Balance at 31 March 0.690 Purchased Software Licences There are no individual intangible assets that are material to the financial statements. Page 184 of 376
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60 Annual Accounts 2025/26PUBLIC Note 13: 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 2025/26 total spending on capital projects was £156.012m (£120.105m in 2024/25) and was within the overall prudential limits approved by Council. Capital receipts of £5.043m (£4.013m) were used to fund spending on capital projects. The net capital expenditure for the year of £62.842m (£67.768m in 2024/25) 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 lease 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 Finance 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. As at 31 March 2025 As at 31 March 2026 £m £m 510.099 Opening Capital Financing Requirement 599.561 Capital investment: 119.440 Property, plant and equipment 155.105 0.313 Intangible assets 0.384 0.352 Revenue expenditure funded from capital under statute 0.523 20.795 Recognition of Right of Use Assets and increase in PPP Liability 0.000 Sources of finance: (4.013) Capital receipts – sale of council assets (5.043) (27.192) Government grants and other contributions (55.011) (21.132) Sums set aside from revenue – direct revenue contributions (33.116) (14.404) Loans Fund/Finance Lease principal repayments (13.566) 15.303 Adjustment for Service Concession Arrangements 2.047 599.561 Closing Capital Financing Requirement 650.884 Explanation of movements in year: 58.971 Increase/(decrease) in underlying need to borrow (unsupported by government financial assistance) 53.098 3.529 Increase/(decrease) in Right of Use Asset Creditor (0.400) 26.962 Increase/(decrease) in PPP finance lease creditor (1.375) 89.462 Increase/(Decrease) in Capital Financing Requirement 51.323 At 31 March 2026 the Council had commitments on capital contracts for non-housing projects of £72.361m (£65.412m in 2024/25) and for housing projects of £87.040m (£11.534m in 2024/25). This expenditure will be funded from a combination of government grants, external borrowing, income from selling assets and contributions from revenue budgets. Page 185 of 376
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61 Annual Accounts 2025/26PUBLIC Note 14: 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%. Future Repayment Periods - Schools Service Charges Liability Repayment Interest Repayment Total £m £m £m £m Payable within 1 year 12.168 4.468 5.074 21.710 Payable within 2-5 years 55.285 20.964 16.653 92.902 Payable within 6-10 years 88.492 31.681 10.879 131.052 Payable within 11-15 years 36.739 11.651 0.997 49.387 Total 192.684 68.764 33.603 295.051 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 4.587 0.152 0.300 5.039 25.066 0.862 1.105 27.033 28.222 0.257 1.257 29.736 30.896 1.757 0.959 33.612 Payable within 1 year Payable within 2-5 years Payable within 6-10 years Payable within 11-15 years Payable within 16-20 years 24.953 2.245 0.312 27.510 113.724 5.273 3.933 122.930Total Page 186 of 376
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62 Annual Accounts 2025/26PUBLIC Outstanding Service Concession Arrangements Schools Waste Facility Total £m £m £m Balance at 1 April 2024 (60.235) (4.701) (64.936) Increase in liability to recognise net present value of contingent rents (16.285) (0.580) (16.865) Payments during the year 4.492 (0.100) 4.392 Balance at 31 March 2025 (72.028) (5.381) (77.409) Increase in liability to recognise net present value of contingent rents (1.081) (0.020) (1.101) Payments during the year 4.345 0.127 4.472 Balance at 31 March 2026 (68.764) (5.274) (74.038) 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 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. In addition to the one-off retrospective element, an in-year saving occurred in the scheduled debt repayments in 2025/26 of 2.047m (£1.406m in 2024/25). This will be followed by a reduction in the annual charges for a further 12 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. With effect from 1 April 2024, IFRS 16 Leases also applied to service concession arrangements. Under IFRS 16, where indexation affects future service concession payments, the lease liability requires to be remeasured. Instead of expensing the increased payment, the net present value of future payments that comprise the liability is recalculated based on revised level of payments. The effect of this has been to increase balance sheet assets by £1.101m (2024/25 £16.865m), with an equal increase in lease liabilities as at 31 March 2026. Prior Repayment Current Repayment (Cost)/Reduction £m £m £m Pre 2025/26 66.860 22.358 44.502 Paid in 2025/26 4.345 2.298 2.047 Payable within 1 year 4.468 2.503 1.965 Payable within 2-5 years 20.964 12.309 8.655 Payable within 6-10 years 31.681 21.207 10.474 Payable within 11-15 years 11.651 30.424 (18.773) Payable within 16-20 years 0.000 43.538 (43.538) Payable within 21-25 years 0.000 5.332 (5.332) Total 139.969 139.969 0.000 PPP Service Concession Liability Repayment Page 187 of 376
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63 Annual Accounts 2025/26PUBLIC Note 15: Leases Renfrewshire Council as Lessee Right of Use Assets The Council 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. The Council has 17 properties classed as a right of use asset with a liability. As at 31 March 2026, outstanding obligations to make payments are as follows: As at 31 March 2025 As at 31 March 2026 £m £m 0.413 Not later than one year 0.349 1.220 Between one and five years 1.208 1.457 Between six and ten years 1.171 0.376 Later than ten years 0.338 3.466 3.066 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 2025 As at 31 March 2026 £m £m 0.235 Not later than one year 0.281 0.494 Between one and five years 0.658 1.355 Later than five years 1.524 2.084 2.463 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. Note 16: Inventories 2024/25 2025/26 £m £m 1.287 Balance at 1 April 1.060 9.670 Additions during the year 9.787 (9.893) Recognised as an expense during the year: inventories sold, exchanged or distributed (9.677) (0.004) Recognised as an expense during the year: inventories written down (0.005) 1.060 Balance at 31 March 1.165 Inventories Page 188 of 376
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64 Annual Accounts 2025/26 PUBLIC Note 17: 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. 2024/25 Cash and cash equivalents 2025/26 £m £m (13.479) Current account balances with the council's banker (3.139) 0.516 Euro account balances with the council's banker - sterling equivalent 0.550 5.301 Callable deposits with UK banks and building societies 8.024 13.127 Callable deposits in money market funds and ultra-short bond funds 35.327 0.040 Imprest accounts held at council establishments 0.038 5.505 Total cash and cash equivalents 40.800 Note 18: 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. Short-term Long-term Short-term Long-term £m £m £m £m 23.728 0.000 Central government bodies (non-NHS) 36.109 0.000 5.037 0.900 Central government bodies (NHS) 9.128 0.810 1.535 0.000 Other local authorities 2.269 0.000 8.281 0.000 HM Revenue and Customs 7.559 0.000 0.064 0.029 Employees 0.001 0.026 21.889 0.000 Council Tax arrears 23.634 0.000 (14.397) 0.000 less impairment (15.738) 0.000 4.376 0.000 Rent arrears 5.029 0.000 (3.240) 0.000 less impairment (4.031) 0.000 35.814 6.045 Other entities and individuals 25.481 5.953 (20.607) (4.972) less impairment (14.337) (4.969) 62.480 2.002 Total Debtors 75.104 1.820 31 March 2025 As at 31 March 2026 Page 189 of 376
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65 Annual Accounts 2025/26 PUBLIC Note 19: 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 (5.485) (0.549) Central government bodies (non-NHS) (31.704) (0.517) (1.894) 0.000 Central government bodies (NHS) (0.264) 0.000 (2.506) 0.000 Other local authorities (2.042) 0.000 0.000 0.000 Public corporations and trading funds (0.007) 0.000 (7.895) 0.000 HM Revenue and Customs (8.857) 0.000 (5.368) 0.000 Strathclyde Pension Fund and Scottish Public Pensions Agency (5.478) 0.000 (14.069) 0.000 Employees (14.644) 0.000 (4.345) (67.683) Service concession arrangements: schools (4.468) (64.296) (0.017) (5.364) Service concession arrangements: waste facility (0.152) (5.121) (0.413) (3.053) Right of Use Assets (0.349) (2.717) (3.488) 0.000 Council Tax refundable to taxpayers (3.438) 0.000 (1.656) 0.000 Council Tax receipts in advance (1.320) 0.000 (23.203) (0.932) Other entities and individuals (40.111) (0.900) (70.339) (77.581) Total Creditors (112.834) (73.551) As at 31 March 2025 As at 31 March 2026 Note 20: 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: Short-term Provisions Teachers’ maternity pay Other Total £m £m £m As at 1 April 2025 (0.142) (0.264) (0.406) Additional provisions made during the year (0.146) (0.421) (0.567) Amounts used during the year 0.142 0.264 0.406 As at 31 March 2026 (0.146) (0.421) (0.567) 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: Page 190 of 376
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66 Annual Accounts 2025/26PUBLIC Long-term Provisions Holiday pay compensation Insurance claims Total £m £m £m Balance at 1 April 2025 (0.445) (4.785) (5.230) Additional provisions made during the year 0.000 (1.951) (1.951) Amounts used during the year 0.000 0.395 0.395 As at 31 March 2026 (0.445) (6.341) (6.786) 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. 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 £1.951m 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 21: 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. Loans to other entities and individuals comprise a loan to Kilbarchan Amateur Athletic Club of £0.071m (2024/25 £0.073), home loans of £0.201m (2024/25 £0.213m) and social care charging order debtors of £0.653m (2024/25 £0.737m). Note that these balances are not principal amounts owed, rather valued at amortised cost based on a notional (effective) interest rate. Page 191 of 376
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67 Annual Accounts 2025/26 PUBLIC Long-term Current Long-term Current £m £m £m £m (232.050) (5.000) (294.432) (0.002) 0.000 (2.694) 0.000 (3.110) (232.050) (7.694) (294.432) (3.112) 0.000 (46.766) (20.000) (26.766) 0.000 (0.858) 0.000 (0.857) 0.000 (0.588) (0.324) (0.251) 0.000 (48.212) (20.324) (27.874) 0.000 (33.839) 0.000 (40.095) (232.050) (89.745) (314.756) (71.081) 0.000 (33.091) 0.000 (74.297) (76.100) (4.775) (72.136) (4.968) (0.395) 0.000 (0.260) 0.000 (76.495) (37.866) (72.396) (79.265) As at 31 March 2025 As at 31 March 2026 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 17.521 0.000 24.589 0.000 0.017 0.000 0.039 0.000 (0.004) 0.000 (0.005) 4.391 0.000 4.707 0.000 4.391 17.534 4.707 24.623 0.000 (8.165) 0.000 4.903 0.000 0.029 0.000 0.025 0.000 (0.003) 0.000 (0.003) 0.000 13.644 0.000 35.876 0.000 5.505 0.000 40.801 5.959 70.444 5.873 77.977 4.826 0.044 0.916 0.041 (4.972) (23.847) (4.969) (18.369) 5.813 46.641 1.820 59.649 As at 31 March 2025 Financial Assets At amortised cost: Principal Accrued interest As at 31 March 2026 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 192 of 376
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68 Annual Accounts 2025/26 PUBLIC 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 £4.707m at 31 March 2026 (£4.391m as at 31 March 2025). 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 2026. 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 2026, 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 193 of 376
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69 Annual Accounts 2025/26 PUBLIC 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: (239.743) (189.683) Public Works Loan Board borrowing 2 (297.547) (238.477) (48.211) (53.523) Non-PWLB borrowing (“market debt”) 2 (48.198) (53.858) Other liabilities: (80.875) (80.875) Service Concession and Finance Lease liabilities 3 (77.103) (77.103) (0.395) (0.395) Financial guarantees 3 (0.260) (0.260) (369.224) (324.476) (423.108) (369.698) Financial liabilities measured at amortised cost: (33.839) n/a Borrowing from group entities (40.618) n/a (33.091) n/a Trade payables: short-term (74.297) n/a (66.930) (114.915) As at 31 March 2025 As at 31 March 2026 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 13.128 13.128 Callable deposits in money market funds and ultra-short bond funds 1 35.326 35.326 0.516 0.516 Euro current account balances with the council’s banker 2 0.550 0.550 4.391 4.391 Investments in pooled funds (insurance fund) 1 4.707 4.707 18.035 18.035 40.583 40.583 17.534 17.534 Fixed term deposits with UK building societies 2 24.623 24.623 (8.178) (8.178) Callable deposits with UK banks and building societies (including sterling current account balances with the Council’s banker) 2 4.885 4.885 0.040 0.040 Imprest accounts held at council establishments 2 0.040 0.040 1.023 1.037 Loans made for service purposes 3 0.925 0.945 10.419 10.433 30.473 30.493 28.454 28.468 71.056 71.076 Financial assets measured at amortised cost: 1.020 n/a Trade receivables and prepayments: long-term 0.934 n/a 46.598 n/a Receivables and prepayments: short-term 59.610 n/a 47.618 60.544 As at 31 March 2025 As at 31 March 2026 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 194 of 376
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70 Annual Accounts 2025/26 PUBLIC 2024/25 Amortised cost Elected to Fair Value through Other Comprehensive Income Fair Value through Profit or Loss 2025/26 £m £m £m £m £m £m 17.118 Interest expense 0.000 0.000 0.000 16.517 16.517 2.472 Impairment losses 1.602 0.000 0.000 0.000 1.602 0.007 Fee expense 0.000 0.000 0.000 0.022 0.022 19.597 Total expense in the Surplus / Deficit on the Provision of Services 1.602 0.000 0.000 16.539 18.141 (5.736) Interest income (1.677) 0.000 (1.105) 0.000 (2.782) (0.128) Dividend income 0.000 (0.136) 0.000 0.000 (0.136) (5.864) Total income in the Surplus/Deficit on the Provision of Services (1.677) (0.136) (1.105) 0.000 (2.918) 0.068 Net (gain) or loss on revaluation 0.000 (0.180) (0.023) 0.000 (0.203) 0.068 (Surplus)/Deficit on the revaluation of financial assets 0.000 (0.180) (0.023) 0.000 (0.203) 13.801 Net (Gain)/Loss for the year (0.075) (0.316) (1.128) 16.539 15.020 Financial Assets Financial liabilities at amortised cost Note 22: 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. Page 195 of 376
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71 Annual Accounts 2025/26 PUBLIC The Treasury Management Strategy outlines the limits placed on investments with any counterparty. The table below summarises the credit risk exposures of the Council’s treasury investment portfolio (including accrued interest) by credit rating. 2024/25 2025/26 £m £m 13.071 AAA (money market funds and ultra-short bond funds) 35.226 2.465 A+ 3.431 2.810 A 4.571 17.521 UK Debt Management Office 24.589 35.867 Total 67.817 Total Investment Portfolio by Credit Rating The Council does not generally allow credit for customers such that, at 31 March 2026, £10.540m of sundry income debt is past its due date for payment (£9.111m as at 31 March 2025). The past due amount can be analysed by age as follows: 2024/25 2025/26 £m £m 1.549 Less than three months 1.971 1.864 Three to six months 1.310 0.666 Six months to one year 1.211 5.032 More than one year 5.476 9.111 Total 9.968 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 2026 the outstanding value of home loans advanced by the Council was £0.201m (£0.213m as at 31 March 2025). 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 no 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 196 of 376
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72 Annual Accounts 2025/26 PUBLIC The maturity analysis of the principal element of borrowing is as follows: £m % £m % 5.000 1.76% Less than one year 0.002 0.00% 0.007 0.00% Between one and two years 15.000 4.40% 0.000 0.00% Between two and five years 49.000 14.36% 278.809 98.24% More than five years 277.198 81.24% 283.816 100.00% Total 341.200 100.00% As at 31 March 2025 Principal Borrowing Maturity Analysis As at 31 March 2026 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 2025/26, 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 0.130 (0.684) (0.554) (0.182) 0.008 31.214 Increase in interest payable on new fixed rate borrowings taken during the year 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 2026 £m Interest rate risk The impact of a 1% fall in interest rates would be as above but with the changes being reversed. Page 197 of 376
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73 Annual Accounts 2025/26 PUBLIC 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 2025/26 the book cost of investments increased by £0.136m (£0.135m increase during 2024/25). 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 2026 would have resulted in a £0.086m gain or loss being recognised in Other Comprehensive Income and Expenditure for 2025/26. Market risk: foreign exchange risk As at 31 March 2026 the Council had a foreign currency deposit of €0.629m with the Council’s banker (€0.617m as at 31 March 2025). 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 2026, based on the euro to sterling exchange rate at that time, was £0.550m. 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 2026 would have resulted in a £0.005m gain or loss being recognised in Other Comprehensive Income and Expenditure for 2025/26. Note 23: External audit costs 2024/25 2025/26 £m £m 0.487 Fees payable with regard to external audit services carried out by the appointed auditor for the year 0.500 0.487 Total 0.500 Audit Fees Note 24: 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. 2024/25 2025/26 £m £m 107.505 Scottish Government - Contributions (to)/from the non-domestic rates pool 108.844 15.951 Non-domestic rates collected: East Renfrewshire 16.102 0.073 Service income from East Renfrewshire Council for collection of non-domestic rates 0.075 (16.024) Cost of collection of Non-domestic rates from East Renfrewshire (16.177) 38.164 Domestic water and sewerage charges collected 41.970 (38.164) Domestic water and sewerage charges paid over to Scottish Water (41.970) 0.730 Service income from Scottish Water for collection of domestic water and sewerage charges 0.741 Agency Services Page 198 of 376
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74 Annual Accounts 2025/26 PUBLIC Note 25: 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 2025/26 are shown in the Remuneration Report on page 29. 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 2025/26, the Council made payments totalling £9.921m (£6.581m 2024/25) to bodies where members hold a position where they have significant influence or control as listed below: 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 4.401 (0.108) 0.107 0.000 Quarriers - Charity Care Organisation 4.651 0.087 0.019 (0.050) 0.599 (3.971) 0.480 0.140 NHS Greater Glasgow and Clyde Health Board 2.312 (5.417) 1.137 (0.019) 0.000 0.000 0.000 0.000 Johnstone Sound Radio Station 0.006 0.000 0.000 0.000 1.520 0.000 0.000 0.000 Kibble Trust 2.699 0.000 0.000 0.000 0.061 0.000 0.000 0.000 Erskine Arts - Charity n/a n/a n/a n/a 0.000 (0.006) 0.001 0.001 St Mirren Independent Supporters Association* 0.235 (0.008) (0.001) 0.000 6.581 (4.085) 0.588 0.141 Total 9.903 (5.338) 1.155 (0.069) NB: This disclosure excludes group entities and trade union membership. *These figures relate to expenditure to and income from St Mirren Football Club and not the Supporters Association Page 199 of 376
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75 Annual Accounts 2025/26 PUBLIC 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 104. 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: 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 155.834 (49.083) 0.000 (24.186) Renfrewshire Health and Social Care Integration Joint Board 162.824 (48.633) 0.000 (28.480) 0.000 0.000 0.000 0.000 Advanced Manufacturing Innovation District Scotland (AMIDS) 0.139 0.000 0.000 (0.066) 155.834 (49.083) 0.000 (24.186) Total 162.963 (48.633) 0.000 (28.546) Joint Ventures 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 16.186 (0.631) 0.274 (1.487) Renfrewshire Leisure Ltd trading as OneRen 15.762 (0.362) 1.320 (0.690) 0.352 0.000 0.000 0.000 Coats Observatory Trust 0.523 0.000 0.000 0.000 0.048 (0.056) 0.000 0.000 Paisley Museum Reimagined Ltd 0.005 (0.037) 0.000 0.000 16.586 (0.687) 0.274 (1.487) Total 16.290 (0.399) 1.320 (0.690) Subsidiary 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 2.955 (0.165) 0.000 0.000 Strathclyde Partnership for Transport 3.031 (0.550) 0.551 (0.007) 0.332 0.000 0.000 0.000 Strathclyde Concessionary Travel Scheme Joint Committee 0.341 0.000 0.000 0.000 1.643 (0.162) 0.000 (1.493) Renfrewshire Valuation Joint Board 1.644 (0.110) 0.000 (1.530) 4.930 (0.327) 0.000 (1.493) Total 5.016 (0.660) 0.551 (1.537) Associates Page 200 of 376
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76 Annual Accounts 2025/26 PUBLIC 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: 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 0.000 (452.499) 0.202 0.000 Scottish Government 0.000 (484.436) 0.020 0.000 0.000 (452.499) 0.202 0.000 0.000 (484.436) 0.020 0.000 Note 26: 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 2027. 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 9.6% of pensionable pay. At the last valuation a shortfall of £2.9bn 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 2025/26, Renfrewshire Council’s level of participation in the scheme is 2.9%. The Council paid £26.142m (£24.806m in 2024/25) for employer's contributions to the Scottish Public Pensions Agency. £0.313m of expenditure (£0.375m in 2024/25) was charged to service revenue accounts in respect of “added years” pension enhancement termination benefits, representing 0.3% of teachers’ pensionable pay (0.4% in 2024/25). The estimated contribution for 2026/27 is £25.327m. Note 27: Defined benefit pension schemes 27a: 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. Page 201 of 376
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77 Annual Accounts 2025/26 PUBLIC 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 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. 27b: 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 202 of 376
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78 Annual Accounts 2025/26 PUBLIC 2024/25 2025/26 £m £m Included within net cost of services: 34.765 Current service cost 25.076 0.665 Past service cost/(gain) 1.905 Included within Financing and Investment income and expenditure: 62.127 Interest cost 66.026 27.231 Interest on the effect of the asset ceiling 43.834 (85.344) Expected return on scheme assets (105.831) 39.444 Total of Post-employment benefits charged to the Surplus/Deficit on the Provision of Services 31.010 Included within Other Comprehensive Income and Expenditure: 22.312 Return on Assets excluding amounts included in net interest (62.505) (2.183) Actuarial gains and losses arising on changes in Demographic Assumptions 7.329 (196.867) Actuarial gains and losses arising on changes in Financial Assumptions (34.765) (14.730) Actuarial gains and losses arising on changes in Other Assumptions 9.629 (594.551) Changes in effect of Asset Ceiling (800.129) (746.575) Total of LGPS post-employment benefits charged to the CIES (849.431) Movement in reserves statement: (787.413) Actuarial losses or (gains) (880.441) 756.295 Restriction on pension asset to Asset Ceiling 865.313 (1.383) Effect of business combinations and disposals 0.000 40.838 Reversal of items relating to post-employment benefits debited or credited to the Surplus/Deficit on the Provision of Services 31.010 (17.579) Employer contributions and direct payments to pensioners payable in the year (17.326) (9.242) Movement in the year on the Pension Reserve (1.444) The cumulative amount of actuarial gains and losses recognised in the CIES as at 31 March 2026 is a gain of £1,180.866m (£1,179.986m gain as at 31 March 2025). 27c: 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 2026, scheme assets exceeded the defined benefit obligation by £801.519m (£691.057m excess of obligations over assets as at 31 March 2025). 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 2026 was 6.2% 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 2026, a net pension asset is disclosed as a result of prevailing market conditions at that date. The net pension position of £801.519m represents an increase in asset of £110.462m between 31 March 2025 and 31 March 2026. Page 203 of 376
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79 Annual Accounts 2025/26 PUBLIC The net pension asset has a substantial impact on the net worth of the Council as recorded in the balance 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 2026. 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 £63.794m, 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. 27d: Movement in defined benefit obligation (scheme liabilities) The following is a reconciliation of the 2025/26 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). 2024/25 2025/26 £m £m 1,297.361 Balance at 1 April 1,144.060 34.765 Current service cost 25.076 0.665 Past service cost (including curtailments) 1.905 62.127 Interest cost 66.026 10.447 Member contributions 11.893 2.686 Effect of business combinations and disposals 0.000 (213.780) Actuarial losses or (gains) (17.807) Losses or (gains) on curtailment (5.398) Estimated benefits paid: unfunded (5.340) (44.813) Estimated benefits paid: other (45.036) 1,144.060 Balance at 31 March 1,180.777 27e: Movement in scheme assets The following is a reconciliation of the 2025/26 opening and closing balances of the fair value of Renfrewshire Council’s share of the Strathclyde Pension Fund’s scheme assets. Page 204 of 376
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80 Annual Accounts 2025/26 PUBLIC 2024/25 2025/26 £m £m 1,790.201 Balance at 1 April 1,835.117 85.344 Expected return on scheme assets 105.831 10.447 Member contributions 11.893 12.181 Employer contributions 11.986 5.398 Contributions in respect of unfunded benefits 5.340 4.069 Effect of business combinations and disposals 0.000 (22.312) Actuarial (losses) or gains 62.505 (5.398) Estimated benefits paid: unfunded (5.340) (44.813) Estimated benefits paid: other (45.036) 1,835.117 Balance at 31 March 1,982.296 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 2025 to 31 March 2026 was 9.2%. 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 380.164 1.187 381.351 Equity instruments 416.848 1.433 418.281 0.000 424.190 424.190 Private Equity 0.000 475.395 475.395 0.000 138.456 138.456 Real Estate 0.000 137.411 137.411 6.719 839.751 846.470 Investment Funds 0.000 887.283 887.283 0.000 (0.001) (0.001) Derivatives 0.000 0.000 0.000 0.000 44.651 44.651 Cash and cash equivalents 0.000 63.926 63.926 386.883 1,448.234 1,835.117 Fair value of scheme assets 416.848 1,565.448 1,982.296 As at 31 March 2025 As at 31 March 2026 27f: 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: Page 205 of 376
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81 Annual Accounts 2025/26 PUBLIC As at 31 March 2025 As at 31 March 2026 £m £m (485.593) Current employee members (532.790) (49.398) Pre-local government reorganisation (1996) liabilities (48.448) (115.874) Deferred pensioners (117.260) (427.957) Pensioners (418.485) (1,078.822) Total Present Value of the Defined Benefit Obligation - Funded liabilities (1,116.983) 1,835.117 Fair value of scheme assets 1,982.296 756.295 Net Asset / (Liability) arising from funded obligations 865.313 (756.295) Restriction to asset ceiling (865.313) (59.651) Retirals from Renfrewshire Council (58.663) (5.587) Retirals pre-local government reorganisation (1996) (5.131) (65.238) Total Present Value of the Defined Benefit Obligation - Unfunded liabilities (63.794) (65.238) Net Pension Asset / (Liability) (63.794) 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 2025/26, and the Council’s share of the Strathclyde Pension Fund’s defined benefit obligation (scheme liabilities) and scheme assets as at 31 March 2026: 2024/25 2025/26 5.8% Discount rate for defined benefit obligation 6.2% 2.7% Long-term expected rate of return on scheme assets* 3.0% 3.5% Rate of increase in salaries 3.7% 2.8% Rate of increase in pensions 3.0% 2.8% Rate of inflation 3.0% Mortality assumptions (years): Longevity at age 65 for current pensioners: 19.5 Men 19.9 22.3 Women 22.4 Longevity at age 65 for future pensioners: 20.5 Men 20.8 24.1 Women 24.2 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 206 of 376
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82 Annual Accounts 2025/26 PUBLIC 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% 18.333 1 year increase in the member life expectancy 4% 47.231 0.1% increase in the Salary Increase Rate 0% 1.230 0.1% increase in the Pension Increase Rate 1% 17.079 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 2025/26, rising to 17.5% in 2026/27. The total contribution expected to be made by the Council to the Strathclyde Pension Fund in the forthcoming year to 31 March 2027 is £29.852m. The weighted average duration of the defined benefit obligation is 17 years. Note 28: 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 29: 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 2026, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. Note 30: Accounting Standards Issued not Adopted The Code requires the disclosure of information relating to the impact of an accounting change that Page 207 of 376
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83 Annual Accounts 2025/26 PUBLIC will be required by a new standard that has been issued but not yet adopted. The following new standards and amendments to existing standards have been published but not yet adopted by the Code: • Amendments to the Classification and Measurement of Financial Instruments (amendments to IFRS 9 and IFRS 7) issued in May 2024. • Contracts referencing nature dependent electricity (amendments to IFRS 9 and IFRS 7) issued in December 2024. There is no material impact anticipated in future years from the implementation of these standards. Note 31: Accounting Policies – Renfrewshire Council The Financial Statements for the year ended 31 March 2026 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 2026 or relate to services associated with the prior financial year. Page 208 of 376
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84 Annual Accounts 2025/26 PUBLIC 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. 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. D 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. E 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. F Employee Benefits Benefits payable during employment All salaries and wages earned up to 31 March 2026 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. Page 209 of 376
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85 Annual Accounts 2025/26 PUBLIC 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. G 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. H 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. I 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. Page 210 of 376
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86 Annual Accounts 2025/26 PUBLIC 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 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 Page 211 of 376
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87 Annual Accounts 2025/26 PUBLIC 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. 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: Page 212 of 376
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88 Annual Accounts 2025/26 PUBLIC • 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). J 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: • 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. K 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. Page 213 of 376
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89 Annual Accounts 2025/26 PUBLIC 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. 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. L 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 Page 214 of 376
