Agenda Document Pack - Lanarkshire Valuation Joint Board - 01/12/2025
South Lanarkshire Council · 1 December 2025
Back to Lanarkshire Valuation Joint Board — 1 December 2025 and its agenda
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Tuesday, 25 November 2025 Dear Councillor Lanarkshire Valuation Joint Board The Members listed below are requested to attend a meeting of the above Board to be held as follows:- Date: Monday, 01 December 2025 Time: 14:00 Venue: By Microsoft Teams and Committee Room 1, The business to be considered at the meeting is listed overleaf. Yours sincerely Paul Manning Clerk to the Board Members Walter Brogan (Convener), Jim Reddin (Depute Convener), Bob Burgess, Janine Calikes, Ross Clark, Colin Dewar, Martin Hose, Margaret Hughes, Lesley Jarvie, Tom Johnston, Gavin Keatt, Mark McGeever, Alex McVey, Nicky Shevlin, Anne Thomas Substitutes Mathew Buchanan, Monique Equi, Geri Gray, Cal Johnston-Dempsey, Richard Nelson, Carol Nugent, Norman Rae, Margaret B Walker 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting Minutes of the meeting of the Lanarkshire Valuation Joint Board held on 1 September 2025 submitted for approval as a correct record. (Copy attached) 5 - 8 Monitoring Item(s) 3 Revenue Budget Monitoring 2025/2026 - Lanarkshire Valuation Joint Board Report dated 5 November 2025 by the Treasurer, Lanarkshire Valuation Joint Board. (Copy attached) 9 - 14 4 External Auditor's Annual Audit Report to the Board 2024/2025 Letter and Annual Report by Audit Scotland, External Auditor. (Copy attached) 15 - 46 Item(s) for Decision 5 Audited Accounts 2024/2025 Report dated 7 November 2025 by the Treasurer, Lanarkshire Valuation Joint Board. (Copy attached) 47 - 96 6 Revenue Budget 2026/2027 – Lanarkshire Valuation Joint Board Report dated 31 October 2025 by the Treasurer, Lanarkshire Valuation Joint Board. (Copy attached) 97 - 102 Item(s) for Noting 7 Internal Audit Activity Report Report dated 10 November 2025 by the Internal Audit Manager, South Lanarkshire Council. (Copy attached) 103 - 112 8 Progress Update Report dated 14 November 2025 by the Assessor and Electoral Registration Officer. (Copy attached) 113 - 126 Urgent Business 9 Urgent Business Any other items of business which the Chair decides are urgent. 2
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For further information, please contact:- Clerk Name: Stuart McLeod Clerk Telephone: 07385 370 117 Clerk Email: stuart.mcleod@southlanarkshire.gov.uk 3
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LANARKSHIRE VALUATION JOINT BOARD Minutes of meeting held via Microsoft Teams and in Committee Room 1, Council Offices, Almada Street, Hamilton on 1 September 2025 Convener: Councillor Walter Brogan, South Lanarkshire Council Councillors Present: North Lanarkshire Council Councillor Bob Burgess, Councillor Alex McVey, Councillor Jim Reddin (Depute), Councillor Anne Thomas South Lanarkshire Council Councillor Ross Clark, Councillor Colin Dewar, Councillor Martin Hose, Councillor Gavin Keatt Councillors’ Apologies: North Lanarkshire Council Councillor Margaret Hughes, Councillor Lesley Jarvie, Councillor Tom Johnston, Councillor Nicky Shevlin South Lanarkshire Council Councillor Janine Calikes, Councillor Lynsey Hamilton, Councillor Mark McGeever Attending: Lanarkshire Valuation Joint Board C Maxwell, Assessor and Electoral Registration Officer; J Dell, Assistant Assessor and Electoral Registration Officer Clerk’s Office P Manning, Clerk to the Board; S McLeod, Administration Officer; L Wyllie, Administration Assistant, South Lanarkshire Council Treasurer’s Office J Taylor, Treasurer to the Board; L O’Hagan, Head of Finance (Strategy), South Lanarkshire Council 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Lanarkshire Valuation Joint Board held on 2 June 2025 were submitted for approval as a correct record. The Board decided: that the minutes be approved as a correct record. 3 Revenue Budget Monitoring 2025/2026 - Lanarkshire Valuation Joint Board A report dated 30 July 2025 by the Treasurer was submitted:- providing an update on the 2025/2026 revenue budget providing a forecast for the year to 31 March 2026 providing actual expenditure as at 11 July 2025 2 5
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The financial forecast to 11 July 2025 was a breakeven position which reflected an underspend of £0.250 million in employee costs offset by a reduced use of Reserves. The employee cost underspend had increased by £0.050 million since the previous forecast