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90 Annual Accounts 2025/26 PUBLIC 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. M 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 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. N 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. O 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. P Leases 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 significantly transferred 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. Page 215 of 376
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91 Annual Accounts 2025/26 PUBLIC At the commencement date, a lease liability will be measured at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit in the lease, if that rate can be readily identified. If that rate cannot be readily determined, the Council’s incremental borrowing rate will be used. Right of use assets are measured either at: • An amount equal to the lease liability; • Their carrying amount at the commencement date; • For right of use assets for nominal lease payments, right of use assets shall be recognised at fair value as at commencement date. Any gain being the difference between that fair value and lease liability, recognised as a donated asset on the commencement date. The Council as 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. Q 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. R 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. S 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. Page 216 of 376
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92 Annual Accounts 2025/26 PUBLIC 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 £10,000 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. 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. From 1 April 2025, the Code of Practice on Local Authority Accounting (the Code) requirements changed in respect of revaluations of property, plant and equipment. The Council will revalue assets over a rolling programme of revaluations over a five year cycle with annual indexation applied during the 4 intervening years. If the total annual indexation is material then the carrying amount of the assets will be revalued to the indexation amount using the Elimination Method, where accumulated depreciation will be eliminated against the gross carrying amount of the asset, after taking into account accumulated impairment losses. 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: Page 217 of 376
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93 Annual Accounts 2025/26 PUBLIC • 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. 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). When surplus assets are revalued, the useful life of the asset is updated and depreciation recalculated on that basis. 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; Page 218 of 376
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94 Annual Accounts 2025/26 PUBLIC • 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. T 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. U 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. V 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. W 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 219 of 376
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95 Annual Accounts 2025/26 PUBLIC Note 32: 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. The medium term outlook 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 14 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 21: 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 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, annual indexation is applied during the four intervening years where the assets will be revalued to their indexed amount if a material change has occurred. Page 220 of 376
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96 Annual Accounts 2025/26 PUBLIC Note 33: 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 2026 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 £865.3m, before the asset cap, as at 31 March 2026 (asset of £689.5m as at 31 March 2025). Further detail can be found in Note 29: 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 £18.3m. However, the assumptions interact in complex ways. At 31 March 2026, the Council’s actuaries advised that (before the asset cap is applied) the net pensions asset had increased by £9.6m as a result of estimates being corrected as a result of experience; increased by £7.3m as a result of updating demographic assumptions; and increased by £34.7m as a result of updating financial assumptions.Property, Plant and Equipment Assets are depreciated over useful lives that are dependent on assumptions about the level of repairs and maintenance that will be incurred in relation to individual assets. The current economic climate makes it uncertain that the authority will be able to sustain its current spending on repairs and maintenance, bringing into doubt the useful lives assigned to assets. If the useful life of assets is reduced, depreciation increases and the carrying amount of the asset falls. It is estimated that if the annual depreciation charge for buildings would increase by £6.862m for every year that useful lives had to be reduced. Page 221 of 376
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97 Annual Accounts 2025/26 PUBLIC 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 0.271 0.000 1.097 1.368 Income (1.763) 0.000 (3.437) (5.200) (Surplus)/Deficit for the year (1.492) 0.000 (2.340) (3.832) (Surplus)/Deficit Brought Forward (6.578) (0.052) (36.803) (43.433) Accumulated (Surplus)/Deficit at 31 March 2025 (8.070) (0.052) (39.143) (47.265) Income and Expenditure Statement for the Year Ending 31 March 2026 Paisley Johnstone Renfrew Total £m £m £m £m Expenditure 0.247 0.000 0.853 1.100 Income (0.452) 0.000 (1.476) (1.928) (Surplus)/Deficit for the year (0.205) 0.000 (0.623) (0.828) (Surplus)/Deficit Brought Forward (6.373) (0.052) (36.180) (42.605) Accumulated (Surplus)/Deficit at 31 March 2024 (6.578) (0.052) (36.803) (43.433) Income and Expenditure Statement for the Year Ending 31 March 2025 (restated) During 2024/25, following a review of historical title and legal advice, the Council reclassified £1.090m of property from Council assets to the Paisley Common Good (£0.285m) and the Renfrew Common Good (£0.805m). The Income and Expenditure Statement for the year ended 31 March 2025 has been restated to reflect this. Balance Sheet Paisley Johnstone Renfrew Total £m £m £m £m Tangible Fixed Assets 1.891 0.000 13.877 15.768 Heritage Assets 0.063 0.046 0.109 0.218 Investments 5.629 0.000 21.591 27.220 Debtors 0.000 0.000 0.024 0.024 Short-term deposits 0.493 0.006 4.004 4.503 Total assets 8.076 0.052 39.605 47.733 Creditors: Amounts Falling Due Within One Year (0.006) 0.000 (0.029) (0.035) Net Assets 8.070 0.052 39.576 47.698 Income Funds (3.899) (0.036) (22.315) (26.250) Revaluation reserve: Investments (1.803) 0.000 (6.514) (8.317) Revaluation reserve: Fixed Assets (2.368) (0.016) (10.747) (13.131) Total Reserves (8.070) (0.052) (39.576) (47.698) Balance at 31 March 2026 Page 222 of 376
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98 Annual Accounts 2025/26 PUBLIC Balance at 31 March 2025 Paisley Johnstone Renfrew Total £m £m £m £m Tangible Fixed Assets 1.049 0.000 13.915 14.964 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 6.583 0.052 36.829 43.464 Creditors: Amounts Falling Due Within One Year (0.005) 0.000 (0.026) (0.031) Net Assets 6.578 0.052 36.803 43.433 Income Funds (3.836) (0.036) (21.923) (25.795) Revaluation reserve: Investments (1.307) 0.000 (4.602) (5.909) Revaluation reserve: Other Fixed Assets (1.435) (0.016) (10.278) (11.729) Total Reserves (6.578) (0.052) (36.803) (43.433) 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 recognised 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 recognised in the surplus or deficit in the Income and Expenditure account, to the extent that it reverses a decrease of the same asset previously recognised 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 £0.000m for Paisley Common Good and £0.023m for Renfrew Common Good. Page 223 of 376
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99 Annual Accounts 2025/26 PUBLIC 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. 2024/25 2025/26 £m £m 22.179 Repairs and maintenance 23.118 15.120 Supervision and management 17.118 32.202 Depreciation and impairment of non-current assets 34.268 (0.058) Increase/(Decrease) in the allowance for bad debts 0.321 3.810 Other expenditure 3.345 73.253 Total Expenditure 78.170 (53.993) Dwelling rents (58.120) (1.120) Non-dwelling rents (1.183) (1.808) Other income (2.205) (56.921) Total Income (61.508) 16.332 Net Cost of HRA services as included in the CIES 16.662 HRA share of the operating income and expenditure included in the CIES: 0.018 (Gain)/Loss on sale of HRA non-current assets 0.160 3.137 Interest payable and similar charges 3.936 (1.850) Interest and investment income (1.102) 1.353 Pensions interest cost and expected return on pensions assets 1.018 (2.112) Taxation and non specific grant income (10.089) 16.878 Deficit for the year on HRA services 10.585 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 48. Page 224 of 376
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100 Annual Accounts 2025/26 PUBLIC 2024/25 2025/26 £m £m (6.164) Balance on the HRA at 1 April (6.933) 16.878 Deficit for the year on the HRA income and expenditure statement 10.585 (2.737) Adjustments between accounting basis and funding basis under statute 5.350 (14.910) Adjustments to Usable Reserves permitted by accounting standards (16.975) (0.769) Net (Increase)/Decrease before transfers to or from reserves (1.040) (6.933) Balance on the HRA at 31 March (7.973) 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 11,942 dwellings during 2025/26 (12,078 in 2024/25). 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 419 £70.22 One-apartment 416 £69.04 3594 £84.83 Two-apartment 3,516 £85.84 5773 £99.00 Three-apartment 5,716 £99.01 2078 £111.22 Four-apartment 2,080 £109.75 214 £120.08 Five-apartment 214 £118.64 12,078 Total 11,942 As at 31 March 2025 As at 31 March 2026 Other information Dwellings Non-Dwellings Total as at 31 March 2026 Total as at 31 March 2025 £m £m £m £m Void Rent Loss 1.697 0.272 1.969 2.461 Rental Income Arrears 3.987 0.581 4.568 4.184 Provision for uncollectable rent arrears 3.205 0.542 3.747 3.568 Corporate and Democratic Core costs 0.046 0.033 Page 225 of 376
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101 Annual Accounts 2025/26 PUBLIC 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. 2024/25 2025/26 £m £m 132.893 Gross council tax levied 146.445 (17.658) Other discounts and reductions (19.367) (13.666) Council tax reduction scheme (15.141) (3.387) Write-off of uncollectable debts and allowance for impairment (3.622) (0.481) Adjustment to previous years’ community charge and council tax (0.111) 97.701 Transfer to the Comprehensive Income and Expenditure Statement 108.204 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 2025/26 was £1,572.61 (£1,436.17 in 2024/25). 2024/25 2025/26 £ £ 957.45 A 1,048.41 1,117.02 B 1,223.14 1,276.60 C 1,397.88 1,436.17 D 1,572.61 1,886.97 E 2,066.23 2,333.78 F 2,555.49 2,812.50 G 3,079.69 3,518.62 H 3,852.89 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 226 of 376
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102 Annual Accounts 2025/26 PUBLIC 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. Band Number of dwellings Number of exemptions Disabled relief Discounts Council Tax Reduction Total equivalent dwellings Ratio to Band D 2025/26 Band D equivalent 2024/25 Band D equivalent A 13,115 1,923 6 1,900 3,359 5,983 0.67 3,988 3,857 B 25,860 1,641 56 3,344 5,198 15,676 0.78 12,192 11,958 C 15,519 572 55 1,675 1,965 11,298 0.89 10,043 9,923 D 13,895 319 46 1,327 754 11,537 1.00 11,537 11,258 E 11,808 203 88 786 406 10,386 1.31 13,646 13,465 F 7,280 87 61 329 123 6,696 1.62 10,881 10,779 G 4,619 97 16 159 55 4,293 1.96 8,407 8,182 H 199 8 1 9 2 179 2.45 439 456 92,295 Band A dwellings subject to disabled relief 6 6 Class 17 and 24 dwellings 65 70 Sub-total 71,204 69,954 Less: Provision for non-payment and future award of discounts and reliefs (2,401) (2,098) Council Tax Base 68,803 67,856 Page 227 of 376
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103 Annual Accounts 2025/26 PUBLIC 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. 2024/25 2025/26 £m £m 146.060 Gross rates levied 142.990 (26.998) Reliefs and other deductions (29.712) (1.840) Write-off of uncollectable debts and allowance for impairment (1.734) 117.222 Net Non-Domestic Rates income 111.544 (10.047) Adjustment to previous years’ non-domestic rates (9.819) 0.330 Contribution (to)/from the National Non-Domestic Rate pool 7.119 107.505 Transfer to the Comprehensive Income and Expenditure Statement 108.844 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 2025/26 the charge was 49.8 pence in the pound, with a 5.6 pence supplement for properties with a rateable value over £51,000 and a 7.0 pence supplement for properties with a rateable value above £100,000. Analysis of Renfrewshire Council’s rateable values 2025/26 £m 90.538 54.879 30.095 1.989 90.866 268.367 (8.202) 260.165 (1.558) 258.607Net 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 228 of 376
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104 Annual Accounts 2025/26 PUBLIC 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 327.708 (18.179) 309.529 321.085 (17.542) 303.543 201.092 (91.120) 109.972 243.065 (131.541) 111.524 106.403 (44.855) 61.548 Finance and Resources 100.357 (43.886) 56.471 53.320 (15.504) 37.816 56.539 (17.080) 39.459 13.833 (12.998) 0.835 Miscellaneous Services 18.700 (16.561) 2.139 182.574 (73.487) 109.087 Adult Services 187.721 (73.668) 114.053 884.930 (256.143) 628.787 927.467 (300.278) 627.189 1.033 0.000 1.033 (Gain)/Loss on the disposal of non-current 3.107 0.000 3.107 25.807 (7.660) 18.147 Financing and investment income and expenditure G6 25.739 (6.029) 19.710 0.000 (562.381) (562.381) Taxation and non-specific grant income 3 0.000 (631.866) (631.866) 911.770 (826.184) 85.586 956.313 (938.173) 18.140 (1.738) G3 (5.046) 83.848 13.094 (86.295) (221.173) 0.028 G15 (2.587) (32.330) (15.812) (1.393) G3 (1.356) (119.990) Other comprehensive (income) and expenditure (240.928) (36.142) Total comprehensive (income) and expenditure (227.834) Share of other comprehensive (income) and expenditure of associates and joint ventures Actuarial (gain)/loss on pension assets and liabilities 2024/25 (restated) 2025/26 Children’s Services Chief Executive’s Service Cost of Services Deficit 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 229 of 376
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105 PUBLIC 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. 2025/26 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 2025 235.197 1,320.054 1,555.251 105.140 1,660.391 Movement in reserves during the year Total Comprehensive Income and Expenditure (5.332) 236.480 231.148 (3.314) 227.834 Adjustments between Group accounts and Council accounts G5 (15.296) 0.000 (15.296) 15.296 0.000 Adjustments to Usable Reserves permitted by accounting standards 7 39.143 (39.143) 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 2.047 (2.047) 0.000 0.000 0.000 Adjustments between accounting basis and funding basis under regulations 6 (18.345) 18.345 0.000 0.000 0.000 Increase / (Decrease) in year 2.217 213.635 215.852 11.982 227.834 Balance at 31 March 2026 237.414 1,533.689 1,771.103 117.122 1,888.225 Comparative movements in 2024/25 (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 2024 222.219 1,302.617 1,524.836 99.413 1,624.249 Movement in reserves during the year Total Comprehensive Income and Expenditure (70.981) 117.355 46.374 (10.232) 36.142 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 39.114 (39.114) 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 46.903 (46.903) 0.000 0.000 0.000 Increase / (Decrease) in year 12.978 17.437 30.415 5.727 36.142 Balance at 31 March 2025 235.197 1,320.054 1,555.251 105.140 1,660.391 Page 230 of 376
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106 PUBLIC Group Balance Sheet The group balance sheet shows the value as at 31 March 2026 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 2025 (restated) As at 31 March 2026 £m Note £m 1,971.599 Property, plant and equipment G10 2,239.421 44.404 Heritage assets G11 44.404 0.409 Investment property G9 0.403 1.189 Intangible assets 12 0.690 28.604 Long-term investments G15 31.927 57.358 Investments in associates and joint ventures G3 63.785 2.002 Long-term debtors G15 1.820 2,105.565 2,382.450 2.492 Assets held for sale 11 0.000 17.534 Short-term investments G15 24.623 1.120 Inventories 1.221 62.985 Short-term debtors G12 77.270 7.514 Cash and cash equivalents G15 42.991 91.645 146.105 (85.804) Short-term borrowing G15 (68.642) (70.047) Short-term creditors G13 (111.748) (0.406) Short-term provisions 20 (0.567) (156.257) (180.957) (77.581) Long-term creditors 19 (73.551) (5.230) Long-term provisions 20 (6.786) (232.050) Long-term borrowing G15 (314.756) (0.023) Liabilities in associates and joint ventures G3 (0.048) (65.678) Other long-term liabilities (64.232) (380.562) (459.373) Alastair MacArthur 1,660.391 1,888.225 (265.762) Usable reserves G7 (269.253) (1,394.629) Unusable reserves G8 (1,618.972) (1,660.391) (1,888.225) 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 22 June 2026 and the audited accounts were authorised for issue on 24 September 2026. Page 231 of 376
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107 PUBLIC 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. 2024/25 2025/26 £m £m (83.848) Group surplus/(deficit) (13.094) 140.324 Adjustment for non-cash movements 155.469 (25.010) Adjustments for items included in the group surplus/deficit that are investing and financing activities (55.032) 31.466 Net cash flows from operating activities 87.343 (48.008) Net cash flows from investing activities (111.383) (7.365) Net cash flows from financing activities 59.516 (23.907) Net increase/(decrease) in cash and cash equivalents 35.476 31.422 Cash and cash equivalents at the beginning of the reporting period 7.515 7.515 Cash and cash equivalents at the end of the reporting period 42.991 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. The impact was an increase in net assets of £0.012m. 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 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 2026. 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 232 of 376
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108 PUBLIC 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, OneRen, 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 £0.740m (2024/25 £1.144m restated) for OneRen, total net comprehensive income for the year of £4.266m (2024/25 £0.830m restated) for the Paisley, Renfrew and Johnstone Common Good Funds, total net comprehensive expenditure for the year of £0.027m (2024/25 net comprehensive income of £0.227m) for Park Lane Developments (Renfrewshire) LLP, total net comprehensive income for the year of £0.070m (2024/25 £0.045m restated) for Paisley Museum Reimagined Limited and total net comprehensive income for the year of £0.523m (2024/25 £0.352m restated) for the Coats Observatory Trust. The group balance sheet includes net assets of £1.937m (2024/25 £1.197m restated) for OneRen, net assets of £47.698m (2024/25 £43.433m restated) for the Common Good Funds, net assets of £0.094m (2024/25 £0.121m) for Park Lane Developments (Renfrewshire) LLP, net assets of £1.287m (2024/25 £1.209m restated) for Paisley Museum Reimagined Limited and net assets of £2.369m (2024/25 £1.845m) 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 2025/26, Renfrewshire Council contributed £0.341m or 8.16% of the committee’s estimated running costs (2024/25 £0.332m or 8.11%) and its share of the year-end net asset was £0.374m (2024/25 £0.303m) 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 £3.031m or 8.26% to the committee’s estimated running costs in 2025/26 (2024/25 £2.955m or 8.22%) and its share of the year-end net asset was £48.100m (2024/25 £44.072m) 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 233 of 376
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109 PUBLIC Strathclyde Partnership for Transport Renfrewshire Council’s Share Strathclyde Partnership for Transport Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 367.769 30.227 Long-term assets 403.546 33.339 186.984 15.369 Current assets 217.896 18.002 (16.326) (1.342) Current liabilities (37.182) (3.072) (2.213) (0.182) Long-term liabilities (2.051) (0.169) 536.214 44.072 Net assets 582.209 48.100 Income and Expenditure Summary 115.145 9.464 Income 122.303 10.104 83.326 6.849 less: Expenditure 89.846 7.423 31.819 2.615 Surplus for the year 32.457 2.681 As at 31 March 2025 As at 31 March 2026 2024/25 2025/26 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 2025/26, Renfrewshire Council contributed £1.644m or 57.5% of the board’s estimated running costs (2024/25 £1.6m or 57.7%) and its share of the year-end net asset was £1.084m (2024/25 £0.903m 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 0.167 0.097 Long-term assets 0.725 0.417 1.543 0.890 Current assets 1.551 0.891 (0.098) (0.057) Current liabilities (0.184) (0.106) (0.046) (0.027) Long-term liabilities (0.206) (0.118) 1.565 0.903 Net assets 1.886 1.084 Income and Expenditure Summary 3.205 1.848 Income 3.426 1.969 2.827 1.630 less: Expenditure 3.122 1.795 0.378 0.218 Deficit for the year 0.303 0.174 As at 31 March 2025 (restated) As at 31 March 2026 2024/25 (restated) 2025/26 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 234 of 376
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110 PUBLIC 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 24.159 12.080 Current assets 28.454 14.227 24.159 12.080 Net assets 28.454 14.227 Income and Expenditure Summary 419.678 209.839 Income 443.270 221.635 421.595 210.797 less: Expenditure 438.976 219.488 (1.917) (0.958) (Deficit)/Surplus for the year 4.294 2.147 As at 31 March 2025 As at 31 March 2026 2024/25 2025/26 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 2025/26 (£0.130m in 2024/25). Glasgow and the Clyde Valley Strategic Development Planning Authority was dissolved on 31 March 2025 and all activities transferred to the Glasgow City Region City Deal Cabinet. Under the Town and Country Planning (Scotland) Act 1997, eight member councils had responsibilities not only for local planning matters within their own boundaries but also for strategic issues affecting the wider Glasgow and Clyde Valley area. The committee was responsible for preparing, monitoring and reviewing the Strategic Development Plan on behalf of the member councils and for liaising with central government, Scottish Enterprise and other bodies. No contribution was required from Renfrewshire Council in 2025/26. In 2024/25 the contribution was £0.053m (12.5%) to the committee’s estimated running costs. 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 Page 235 of 376
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111 PUBLIC assets or liabilities developed from the City Deal programme. Renfrewshire Council contributed £0.037m (10%) to the committee’s estimated running costs in 2025/26 (£0.031m (9.7%) in 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 (£14.179m + £49.558m = £63.737m) equates to the net of the two figures disclosed in the group balance sheet as ‘Investments in associates and joint ventures’ (£63.785m) and ‘Liabilities in associates and joint ventures’ (£0.048m). 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 24.629 12.315 Current assets 29.168 14.584 (0.032) (0.016) Current liabilities (0.150) (0.075) (0.484) (0.242) Long-term liabilities (0.660) (0.330) 24.113 12.057 Net assets 28.358 14.179 Income and Expenditure Summary 419.786 209.893 Income 443.432 221.717 421.738 210.869 less: Expenditure 439.187 219.595 (1.952) (0.976) (Deficit)/Surplus for the year 4.245 2.122 As at 31 March 2025 As at 31 March 2026 2024/25 2025/26 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 367.936 30.324 Long-term assets 404.271 33.756 193.187 16.636 Current assets 224.313 19.29 (17.348) (1.473) Current liabilities (37.652) (3.201) (2.259) (0.209) Pension asset / (liability) (2.257) (0.287) 541.516 45.278 Net assets 588.675 49.558 Income and Expenditure Summary 122.728 11.667 Income 130.103 12.43 91.994 8.953 less: Expenditure 96.498 9.506 30.734 2.714 Surplus for the year 33.605 2.924 As at 31 March 2025 (restated) As at 31 March 2026 2024/25 (restated) 2025/26 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 2026 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 2026, either with the Council itself or with other parties. Page 236 of 376
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112 PUBLIC 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. 2024/25 (restated) 2025/26 £m £m Share of (surplus) or deficit: (1.354) Subsidiaries: (2.488) (0.798) Paisley, Renfrew and Johnstone Common Good Funds (1.858) (0.352) Coats Observatory Trust (0.523) 0.068 OneRen (0.056) (0.227) Park Lane Developments (Renfrewshire) LLP 0.027 (0.045) Paisley Museum Reimagined Limited (0.078) (2.714) Associates: (2.924) (2.615) Strathclyde Partnership for Transport (2.681) 0.119 Strathclyde Concessionary Travel Scheme Joint Committee (0.069) (0.218) Renfrewshire Valuation Joint Board (0.174) Joint Venture: 0.958 Renfrewshire Health and Social Care Integration Joint Board (2.147) 0.018 AMIDS (Renfrewshire) LLP 0.025 (3.092) Aggregate share of (surplus) or deficit (7.534) Share of other comprehensive (income) and expenditure: (1.242) Subsidiaries: (3.092) (0.030) Paisley, Renfrew and Johnstone Common Good Funds (2.408) (1.212) OneRen (0.684) (1.393) Associates: (1.356) (1.273) Strathclyde Partnership for Transport (1.347) (0.005) Strathclyde Concessionary Travel Scheme Joint Committee (0.002) (0.115) Renfrewshire Valuation Joint Board (0.007) (2.635) Aggregate share of other comprehensive (income) and expenditure (4.448) (5.727) Aggregate share of total comprehensive (income) and expenditure (11.982) 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 237 of 376
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113 PUBLIC 2024/25 2025/26 £m £m 0.168 Grants made by the Paisley, Renfrew and Johnstone Common Good Funds to Renfrewshire Council in contribution towards the funding of community events and projects 0.230 0.059 Governance costs charged to the Paisley, Renfrew and Johnstone Common Good Funds by Renfrewshire Council 0.059 (0.186) Interest income received from Renfrewshire Council by the Paisley, Renfrew and Johnstone Common Good Funds (0.173) (16.654) Service charge and other expenditure payable by Renfrewshire Council to OneRen (15.762) 0.631 Expenditure payable by OneRen to Renfrewshire Council 0.373 0.023 Expenditure/(income) payable by/(to) Paisley Museum Reimagined Limited to/(by) Renfrewshire Council (0.023) (15.959) Total adjustments between Group accounts and Council accounts (15.296) Adjustments between Group accounts and Council accounts Note G6: Group financing and investment income and expenditure 2024/25 (restated) 2025/26 £m £m 21.607 Interest payable and similar charges 21.537 4.014 Net interest on the net defined benefit liability 4.029 (5.762) Interest receivable and similar income (2.803) (1.404) Income and expenditure in relation to investment properties and changes in their fair values 0.006 (0.308) Other investment income (3.059) 18.147 Total financing and investment income and expenditure 19.710 Group financing and investment income and expenditure Note G7: Group Usable reserves 2024/25 (restated) 2025/26 £m £m (235.195) Council Usable Reserves - Note 7 (237.414) Group Usable Reserves: (25.794) Paisley, Renfrew and Johnstone Common Good Funds: unrestricted funds (26.250) (1.637) OneRen (2.375) (1.209) Paisley Museum Reimagined Limited (1.287) (1.927) Renfrewshire Health and Social Care Integration Joint Board (1.927) (265.762) Total Group Usable Reserves (269.253) Group Usable Reserves Page 238 of 376
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114 PUBLIC 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. 2024/25 (restated) 2025/26 £m £m (1,320.056) Council Unusable Reserves - Note 8 (1,533.689) Group Unusable Reserves: (5.909) Paisley, Renfrew and Johnstone Common Good Funds: financial instruments revaluation reserve (8.316) (11.730) Paisley, Renfrew and Johnstone Common Good Funds: revaluation reserve (13.132) (1.845) Coats Observatory Trust: revaluation reserve (2.369) 0.440 OneRen: pension reserve 0.438 (0.121) Park Lane Developments (Renfrewshire) LLP (0.094) Council share of the Reserves of associates and joint ventures: (44.072) Strathclyde Partnership for Transport (48.100) (0.303) Strathclyde Concessionary Travel Scheme Joint Committee (0.374) (0.903) Renfrewshire Valuation Joint Board (1.084) (10.153) Renfrewshire Health and Social Care Integration Joint Board (12.300) 0.023 AMIDS (Renfrewshire) LLP 0.048 (1,394.629) Total Group Unusable Reserves (1,618.972) 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: 2024/25 2025/26 £m £m (0.315) Rental income from investment property (0.088) (0.315) Net (gain) or loss (0.088) 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: 2024/25 2025/26 £m £m 0.415 Balance at 1 April 0.409 (0.006) Fair value changes (0.006) 0.409 Balance at 31 March 0.403 Group Investment Properties Page 239 of 376
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115 PUBLIC 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 2025 1,955.001 16.597 1,971.598 Additions 155.105 0.693 155.798 Disposals (4.294) 0.000 (4.294) Depreciation (96.451) (0.073) (96.524) Revaluation adjustments taken to the Revaluation Reserve 221.173 0.827 222.000 Revaluation adjustments recognised in the CIES (9.157) 0.000 (9.157) Balance sheet net carrying amount at 31 March 2026 2,221.377 18.044 2,239.421 Gross carrying amount at 31 March 2026 2,056.559 23.112 2,079.671 Accumulated depreciation at 31 March 2026 (182.639) (5.068) (187.707) Infrastructure assets 347.457 0.000 347.457 Balance sheet net carrying amount at 31 March 2026 2,221.377 18.044 2,239.421 Movements in 2025/26 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 15.748 1,873.969 Assets reclassified (to) or from the “held for sale” category (2.492) 0.000 (2.492) Other asset reclassifications (1.090) 1.090 0.000 Recognition of Right of Use Assets and Increase in PPP liability 20.795 0.000 20.795 Additions 119.440 0.352 119.792 Disposals (1.823) 0.000 (1.823) Depreciation (96.776) (0.593) (97.369) 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 1,955.001 16.597 1,971.598 Gross carrying amount at 31 March 2025 1,893.3100 21.5900 1,914.900 Accumulated depreciation at 31 March 2025 (173.7850) (4.9930) (178.778) Infrastructure assets 235.476 0.000 235.476 Balance sheet net carrying amount at 31 March 2025 1,955.001 16.597 1,971.598 Movements in 2024/25 (restated) Page 240 of 376
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116 Annual Accounts 2024/25 PUBLIC 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 2026 was £44.404m (£44.404m in 2024/25). 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 £0.218m as at 31 March 2026 (£0.218 at 31 March 2025). 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 2025 (restated) As at 31 March 2026 £m £m 7.148 Trade receivables 8.364 6.471 Prepayments 5.229 49.366 Other receivables 63.677 62.985 Total 77.270 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 2025 (restated) As at 31 March 2026 £m £m (14.078) Trade payables (31.470) (55.969) Other payables (80.278) (70.047) Total (111.748) 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 2025 As at 31 March 2026 £m £m Amounts owing to Renfrewshire Council: 0.309 Other balances 0.551 0.309 Total 0.551 Amounts owed by Renfrewshire Council: (24.186) Liability for Renfrewshire Integration Joint Board’s retained underspend (28.480) (1.801) Other balances (1.520) (25.987) Total (30.000) Page 241 of 376
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117 Annual Accounts 2024/25 PUBLIC 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 21: Financial Instruments. Long-term Current Long-term Current £m £m £m £m (232.050) (5.000) (294.432) (0.002) 0.000 (2.694) 0.000 (3.110) (232.050) (7.694) (294.432) (3.112) 0.000 (46.766) (20.000) (26.766) 0.000 (0.858) 0.000 (0.857) 0.000 (0.588) (0.324) (0.251) 0.000 (48.212) (20.324) (27.874) 0.000 (29.898) 0.000 (38.089) (232.050) (85.804) (314.756) (69.075) 0.000 (32.506) 0.000 (72.705) (76.100) (4.775) (72.136) (4.968) (0.395) 0.000 (0.260) 0.000 (76.495) (37.281) (72.396) (77.673) Service concession and finance lease liabilities Financial guarantees Financial Liabilities included in Creditors As at 31 March 2025 (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 2026 Long-term Current Long-term Current £m £m £m £m 0.000 17.521 0.000 24.589 0.000 0.017 0.000 0.039 0.000 (0.004) 0.000 (0.005) 28.604 0.000 31.927 0.000 28.604 17.534 31.927 24.623 0.000 (6.155) 0.000 7.094 0.000 0.029 0.000 0.025 0.000 (0.003) 0.000 (0.003) 0.000 13.644 0.000 35.876 0.000 7.515 0.000 42.992 5.959 70.939 5.873 80.064 1.014 0.044 0.916 0.041 (4.972) (23.847) (4.969) (18.369) 2.001 47.136 1.820 61.736 At amortised cost: Loss allowance At fair value through profit or loss Total Cash and cash equivalents At amortised cost: Trade receivables At amortised cost: Loans made for service purposes At amortised cost: Loss allowance Financial Assets included in Debtors At amortised cost: Accrued interest As at 31 March 2025 Financial Assets As at 31 March 2026 At amortised cost: Principal At amortised cost: Accrued interest At amortised cost: Loss allowance At fair value through other comprehensive income - designated equity instruments Total Investments At amortised cost: Principal Note: the figures in this table include accrued interest where this is applicable Page 242 of 376
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118 Annual Accounts 2024/25 PUBLIC 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: (239.743) (189.683) Public Works Loan Board borrowing 2 (297.547) (238.477) (48.211) (53.523) Non-PWLB borrowing (“market debt”) 2 (48.198) (53.858) Other liabilities: (80.875) (80.875) Service concession and finance lease liabilities 3 (77.103) (77.103) (0.395) (0.395) Financial guarantees 3 (0.260) (0.260) (369.224) (324.476) (423.108) (369.698) Financial liabilities measured at amortised cost: (29.898) n/a Borrowing from group entities (38.089) n/a (32.506) n/a Trade payables: short-term (72.705) n/a (62.404) (110.794) Fair value level Total financial liabilities for which fair value is disclosed Total financial liabilities for which fair value is not disclosed As at 31 March 2025 As at 31 March 2026 Carrying Amount Fair value Financial Assets Carrying Amount Fair value £m £m £m £m 13.128 13.128 Callable deposits in money market funds 1 35.326 35.326 0.516 0.516 Euro account balances with the Council’s banker 2 0.550 0.550 28.604 28.604 Investments in pooled funds 1 31.927 31.927 42.248 42.248 67.803 67.803 17.534 17.534 Fixed term deposits with UK building societies 2 24.623 24.623 (6.168) (6.168) Callable deposits with UK banks and building societies* 2 7.077 7.077 0.040 0.040 Imprest accounts held at council establishments 2 0.040 0.040 1.023 1.037 Loans made for service purposes 3 0.925 0.945 12.429 12.443 32.665 32.685 54.677 54.691 100.468 100.488 Financial assets measured at amortised cost: 1.020 n/a Trade receivables and prepayments: long-term 0.934 n/a 47.093 n/a Receivables and prepayments: short-term 61.697 n/a 48.113 62.631 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 2025 (restated) As at 31 March 2026 Fair value level *includes current sterling account balances with the Council’s banker. Page 243 of 376
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119 Annual Accounts 2024/25 PUBLIC 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. 2024/25 Amortised cost Elected to Fair Value through OCI* Fair Value through Profit or Loss 2025/26 £m £m £m £m £m £m 16.932 Interest expense 0.000 0.000 0.000 16.344 16.344 2.197 Impairment losses 1.602 0.000 0.000 0.000 1.602 0.000 Fee expense 0.000 0.000 0.000 0.022 0.022 0.423 Other expense 0.000 (0.600) 0.000 0.000 (0.600) 19.552 Total expense in the Surplus / Deficit on the Provision of 1.602 (0.600) 0.000 16.366 17.368 (5.756) Interest income (1.687) 0.000 (1.105) 0.000 (2.792) (0.828) Dividend income 0.000 (0.873) 0.000 0.000 (0.873) (6.584) Total income in the Surplus/Deficit on the Provision of (1.687) (0.873) (1.105) 0.000 (3.665) 0.040 Net (gain) or loss on revaluation 0.000 (2.588) (0.023) 0.000 (2.611) 0.040 (Surplus)/Deficit on the revaluation of financial assets 0.000 (2.588) (0.023) 0.000 (2.611) 13.008 Net (Gain)/Loss for the year (0.085) (4.061) (1.128) 16.366 11.092 Financial Assets Financial liabilities at amortised cost Group Accounting Policies Introduction The Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (“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 eight other entities: 1. Renfrewshire Leisure Limited, trading as OneRen; 2. Paisley Museum Reimagined Limited; 3. Park Lane Developments (Renfrewshire) LLP; 4. Strathclyde Partnership for Transport; 5. Strathclyde Concessionary Travel Scheme Joint Committee; 6. Renfrewshire Valuation Joint Board; Page 244 of 376
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120 Annual Accounts 2024/25 PUBLIC 7. Renfrewshire Health and Social Care Integration Joint Board; 8. AMIDS (Renfrewshire) LLP. 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 Page 245 of 376
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121 Annual Accounts 2024/25PUBLIC 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. 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 Page 246 of 376
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122 Annual Accounts 2024/25 PUBLIC 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 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 in respect of the Council’s subsidiaries that are independent of the Council under law and for taxation, viz. OneRen, Park Lane Development (Renfrewshire) LLP and Paisley Museum Reimagined Limited, is accounted for within income and expenditure to the extent that it is irrecoverable from HM Revenue and Customs. Page 247 of 376
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Finance and Resources, Renfrewshire House, Cotton Street, Paisley PA1 1JB Telephone: 0300 300 0285 www.renfrewshire.gov.uk PUBLIC Page 248 of 376
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1 PUBLIC ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 21 September 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Azets Report to those charged with governance - Coats Observatory Trust Annual Accounts 2025/26 ___________________________________________________________________ 1. Summary 1.1 Each year the Council’s appointed external auditors carry out an audit of the financial statements of the Coats Observatory Trust, administered by Renfrewshire Council, and provide an opinion as to whether those statements provide a true and fair view of the financial position of the charity and its income and expenditure for the year; and also whether they have been prepared in accordance with the relevant regulations. 1.2 In accordance with International Auditing Standards (ISA260), the external auditor, Azets, is obliged to report to those charged with the governance of the organisation matters which have arisen in the course of the audit. 1.3 The attached ISA260 report from Azets outlines their findings from the audit of the 2025/26 Coats Observatory Trust accounts. 1.4 Under the Local Authority Accounts (Scotland) Regulations 2014, the Council must meet to consider the Annual Accounts and aim to approve those accounts for signature no later than 30 September. 1.5 There was one audit adjustment made to the annual accounts over the course of the audit. The figures and details are listed on page 23 of the Annual Audit Report, and can be explained as follows: • Statement of Financial Activities – To recognise the annual audit fee to the Trust and corresponding donation from Renfrewshire Council. Item 3 Page 249 of 376
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2 PUBLIC 1.6 Other minor and presentational changes were also agreed, along with the disclosure changes outlined on page 24 of the Annual Audit Report. 1.7 Azets officers will attend the Audit, Risk and Scrutiny Board meeting to present their report ________________________________________________________________ 2. Recommendations 2.1 Members are requested to consider the attached report from Azets. ___________________________________________________________________ Implications of the Report 1. Financial The 2025/26 Annual Accounts demonstrate the Council continues to operate the Trust within the resources available, and in line with the relevant legislation. The Trust’s audit fee, which was £6,760 in 2025/26, is paid by Renfrewshire Council. 2. HR & Organisational Development While staffing budgets form a significant proportion of the Council’s revenue budgets, there are no direct implications arising from the recommendations in this report. 3. Community/Council Planning Community Plan Our Renfrewshire is thriving The report demonstrates the Council’s appropriate trusteeship of the Coats Observatory Trust for the benefit of the community. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy and our future The report demonstrates the Council’s appropriate trusteeship of the Coats Observatory Trust for the benefit of the community. Building strong, safe and resilient communities Tackling inequality, ensuring opportunities for all Creating a sustainable Renfrewshire for all to enjoy Working together to improve outcomes Page 250 of 376
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3 PUBLIC 4. Legal An audit opinion free from qualification demonstrates compliance with the statutory accounting requirements set out in the Local Government (Scotland) Act 1973, the Local Government in Scotland Act 2003, and the Charities Accounts (Scotland) Regulations 2006. 5. Property/Assets There are no direct implications arising from the recommendations in this report. 6. Information Technology There are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights 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 There are no direct implications arising from the recommendations in this report. 11. Privacy Impact There are no direct implications arising from the recommendations in this report. 12. Cosla Policy Position There are no direct implications arising from the recommendations in this report. 13. Children’s Rights There are no direct implications arising from the recommendations in this report. 14. Climate Change There are no direct implications arising from the recommendations in this report. ___________________________________________________________________ Page 251 of 376
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4 PUBLIC Author: Christine McCourt, Head of Finance and Procurement christine.mccourt@renfrewshire.gov.uk Page 252 of 376
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PUBLIC azets.co.uk 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit September 2026 azets.co.uk Coats Observatory Trust Fund Page 253 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit Page 2 of 27 PUBLIC Table of Contents Key messages 3 Introduction 5 Financial statements audit 7 Appendices 18 This report is for the benefit of the Trust Fund and is made available to the Controller of Audit for Scotland and Audit Scotland. This report has not been designed to be of benefit to anyone except for the Trust Fund , the Controller of Audit for Scotland and Audit Scotland. It should not be quoted in whole or in part without our prior written consent and should not be relied upon by third parties. No responsibility is assumed by Azets Audit Services to any third parties. We do not accept any responsibility for any loss occasioned to any third party acting, or refraining from acting, on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose. Page 254 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 3 of 27 www.azets.co.uk PUBLIC Key messages The Charities Accounts (Scotland) Regulations 2006 outline the accounting and auditing requirements for charitable bodies. The Regulations require an auditor to prepare a report to the charity trustees where an audit is required by any other enactment. The Trust Fund is Renfrewshire Council’s charitable trust and is covered by the requirements of section 106 of the Local Government (Scotland) Act 1973 and consequently require a full audit. Each registered charitable trust has required a full audit since 2013/14. Coats Observatory Trust Fund is a registered charity preparing its accounts on an accruals basis. Financial statements audit Audit opinion The annual accounts are due to be considered by the Audit, Risk and Scrutiny Board on 21 September 2026 and approved upon completion of the audit. We anticipate our independent auditor’s report to be unqualified subject to the following concluding procedures: • Engagement manager and engagement lead final quality reviews • Receipt and review of the signed management representation letter • Receipt and review of the final amended signed statement of accounts and trustees report • Response from management regarding subsequent events up to the date of the opinion Audit approach Our audit approach has been based on gaining an understanding of the Trust Fund’s control environment and has been risk based. This included: • An evaluation of the internal control environment, including the IT systems and controls; and • Substantive testing on significant transactions and material account balances, including the procedures outlined in this report in relation to our significant audit risks. We have not altered our audit plan following receipt of the draft financial statements. Page 255 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 4 of 27 www.azets.co.uk PUBLIC Key audit findings The Trust Fund had reasonable administrative processes in place to prepare the annual accounts and the supporting working papers. We obtained adequate evidence in relation to the significant audit risks identified in our audit plan. The accounting policies used to prepare the financial statements are considered appropriate. We are satisfied with the appropriateness of the accounting estimates and judgements used in the preparation of the financial statements. All material disclosures required by relevant legislation and applicable accounting standards have been made appropriately. Audit adjustments One audit adjustment has been identified and made through the course of the audit. No unadjusted misstatements were identified within the financial statements. Details of the adjusted misstatements and disclosure changes are included at Appendix 2. Internal controls The purpose of the audit was for us to express an opinion on the Trust Fund’s financial statements. The audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. Our audit is, therefore, not designed to identify all control weaknesses. No material weaknesses or significant deficiencies were noted during our audit. Page 256 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 5 of 27 www.azets.co.uk PUBLIC Introduction Scope of audit The annual audit comprises the audit of the financial statements. We outlined the scope of our audit in our External Audit Plan for Renfrewshire Council (“the Council”), which we presented to the Audit, Risk and Scrutiny Board at the outset of our audit. We have not made any subsequent changes to the risks outlined in that plan. Responsibilities The Trustees are responsible for preparing its annual accounts, including financial statements, which show a true and fair view of the results for the year and position at the year end, and for implementing appropriate internal control systems. The weaknesses or risks identified in this report are only those that have come to our attention during our normal audit work. Communication in this report of matters arising from the audit or of risks or weaknesses does not absolve management from its responsibility to address the issues raised and to maintain an adequate system of control. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance, including establishing and maintaining internal controls over the reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulations. As auditors, we obtain reasonable, but not absolute, assurance that the financial statements, as a whole, are free from material misstatement, whether caused by fraud or error. We would like to thank all management and staff for their co-operation and assistance during our audit. Auditor independence International Standards on Auditing in the UK (ISAs (UK)) require us to communicate on a timely basis all facts and matters that may have a bearing on our independence. We confirm that we complied with the Financial Reporting Council’s (FRC) Ethical Standard. In our professional judgement, we remained independent, and our objectivity has not been compromised in any way. We set out in Appendix 1 our assessment and confirmation of independence. Adding value All of our clients quite rightly demand of us a positive contribution to meeting their ever- changing business needs. We add value by being constructive and forward looking, by Page 257 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 6 of 27 www.azets.co.uk PUBLIC identifying areas of improvement and by recommending and encouraging good practice. In this way we aim to promote improved standards of governance, better management and decision making and more effective use of public money. Any comments you may have on the service we provide would be greatly appreciated. Comments can be reported directly to any member of your audit team or to Audit Scotland. Openness and transparency This report will be published on Audit Scotland’s website www.audit-scotland.gov.uk. Page 258 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 7 of 27 www.azets.co.uk PUBLIC Financial statements audit Under International Standards on Auditing (UK) and the Code of Audit Practice approved by the Accounts Commission for Scotland, we are required to report whether, in our opinion: • The financial statements give a true and fair view of the state of affairs of the Trust Fund as at 31 March 2026 and of its incoming resources and application of resources for the year then ended; • The financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; • The financial statements have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulation 8 of The Charities Accounts (Scotland) Regulations 2006; and • The information given in the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Charities SORP (FRS 102). We are also required to report on whether the other information included in the annual accounts (including the Trustees’ Annual Report) is materially consistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Our audit opinion Opinion Basis for opinion Conclusions Financial statements We conduct our audit in accordance with applicable law and International Standards on Auditing. Our findings / conclusions to inform our opinion are set out in this section of our annual audit report. The annual accounts are due to be considered by the Audit, Risk and Scrutiny Board on 21 September 2026 and approved upon completion of the audit. We intend to issue unqualified opinions in our independent auditor’s report. Page 259 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 8 of 27 www.azets.co.uk PUBLIC Opinion Basis for opinion Conclusions Going concern basis of accounting In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees intend to discontinue the charity's operations, or have no realistic alternative but to do so. We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Other information: Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except to the extent explicitly stated in the opinions prescribed by the Accounts Commission. We are required to consider whether the other information is materially inconsistent with the financial statements or with other knowledge obtained during the audit or otherwise appears materially misstated. We have nothing to report in this regard. Opinions prescribed by the Accounts Commission On the Trustees’ Annual Report We plan and perform audit procedures to gain assurance that information given in the Trustees' Annual Report is consistent with the financial statements and that report has been prepared in We have no matters to report. Page 260 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 9 of 27 www.azets.co.uk PUBLIC Opinion Basis for opinion Conclusions accordance with the Charities SORP (FRS 102). Matters reported by exception We are required to report on whether: • proper accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have no matters to report. An overview of the scope of our audit The scope of our audit was detailed in our External Audit Plan for the Renfrewshire Council, which was presented to the Audit, Risk and Scrutiny Board in March 2026. The plan explained that we follow a risk-based approach to audit planning that reflects our overall assessment of the relevant risks that apply to the Trust Fund. This ensures that our audit focuses on the areas of highest risk (the significant risk areas). Planning is a continuous process, and our audit plan is subject to review during the course of the audit to take account of developments that arise. In our audit, we test and examine information using sampling and other audit techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. This includes: • An evaluation of the Trust Fund’s internal control environment, including the IT systems and controls; and • Substantive testing on significant transactions and material account balances, including procedures outlined in this report in relation to our key audit risks. Page 261 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 10 of 27 www.azets.co.uk PUBLIC Quality indicators We have applied a suite of quality indicators to assess the reliability of the Trust’s financial reporting and response to the audit. Metric Grading (Mature / developing / significant improvement required) Commentary Quality and timeliness of draft financial statements Mature We received the unaudited financial statements in line with our agreed audit timetable. The financial statements were of a good standard. Revisions were provided promptly where required. Quality of working papers provided and adherence to timetable Mature We received supporting working papers in line with our audit timetable. These were also of a good standard. Further information was provided promptly where required. Timing and quality of key accounting judgements Mature We did not identify any issues with the timing and quality of key accounting judgements. Access to finance team and other key personnel Mature We received full access to the finance team and other key personnel throughout the audit. All audit queries and requests were responded to in a timely manner. Quality and timeliness of the Annual Accounts. As well as the quality and timeliness of supporting working papers for those statements. Mature We did not identify any issues with quality and timeliness of the audited part of the Annual Accounts. Page 262 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 11 of 27 www.azets.co.uk PUBLIC Metric Grading (Mature / developing / significant improvement required) Commentary Volume and magnitude of identified errors Mature We identified one error on audit which the Trust Fund agreed to adjust. Further details are set out in Appendix 2. There were no unadjusted misstatements. Significant risk areas and key audit matters Significant risks are defined by auditing standards as risks that, in the judgement of the auditor, require special audit consideration. In identifying risks, we consider the nature of the risk, the potential magnitude of misstatement, and its likelihood. Significant risks are those risks that have a higher risk of material misstatement. Audit procedures are designed to mitigate these risks. As required by the Code of Audit Practice and the planning guidance issued by Audit Scotland, we considered the significant risks for the audit that had the greatest effect on our audit strategy, the allocation of resources in the audit and directing the efforts of the audit team. These were defined as the ‘Key Audit Matters’ for the audit, as detailed in the tables below. Our audit procedures relating to these matters were designed in the context of our audit of the annual accounts as a whole, and not to express an opinion on individual balances, transactions or disclosures. We do not expect to modify our opinion on the Trust Fund’s annual accounts with respect to any of the risks described below. The table below summarises each significant risk and whether it reflects a fraud risk and/or Key Audit Matter. Detail behind each risk and the work undertaken is set out on the following pages. Page 263 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 12 of 27 www.azets.co.uk PUBLIC Risk area Financial statement / Assertion level risk Fraud risk Key Audit Matter Risk of material misstatement Outcome of work Management override of controls Financial statement Yes Yes Very High From our work we found no evidence of fraud or error through management override of controls. Significant risks at the financial statement level These risks are considered to have a pervasive impact on the financial statements as a whole and potentially affect many assertions for classes of transaction, account balances and disclosures. Risk area Management override of controls Significant risk description Management is in a unique position to perpetrate fraud because of their ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Although the level of risk of management override of controls will vary from entity to entity, the risk is nevertheless present in all entities. Due to the unpredictable way in which such override could occur, it is a risk of material misstatement due to fraud and thus a significant risk. This was considered to be a significant risk and Key Audit Matter for the audit. Risk of material misstatement: Very High Page 264 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 13 of 27 www.azets.co.uk PUBLIC Risk area Management override of controls How the scope of our audit responded to the significant risk Key judgement There is the potential for management to use their judgement to influence the financial statements as well as the potential to override controls for specific transactions. Audit procedures • Documented our understanding of the journals posting process and evaluated the design effectiveness of management controls over journals; • Analysed the journals listing for the year and determined the criteria for selecting high risk and/or unusual journals; • Tested high risk and/or unusual journals posted during the year and after the draft accounts stage back to supporting documentation for appropriateness and corroboration and to ensure approval had been undertaken in line with the Trust Fund’s journals policy; • Gained an understanding of the key accounting estimates and critical judgements made by management. We challenged key assumptions and considered for reasonableness and evaluated any indicators of bias which could result in material misstatement due to fraud; and • Evaluated the rationale for any changes made to accounting policies, estimates or significant unusual transactions. Key observations We have not identified any indication of management override of controls in the year. We did not identify any areas of bias in key judgements made by management and judgements were consistent with prior years. Page 265 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 14 of 27 www.azets.co.uk PUBLIC Materiality Materiality is an expression of the relative significance of a matter in the context of the financial statements as a whole. A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditor’s report. The assessment of what is material is a matter of professional judgement and is affected by our assessment of the risk profile of the Trust Fund and the needs of users. We reviewed our assessment of materiality throughout the audit. Whilst our audit procedures are designed to identify misstatements which are material to our audit opinion, we also report any uncorrected misstatements of lower value errors to the extent that our audit identifies these. Our initial assessment of materiality was £55,000. On receipt of the 2025/26 unaudited financial statements, we reassessed materiality and updated it from our initial assessment to £71,000. We consider that our updated assessment has remained appropriate throughout our audit. Materiality £ Overall materiality for the financial statements £71,000 Performance materiality (75% of materiality) £53,250 Trivial threshold £3,550 Materiality Our assessment is made with reference to the Trust Fund’s net assets. We consider this to be the principal consideration for users of the financial statements when assessing financial performance. Our assessment of materiality equates to approximately 3% of net assets as disclosed in the 2025/26 unaudited annual accounts. The financial statements are considered to be materially misstated where total errors exceed this value. Page 266 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 15 of 27 www.azets.co.uk PUBLIC Performance materiality 75% of materiality Performance materiality is the working level of materiality used throughout the audit. We use performance materiality to determine the nature, timing and extent of audit procedures carried out. We perform audit procedures on all transactions, or groups of transactions, and balances that exceed our performance materiality. This means that we perform a greater level of testing on the areas deemed to be at significant risk of material misstatement. Performance materiality is set at a value less than overall materiality for the financial statements as a whole to reduce to an appropriately low level the probability that the aggregate of the uncorrected and undetected misstatements exceed overall materiality. Trivial misstatements 5% of overall materiality Trivial misstatements are matters that are clearly inconsequential, whether taken individually or in aggregate and whether judged by any quantitative or qualitative criteria. Individual errors above this threshold are communicated to those charged with governance. We also consider whether any specific items of account require a separate, lower materiality. We have determined that no specific materiality levels needed to be set for this audit. Internal controls As part of our work we considered internal controls relevant to the preparation of the financial statements such that we were able to design appropriate audit procedures. Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify any control weaknesses, we report these at Appendix 3. These matters are limited to those which we have concluded are of sufficient importance to merit being reported. We did not identify any significant control weaknesses during our audit. Other communications We set out below details of other matters which we, as auditors, are required by auditing standards and the Code to communicate to those charged with governance. Page 267 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 16 of 27 www.azets.co.uk PUBLIC Matter Audit commentary and findings Significant matters on which there was disagreement with management There were no significant matters on which there was disagreement with management. Significant management judgements which required additional audit work and / or where there was disagreement over the judgement and / or where the judgement is significant enough that we are required to report it to those charged with governance before they consider their approval of the accounts There were no other significant management judgements which required additional audit work, where there was disagreement over the judgement or where the judgement is significant enough that requires reporting. Prior year adjustments identified At the time of writing this report, there were no prior year adjustments found by the audit team. However, there was restatement to the account identified by finance team including the following; • Restatement of Statement of Financial Activities -Expenditure relating to Trust Fund assets. This is a presentational issue only relating to how donation income has been applied to expenditure on capital assets and does not impact on the Total Funds held by the Trust. Concerns identified in the following: • Consultation by management with other accountants on accounting or auditing matters • Matters significant to the oversight of the financial reporting process • Adjustments / transactions identified as having been made to meet an agreed system position / target No concerns were identified in relation to these areas. Page 268 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 17 of 27 www.azets.co.uk PUBLIC Accounting policies Our work included a review of the adequacy of disclosures in the financial statements and the appropriateness of the accounting policies adopted by the Trust Fund. The accounting policies, which are disclosed in the financial statements are considered appropriate. The accounting policies used in preparing the financial statements are unchanged from the previous year. Key judgements and estimates As part of the planning stages of the audit, we identified the accounting estimates made by management and determined which of those are key to the overall financial statements. We reviewed the key estimates and judgements that management made in respect to the identified key accounting estimates for indication of bias and assessed whether the judgements used by management are reasonable. Presentation and disclosures There are no significant financial statements disclosures that we consider should be brought to your attention. All the disclosures required by relevant legislation and applicable accounting standards have been made appropriately. Fraud and suspected fraud We have previously discussed the risk of fraud with management and the Audit, Risk and Scrutiny Board. We have not been made aware of any incidents in the period. No issues have been identified during the course of our audit. Our work as auditor is not intended to identify any instances of fraud of a non-material nature and should not be relied upon for this purpose. Non-compliance with laws and regulations As part of our standard audit testing, we have reviewed the laws and regulations impacting the Trust Fund. There are no indications from this work of any significant incidences of non- compliance or material breaches of laws and regulations. You have not made us aware of any significant incidences of non-compliance with relevant laws and regulations. Written representations A letter of management representations has been requested from the Trust Fund. Related parties We are not aware of any related parties or related party transactions which have not been disclosed. Page 269 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 18 of 27 www.azets.co.uk PUBLIC Appendices Appendix 1: Responsibilities of Coats Observatory Trust Fund and Auditors 19 Appendix 2: Audit adjustments 23 Appendix 3: Action plan 25 Appendix 4: Follow up of prior year recommendations 26 Page 270 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 19 of 27 www.azets.co.uk PUBLIC Appendix 1: Responsibilities of the Trust Fund and the Auditor Responsibilities of the Trust The Trust Fund 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. The Director of Finance and Resources has been designated as that officer at the Trust Fund. They manage the affairs of the Trust Fund to secure the economic, efficient and effective use of resources and safeguard its assets. Area Trust’s responsibilities Corporate governance The Director of Finance and Resources has responsibility for ensuring that 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 detected within a timely period. The system of internal financial control is based on a framework of regular 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 that are up to date and 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 (SoRP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16 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). Financial statements and related reports The Trust Fund has responsibility for: • preparing financial statements which give a true and fair view of the financial position of the Trust Fund and its expenditure and income, in accordance with the applicable financial reporting framework and relevant legislation; and • maintaining accounting records and working papers that have been prepared to an acceptable professional standard and support the Page 271 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 20 of 27 www.azets.co.uk PUBLIC Area Trust’s responsibilities balances and transactions in its financial statements and related disclosures. Management is responsible, with the oversight of those charged with governance, for communicating relevant information to users about the Trust and its financial performance, including providing adequate disclosures in accordance with the applicable financial reporting framework. The relevant information should be communicated clearly and concisely. Standards of conduct for prevention and detection of fraud and error The Trustees are responsible for establishing arrangements to prevent and detect fraud, error and irregularities, bribery and corruption and also to ensure that its affairs are managed in accordance with proper standards of conduct. Auditor responsibilities Code of Audit Practice The Code of Audit Practice (the Code) describes the high-level, principles-based purpose and scope of public audit in Scotland. The Code outlines the responsibilities of external auditors and it is a condition of our appointment that we follow it. Our responsibilities Auditor responsibilities are derived from the Code, statute, International Standards on Auditing (UK) and the Ethical Standard for auditors, other professional requirements and best practice, and guidance from Audit Scotland. We act independently in carrying out our role and in exercising professional judgement. We report to the Audit, Risk and Scrutiny Board and others, including Audit Scotland, on the results of our audit work. Weaknesses or risks, including fraud and other irregularities, identified by auditors, are only those which come to our attention during our normal audit work in accordance with the Code and may not be all that exist. Page 272 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 21 of 27 www.azets.co.uk PUBLIC A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Audit quality The Auditor General and the Accounts Commission require assurance on the quality of public audit in Scotland through comprehensive audit quality arrangements that apply to all audit work and providers. These arrangements recognise the importance of audit quality to the Auditor General and the Accounts Commission and provide regular reporting on audit quality and performance. Audit Scotland maintains and delivers an Audit Quality Framework. The most recent audit quality report can be found at Quality of public audit in Scotland: Annual report 2025/26 | Audit Scotland Independence and ethics The Ethical Standards and ISA (UK) 260 require us to report full and fair disclosure of matters relating to our independence. In accordance with our profession’s ethical requirements and further to our audit plan issued confirming audit arrangements we confirm that there are no further facts or matters that impact on our integrity, objectivity and independence as auditors that we are required or wish to draw to your attention. Non-audit services: No non-audit services are provided to the Trust Fund. Contingent fees: No contingent fee arrangements are in place for any services provided. Gifts and hospitality: We have not identified any gifts or hospitality provided to, or received from, any member of the Trust Fund, senior management or staff and members of the audit team. Relationships: We have no other relationships with the Trust Fund, its directors, senior managers and affiliates, and we are not aware of any former partners or staff being employed, or holding discussions in anticipation of employment, as a director, or in a senior management role covering financial, accounting or control related areas. Our period of total uninterrupted appointment as at the end of 31 March 2026 was four years. Page 273 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 22 of 27 www.azets.co.uk PUBLIC Audit fees The total fees charged to the Trust Fund for the provision of services in 2025/26 were as follows. Prior year fees are also shown for comparative purposes: 2025/26 2024/25 Auditor remuneration (expected fee level) £6,760 £6,480 Total audit fee £6,760 £6,480 Page 274 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 23 of 27 www.azets.co.uk PUBLIC Appendix 2: Audit adjustments Adjusted misstatements Details of items corrected following discussions with management are as below. Current year audit adjustments No Detail Statement of Financial Activities Statement of Balances Dr / (Cr) Dr / (Cr) 1. To record the Trust fund audit fee this year of £6,760. Dr. Governance Costs: External Audit Fee Cr. Donation from Renfrewshire Council 6,760 (6,760) Net impact on reserves (restricted funds )– increase / (decrease) - - Total reserves (restricted funds) per the unaudited financial statements 2,368,664 2,368,664 Revised reserves (restricted funds) per the audited financial statements 2,368,664 2,368,664 Unadjusted misstatements We have not identified any unadjusted misstatements during our audit. Misclassification and disclosure changes Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the Trust Fund. We identified some presentational issues in the financial statements, and these have all been amended by management. Details of all disclosure changes amended by management following discussions are as below. Page 275 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 24 of 27 www.azets.co.uk PUBLIC Adjusted No Detail 1. Minor presentational, formatting and disclosure issues. We proposed a number of minor changes and narrative amendments to improve the presentation of the accounts. 2. To disclose a restatement note to explain the changes being made to the prior year comparative figure. 3. To update note 2 Analysis of income/expenditure to better reflect the transactions occurring in the year. 4. To disclose auditor’s remuneration. Unadjusted We have not identified any unadjusted misclassification and disclosure changes to report. Prior year unadjusted misstatements There were no prior year unadjusted misstatements reported in the prior year audit. Page 276 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 25 of 27 www.azets.co.uk PUBLIC Appendix 3: Action plan Our action plan details the weaknesses and opportunities for improvement that we have identified during our 2025/26 audit. The matters reported are limited to issues we have identified during the course of our audit which we feel are of sufficient importance to merit reporting to you under the auditing standards. The recommendations are categorised into three risk ratings: Key: 1. Significant deficiency 2. Other deficiency 3. Other observation We have not identified any control weaknesses that require reporting during the course of our audit work. Page 277 of 376
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 26 of 27 www.azets.co.uk PUBLIC Appendix 4: Follow up of prior year recommendations As part of our audit work we have followed up on control weaknesses and recommendations either raised in last year’s Annual Audit Report or carried forward from prior years. We confirm there were no recommendations raised in the prior year that required follow up in the current year audit. Page 278 of 376
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PUBLIC © Azets 2026. All rights reserved. Azets refers to Azets Audit Services Limited. Registered in England & Wales Registered No. 09652677. VAT Registration No. 219 0608 22. Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Moving forward with confidence info@azets.co.uk | azets.co.uk Page 279 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC My Ref: AM/CB Contact: Alastair MacArthur Telephone Number: 0300 300 0285 E Mail: alastair.macarthur@renfrewshire.gov.uk Azets Audit Services Quay 2 139 Fountainbridge Edinburgh EH3 9QG Dear Sirs Coats Observatory Trust Fund Financial Statements for the year ended 31 March 2026 This representation letter is provided for the purpose of expressing an opinion as to whether Coats Observatory Trust Fund’s (“The Trust Fund”) financial statements present a true and fair view, in all material respects, in accordance with applicable law and UK adopted international accounting standards, as interpreted and adapted by the Charities Statement of Recommended Practice (SORP). I confirm to the best of my knowledge and belief and having made appropriate enquiries of the Coats Observatory Trust Fund’s trustees, the following representations given to you in connection with your audit of Coats Observatory Trust Fund’s annual accounts for the year ended 31 March 2026. All representations are made to the best of our knowledge and belief. Financial Statements i. We have fulfilled our responsibilities as trustees under the 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, for the preparation of Coats Observatory Trust Fund’s financial statements in accordance with applicable law and UK adopted international accounting standards, as interpreted and adapted by the Charities Statement of Recommended Practice (SORP), for being satisfied that they give a true and fair view and for making accurate representations to you. ii. All the transactions undertaken by Coats Observatory Trust Fund have been properly reflected and recorded in the accounting records. iii. All the accounting records have been made available to you for the purpose of your audit. I have provided you with unrestricted access to all appropriate persons within the charity, and with all other records and related information requested, Page 280 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC including minutes of all management and trustee meetings and correspondence with the Office of the Scottish Charity Regulator. iv. The financial statements are free of material misstatements, including omissions. v. I have reviewed and approved all disclosures made in the financial statements and I am not aware of any other matters which require disclosure (See appendix 1 for details of such audit adjustments). vi. All prior year adjustments of which I am aware have been made to the financial statements and these are appropriately disclosed in the financial statements. (See appendix 1 for details of such adjustments). vii. I acknowledge my responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error, and I believe that I have appropriately fulfilled these responsibilities. viii. The Trust Fund has satisfactory title to all assets. The Trust Fund has no plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities as at 31 March 2026 reflected in the financial statements. ix. Except as disclosed in the financial statements: a. there are no unrecorded liabilities, actual or contingent; b. none of the assets of the Trust Fund has been assigned, pledged or mortgaged; c. there are no material prior year charges or credits, nor exceptional or non- recurring items requiring separate disclosure. x. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of applicable law and accounting standards. xi. All events subsequent to the date of the financial statements and which require adjustment or disclosure have been adjusted or disclosed. xii. Actual or possible litigation and claims have been accounted for and disclosed in accordance with the requirements of UK adopted international accounting standards, and as interpreted and adapted by the Charities SORP. xiii. I believe that the Trust Fund’s financial statements should be prepared on a going concern basis. I do not expect the Trust Fund to demise in its current organisational form. I believe that no further disclosures relating to the Trust Fund’s ability to continue as a going concern need to be made in the financial statements. Page 281 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC Information Provided xiv. I have provided you with: a. access to all information of which I am aware that is relevant to the preparation of the Trust Fund’s financial statements such as accounting records, and all other records requested; b. additional information that you have requested from us for the purpose of your audit; and c. unrestricted access to persons within the Trust Fund (via remote arrangements where necessary), from whom you determined it necessary to obtain audit evidence. xv. I have communicated to you all deficiencies in internal control of which management is aware. xvi. All transactions undertaken by the Trust Fund have been recorded in the accounting records and are properly reflected in the financial statements. xvii. I have disclosed to you the results of my assessment of the risk that the financial statements may be materially misstated as a result of fraud. xviii. I have disclosed to you all information in relation to known fraud or suspected fraud that I am aware of and that affects the Trust Fund and involves: a. management; b. employees who have significant roles in internal control; or c. others where the fraud could have a material effect on the financial statements. xix. I have disclosed to you all information in relation to instances of, or allegations of fraud, or suspected fraud, affecting the financial statements communicated by employees, former employees, analysts, regulators or others. xx. I have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. xxi. I have disclosed to you the identity of the Trust Fund’s related parties and all the related party relationships and transactions of which I am aware. xxii. I have disclosed to you all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. xxiii. I acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as I am aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. Page 282 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC Assets and liabilities xxiv. The Trust Fund has satisfactory title to all assets and there are no liens or encumbrances on the charity’s assets. xxv. All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate. xxvi. Where plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities, these are fully reflected in the financial statements. xxvii. I confirm that the valuation of the Observatory asset has been assessed for impairment and I am comfortable that the valuation remains appropriate as at 31st March 2026. The assets are currently undergoing refurbishment and will be revalued once the work is complete. Accounting estimates xxviii. The methods, data and significant assumptions used by us in making accounting estimates, including those measured at fair value, are appropriate to achieve recognition, measurement and disclosure that is reasonable in the context of the applicable financial reporting framework. I am satisfied that the material judgements used in the preparation of the financial statements are soundly based and adequately disclosed in the financial statements. Grants and donations xxix. All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such income. Approval I acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as I am aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. The approval of this letter of representation was minuted by the Audit, Risk and Scrutiny Board at its meeting on 21 September 2026. Yours faithfully Name: Alastair MacArthur Position: Director of Finance and Resources Date: Page 283 of 376
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC Appendix 1 Adjusted misstatements Current year audit adjustments No Detail Statement of Financial Activities Statement of Balances Dr / (Cr) Dr / (Cr) 1. To record the Trust fund audit fee this year of £6,760. Dr. Governance Costs: External Audit Fee Cr. Donation from Renfrewshire Council 6,760 (6,760) Net impact on reserves (restricted funds )– increase / (decrease) - - Total reserves (restricted funds) per the unaudited financial statements 2,368,664 2,368,664 Revised reserves (restricted funds) per the audited financial statements 2,368,664 2,368,664 Prior year adjustments • Restatement of Statement of Financial Activities -Expenditure relating to Trust Fund assets: Due to double accounting of expenditure. Page 284 of 376
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1 PUBLIC ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 21 September 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Audited Financial Statements 2025/26 – Coats Observatory Trust ___________________________________________________________________ 1. Summary 1.1 The 2025/26 unaudited financial statements were approved by Council on 22 June 2026. Each year the appointed external auditors carry out an audit of the financial statements of Coats Observatory Trust and provide an opinion as to whether those statements provide a true and fair view of the financial position of the charity and its income and expenditure for the year; and also whether they have been prepared in accordance with the relevant regulations. 1.2 The audited financial statements are now presented for noting and for recommendation to the Council that they be approved. 1.3 There was one audit adjustment made to the annual accounts over the course of the audit, along with other presentational and disclosure changes. These are detailed in Azets Annual Audit report, presented at agenda item 3. ___________________________________________________________________ 2. Recommendations 2.1 Members are requested to note the attached 2025/26 audited financial statements for the Coats Observatory Trust; and to recommend to Council that they be approved. Item 4 Page 285 of 376
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2 PUBLIC Implications of the Report 1. Financial – The 2025/26 Annual Accounts demonstrate the Council continues to manage the charity it controls within the resources available and in line with relevant legislation. 2. HR & Organisational Development – none directly arising from this report. 3. Community/Council Planning – none directly arising from this report. 4. Legal – An audit opinion free from qualification demonstrates compliance with the relevant legislation and statutory accounting requirements. 5. Property/Assets – none directly arising from this report. 6. Information Technology – none directly arising from this report. 7. Equality & Human Rights – none directly arising from this report. 8. Health & Safety – none directly arising from this report. 9. Procurement – none directly arising from this report. 10. Risk – none directly arising from this report. 11. Privacy Impact – none directly arising from this report. 12. Cosla Policy Position – none directly arising from this report. 13. Children’s Rights – none directly arising from this report. 14. Climate Risk – none directly arising from this report. ___________________________________________________________________ Author: Christine McCourt, Head of Finance and Procurement Page 286 of 376
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PUBLIC Appendix 3 RENFREWSHIRE COUNCIL COATS OBSERVATORY TRUST FUND SC019454 TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 1 APRIL 2025 to 31 MARCH 2026 Page 287 of 376
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PUBLIC Contents TRUSTEES’ REPORT .........................................................................1 INDEPENDENT AUDITOR’S REPORT ........................................................4 TRUST ACCOUNTS FINANCIAL STATEMENTS OVERVIEW ................................8 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2026 .....9 STATEMENT OF BALANCES AS AT 31 MARCH 2026 ................................... 10 NOTES TO THE FINANCIAL STATEMENTS ............................................... 11 Page 288 of 376
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Renfrewshire Council Coats Observatory Trust Fund Trustees’ Report P a g e | 1 PUBLIC 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 Quay 2 139 Fountainbridge Edinburgh EH3 9QG 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 2025/26 financial year: Page 289 of 376
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Renfrewshire Council Coats Observatory Trust Fund Trustees’ Report P a g e | 2 PUBLIC 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 Page 290 of 376
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Renfrewshire Council Coats Observatory Trust Fund Trustees’ Report P a g e | 3 PUBLIC framework of regular 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 291 of 376
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P a g e | 4 PUBLIC Independent auditor’s report to the trustees of Coats Observatory Trust Fund and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements We certify that we have audited the financial statements in the statement of accounts of Coats Observatory Trust Fund for the year ended 31 March 2026 under Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. The financial statements comprise the Statement of Financial Activities, Statement of Balances and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the charity as at 31 March 2026 and of its incoming resources and application of resources for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulation 8 of The Charities Accounts (Scotland) Regulations 2006. Basis for opinion We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern basis of accounting We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. Page 292 of 376
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P a g e | 5 PUBLIC Responsibilities of the trustees for the financial statements The trustees are responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees intend to discontinue the charity's operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using our understanding of the local government sector and charity sector to identify that the Local Government (Scotland) Act 1973, the Charities and Trustee Investment (Scotland) Act 2005, and The Charities Accounts (Scotland) Regulations 2006 are significant in the context of the charity; • inquiring of management and those charged with governance as to other laws or regulations that may be expected to have a fundamental effect on the operations of the charity; • inquiring of management and those charged with governance concerning the charity’s policies and procedures regarding compliance with the applicable legal and regulatory framework; • discussions among our audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and • considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the charity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, Page 293 of 376
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P a g e | 6 PUBLIC the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Reporting on other requirements Other information The trustees are responsible for the other information in the statement of accounts. The other information comprises the Trustees’ Annual Report. Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Trustees’ Annual Report to the extent explicitly stated in the following opinion prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Trustees’ Annual Report In our opinion, based on the work undertaken in the course of the audit, the information given in the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Charities SORP (FRS 102). Matters on which we are required to report by exception We are required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in our opinion: • proper accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Use of our report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Page 294 of 376
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P a g e | 7 PUBLIC Rebecca Lister, (for and on behalf of Azets Audit Services), Quay 2 139 Fountainbridge Edinburgh EH3 9QG Date: Azets Audit Services is eligible to act as an auditor in terms of Part VII of the Local Government (Scotland) Act 1973 Page 295 of 376
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 8 PUBLIC 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 296 of 376
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 9 PUBLIC Statement of Financial Activities for the year ended 31 March 2026 2024/25 2025/26 (restated) Total Note Unrestricted Restricted Total £ £ £ £ Income (352,221) Donations from Renfrewshire Council 2 0 (529,930) (529,930) Expenditure 0 Governance Costs: External Audit Fee 2 0 6,760 6,760 (352,221) (Surplus) / Deficit for period 0 (523,170) (523,170) Reconciliation of Funds (1,493,273) Total Funds brought forward 0 (1,845,494) (1,845,494) (1,845,494) Total Funds Carried Forward 0 (2,368,664) (2,368,664) Page 297 of 376
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 10 PUBLIC Statement of Balances as at 31 March 2026 As at 31 March 2025 As at 31 March 2026 Total Note Unrestricted Restricted Total £ £ £ £ Fixed Assets Assets Under Construction Buildings at Coats Observatory, Paisley 1,421,073 Opening balance 0 1,773,294 1,773,294 352,221 Additions 1 0 523,170 523,170 1,773,294 Closing balance 0 2,296,464 2,296,464 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 1,845,494 0 2,368,664 2,368,664 Represented By 1,845,494 Restricted Funds 0 2,368,664 2,368,664 1,845,494 0 2,368,664 2,368,664 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 298 of 376
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 11 PUBLIC Notes to the Financial Statements 1. Prior Year Restatement During the year it has been identified that a donated asset of £352,221 received in the prior year and applied towards the expenditure on capital assets had been incorrectly presented within the Statement of Financial Activities (SOFA). The donation was correctly recognised but the subsequent expenditure was presented as revenue expenditure within the SOFA. Therefore, the original treatment resulted in £0 movement in reserves within the SOFA despite reserves increasing by £352,221 in the Statement of Balances for the increase in the capital asset. The comparative figures have been restated to: • Remove the £352,221 from expenditure relating to Trust Assets; • Increase the surplus for the year by £352,221. There is no impact on the value of funds as the transaction had been correctly presented within the Statement of Balances. 2. Accounting Policies Introduction The Financial Statements for the year ended 31 March 2026 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 Page 299 of 376
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 12 PUBLIC 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. 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, anticipated to be during 2026/27. 3. Analysis of income/expenditure The refurbishment expenditure recorded as asset additions in the Statement of Balances is funded by Renfrewshire Council in the form of a grant within the Statement of Financial Activities. The value of the donation represents an estimate of in-year spend on the Paisley Museum Reimagined project Page 300 of 376
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 13 PUBLIC that relates directly to the refurbishment of the Coats Observatory and associated buildings. The spend was directly incurred by Renfrewshire Council and disclosed as a donation to the Trust. Renfrewshire Council is responsible for paying any fees incurred by the Trust. The only fee incurred by the Trust in 2025/26 was the external audit fee. The external audit fee has been recognised as an expense to the Trust, with the payment made by Renfrewshire Council recognised as a donation to the Trust. 2024/25 2025/26 Donations from Renfrewshire Council Total Total £ £ For the refurbishment of Trust assets 352,221 523,170 For the payment of external audit fee 0 6,760 Total Donated Income 352,221 529,930 4. 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 2025/26). 5. 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 2025/26. Page 301 of 376
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PUBLIC ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 21 September 2026 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Best Value: Asset Management Thematic Report ___________________________________________________________________ 1. Summary 1.1 As part of national best value audit arrangements, the Accounts Commission selects an additional thematic area to be considered by external audit teams each year as part of their overall audit programme. This year’s theme was identified as asset management, and our external audit team were asked to assess the Council’s performance in relation to 3 broad areas: Part 1 – To what extent does the council have a clear asset management strategy and plans that are affordable, align with its corporate objectives, the changing needs of its population, and net zero commitments? Part 2 –To what extent do the council’s governance and accountability arrangements support effective asset management? Part 3 – To what extent does the council have a robust approach to working with partners and communities in managing its assets? 1.2 The audit process in relation to this thematic area was conducted earlier in 2026, with a range of evidence and information provided to the Council’s external audit team. The final report outlining the findings from the thematic audit has now been provided to the Council, with an overall positive assessment of the Council’s approach to asset management. 1.3 Auditors note within the report specifically that the Council has continued to deliver a range of “major complex capital projects despite the external pressures” it has been required to manage. The report also notes that “The council works effectively with partners and communities to deliver its projects”. Item 5 Page 303 of 376
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PUBLIC 1.4 A small number of recommendations have been made by the audit team which relate to opportunities to strengthen and enhance existing practice. Further detail is provided within the body of the report and within the audit team’s report at Appendix 1. 1.5 Updates in relation to these recommendations will be monitored by the external audit team through the annual audit process and reported in next year’s annual audit report. Actions relating to the recommendations will also be included in the Council’s Corporate Improvement Plan, progress against which is reported to the Leadership Board on a six-monthly basis. 1.6 Recent progress in relation to broader asset management activities between 2021-2026 was reported to the Leadership Board in February 2026, with a new Corporate Asset Management Strategy 2026 to 20230 also approved at that time. 2 Recommendations 2.1 It is recommended that members of the Audit, Risk and Scrutiny Board: • Note the content of this report. 3 Background 3.1 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. 3.2 The Accounts Commission’s approach to Best Value involves reporting on individual local government bodies and thematically across the local government sector through performance reports. The Accounts Commission reports nationally on thematic aspects of local government bodies’ approaches to, and performance in, meeting their Best Value and community planning duties. Local government appointed auditors report locally on any such Best Value thematic work prescribed by the Accounts Commission. 3.3 For 2026, the Accounts Commission has directed auditors to report on how well councils are managing their assets. In carrying out the work, auditors have considered the following questions: • Part 1 – To what extent does the council have a clear asset management strategy and plans that are affordable, align with its corporate objectives, the changing needs of its population, and net zero commitments? • Part 2 –To what extent do the council’s governance and accountability arrangements support effective asset management? • Part 3 – To what extent does the council have a robust approach to working with partners and communities in managing its assets? Page 304 of 376
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PUBLIC 3.4 The audit work relating to this thematic area, was undertaken by Azets earlier in 2026. Officers provided evidence to the external audit team in relation to the key areas of focus, with the final report completed in August 2026 and attached as Appendix 1. 4. Best Value Thematic Report on Asset Management in Renfrewshire Council 4.1 The report prepared by the Council’s external audit team is positive, and provides an assessment of performance against the three key areas of focus being assessed through the thematic review of asset management. Each area is assessed against criteria agreed at a national level, with a red, amber, yellow or green rating allocated. 4.2 In summary, asset management arrangements in Renfrewshire have been allocated two “green” ratings and one “yellow” rating with a small number of recommendations made by the external audit team to support improvement. An overview of audit findings is provided within the following table: Area of focus Audit opinion To what extent does the council have a clear asset management strategy and plans that align with its corporate objectives, new ways of working, the changing needs of its population and net zero commitments? The council’s recent, fully integrated Corporate Asset Management Strategy provides a clear corporate framework for asset management. There is a strong link between assets, service delivery, financial sustainability and Net Zero, consistent with CIPFA guidance on integrated capital and asset planning. The Strategy supports the Council’s Net Zero by 2030 commitment by embedding decarbonisation, energy efficiency and low-carbon investment across buildings, fleet and service transformation, reinforced through robust governance and regional collaboration. The council demonstrates a clear understanding of both short- term budget pressures and long-term financial sustainability and explicitly links these to its ability to invest in, maintain and rationalise assets. Reporting on affordability could be further strengthened by including sensitivity analysis. To what extent do the council’s governance and accountability arrangements support effective asset management? The council has strong governance arrangements for asset management, with clear corporate oversight, integration with financial planning, and structures to allow effective member and officer scrutiny. Reporting is regular and transparent, and improving in quality, supported by robust risk management. The council has demonstrated the ability to deliver major strategic projects in the challenging post-COVID environment amid widespread cost, inflation and supply chain pressures. Performance has been especially strong in the delivery of housing projects. However, these pressures have continued to affect elements of the wider capital programme, contributing to recurring underspends and rephasing. This suggests there may be some scope to enhance budgets to better reflect spend profiling, particularly in non-housing projects. Page 305 of 376
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PUBLIC Over the past year, the council has improved reporting to members by providing greater detail on project variances in monitoring reports and making wider use of options considerations and recommendations. The asset performance is generally strong for operational buildings and with housing indicators available showing an improvement trend. To what extent does the council have a robust approach to working with partners and communities in managing its assets? The council demonstrates strong and well-established partnership working across regional, local and organisational levels, with clear alignment to strategic priorities such as net zero, infrastructure and economic growth. Collaboration with other councils and partners has enabled large- scale delivery, access to funding and shared risk, while internal joint working supports services sharing buildings and more efficient use of assets. Community engagement is extensive and embedded across major programmes, with structured processes and good transparency, including robust arrangements for community asset transfer. The council made use of co-design and co delivery approaches for some of its projects. The council has effective cross-service collaboration structures in place with senior management team as members of the key capital projects boards. 4.3 Three recommendations are outlined within the report which relate specifically to suggested improvements which could be undertaken to further strengthen existing reporting arrangements in relation to asset management. These are outlined in detail within Appendix 1 but include areas such enhancing capital forecasting and reporting arrangements, reporting of capital project milestones and information at the outset of projects on the consideration of potential financial risks such as inflation etc. 4.4 Elected members are asked to note that the recommendations and any related management actions will be added to our Corporate Improvement Plan, progress against which is reported to the Leadership Board every 6 months. The external audit team will also review progress and report on this through the Annual Audit report next year. ___________________________________________________________________ Implications of the Report 1. Financial – none 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 Page 306 of 376
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PUBLIC established within our Council Plan, particularly through the Living Our Values strategic priority. 4. Legal - none. 5. Property/Assets – the report relates to a thematic review of asset management arrangements in the Council, with related recommendations and actions to be added to the Corporate Improvement Plan 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. There are no particular aspects in relation to equalities and human rights which require to be flagged to the report, other than the positive assessment by auditors of the Council’s approach to engaging positively with communities on capital projects. 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- as part of the thematic review, the external audit team considered how current asset management arrangements support the Council’s commitment to Net Zero. __________________________________________________________________ List of Background Papers: none __________________________________________________________________ Author: Laura McIntyre, Head of Policy and Partnerships Page 307 of 376
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themat azets.co.uk How well councils are managing assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change Best Value thematic work in councils 2025-26 September 2026 Renfrewshire Council Page 308 of 376
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How well councils are managing assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change Best Value thematic work in councils 2025-26 Page 2 of 49 Table of Contents Introduction 3 Asset management planning 8 Governance and performance 17 Partnership working and community engagement 29 Appendix 1: Action plan 36 Appendix 2: Case study – Renfrewshire’s Learning Estate Strategy 39 Page 309 of 376
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How well councils are managing assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change Best Value thematic work in councils 2025-26 Page 3 of 49 Introduction Asset management directly impacts how councils provide services and achieve their own corporate priorities and longer-term financial sustainability. Limited capital budgets make it challenging for councils to maintain their existing assets and estates, invest in new assets and achieve net zero targets. The Code of Audit Practice sets out the requirements for Best Value audit work. This report covers the thematic aspect of the Best Value audit requirements. The Accounts Commission has directed auditors to report on how well councils are managing their assets. In carrying out the work, auditors have considered the following questions: • Part 1 – To what extent does the council have a clear asset management strategy and plans that are affordable, align with its corporate objectives, the changing needs of its population, and net zero commitments? • Part 2 –To what extent do the council’s governance and accountability arrangements support effective asset management? • Part 3 – To what extent does the council have a robust approach to working with partners and communities in managing its assets? An improvement action plan is included at Appendix 1 of this report. This sets out audit recommendations in key areas, and the council’s planned response including responsible officers and dates for implementation. The coverage of the work is in line with the expectations for council’s arrangements for the seven Best Value themes in the Local Government in Scotland Act 2003, Best Value Statutory Guidance 2020. Page 310 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 4 of 49 www.azets.co.uk To what extent does the council have a clear asset management strategy and plans that align with its corporate objectives, new ways of working, the changing needs of its population and net zero commitments? Auditor judgement Effective and appropriate arrangements are in place, with small improvements possible The council’s recent, fully integrated Corporate Asset Management Strategy provides a clear corporate framework for asset management. There is a strong link between assets, service delivery, financial sustainability and Net Zero, consistent with CIPFA guidance on integrated capital and asset planning. The Strategy supports the Council’s Net Zero by 2030 commitment by embedding decarbonisation, energy efficiency and low‑carbon investment across buildings, fleet and service transformation, reinforced through robust governance and regional collaboration. The Council demonstrates a clear understanding of both short-term budget pressures and long-term financial sustainability and explicitly links these to its ability to invest in, maintain and rationalise assets. Reporting on affordability could be further strengthened by including sensitivity analysis. Page 311 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 5 of 49 www.azets.co.uk To what extent do the council’s governance and accountability arrangements support effective asset management? Auditor judgement No major weaknesses in arrangements but scope for improvement exists The council has strong governance arrangements for asset management, with clear corporate oversight, integration with financial planning, and structures to allow effective member and officer scrutiny. Reporting is regular and transparent, and improving in quality, supported by robust risk management. The council has demonstrated the ability to deliver major strategic projects in the challenging post-COVID environment amid widespread cost, inflation and supply chain pressures. Performance has been especially strong in the delivery of housing projects. However, these pressures have continued to affect elements of the wider capital programme, contributing to recurring underspends and rephasing. This suggests there may be some scope to enhance budgets to better reflect spend profiling, particularly in non-housing projects. Over the past year, the council has improved reporting to members by providing greater detail on project variances in monitoring reports and making wider use of options considerations and recommendations. The asset performance is generally strong for operational buildings and with housing indicators available showing an improvement trend. Page 312 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 6 of 49 www.azets.co.uk To what extent does the council have a robust approach to working with partners and communities in managing its assets? Auditor judgement Effective and appropriate arrangements are in place, with small improvements possible The council demonstrates strong and well-established partnership working across regional, local and organisational levels, with clear alignment to strategic priorities such as net zero, infrastructure and economic growth. Collaboration with other councils and partners has enabled large-scale delivery, access to funding and shared risk, while internal joint working supports services sharing buildings and more efficient use of assets. Community engagement is extensive and embedded across major programmes, with structured processes and good transparency, including robust arrangements for community asset transfer. The council made use of co-design and co- delivery approaches for some of its projects. The council has effective cross-service collaboration structures in place with senior management team as members of the key capital projects boards. Page 313 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 7 of 49 www.azets.co.uk Definitions We use the following gradings to provide an overall assessment of the arrangements in place as they relate to the wider scope areas. The text provides a guide to the key criteria we use in the assessment, although not all of the criteria may exist in every case. There is a fundamental absence or failure of arrangements There is no evidence to support necessary improvement Substantial unmitigated risks affect achievement of corporate objectives. Arrangements are inadequate or ineffective Pace and depth of improvement is slow / needs to extend further Significant unmitigated risks affect the achievement of corporate objectives No major weaknesses in arrangements but scope for improvement exists Pace and depth of improvement are adequate Risks exist to the achievement of operational objectives Effective and appropriate arrangements are in place Pace and depth of improvement are effective Risks to the achievement of objectives are managed Page 314 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 8 of 49 www.azets.co.uk Asset management planning Councils’ capital programmes are a necessary component of modernising services to improve outcomes for local communities. Doing this successfully requires good strategic medium to long-term asset management and planning. The Accounts Commission’s Local government budgets 2025/26 briefing reported that capital funding for 2025/26 had increased but remained lower than in 2023/24 and that investing in new buildings and assets is increasingly expensive. Councils are relying on borrowing as the main source of funding for capital projects. In 2025/26, councils intend to borrow £3.13 billion, an increase from £2.67 billion in 2024/25. The Corporate Asset Management Strategy The council’s Leadership Board approved its Corporate Asset Management Strategy (CAMS) 2026-30 in February 2026. It is the first fully integrated corporate asset management strategy created for the Council. The Strategy sets out how Renfrewshire Council will plan, manage, invest in, and use its assets to support service delivery, financial sustainability, organisational transformation and the Council’s Net Zero ambitions. The Strategy has the following objectives. These objectives collectively provide a clear framework to ensure the Council’s assets are used effectively and sustainably to meet current and future needs. Exhibit 1: The strategic objectives Source: The Corporate Asset Management Strategy 2026-30 Page 315 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 9 of 49 www.azets.co.uk The strategy applies across a wide range of asset groups presented below. Exhibit 2: Assets managed Type Number of assets/length Value Public buildings, including Cultural Assets 213 £590m Commercial buildings 232 £11m Open spaces 264 £9m Roads Footways Bridges & Structures Other infrastructure* 871km 1,141km 316 £355m Fleet 297 £6m Housing 13,787 £846m ICT assets 21,948 £7m (*) Value includes street signs, furniture and lighting, traffic signals and car parks Source: The Corporate Asset Management Strategy 2026-30 Strategic and operational aims For each asset class, CAMS sets the strategic direction rather than detailed delivery plans: • Property: maintain safe, compliant buildings, reduce and rationalise the estate, and modernise assets to support new ways of working. • Open space: protect and improve parks and play areas, supporting wellbeing and climate resilience. • Roads and infrastructure: deliver sustained investment, with a focus on condition, safety and active travel. • Fleet: transition to a fully decarbonised fleet by 2030. • Housing assets: deliver large-scale investment in quality, energy-efficient council housing through the Housing Asset Management Strategy. • ICT: strengthen digital infrastructure and data to support decision-making and asset performance management. Corporate objectives CAMS is aligned to the Council Plan, with investment and decision-making shaped around the Corporate Plan’s strategic themes. Corporate Plan theme CAMS alignment Place The Strategy supports it by taking a whole-place, data-led approach to modernising the estate, ensuring communities have Page 316 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 10 of 49 www.azets.co.uk access to high-quality, safe and welcoming buildings that strengthen local identity and resilience. Economy CAMS aligns with it priority by enabling productive, modern workspaces, supporting employability and skills activity, and ensuring assets contribute to inclusive economic growth through programmes such as the Learning Estate Strategy and the regeneration of community facilities. Through significant investment in roads and wider infrastructure this further supports connectivity and access to good quality roads and infrastructure, including new strategic connections into Renfrewshire, for business, residents and visitors. Fair The strategy also reflects the objective, with a commitment to tackling inequalities by prioritising investment in areas of greatest need and ensuring buildings are accessible, inclusive and designed to support vulnerable groups and reduce barriers to participation. Green A strong emphasis on sustainability means the strategy directly advances the theme, embedding net-zero principles into capital planning, lifecycle maintenance and major programmes such as the Housing Energy Standard and the modernisation of public buildings. Living Our Values The principles are embedded through transparent governance, digital transformation, robust engagement processes, and partnership working - including structured community engagement and community asset transfer processes that empower residents and build trust. Improving Outcomes for Children and Families Finally, the strategy makes a significant contribution to, with the long-term Learning Estate Strategy ensuring that children learn in safe, modern, digitally enabled and energy-efficient schools that support attainment, inclusion and wellbeing. CAMS explicitly states that it underpins the Council Plan, Capital Programmes, Learning Estate Strategy, Housing Asset Management Strategy, Commercial Property Review and Plan for Net Zero. The Strategy also aligns with the medium-term financial plan and capital strategies, confirming this holistic approach, centred around aligning corporate objectives to asset strategy. Population needs and new ways of working A key principle of the strategy is delivering services “in the right ways and in the right places”, ensuring assets support locality‑based working and are located where demand is greatest. Page 317 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 11 of 49 www.azets.co.uk This moves the focus away from maintaining under‑used or poorly located buildings and towards better‑targeted, more flexible assets that respond to different community needs. The strategy aligns investment with core population priorities, particularly housing, education, wellbeing and mobility. Large‑scale housing investment addresses demand for affordable, high‑quality and energy‑efficient homes, while learning estate investment reflects changing school‑age populations. Investment in parks, play areas, open spaces and active travel supports physical and mental wellbeing across all age groups and helps create inclusive, liveable communities. The Strategy recognises that Renfrewshire’s population is changing and that the Council’s assets must adapt to reflect how communities live, age and access services. CAMS also emphasises community involvement, committing to work with communities to shape asset use and, where appropriate, pursue community asset transfer to add local value. While detailed demographic analysis sits mainly in supporting strategies, CAMS provides a flexible, high level data‑led framework that ensures population needs remains a key driver of asset planning and investment over time. The asset management strategy contains a section titled ‘Consultation and Engagement’ that details the council’s initiatives to strike up collaboration with key stakeholders to ensure that decisions about its assets meet the needs of the communities they serve. Recent consultation exercises include: • Participatory Budgeting used to empower residents to directly decide how a portion of public funds is spent, aiming to allocate 1% of the budget this way to improve local communities. • Residents Survey - the Council undertook research with Renfrewshire residents in summer 2025 to measure residents’ views on council services and help inform future decision making. • Annual rent consultation exercise with council tenants, which helps inform the housing investment programme. • The new Paisley Grammar School Community Campus, set to open in August 2026 on Renfrew Road, was developed through extensive consultations with pupils, staff, and the community, featuring "design charettes" to incorporate their input. • Community Asset Transfer Strategy consultations. The Strategy links to the new ways of working and the opportunities that have emerged, particularly since the pandemic, including consolidating assets by bringing more Council staff into core buildings, such as the move from Abbey House to HQ, and also utilising space within HQ to rent out to partners, for example, Scotland Excel. More recently the Council brought Renfrewshire Joint Valuation Board into HQ, again allowing to declare the Robertson Centre surplus to requirements and market it for sale which it was sold last year and is fully Page 318 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 12 of 49 www.azets.co.uk occupied. The Council have operational and strategic groups overseeing these processes and considerations. Net zero commitments CAMS supports Renfrewshire Council’s net zero by 2030 commitment by embedding carbon reduction into how assets are planned, invested in and managed. It recognises that buildings, infrastructure and fleet are major sources of emissions and treats asset management as a key tool for climate action. The Strategy prioritises low-carbon investment, directing funding towards improving energy-inefficient assets, reducing demand through fabric improvements, and supporting the transition away from fossil-fuel heating. This approach cuts emissions while reducing long-term operating costs and exposure to energy price volatility. It also links asset decisions to service transformation, enabling fewer, better-used assets through digital delivery and new ways of working, which reduces overall energy consumption. Climate performance is embedded within governance and reporting arrangements, ensuring progress toward net zero is monitored, scrutinised and continuously improved. The council has a Net Zero Collaboration Group in association with other similar local government bodies. This project recognises that across different councils they share many similar types of properties, schools and council homes and that by sharing data with regional partner local authorities Renfrewshire Council can build up a clearer picture of the cost of improving the whole portfolio. The buildings account for the majority of the Council’s organisational emissions, and the Council has therefore prioritised targeted decarbonisation projects across its estate, including expansion of building management system, solar PV installation, and development of district heating networks such as at AMIDS, which will deliver over a 95% carbon reduction across its lifecycle. The Council’s asset strategy also embeds energy efficiency and sustainable heat planning, supported by Local Heat and Energy Efficiency Strategy (LHEES) work and emerging clean heat business cases. Case study: The council points to their sector-leading regional collaborative work with HubWest Scotland on the Net Zero collaboration group which is a good example of looking wider than Renfrewshire and maximising the use of resources as the Council share the resource pressure to technically scope retrofit works across a range of archetype models. This project recognises that across Councils they share many similar type of properties, schools, Council homes and that by sharing data with regional partner local authorities they can build up a clearer picture of the cost of improving the whole portfolio. Page 319 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 13 of 49 www.azets.co.uk Other key activities in this area include a new fleet strategy which has a close alignment with net zero commitments; the Housing Asset Management Strategy makes Net Zero a core organising principle and aligning all investment decisions with upcoming statutory requirements such as the Scottish Social Housing Net Zero Standard and the Council’s Local Heat & Energy Efficiency Strategy (LHEES); transition its fleet towards low-emission and alternative-fuel vehicles. Strategy implementation The council supports the strategy framework via asset management and capital plans which include specific actions, timescales and costs. There is a link between the council’s asset management plans/capital programmes and long-term estate planning. Non-housing plans Renfrewshire Council has an asset management framework, supported by a 10-year rolling Non-Housing Capital Investment Programme and an approved Corporate Asset Strategy. The capital plan sets out long-term investment in the Council’s estate and infrastructure and is explicitly aligned with strategic priorities, including lifecycle maintenance, the Learning Estate Strategy, City Deal programmes, and climate objectives. The Council has adopted a financial planning principle that capital grant is directed first to lifecycle maintenance to protect existing assets. The Capital Strategy confirms that investment decisions follow structured governance including option appraisal, asset management planning and affordability testing in line with the Prudential Code. As noted above, the Council has also undertaken a Strategic Property Review to determine the optimum size and sustainability of the estate, ensuring future capital plans reflect operational needs, carbon reduction ambitions, and statutory compliance requirements. Renfrewshire Council is enhancing biodiversity through a landscape‑scale approach that strengthens parks, woodlands, nature reserves and habitats, creating connected green and blue networks that support nature recovery and climate resilience. The Biodiversity Action Plan restores habitats such as wetlands and peatlands and promotes community involvement in managing greenspaces. Community groups and volunteers play an active role through conservation, monitoring and citizen science, supported by the People Power priority. Additionally, £350,000 from the Nature Restoration Fund is tackling invasive species along riverbanks, restoring river habitats while reducing flooding risk, soil erosion and carbon emissions in support of Net Zero. Housing Renfrewshire’s Strategic Housing Investment Plan 2026 to 2031 sets out a development programme of affordable housing projects across Renfrewshire that will be supported by Scottish Government funding through the Affordable Housing Supply Programme. Page 320 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 14 of 49 www.azets.co.uk The Housing Asset Management Strategy (2025–2030) provides a framework for how the Council manages, maintains and invests in its housing assets, ensuring decisions are based on stock condition data, regulatory standards and long‑term sustainability. The Housing Capital Programme 2026/27 to 2030/31 reflects the strategic priorities, with over £337 million of investment planned over the life of the plan, including £174m for existing homes, £104m for regeneration and renewal, and £30m for new supply out with regeneration areas. Investment decisions follow structured governance including option appraisal, asset management planning and affordability testing in line with the Prudential Code. Affordability considerations The council has considered the affordability of its capital programme and asset management plans. The council can demonstrate a clear and structured approach towards affordability through its asset management strategies and plans, combined with proposed future capital budgets. The Revenue Budget for 2026/27 provides background information highlighting the challenging financial environment in which the council operates. Supporting figures and analysis of current economic conditions are provided to ensure the council’s focus on delivering asset-related investment in a sustainable, efficient manner, in sync with medium term affordability. Affordability is included in the way the Council finances large-scale asset programmes. For example, the Council has built in a recurring £5.5m revenue contribution into the base budget to support delivery of the Learning Estate Strategy, ensuring long-term capital investment is fully linked to revenue affordability. The council policy is that any new commitments should be supported by offsetting sustainable savings or increased resources, ensuring affordability is built into decision making from the outset. The Council considers its debt to expenditure levels on a regular basis via capital plans and treasury management reports. Renfrewshire Council has one of the lowest debt to spend ratios in Scotland, the ratio of financing costs to net revenue stream (general fund) was 2.9% for 2024/25 versus the Scottish council average of 6%. The Council further shows good practice through recognition of lifecycle maintenance as a recurring requirement, with additional funding allocated to address historic under-investment and rising costs. This supports a move towards a steady, planned approach to asset upkeep rather than reactive or piecemeal intervention. The Learning Estate Strategy in particular illustrates strong affordability discipline, with phased delivery aligned to the capital programme and the development of a long-term funding model that considers borrowing, receipts and lifecycle costs together. As a landlord, the Council also manages affordability through the Housing Revenue Account, using a multi-year rent strategy, tenant consultation and participatory budgeting to balance tenant affordability with long-term investment needs. In digital assets, strategic choices such as a “buy not build” approach have reduced costs which improved services resilience. The Page 321 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 15 of 49 www.azets.co.uk Council shows a good understanding of both short-term budget pressures and longer-term financial sustainability, and links these to its ability to invest in, maintain and rationalise assets. Overall, this reflects a sound and considered approach to affordability, which is treated as an important strategic factor influencing the scale, timing, delivery and prioritisation of assets. Recommendation: The council’s reporting on affordability of capital projects and asset management should consider providing additional scenario/risk analysis to show the impact of changes in inflation and interest rates or the impact of changes in demand for services, to provide users of the report with a greater understanding of the potential consequences factors out with the council’s control could bring. Building safety risks arrangements The council has a plan in place for monitoring and addressing significant building risks identified. Last year the council agreed a Housing Landlord Compliance Strategy for 2025- 2028, which focused on 6 key areas of compliance for social landlords to adhere to (gas safety, electrical safety, fire safety, lift safety, asbestos management and water safety). These compliance policies will ensure that buildings are managed in an appropriate manner to ensure the safety of all users of the relevant buildings, mitigating both short- and long-term risks. The council report bi-annually on housing landlord compliance (most recently in May 2026) and in this process, 26 KPI’s were identified relating to the six areas of compliance, with 22 out of 26 KPIs showing 99% compliance. From this we can conclude that the policies in place are having a positive impact, with the other KPI’s with lower compliance levels being highlighted and actioned for improvement, showing that a plan to address those is in place. Facilities and Property Services are carrying out updated condition surveys of the public building portfolio, with priority given to the Learning Estate to support statutory Core Facts reporting. Schools assessed as Category C (Poor – Showing major defects and/or not operating adequately) are being targeted for review and investment. The survey results will inform the lifecycle maintenance programme, support decisions on property rationalisation, and feed into short- medium and long-term asset planning. In parallel, as set out in the Housing Asset Management Strategy, the Council is undertaking Single Building Assessments for all multi-storey blocks to PAS 9980 standards, focusing on fire safety and external wall systems. Funded by the Scottish Government, this work will inform the multi-storey investment programme, ensuring any required safety or cladding remediation is clearly identified and planned for. The council has focused on actions designed to eliminate the risk of the presence of RAAC in used buildings. Significant works have been undertaken by Facilities and Property Services to Page 322 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 16 of 49 www.azets.co.uk review the council’s portfolio of buildings to identify any RAAC. Where any buildings are found to have RAAC, property services work in conjunction with engineering consultants to come up with the most appropriate solution, with safety being the priority, this recently took place for the Castlehead High School gym area (this was the only building where RAAC was identified in the most recent report). Page 323 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 17 of 49 www.azets.co.uk Governance and performance It is essential that the council has effective governance arrangements in place to enable transparency, oversight and scrutiny of progress with implementing its capital programme and asset management strategy. This enables better-informed decision making and corrective action where needed. Governance arrangements The Corporate Asset Management Strategy provides a single, corporate governance framework for the planning, management and investment of all Renfrewshire Council assets. CAMS is integrated with the Council’s capital investment programmes and medium-term financial planning arrangements. Asset investment proposals are developed and approved through established capital governance routes, ensuring affordability, deliverability and alignment with revenue budgets are considered before commitments are made. The strategy provides a corporate framework within which asset-specific strategies (such as Learning Estate, Housing Asset Management, Property, Fleet and ICT) operate, each with their own governance, reporting and approval mechanisms. CAMS brings these together to provide a consistent and coordinated approach. Overall strategic responsibility for asset management sits corporately, with the Council, and specifically with its Leadership Board, ensuring asset management is treated as a cross-cutting organisational function rather than a service-specific activity. This reinforces accountability at the Member level and ensures that asset decisions support the Council Plan, Net Zero commitments, service transformation and financial sustainability. Elected Members via Policy Boards provide democratic oversight of asset-related strategies, capital programmes and major investment decisions within their remit. This allows scrutiny, challenge and alignment with local priorities. Page 324 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 18 of 49 www.azets.co.uk Exhibit 4: Member level governance structure Source: The Corporate Asset Management Strategy 2026-30 The Council officer level oversight is led by the Corporate Management Team and the Asset Management Oversight Group. Additional, specialised governance arrangements are in place for key asset areas, including the Housing Asset and Investment Programme Board, Housing Regeneration Programme Board and the Learning Estate Programme Board support robust decision making, scrutiny and accountability. Page 325 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 19 of 49 www.azets.co.uk Exhibit 5: management oversight structure (CMT – Corporate Management Team) Source: Council internal documentation Performance monitoring and reporting Monitoring arrangements Performance in relation to asset management is monitored through: • At a member level, every Board cycle there is an update on the Capital Programme. All the operational update reports also cover progress against asset management plans. • Regular reporting to relevant Policy Boards (Communities and Housing Policy Board; Finance, Resources and Customer Services Policy Board; Infrastructure Land and Environment Policy Board). With the largest projects including the Learning Estate and City Deal where the reporting tends to be more detailed allowing better scrutiny. • Operational update reports are provided regularly to policy boards which cover investment programmes across all asset classes. • Service update reports and service improvement plans. • Programme-specific governance arrangements for major investment programmes. This enables progress, risks and emerging issues to be identified and addressed in a timely and transparent way. Future corporate progress updates on CAMS will be presented to the Leadership Board, supporting an integrated view of asset performance across the organisation. Additional, specialised governance arrangements are in place for key asset areas, including the Housing Asset and Investment Programme Board, Housing Regeneration Programme Board and the Learning Estate Programme Board. Page 326 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 20 of 49 www.azets.co.uk The full Council approves its capital programmes in February every year and then receives another report update in May on any changes voted when setting up the budget. A high level update is also presented to the Council at its September meeting as a part of Financial Outlook and Medium-Term Financial Plan consideration. The key council committee monitoring the capital expenditure is Finance, Resources and Customer Services Policy Board which considers revenue and capital budget monitoring reports on capital projects on a quarterly basis. These contain information on housing and non-housing projects progress, with details of changes to the capital programme and reasons for those, prudential indicators which include forecast expenditure and implications. Our review of the reports presented to the Council shows that the quality of those have improved over recent years. In addition, the Council maintains other resources that are available, such as the ‘How we are doing’ interactive story map which allows viewers to review Council performance within the LGBF using a PowerBI dashboard, which includes national comparisons and time series performance information, aid in public transparency regarding the council’s active progress on projects. Recommendation: Individual projects are reported to individual thematic council Boards and include details of performance against the budget in monetary terms and explanations of any in-year adjustments. These reports could be further strengthen by including timelines for each individual project which would allow more focused scrutiny. Risk management and assurance Asset-related risks are formally identified and managed through the corporate risk management framework. Key risks are recorded in the corporate risk register and reported through the Council’s established audit and scrutiny arrangements, including updates to the Audit, Risk and Scrutiny Board. This ensures that condition, compliance, climate and financial risks associated with the asset base are actively monitored and mitigated. The council has appropriate leadership arrangements in place for its capital programme and asset management strategy. Every board cycle the capital programme is updated, to reflect all operational update reports and track progress towards asset management plans. In terms of the overall Asset Management Strategy, corporate oversight is provided by the Council, Leadership Board, and relevant Policy Boards. Officer coordination is led by the Corporate Management Team and the Asset Management Oversight Group. Delivery of the asset management plans and capital programme The Council has had an ambitious rolling capital programme in place which historically covered periods of five years for both housing and non-housing programmes. The most Page 327 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 21 of 49 www.azets.co.uk recent capital programme approved in February 2026 totals to £832million. It consists of capital spend of £495million for non-housing projects to be delivered over 10 years and £337 million for housing projects to be delivered over 5 years. Exhibit 6: Rolling capital budgets Approved in Period Non housing budget (£m) Housing budget (£m) Total budget (£m) 2022 5 years 437.2 242.7 679.9 2023 5 years 424.3 270.9 695.2 2024 5 years 450.4 281.3 731.7 2025 5 years 286.2 292.4 578.6 2026 10/5 years * 494.5* 337.3 831.8* (*) Non-housing budget moved to 10-year cycle and housing remained at 5-year cycle. Source: Council’s capital programmes 2021/22 delivery of the capital plan had been significantly impacted by COVID-19 and relating construction and wider market factors. Over the next three years that followed the Council has been able to deliver c. £120m of capital expenditure every year which was consistently below the initial capital budgets approved. A high-level analysis is presented below. Exhibit 7: Capital programme performance Year Initial budget (£m) Actual spend (£m) (Under)/ overspend (£m) (Under)/ overspend (£m) 2021/22 £136m £82m (£54m) (40%) 2022/23 £161m £119m (£42m) (25%) 2023/24 £176m £125m (£51m) (29%) 2024/25 £183m 120m (£63m) (34%) Source: Council’s capital programmes, Council’s Annual accounts, Azets Annual Audit Reports The Council has consistently reported variances between the initial capital budget and actual expenditure. The Council's capital programme is being delivered in a challenging financial and operational environment. Increasing asset maintenance requirements, construction cost inflation and wider market pressures are affecting the affordability and delivery of projects. The programme also includes a number of complex, large-scale regeneration and infrastructure projects, which require significant coordination, external funding and long- term planning. Like many councils, Renfrewshire continues to manage the legacy impacts of the COVID-19 pandemic, including project delays, supply chain disruption and increased costs. The Council must also balance investment in existing assets with emerging priorities such as decarbonisation, climate change adaptation and net-zero commitments. Funding uncertainty, including reductions in capital grant funding and limited opportunities to generate capital receipts, has increased reliance on borrowing and external funding. In Page 328 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 22 of 49 www.azets.co.uk response, the Council has adopted a longer-term approach to capital planning, with an emphasis on affordability, prioritisation, partnership working and securing external investment to support delivery while maintaining financial sustainability A number of significant projects, including Paisley Museum, Paisley Town Hall and Paisley Town Centre initiatives, have been reprofiled and expenditure deferred into future years. As a result, the variances do not necessarily represent cancelled or abandoned investment, but instead reflect a combination of project rephasing and delays to planned expenditure. However, the recurring nature of these variances indicates that the initial capital programme may not consistently reflect the timing of project delivery. This creates a risk that approved budgets overstate the level of expenditure expected to be delivered within a financial year, reducing transparency over the extent to which investment is progressing as originally planned. While the Council updates and reprofiles its capital programme during the year, the information presented does not always make it sufficiently clear whether variances arise from genuine underspends, changes to project delivery timescales, or revised project scopes. This limits the ability of members and other stakeholders to scrutinise capital programme performance and assess the realism of initial budget assumptions. The trend is more evident within the non-housing capital programme, whereas housing- related projects have generally been delivered broadly in line with planned expenditure. Given the scale and complexity of the Council's ongoing capital investment programme, maintaining robust forecasting, timely rephasing of budgets and transparent reporting of delivery milestones will remain important. Recommendation: The Council should review whether further enhancement can be made to capital forecasting and reporting arrangements. In particular, it should consider strengthening the distinction in reporting between genuine underspends, project rephasing and changes in project scope. These improvements would enhance the transparency and reliability of capital programme reporting, support more effective member scrutiny and provide greater assurance that annual budgets reflect realistic expectations of project delivery. Major recent capital projects The Council's capital programme is being delivered in a challenging financial and operational environment. While significant investment continues across infrastructure, regeneration and public assets, increasing demands on the asset base and wider economic conditions are placing pressure on available resources. The Council reports that asset lifecycle maintenance requirements remain substantial, with ongoing investment needed to maintain the condition, Page 329 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 23 of 49 www.azets.co.uk safety and functionality of existing assets. At the same time, construction cost inflation and market pressures continue to affect the affordability and delivery of capital projects. The Council also faces the need to balance investment in existing assets with emerging priorities, including decarbonisation, climate change adaptation and wider net-zero commitments. These requirements are increasing demand for capital investment and influencing the prioritisation of projects within the programme. Funding uncertainty remains a key external factor. The Council notes reductions in capital grant funding and uncertainty over the allocation of some national funding streams, requiring ongoing review of investment plans. In addition, opportunities to generate capital receipts from asset disposals are limited, increasing reliance on borrowing and external funding to support delivery of the programme. In response to these pressures, the Council has adopted a longer-term approach to capital planning and continues to place emphasis on affordability, external funding opportunities, partnership working and the prioritisation of investment. This is intended to support delivery of key projects while managing financial sustainability and maintaining flexibility to respond to changing circumstances. Despite the context and difficult environment outlined above, Renfrewshire council has been able to deliver a number of key capital projects in the last few years. For example, opening of the Renfrew Bridge and the £104m cultural infrastructure programme which included major renovations to the Paisley Town Hall and Arts Centre, along with a new Paisley Library and Learning Hub. The other three key group of projects include Advanced Manufacturing Innovation District (AMIDS), Learning Estate development and Digital projects. AMIDS is Scotland's home of manufacturing innovation. The development was a collaborative project, led by Renfrewshire Council and also focused on a net zero future. Developing the district is bringing skilled jobs, training and opportunities to Renfrewshire, bolstering manufacturing sector in Renfrewshire which provides more than 8,000 jobs - around 10% of total jobs in the area. The Council also received £38.7m Levelling Up Funding to support the AMIDS South Link between AMIDS and Paisley, improving links between Paisley and the AMIDS site. Netherton is a new development on land between the White Cart river and Glasgow Airport. It is home to two new world-class innovation centres - the National Manufacturing Institute Scotland (NMIS) and the Medicines Manufacturing Innovation Centre. Facilities based here benefit from a state-of-the-art low carbon District Heating Network supplying heat and hot water 90% greener than a gas boiler. Page 330 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 24 of 49 www.azets.co.uk Funding through the Glasgow City Region City Deal has allowed the Council to jointly fund and deliver the enabling infrastructure, better connecting AMIDS to nearby commercial centres and enhancing walking and cycling provision. Further City Deal funding is creating improved connections between the district and the wider Glasgow City Region through delivery of the first opening road bridge over the River Clyde at Renfrew. The new bridge is operational, bringing a new vital transport link to Renfrewshire. Renfrewshire Council’s Learning Estate Strategy sets out a comprehensive, long-term plan to modernise its school infrastructure and ensure all children learn in high-quality environments. Developed in 2024, the strategy is grounded in evidence-based assessment of all schools using condition, suitability, sufficiency, and deprivation metrics. This analysis revealed an inconsistent estate, with some modern facilities alongside ageing, underused buildings, and highlighted declining pupil rolls leading to significant overcapacity. As a result, the Council adopted a whole-estate approach focused on transformation rather than piecemeal repairs. Central to delivery is a structured four-stage business case framework aligned to HM Treasury principles, ensuring transparency, accountability, and best value. Schools were prioritised based on objective criteria, with initial projects targeting those facing the greatest challenges. Engagement with stakeholders has been embedded throughout, ensuring community views shape proposals from the outset. The strategy promotes consolidation, new builds, and better use of existing high-quality assets to address inefficiencies and improve educational outcomes. Robust governance arrangements, including multi-layered oversight and staged financial controls, ensure strong programme management. Overall, the approach integrates financial, environmental, and social considerations, aligning with wider corporate goals such as net zero and community development, while remaining firmly focused on delivering modern, inclusive learning environments for future generations. More detail is included in the Appendix 2: Case study – Renfrewshire’s Learning Estate Strategy. Digital Journey is a number of projects where the Council has been delivering its digital asset management plans effectively, demonstrated by the transformational expansion of gigabit capable connectivity to over 90% of population by 2024/25. The Council’s Digital journey has evolved over the last 10 years with a core aim of transforming how the Council delivers services and enables digital inclusion. The programme is closely linked to the organisation’s strategic corporate objectives and has involved communities and a number of third party partners over a long term basis. A good example of working with partners and communities on this programme, has been the use of UK wide funding to progress the development of a business case to install free superfast broadband in 80% of social homes, building on the Council’s initial foundation of a 20 year Connectivity as a Service Framework which invested around £2m to connect all council buildings to a new superfast broadband network and which attracted an additional £40m of follow-on private investment to develop a commercial Page 331 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 25 of 49 www.azets.co.uk gigabit network across Renfrewshire. This resulted in connecting businesses and homes alike and promoting Renfrewshire as one of the most digitally connected geographies in the UK. The Smart Social Housing programme is a proposed digital transformation initiative that would introduce fibre broadband connectivity and smart technology within the Council's housing stock to support digital inclusion and service improvement. As of February 2026, the programme was at the business case stage, with a pilot involving around 2,000 homes planned to test feasibility and benefits before any decision on wider implementation. The Council considers the programme to be an important component of its wider transformation agenda, although the anticipated benefits have yet to be evidenced through delivery and evaluation of the pilot. Our report on Transformation: how councils are redesigning and delivering more efficient services to achieve planned outcomes presented to the council in September 2025 contains a full case study on digital projects. Page 332 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 26 of 49 www.azets.co.uk Key performance indicators Scottish Housing Regulator performance indicators The Council, as a registered social landlord, is required to submit an annual return outlining service performance against performance indicators. The newest submission gives performance against 31 applicable indicators including five new indicators. Of the 26 indicators where performance can be compared with last year, the majority – seventeen - have improved, seven remain unchanged (or without newest data available) and two have dipped slightly in performance. The most notable improvements have been in void property management, rent arrears performance and complaint handling, with the proportion of Stage 1 and Stage 2 complaints responded to within target increasing significantly in 2025/26. Performance remains strong in several operational areas despite ongoing pressures facing the housing sector. However, challenges remain in achieving housing quality standards, particularly those linked to newer requirements around energy efficiency and compliance. The Council continues to monitor these areas and has reported targeted actions to improve performance through the Communities and Housing Policy Board. Overall, there is an improvement in housing performance, with particular progress in service efficiency, asset management and customer service, while acknowledging the ongoing challenges associated with meeting evolving housing quality and safety requirements. Local Government Benchmark Framework Local Government Benchmark Framework (LGBF) is a high-level benchmarking tool designed to helps councils compare their performance against a suite of efficiency, output and outcome indicators that cover all areas of local government activity. There is a number of indicators available commented below which relate to the asset management activities. Percentage of operational buildings that are suitable for their current use 10 years ago the Council had 100% of their assets being suitable for their current use. Since then, the trend has been downwards with over 90% maintained over the last 8 years. This is better than the average council in Scotland and better than the specific Renfrewshire Council family group average. Page 333 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 27 of 49 www.azets.co.uk Source: LGBF website Percentage of internal floor area of operational buildings in satisfactory condition The Council has had an upward trend for this indicator taking it from 70% in 2011-12 to a peak of 95% in 2018-19. Since then, the trend has been downwards, and in 2024/25 the council has been just below 90% and slightly below the Scottish and family group averages. Source: LGBF website Proportion of council dwellings meeting Scottish Housing Quality Standards The Council started from a low position of just over 60% in 2013/14, to improve it significantly to almost 95% in 2019/20 when it met the Scottish and family group averages. After that period the trend has been significantly downward to hit below 60% in 2021/22, from which the council is working on improving year on year and currently sitting at 80%. This is currently slightly below both Scottish and family group averages. Page 334 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 28 of 49 www.azets.co.uk Source: LGBF website Proportion of council dwellings that are energy efficient This area has seen a significant improvement since 2015/16, starting with 66% to the peak of almost 87% in 2020/21, with a downward trend recorded in the next year, and with no further data being collected for LGBF reporting purposes beyond 2021/22. Source: LGBF website Overall, the indicators suggests that the Council is managing well when it comes to their operational and corporate assets, however the housing specific indicators present a mixed picture and an area of challenge. Page 335 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 29 of 49 www.azets.co.uk Partnership working and community engagement It is essential that councils consider how they can collaborate across services and with other public and third sector organisations to manage assets. This has the potential to achieve savings, better align service provision and create opportunities for joint working. Councils should also have transparent and robust processes in place for supporting and assessing community asset transfer requests and engaging with their communities on asset management plans and priorities. Working collaboratively The council’s asset management strategy is aligned to the Council Plan which sets out how the council has considered options for working with partners and across services and therefore how to improve the way in which assets are used. The council presented good evidence of partnership working across different levels and sectors. This work is aligned to strategic aims, has examples of long-term partnerships and tangible outcomes in form of funding infrastructure delivery and impact. Working with other local authorities The council’s work with other local authorities is shown through its involvement in large- scale, long-term regional partnerships and coordinated programmes. A key example is the Clyde Valley Residual Waste Project, which involves several councils working together over 25 years in a £700 million partnership to manage waste and generate low-carbon energy. This reflects joint commissioning, shared investment, and coordinated long-term planning across multiple authorities. The partnership enables councils to deliver services at a scale that would not be achievable individually, supported by joint commissioning and long-term collaboration. It delivers collective environmental outcomes, including significant reductions in landfill use, increased recycling performance, and lower carbon emissions. The scale, duration, and complexity of the project indicate sustained collaboration, formal governance arrangements, and a shared commitment to delivering consistent outcomes across participating council areas. The council is also part of a Glasgow City Region initiative to expand electric vehicle charging infrastructure in partnership with seven other councils. This collaboration has secured national funding and allowed a coordinated and strategic approach to delivering charge points across the region. By working together, the councils are able to jointly plan the development of a wide EV charging network across the region, supported by collaborative design and formal partnership agreements. The scale of the programme creates a market opportunity, enabling the appointment of a private sector delivery partner. The approach also supports more inclusive provision, including expanding access for residents without Page 336 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 30 of 49 www.azets.co.uk home charging and in areas less likely to attract private investment, contributing to a wider transition to zero-emission transport. These arrangements allow councils to access funding, share risks, and deliver infrastructure and services more efficiently than would be possible individually. Overall, the council’s approach demonstrates established regional working focused on shared priorities such as net zero and infrastructure development. Across both examples, outcomes are measured through a combination of: • Shared performance indicators tied to the purpose of each programme (e.g. carbon savings, infrastructure delivery). • Funding and compliance measures set by national bodies. • Collective targets agreed across participating councils. Working with private and third sectors The Council demonstrates innovation in asset management through a range of partnership models, including joint ventures, regional collaborations and long-term strategic relationships with private sector organisations. Partnership working is used to support regeneration, infrastructure investment, digital transformation and delivery of net-zero objectives, enabling the Council to access additional expertise, investment and delivery capacity. Examples include the Council's joint venture arrangements linked to regeneration and the Advanced Manufacturing Innovation District Scotland (AMIDS), as well as innovative projects such as the proposed district heating network extension to Glasgow Airport and wider place-based regeneration initiatives. With the private sector, partnership working is largely focused on infrastructure, digital transformation and investment delivery. The Council works with strategic partners across connectivity, data services, digital platforms and cyber security, including Commsworld and CityFibre, which support the Council's digital infrastructure and transformation programme. The Council's approach is to develop longer-term strategic relationships rather than one-off projects, with partners contributing to the development and delivery of sector-leading solutions. The Council also collaborates extensively through regional and cross-sector partnerships. Examples include the Clyde Valley Residual Waste Project, the Glasgow City Region EV charging programme and HubWest, which enable resources, risks and investment to be shared across partners. Outcomes from these arrangements are typically measured through delivery outputs and service outcomes, including infrastructure installed, service performance, carbon reduction and contribution to wider economic, digital and net-zero objectives. Page 337 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 31 of 49 www.azets.co.uk Overall, the Council demonstrates a willingness to use innovative delivery models and strategic partnerships to support major infrastructure, regeneration and digital projects that may not be achievable through traditional delivery approaches alone. With the third sector and communities, partnership working is more locally incorporated and focused on participation, co-design, and stewardship of assets. Examples such as Friends of Barshaw Park and the Team Up to Clean Up campaign show sustained collaboration with volunteer groups in managing and improving local spaces. These partnerships are supported by council resources and structured programmes, and outcomes are reflected in levels of participation, volunteer activity, and environmental improvements. Community involvement is also formalised through mechanisms such as Local Place Plans, where communities help shape land use and local priorities, supported by dedicated funding. Overall, the approach is partnership-specific rather than standardised, with measurement frameworks aligned to the purpose and scale of each collaboration. Working collaboratively within the council The council’s internal partnership working is demonstrated through the joint use of assets and service co-location, particularly in relation to estate rationalisation and new ways of working. An example is the consolidation of services within Renfrewshire House, where different teams, including social work, have been brought together into shared accommodation following the end of the Abbey House lease. This included the creation of trauma-informed spaces, with family rooms designed in collaboration with service users. There is also evidence of shared use of assets. For example, learning estate facilities are used for both school and community purposes, including sports provision at locations such as Johnstone Sports Hub and Dargavel Primary School. New developments, including Paisley Grammar Community Campus and Thistle Primary School, have been designed with community use in mind. Renfrewshire Council has a large-scale and long-term asset transformation agenda spanning education, culture, leisure and the wider property estate. The Council has committed significant investment in its learning estate, including major new-build and refurbishment projects, supported by a structured prioritisation process to inform future investment decisions. The Council is also reviewing the future delivery model and sustainability of OneRen, which manages a substantial portfolio of cultural, leisure and community assets on the Council's behalf. Alongside these programmes, the Local Strategic Property Programme is intended to rationalise and modernise the Council's wider estate, improve asset utilisation and support Page 338 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 32 of 49 www.azets.co.uk service transformation and place-based regeneration. Collectively, these initiatives represent a significant programme of change and investment, requiring effective long-term planning, prioritisation and management of affordability and delivery risks. In additions, collaboration is demonstrated in specific service delivery arrangements, such as the co-location of the CCTV control room with Police Scotland, where the majority of footage requests come from Police Scotland and they contribute to running costs. Furthermore, internal working contributes to wider projects, such as heat network development and digital transformation, which involve multiple council functions alongside external partners. Engaging with communities The Council supports a range of approaches to community engagement in decision-making about assets, investment and service delivery. Key examples of engagement are outlined below. The You Decide participatory budgeting programme enables residents to suggest and select local projects, supported by engagement through community events, gala days and online promotion. Over three years, more than 4,800 people have taken part, with £1.2m allocated to over 50 projects including safety improvements, accessibility works and community facilities. The programme also connects with existing engagement structures such as community councils and local partnerships. The £100m, ten-year Housing Led Regeneration and Renewal Programme aims to deliver improved, energy-efficient council housing across eight areas in Paisley, Renfrew and Johnstone. It includes upgrading existing homes and neighbourhood environments, selective demolition where needed, and the construction of around 350 new council homes. Community engagement is a key part of the programme. Residents were consulted at an early stage, and plans were revised in response to feedback. Door-to-door surveys were carried out in the identified areas, providing information on residents’ needs, experiences and views, which informed the development of proposals. Engagement continues throughout delivery, ensuring communities remain informed, involved and able to influence decisions as plans evolve. This includes regular pop-up events, newsletters, social media updates and having staff based locally to answer questions and build relationships. These consistent, visible engagement methods help build trust and ensure communication is accessible and ongoing. This approach includes ongoing consultation and engagement with residents, providing opportunities to contribute views and feedback as plans develop. Neighbourhood Renewal Plans are being prepared with input from communities and council services in each area, addressing wider issues such as health and wellbeing, access to outdoor space, sustainable travel, and employment or training opportunities. Page 339 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 33 of 49 www.azets.co.uk Engagement is also built into decisions about asset use and change. The Beechwood Centre provides an example of the Community Asset Transfer process in practice. Following the existing management group stepping back, a transfer request was submitted by an external organisation. The Council published the request and gathered representations, while the applicant carried out a structured programme of consultation including surveys, public meetings, stakeholder discussions and community events. This ensured that local views, including those of existing users, were considered before any decisions were made. More generally, changes of use, demolition and asset disposals are subject to statutory planning and governance processes. This includes public consultation, formal engagement with community councils and decision-making through open committee processes, with reports and meetings available to the public. Major capital projects also incorporate stakeholder engagement. The Paisley Grammar School project involved pupils, staff, parents, community representatives and council services throughout both design and construction. Engagement included workshops, design sessions, surveys, regular meetings and on-site presence by the project team. During construction, further engagement took place through site visits, layout reviews, and ongoing updates. Internal council services and external stakeholders such as emergency services and neighbouring organisations were also involved to inform design, operational requirements and compliance. The Council’s digital inclusion work also supports community engagement, with initiatives such as DigiZones and the Digital Champion network providing direct support to over 800 residents. These are complemented by partnership structures such as the DigiRen Network and Citizen Voice Forum, which bring together community representatives and third sector organisations to inform service design. Engagement is also a requirement within targeted investment programmes such as play parks. Consultation approaches include online surveys shared with schools and community groups, direct engagement with nearby residents, and in-person drop-in sessions. Additional targeted work is carried out with children and young people and local organisations to ensure that proposals reflect local needs and priorities. Overall, the activities show a well-established and structured engagement framework, with strong coverage across major programmes and statutory processes. Paisley Museum co-design case study The project has placed co-design and community participation at the centre of the museum's redevelopment. Audience research informed the project throughout, including studies on visitor needs, accessibility, public perceptions and barriers to engagement. Content, text, films, digital games and learning resources were tested with more than 600 people, including children, families, people with disabilities and communities experiencing poverty, with feedback directly influencing the final offer. Page 340 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 34 of 49 www.azets.co.uk Co-production has been a significant feature of content development. Around 20% of museum displays were either fully co-produced or shaped through extensive participation, involving local groups, schools, community organisations and international partners. Participants contributed to exhibition design, interpretation, films, animations and digital content, helping to ensure displays reflect diverse perspectives and local experiences. The museum's education programme was also co-created with schools across Renfrewshire. Eighteen primary schools were directly involved in designing new learning experiences, a further 32 schools peer reviewed resources, and more than 500 pupils participated in testing activities. This collaborative approach aimed to align museum learning with curriculum needs and improve accessibility for learners. The public programme was developed through engagement with over 70 local organisations and services. This resulted in pilot projects focused on themes such as health and wellbeing, employability, literacy and creativity, involving 27 partner organisations and more than 500 participants. The learning from this process has informed ongoing partnership working and a commitment to delivering future programmes through co-creation with community groups and stakeholders. Transparency of the community assets transfers The council has a published Community Asset Transfer Strategy (CAT) and detailed process guide that provides a framework for all aspects of the process - enquiries, assessment, decision making and appeals. This is aligned with the Community Empowerment (Scotland) Act 2015. The CAT Panel in charge of these processes comprises senior officers across the Council and is chaired by the Head of Economy and Development. The Strategy has the following process and governance in place: • Pre-application checks assess eligibility and suitability • Valid requests are published publicly, allowing community representations • Competing requests are managed through coordination or parallel review • A right of appeal exists to the Scottish Government The policy reflects the requirements of national legislation by incorporating a legal right for community bodies to request ownership or control of assets. It also adopts the principle of a presumption in favour of transfer, which means that decisions are not based solely on financial considerations but instead take into account a wider range of potential community benefits. Page 341 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 35 of 49 www.azets.co.uk The process set out in the policy is structured and includes several transparency measures. These include the maintenance of public asset registers, the publication of applications, and opportunities for community representations. Together, these elements provide a basis for accountability and allow interested parties to observe and contribute to decision-making. The inclusion of review and appeal mechanisms, including escalation to the Scottish Government, introduces an additional level of oversight beyond the local authority. The policy is linked to wider strategic priorities set out in the Our Renfrewshire Community Plan, including economic development, wellbeing, fairness, and safety. This connection indicates that asset transfer is intended to contribute to broader policy objectives rather than operating independently of them. In addition, the policy places emphasis on the capacity of applicant organisations. Groups are expected to demonstrate appropriate governance arrangements, financial viability, and the ability to deliver proposed outcomes. These requirements serve to assess whether a transfer is likely to be sustainable over time, although they may also increase the level of preparation needed for applicants. Page 342 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 36 of 49 www.azets.co.uk Appendix 1: Action plan Our action plan details the weaknesses and opportunities for improvement that we have identified during this audit. Issue / risk Recommendation Agreed management action / timing 1. Sensitivity analysis affordability reporting The council’s reporting on affordability of capital projects and asset management should consider providing additional scenario/risk analysis to show the impact of changes in inflation and interest rates or the impact of changes in demand for services, to provide users of the report with a greater understanding of the potential consequences factors out with the council’s control could bring. We recommend that the Council should consider developing its reporting further. Response: This detailed reporting is done at project level when business cases are being brought before elected members for approval. The Business Case format will be reviewed to assess whether further sensitivity analysis is required. Responsible officer: Strategic Change Manager Due date: 31 December 2026 Page 343 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 37 of 49 www.azets.co.uk Issue / risk Recommendation Agreed management action / timing 2. Timelines reporting on capital projects Individual projects are reported to individual thematic council Boards and include details of performance against the budget in monetary terms and explanations of any in-year adjustments. The explanations for variances in these reports could be further strengthened by including timelines for each individual project which would allow more focused scrutiny. We recommend that the Council should consider developing its reporting further. Response: Capital monitoring reports will be reviewed in advance of the next financial year. Reporting of timelines will be considered for major projects (e.g. over £5m) and not cyclical programmes. Responsible officer: Head of Finance and Procurement Due date: 31 July 2027 Page 344 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 38 of 49 www.azets.co.uk Issue / risk Recommendation Agreed management action / timing 3. Budget setting and management process The Council should review whether further enhancement can be made to capital forecasting and reporting arrangements. In particular, it should consider strengthening the distinction in reporting between genuine underspends, project rephasing and changes in project scope. These improvements would enhance the transparency and reliability of capital programme reporting, support more effective member scrutiny and provide greater assurance that annual budgets reflect realistic expectations of project delivery. We recommend that the Council should consider developing its budget setting and management process in line with the recommendation. Response: capital budget monitoring is reported to policy boards regularly throughout the financial year. Any updates to the phasing of spend related to the timing of the project is reported here. Genuine underspends and overspends are reported as they arise, both via procurement reporting and policy board reports on individual projects. Responsible officer: Director of Finance and Resources Due date: n/a Page 345 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 39 of 49 www.azets.co.uk Appendix 2: Case study – Renfrewshire’s Learning Estate Strategy 1. Introduction Renfrewshire Council’s Learning Estate Strategy represents one of the most ambitious educational infrastructure programmes undertaken in the authority’s recent history. Designed to transform the school estate in the years ahead, the strategy is based on the vision of creating the best possible learning estate to allow children and young people to thrive. This case study sets out how the Council has developed and delivered evidence-based principles, and a best-value approach towards the improvement of its learning establishments. Drawing upon the overall strategy, the approach to business case development, engagement, and project/programme management, this case study demonstrates how Renfrewshire has created a forward-looking, robust methodology for investing in its learning estate. 2. Strategic Ambition and Rationale for Change In 2024, Renfrewshire Council approved a new Learning Estate Strategy establishing a structured and consistent approach to evaluating every school building across the authority. Schools were assessed using Scottish Government Core Facts criteria—Condition, Suitability, and Sufficiency, and Quartile ratings relating to deprivation. This assessment revealed an inconsistent estate: some schools were modern, high-performing assets in excellent condition, while others suffered from poor condition, constrained sites, and outdated learning environments. At the same time, demographic modelling identified declining school rolls and populations in multiple communities, resulting in significant overprovision of school places. In a number of schools, occupancy was projected to fall below 50% over the next decade. This combination of factors created a compelling case for transformation. The Council recognised that simply repairing old buildings or rebuilding on a like-for-like basis would not deliver best value. A strategic, whole-estate approach was required, one that ensured all children, regardless of background, could access modern learning environments designed for 21st-century education. 3. A Structured, Transparent Business Case Framework To ensure clarity, accountability, and best value, Renfrewshire adopted a four-stage business case process, adapted from, but aligned to HM Treasury’s Green Book Business Case approach: 1. Strategic Case for Change (SCC) Page 346 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 40 of 49 www.azets.co.uk 2. Outline Business Case (OBC) 3. Full Business Case (FBC) 4. Final Delivery Business Case This framework will support consistency and rigour across all projects. At each stage, the Council will produce comprehensive documentation demonstrating strategic alignment, affordability, achievability, and long-term value. This structured approach was agreed by Elected Members and embedded in the programme’s governance arrangements. 4. Evidence-Led Prioritisation of Schools Through the prioritisation methodology, all 63 of Renfrewshire’s schools were scored and ranked. This resulted in the schools being allocated into three sections as follows: Section 1 – Prioritisation cohort: Schools to progress to business case assessment in a phased approach. Section 2 – Middle cohort: Schools to progress to business case stage in the next 10-15 years, with a focus being applied to lifecycle maintenance and interim investment. Section 3 – Long term cohort: New build / PPP schools, with a focus being applied to net zero transition. Within the prioritisation list, 14 schools were identified. To develop a manageable programme of work based on funding and resource availability, the following schools were identified to immediately begin the business case process: • Auchenlodment Primary • St Margaret’s Primary • Thorn Primary • Johnstone High School • Trinity High School These were assessed as having significant challenges related to poor condition, ageing infrastructure, or misalignment with projected school rolls/demand. The prioritisation matrix (Condition, Suitability, Sufficiency, Deprivation Quartile) provided a transparent and objective basis for decision-making that received cross-party political support to remove subjectivity. In each Strategic Case for Change, the Council presented clear evidence of: • Deteriorating fabric and rising maintenance liabilities • Suitability issues affecting curriculum delivery • Enrolment patterns showing long-term decline Page 347 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 41 of 49 www.azets.co.uk • Inefficient utilisation of modern high-quality assets (e.g., Fordbank PS, West Johnstone Joint Campus) This evidence formed the foundation for later option appraisals and investment decisions. 5. Engagement-Driven Understanding of Community Need Following publication of the Strategic Cases for Change in 2025 for the agreed priority projects, Renfrewshire undertook early engagement with parents, staff, pupils, and community stakeholders. Stakeholders were invited to comment on: • What they valued in current schools • What they would change • Priorities for future investment Feedback consistently emphasised: • The importance of modern, well-maintained school buildings • Improved outdoor learning spaces and playground environments • Better provision for Additional Support Needs (ASN) • Safer travel routes and improved traffic management Stakeholders also expressed strong appreciation for modern, bright, well-designed facilities such as St Anthony’s Primary and Fordbank Primary, reinforcing the alignment between facility quality and positive learning experiences. 6. Interim Options Appraisal: Establishing Viable Routes Forward In October 2025, the Council published an interim update presenting early triage outcomes for all possible options. This served two purposes: 1. To eliminate options that fundamentally failed to meet best-value criteria 2. To provide transparency to the community and elected members about the longlist and decision-making process To be able to determine whether a route forward offered value and wider benefit for further investigation, the following criteria were considered, with detailed explanations for all possible routes forward per project: • Strategic fit • Value for money • Achievability • Site constraints • Legislative compliance, including minimum site sizes under the 1967 regulations Page 348 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 42 of 49 www.azets.co.uk This interim stage identified non-viable options such as: • “Do nothing” approaches • Retrofitting schools on constrained sites (e.g., St Margaret’s Primary & Trinity High School) • Rebuilding schools that would still operate significantly below optimal occupancy Only options demonstrating long-term sustainability, best value, and strategic alignment progressed to the OBC stage. 7. Outline Business Cases: A Preferred Way Forward for Each Area In March 2026, Renfrewshire produced Outline Business Cases for: • Johnstone Primary School Estate • Johnstone High School • Trinity High School These documents provided detailed longlist and shortlist analysis, exploring costs, benefits, risks, and site options. This resulted in a shortlist of options for each project progressing to the Full Business Case stage, which is currently being undertaken. 7.1. Johnstone Primary School Estate The OBC concluded that only Route 4: Masterplan Redesign met all critical success factors. This involved three linked proposals: 1. Merge Auchenlodment & Thorn Primary Schools A new two-stream non-denominational primary school (approx. 434 places) with early years provision would replace both schools. Three site options were shortlisted, including the existing Auchenlodment or Thorn sites, and one additional. 2. Merge Cochrane Castle & Fordbank Primaries at Fordbank This would consolidate two catchments into an efficient, modern building operating closer to optimal occupancy. Projections showed combined demand stabilising around 85–90% occupancy within the decade. 3. Merge St Margaret’s & St David’s into one Denominational School This addressed the small, constrained St Margaret’s site while optimising utilisation of the modern Joint Campus facilities, into a single denomination school. Together, these measures addressed: • Overprovision • Poor condition assets • Connecting investment to areas of greatest need Page 349 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 43 of 49 www.azets.co.uk • Efficient use of high-quality buildings 7.2. Johnstone High School Three viable options were shortlisted: 1. Major retrofit on existing site 2. New build on existing site 3. New build on an alternative site with one additional alternative site shortlisted 7.3. Trinity High School Due to an extremely constrained existing site falling well below minimum space requirements, only one viable route existed: • A new build school on a new site, with three possible locations shortlisted. 8. Demonstrating Best Value: Financial, Environmental & Social Outcomes At the FBC stage, the Council has committed to undertaking a whole-life evaluation considering options not just by capital cost but by: • Long-term maintenance and lifecycle costs • Operational costs (staff, transport etc.) • Energy performance and carbon impact • Community benefit and accessibility • Educational outcomes Examples of best-value drivers include: Optimising Existing High-Quality Assets Johnstone’s PPP-built schools (Fordbank, Cochrane Castle, St David’s) are maintained to exceptionally high standards; underutilising them represented poor value. Consolidation addressed this directly. Avoiding Investment on Sites Below Modern Standards St Margaret’s PS and Trinity HS sit on sites far below minimum area requirements. Investing heavily in constrained locations would not deliver long-term value. Creating Efficiently Sized Schools New education-led buildings will be designed to match projected demand rather than historic capacity, preventing future underutilisation. Page 350 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 44 of 49 www.azets.co.uk 9. Programme Governance: A Model of Transparency and Assurance One of the strongest features of the Learning Estate Strategy is its governance framework, set out in the Programme Terms of Reference. 9.1. Multi-Layered Governance Structure The Council established a clear hierarchy with distributed accountability as follows: • Education & Children’s Services Policy Board (ECSPB) Ultimate member-level oversight and decision-making. • Learning Estate Delivery Board Chaired by the Director of Children’s Services; responsible for strategic steering, risk, scrutiny, and programme funding. • Learning Estate Project Board Chaired by the Head of Education (Strategy & Improvement); responsible for operational delivery decisions, scope, timeline, and budget within agreed parameters. • Collaboration Group A broad information-sharing forum involving planning, education advisers, property, legal, procurement, climate, comms, and finance officers. This structure ensures: • No single officer makes key decisions • Transparent approval routes • Strong financial governance • Full cross-service integration • Clear escalation pathways 9.2. Defined Roles and Responsibilities The Terms of Reference explicitly describe expectations for key roles across the programme including: Page 351 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 45 of 49 www.azets.co.uk • Strategic Learning Estate Manager • Programme Manager • Business Change Project Managers • Technical Project Managers • Finance, Legal, Procurement, Communications, Sustainability (all other relevant subject matter expertise) This clarity supports accountability, risk management, and quality assurance. 9.3. Budget Management and Delegated Authority The governance framework also defines: • Stage-based budgets, rather than full financial commitment to a hypothetical project at the outsets • Approval thresholds • Monthly monitoring • Virement and re-profiling powers • Requirement for FBCs before capital commitments • Clear link to Standing Orders for procurement This ensures all expenditure is justifiable, fully authorised, and aligned to long-term affordability. 10. Integration With Wider Corporate Objectives The strategy also aligns directly with: • Renfrewshire’s Plan for Net Zero • The Strategic Property Review • Council Plan 2022–27 • Scottish Government’s Learning Estate Strategy This creates a coherent policy environment where learning estate decisions contribute to: • Carbon reduction • Place-making • Community resilience • Digital equity Page 352 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 46 of 49 www.azets.co.uk • Fairer local service delivery 11. Continuous Learning, Review & Community Voice The Learning Estate Strategy also embeds continuous improvement through: Post-Project Reviews Required for all investments >£2m within six months of project completion. Post-Occupancy Evaluations Completed after one year to assess actual building performance against design intent. Iterative Engagement Throughout each phase (SCC, OBC, FBC) the Council will conduct staged engagement exercises involving: • School communities • Parents and carers • Staff • Community groups • Elected Members • All other stakeholders with a connection to the asset This ensures that final decisions balance technical, financial, educational, and community perspectives. One of the stand out differences in Renfrewshire’s Learning Estate Strategy and approach to business case production is that stakeholder and community views will be an integral part of the decision making. Historically, and evidenced in other Councils, community views on the recommended option are only gathered at the final stage of assessment which is the statutory consultation period in line with the Schools (Consultation) (Scotland) Act, 2010. With the approach defined in the strategy, views will be sought from the outset, through options generation, all the way to construction and opening. 12. Conclusion Renfrewshire’s Learning Estate Strategy demonstrates a transparent and controlled approach to long-term public asset planning by consisting of the following key concepts: • Strategic - rooted in clear policy alignment and evidence • Transparent - supported by strong engagement and governance • Data-Driven - with detailed forecasting and options analysis • Best-Value Focused - targeting resources where they will have the greatest impact Page 353 of 376
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Renfrewshire Council: Transformation - how councils are redesigning and delivering more efficient services to achieve planned outcomes. Best Value thematic work in councils 2025-26 Page 47 of 49 www.azets.co.uk • Forward-Looking - integrating net zero, digital connectivity, and community use • Well-Governed - with multi-layered oversight and robust financial controls • Child-Centred - designed to deliver outstanding learning environments for generations Page 354 of 376
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OFFICIAL-SENSITIVE info@azets.co.uk | azets.co.uk Page 356 of 376
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PUBLIC ___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 21 September 2026 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: 2025/26 Complaints Handling Performance ___________________________________________________________________ 1. Summary 1.1 Renfrewshire Council’s complaint handling procedure (CHP) helps the Council to improve services and processes based on customer feedback. It is one of a range of methods to help the Council understand how well it is delivering its services. 1.2 Revised in December 2023, the Council’s CHP complies with the Scottish Public Services Ombudsman’s (SPSO) guidance and aims to help ‘get it right first time’. The expectation is to have quicker, simpler and more streamlined complaints handling with early response by capable, well-trained staff. As part of the procedure, all complaints are recorded and monitored. 1.3 This report provides information on complaints closed during the year from 1 April 2025 to 31 March 2026 and performance on key indicators, as well as highlighting improvements made to the complaints handling procedure to ensure that complaints are handled well, and the organisation learns from them and improves service delivery where appropriate. Data is taken from the Council’s DASH system, which is used by all services excepting schools, and allows for consistency in recording and reporting of complaints information. Although some schools have piloted DASH, at present they are using their own tracking and consequently not all school complaints are included in our statistics. 1.4 The Council is, year on year, receiving increasing numbers of contacts across complaints, Freedom of Information requests and elected member enquiries and consequently there are increasingly resource challenges in supporting Item 6 Page 357 of 376
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PUBLIC these processes. The increase in complaints volume can be seen in Appendix 1 and has been noted in previous annual reports. A similar trend in other local authorities has been noted. Councils are increasingly noting the increase in complaints and FOIs generated by AI, which can make them more complex and resource-intensive, as these will often cite legislation and precedents which do not apply in Scotland and have to be fact-checked. Figure 1 below shows the volume of complaints and our corresponding performance. Despite the increased volume, performance has improved this year. 1.5 The Council’s Performance Group has been progressing an improvement programme in relation to complaints, as noted in last year’s annual report. This group has recently approved the development of a new complaints module on DASH to reflect the changing needs of the organisation in relation to recording and managing complaints. 1.6 The key messages highlighted in the report are as follows: • 11,805 complaints were dealt with during 2025/26, compared with 10,913 in 2024/25; • Over 91% of our complaints are dealt with as a frontline response, maintaining our performance demonstrating the Council’s commitment to getting it right first time in response to complaints (91.5% in 2024/25); • 76.6% of frontline complaints and 79.5% of investigation complaints received were completed within target timescales, an improvement from 64% and 67.5% reported respectively in 2024/25; 8967 9743 1095985.7% 64% 76.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 0 2,000 4,000 6,000 8,000 10,000 12,000 2023/24 2024/25 2025/26 Figure 1: Frontline complaints volume and performance, last three years Number of complaints closed at Frontline Response Percentage closed within 5 days Page 358 of 376
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PUBLIC • the average time to respond to frontline complaints was reported as 5.8 days against a target of 5 days, this is an improvement from the previous year’s performance of 8.1 days; • the average time to respond to an investigation complaint was 15.7, well within the SPSO target of 20 days and a substantial improvement over the 23.1 days reported for 2024/25; • the 2025/26 breakdown of complaints received by services continues to be broadly reflective of the volume of services provided, with Environment, Housing and Infrastructure delivering the highest volume and widest scope of frontline Council services and consequently receiving the highest volume of customer interactions and complaints. 1.7 A performance scorecard has been included within the appendix of this report to provide additional data for 2025/26 performance against SPSO indicators. 1.8 All indicators will continue to be monitored regularly, and support and guidance will be provided to all services to assist with analysing and improving performance where required. 2 Recommendations 2.1 It is recommended that members of the Audit, Risk and Scrutiny Board: • Note the content of this report. 3 Background 3.1 Renfrewshire Council’s Complaint Handling Procedure was implemented in 2013 and complies with the model complaints handling procedure for local authorities introduced by the Scottish Public Services Ombudsman at that time. It is regularly reviewed to include updated guidance. The most recent guidance was implemented in 2023/24. 3.2 The CHP reflects Renfrewshire Council’s ongoing commitment to the provision of high-quality complaints handling. The CHP operates to ensure that complaints are processed and responded to consistently within target timescales, with a particular focus on working to resolve customer dissatisfaction as close as possible to the point of contact or service delivery. 3.3 Services are required to record, analyse and monitor complaints performance and use the information gathered through the CHP to improve service delivery wherever possible. Page 359 of 376
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PUBLIC 3.4 In line with the SPSO complaints handling procedure, Renfrewshire Council’s CHP uses a two-stage process, Frontline Response and Investigation (also referred to as Stage 1 and Stage 2). 3.5 The frontline response stage aims to quickly resolve straightforward customer complaints that require little or no investigation. Any member of staff may deal with complaints at this stage, and these are often dealt with ‘on the spot’ – an explanation, apology or an action to put something right may all be appropriate responses to a frontline complaint. 3.6 The main principle is to seek an early response, resolving complaints at the earliest opportunity and as close to the point of service delivery as possible. This may mean a face-to-face discussion with the customer or asking an appropriate member of staff to deal directly with the complaint. The Council has 5 working days to respond to these complaints. 3.7 An example of a complaint which may be addressed at the frontline response stage is where a customer complains that a staff member failed to attend a scheduled appointment. When this is reported, the service should provide an apology and reschedule the appointment at a suitable time for the customer. 3.8 Not all complaints are suitable for frontline response and not all complaints will be satisfactorily resolved at this stage. Investigation complaints are typically complex or require a detailed examination before resolving. These complaints may already have been considered at the frontline response stage, or they may have been identified from the start as needing investigation. In these cases, the customer should receive an acknowledgement of their complaint within three working days and be advised that it is being dealt with as an investigation. 3.9 An investigation aims to establish all the facts relevant to the points made in the complaint and to give the customer a full, objective and proportionate response that represents the final position. The Council has 20 days to respond to these complaints. 3.10 An example of an investigation complaint may relate to the standard or nature of a repair within a Council property which requires an inspection or visit to investigate. As a supervisor or manager might need to examine the repair to assess this and agree with the customer the corrective work required, it may require the 20-day timescale. Services may also agree an extension to the timescale with the customer. 3.11 In line with the model complaints handling procedure provided by the SPSO and with practice in other local authorities, Renfrewshire’s complaints policy Page 360 of 376
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PUBLIC does not include a number of service areas that are processed through other means. Some examples include: the right to appeal a refusal of planning permission or to appeal planning conditions (this is made to the Local Review Body or the Scottish Ministers); allegations of bullying in schools (these are treated and investigated as bullying incidents by the education establishment); and a compensation claim for personal injury, loss of or damage to property (these are processed through the Council's standard 'Public Liability Claim Form'). 4. 2025/26 Council Performance 4.1 Complaints are crucial in identifying areas or processes that need to be improved for our customers and Councils are required to report their complaints handling performance against a range of key performance indicators related to the SPSO complaints handling procedure. This report provides information on the complaints closed during the period 1 April 2025 to 31 March 2026 and Appendix 1 details Renfrewshire Council’s complaints performance for 2025/26 against these key SPSO performance indicators. The SPSO publishes all local authority complaints annual reports on its website. Appendix 2 has a one-page visual summary of this year’s performance. 4.2 A new complaints system was launched in April 2020 and has now been fully rolled out with all Council services (excluding schools) logging their complaints on the same system. This means that for reporting purposes, all performance data is now taken from a single source, and this has been useful in improving visibility of the number of complaints and related enquiries received by the organisation. In previous years, the data included all issues raised by customers through our complaints process, even where they are reviewed and found not to be a complaint (such as when someone used our complaints system to raise an issue about another organisation, or to make a service request). From 2023/24, these have been excluded from reporting wherever an item has been closed with the status “Closed, not a complaint” bringing the report more in line with other local authorities. Despite this, we continue to see increased volumes, not only in complaints but in other requests including Freedom of Information and Subject Access Requests, and elected member enquiries. This creates additional resource pressures across services and impacts on overall performance. Whilst there are training resources available for staff, we have not run a focused campaign on complaints handling since the current system was launched in 2020 and intend to revise and relaunch training materials once the new complaints module on DASH is ready to be rolled out. Page 361 of 376
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PUBLIC 4.3 In 2025/26 we progressed 11,805 complaint cases, an increase of almost 900 cases from the previous year, reported at 10,913 which was also an increase to the 10,025 cases progressed during 2023/24. It is recognised that this increase is primarily due to an increase in the number of complaints received by Environment, Housing and Infrastructure (EHI). The breakdown of complaints received is shown below, with the previous year’s data included to show the trend. Table 1: Volume of complaints received, last two years Frontline Investigation Total % Change 2024/25 2025/26 2024/25 2025/26 2024/25 2025/26 Chief Executive’s 51 43 11 19 62 62 -% Children’s Services 56 45 132 304 188 349 86% Environment, Housing and Infrastructure 9,264 10,234 344 520 9,608 10,754 12% Finance and Resources 367 432 133 161 500 593 19% 4.4 All Council services strive to ensure that complaints are answered correctly first time and that customers are responded to quickly. During 2025/26, 91.3% of complaints were addressed through a frontline response, with 76.6% of frontline complaints and 79.5% of investigation complaints received completed within target timescales – an improvement from 64% and 67.5 reported respectively in 2024/25. This improvement has been achieved despite an increase in the number of complaints. 4.5 Councilwide, the average time to respond to a frontline investigation was 5.8 days (against a target of 5 days) – this an improvement from 8.1 days reported in 2024/25 but remains outwith the SPSO 5 day target. Reminders have been issued to all relevant staff reminding them of the target timescales in order to increase awareness. The number of working days for investigation complaints achieved the SPSO target of 20 days with the average investigation case taking 15.7 days to complete – a significant improvement on the 23.1 days reported for 2024/25. 4.6 Figures 2 and 3 below show the service breakdown of total complaints received and those closed within the timescales, during the period 1 April 2025 to 31 March 2026. This is for frontline response and investigation complaint cases. Figure 4 shows the breakdown by service of investigations which were granted an extension. The complaints for social work services are included in services provided by Children’s Services, whilst the data for the Page 362 of 376
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PUBLIC Chief Executive’s Service also includes those complaints sent directly to the Chief Executive but which can relate to any service area within the Council. Table 2 shows compliance with timescales by service and to an extent this is impacted by volume received. 37 41 7938 383 8400 42 43 10440 432 10959 0 2000 4000 6000 8000 10000 12000 Chief Executives Children's Services Environment, Housing & Infrastructure Finance & Resources Total Figure 2: Frontline Complaints Closed 2025/26 Frontline complaints closed within 5 days Total frontline complaints closed 16 274 377 150 817 19 305 540 162 1026 0 200 400 600 800 1000 1200 Chief Executives Children's Services Environment, Housing & Infrastructure Finance & Resources Total Figure 3: Investigation Complaints Closed 2025/26 Investigation complaints closed within 20 days Total investigation complaints closed Page 363 of 376
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PUBLIC Table 2: Percentage of Complaints Cases Closed Within Timescale (by service/by service level) Service Frontline Investigation Investigation Extension Chief Executives 88.1% 84.2% 100% Children’s Services 95.3% 89.8% 87.5% Environment, Housing & Infrastructure 76% 69.8% - Finance & Resources 88.7% 92.6% 100% All Services 76.6% 79.5% 92.9% 4.7 From 2024/25, this annual report includes performance figures on the percentage of complaints which are upheld, partially upheld, not upheld or resolved. 1 Data has been added to the appendix for the previous two years to allow comparison. Figure 5 below shows the percentage in each of these categories. More than three-quarters of frontline complaints were upheld but the figure drops considerably for investigations and investigation extensions, our more complex cases. Almost half of investigation extensions were closed as ‘Resolved’ meaning that an agreement on an action was reached between the customer and council without the complaint having to be fully explored. Figure 6 shows the trend in the last three years, with a noticeable increase in the percentage of complaints being upheld. 1 Upheld is used where the complaint is shown to be justified; partially upheld where elements are justified, and not upheld where further investigation shows that the complaint is not justified. Resolved is used where the customer and council agree to an action which addresses the issue without either side seeking to allocate responsibility. 3 7 3 13 3 8 3 14 0 2 4 6 8 10 12 14 16 Chief Executives Children's Services Finance & Resources Grand Total Figure 4: Investigation Extension Complaints Closed 2025/26 Investigation extension complaints closed within 30 days Total investigation extension complaints closed Page 364 of 376
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PUBLIC 4.8 Scrutiny of complaints data and performance continues to be carried out on a regular basis at service-level management team meetings and has been supported by improvements in both data analytics and access to management information. 77.5% 4.9% 10.3% 5.3% 38.2% 31.3% 18.8% 9.7% 0.0% 42.9% 7.1% 42.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Upheld Not Upheld Partially Upheld Resolved Figure 5: Closure status by complaint type, 2025/26 Frontline Investigation Investigation Extension 69.1% 11.1% 9.4% 5.5% 71.6% 6.1% 11.3% 9.9% 77.5% 4.9% 10.3% 5.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Upheld Not Upheld Partially Upheld Resolved Figure 6: Frontline complaints by closure status 2023/24 2024/25 2025/26 Page 365 of 376
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PUBLIC 4.9 Overall the breakdown of complaints received by services is broadly reflective of the volume of services provided. Environment, Housing and Infrastructure (EHI) delivers the highest volume of frontline Council services, and the most diverse, and it is to be expected therefore that they will receive the highest volume of customer interactions. Their services cover more than 220 council premises, over 92,000 households and businesses, support more than 871km of roads and transport infrastructure, and collect approximately 7,540,000 bins annually. Those waste collections resulted in 7,337 complaint cases received (0.1% of total collections). The service also manages 11,942 Council houses with the total number of repairs received and reported to the Scottish Housing Regulator for 2025/26 as 42,461 (Emergency: 14,505 & Non-Emergency: 27,956) and the number of complaints received was 1,167 complaints (2.7% of all repairs). 4.10 Environment, Housing and Infrastructure dealt with 10,759 complaints during 2025/26, accounting for 91.1% of all cases dealt with during the reporting year. A breakdown of complaints by subject category shows that the top five complaints reasons all sit within that service’s remit, which is unsurprising given the scale of the service and the universality of some of its provision. Table 3 below shows the top five categories by volume in 2025/26; these together account for 88% of all complaints received in the year. Table 3: Five most common complaint reasons, 2025/26 Complaint Category Q1 Q2 Q3 Q4 Total Waste Services 1895 1902 1842 1698 7337 Responsive Repairs 312 287 249 319 1167 StreetScene and Land Services 179 359 212 116 866 Building Services 123 110 170 197 600 Roads and Transportation 56 70 104 139 369 Total 2565 2728 2577 2469 10339 4.11 Complaints received by the Chief Executive’s Service in 2025/26 mainly related to Development Management with the majority of these completed within the 5-day frontline target. These cases typically relate to timescales and concerns around the planning process however more complex cases may require significant investigation thus creating pressures in respect of meeting timescales. 4.12 The majority of complaints made to Finance and Resources related to Customer Services and Business Support service areas with both responding to cross organisation cases which are predominately closed at frontline with 91% of frontline cases closed within 5-day target. Council tax, benefits Page 366 of 376
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PUBLIC (claims suspension, delay in processing or payment issues), customer services (cross service support including service appointments, waste, blue badge and Millie (digital assistant)) and licensing (unhappy with advice or approach taken) cases remain the top service categories and although these cases can be complex and require detailed investigation, the service has demonstrated a strong performance with the average number of days processing an investigation complaint reported as 13 days, well within the SPSO target and overall performance of 92.6% investigation cases completed within timescale. 4.13 Complaints in Children’s Services are often complex as they typically relate to people rather than processes. The service makes every effort to respond to complaints in a timeous manner, taking account of the sensitivities and complexities of the child or young person and their family. Current complaints data relates to social work services for children and families and justice social work, as well as those complaints made directly to senior managers about early years and education; it does not yet include frontline complaints dealt with directly by schools and early years establishments. 4.14 Children’s Services dealt with 363 complaint cases during 2025/26 with the majority dealt with as investigations due to their complexity, with the average timescale for completion of 11.6 days. The majority of complaints to Children’s Services relate to schools, and the most common complaints are around Additional Support Needs, bullying incidents and parents /carers being unhappy about how a schools has dealt with incidents such as these. 4.15 All services also manage requests through general customer enquiries, Freedom of Information requests and elected member enquiries. In 2025/26, the Council received 1698 FOI requests and 9398 elected member enquiries – performance was above target for both measures. 5. Learning from complaints and improving the Council’s complaints procedure 5.1 As noted above, the Council has a single system for logging and reporting on complaints, regardless of how the customer chooses to contact us. The Council also uses a suite of reports to track performance on complaints handling, and these are available to all services. 5.2 Learning across services varies with Children’s Services implementing learning and improvement around the development of child friendly complaints process. With a focus on education, the service has developed clear guidance and flow charts and a range of resources to support investigating Page 367 of 376
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PUBLIC officers and schools with ensuring that children and young people are included in the complaints process. 5.3 Learning from complaints across Finance and Resources has continued to inform service improvements for front facing teams including regular collaboration with colleagues across other services to ensure staff are updated on developments of customer service requests/requirements. Within Council Tax, a revised approach has been introduced for customers experiencing difficulties with payments. Advisors now undertake a review of individual accounts to ensure customers are aware of any discounts/exemptions they may be entitled to, helping to make repayment arrangements more manageable. The service has also expanded the range of available payment options, enabling customers to select a repayment plan that best meets their circumstances. Where customers continue to experience financial hardship, they are signposted to Advice Works or the Citizens Advice Bureau for additional money and debt advice. 5.4 In Environment, Housing and Infrastructure analysis of waste complaints identified Assisted Collections (APOs) as an area which would benefit from root cause analysis. This highlighted the need for greater awareness and consistency in identifying and servicing these collections. As a result, targeted training has been delivered across all crews and has already to improvements in service delivery and a reduction in complaints. 5.5 As set out within the body of the report, the volume of complaints remains challenging and related performance in this area requires further action. As noted above, complaints handling is part of an intensive piece of work being progressed by an internal officer group. Extensive process mapping has been undertaken and reviewed alongside our current technology solution with a view to making improvements which will generate efficiencies in terms of administering and reporting complaints. Work is also underway to understand the root causes of complaints in high-volume areas and address those underlying causes. Training materials will be reviewed once any necessary updates to our technical solution have been made, so that they remain fit for purpose. 5.6 The Council reintroduced an annual audit of complaints handling in 2024 and reports findings back to services. Two have been undertaken to date and these have found mainly good practice, with some minor issues in relation to recording practice, and targeted refresher training and guidance has been put in place to help ensure consistency. Those measures have contributed to the improvement in meeting timescales. The next audit will take place in Autumn 2026. Page 368 of 376
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PUBLIC 5.7 The Council also participates in the Local Authority Complaints Handling Network, which has representation from all Scottish councils. This group allows us to benchmark performance and share good practice. Data from other local authorities shows that Renfrewshire Council is reporting the highest number of complaints, though it is acknowledged that there is likely under-reporting in some other council areas. 5.8 It is expected that with continued focus on key performance questions and regular, targeted reporting that our complaints performance will improve during 2026/27. Draft figures for the first quarter of the year indicate that there is already improved compliance on timescales. 5.9 As part of the functionality of the complaints system, customers can also provide comments and compliments, with 43 cases recorded during 2025/26 (21 comments and 22 compliments). A few examples of these compliments are provided below: __________________________________________________________________ Implications of the Report 1. Financial – none 2. HR & Organisational Development - none I just wanted to feedback in regards to how tidy the place is looking just now around the area mentioned ….makes such a difference to the place. The guys do a really good job I just want to send you a quick note to pass on a compliment about one of your employees. This employee is an absolute credit to the Council. The hedges adjoining my property were recently trimmed. I wish to thank the team involved for once again doing an excellent job. I attended Linwood Recycling Centre today…there were plenty of staff on site and they were very happy to help…saved me from getting too wet …. has exceeded his Customer Care Standards and is an absolute credit to you… Page 369 of 376
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PUBLIC 3. Community/Council Planning – We consider our services performance against a number of strategic outcomes to measure how we are delivering better outcomes for our local communities: Living our Values – complaints are monitored under this outcome of the Council Plan and service improvement planning process. 4. Legal - none. 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 because it is for noting only. 8. Health & Safety – none 9. Procurement – none 10. Risk – none 11. Privacy Impact – none 12. COSLA Policy Position – none 13. Children’s Rights – this report is for noting and has no direct implications on children’s rights. However, the Council is implementing the SPSO guidance on child-friendly complaints where this is appropriate. 14. Climate Risk- none _______________________________________________________ List of Background Papers: none __________________________________________________________________ Author: Pamela McDonald, Policy Officer, Chief Executive’s Service Page 370 of 376
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PUBLIC Appendix 1: Renfrewshire Council Annual Complaints Report SPSO Indicators (due to rounding, percentages may not total 100) Total number of complaints received, frontline and investigation 2023/24 2024/25 2025/26 Total number of complaints received (open and closed) 10,025 10,913 11,805 Number of complaints closed at Frontline Response 8,967 9,743 10,959 Complaints closed at Frontline Response as a percentage of all complaints closed 87.9% 91.5% 91.3% Number of complaints closed at Investigation 788 620 1,028 Complaints closed at Investigation as a percentage of all complaints 9.9% 8.0% 8.6% Number of complaints closed at Investigation after escalation 60 38 14 Complaints closed at Investigation after escalation as a percentage of all complaints 0.6% 0.4% 0.1% Page 371 of 376
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PUBLIC Average time in working days for a full response to complaints at each stage 2023/24 2024/25 2025/26 Average time in working days to respond to complaints at Frontline Response 8.5 8.1 5.8 Average time in working days to respond to complaints at Investigation 15.2 23.1 15.7 Average time in working days to respond to complaints after escalation 5.3 15.1 6.5 Percentage of complaints at each stage which were responded to in full within the set timescales 2023/24 2024/25 2025/26 Complaints closed at Frontline Response within 5 working days as a percentage of the total number of Frontline Response complaints 85.7% 64% 76.6% Complaints closed at Investigation within 20 working days as a percentage of total number of Investigation complaints 94% 67.5% 79.5% Page 372 of 376
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PUBLIC Number and percentage of complaints where an extension to the timescale has been authorised 2023/24 2024/25 2025/26 Complaints closed at Frontline Response where extension was authorised, as a percentage of all complaints at Frontline Response 0% 0% 0% Complaints closed at Investigation where extension was authorised, as a percentage of all complaints closed at Investigation 4.6% 8.1% 1.3% Percentage of complaints by closure status 2023/24 2024/25 2025/26 Percentage of complaints upheld at Frontline Response as % of all complaints closed at Frontline Response 69.1% 71.6% 77.5% Percentage of complaints not upheld at Frontline Response as % of all complaints closed at Frontline Response 11.1% 6.1% 4.9% Percentage of complaints partially upheld at Frontline Response as % of all complaints closed at Frontline Response 9.4% 11.3% 10.3% Percentage of complaints resolved at Frontline Response as % of all complaints closed at Frontline Response 5.5% 9.9% 5.3% Percentage of complaints upheld at Investigation as % of complaints closed at Investigation 63.8% 39.5% 38.2% Page 373 of 376
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PUBLIC Percentage of complaints by closure status 2023/24 2024/25 2025/26 Percentage of complaints not upheld at Investigation as % of complaints closed at Investigation 18.0% 22.9% 31.3% Percentage of complaints partially upheld at Investigation as % of complaints closed at Investigation 3.3% 19% 18.8% Percentage of complaints resolved at Investigation as % of complaints closed at Investigation 12.3% 18.4% 9.7% Percentage of complaints upheld at Investigation Extension as % of all complaints closed at Investigation Extension 13.2% 12.7% -% Percentage of complaints not upheld at Investigation Extension as % of all complaints closed at Investigation Extension 28.9% 30.9% 42.9% Percentage of complaints partially upheld at Investigation Extension as % of all complaints closed at Investigation Extension 10.5% 0% 7.1% Percentage of complaints resolved at Investigation as % of all complaints closed at Investigation Extension 47.4% 56.3% 42.9% Page 374 of 376
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PUBLIC Appendix 2: Visual Summary of Complaints Performance 2025/26 Page 375 of 376
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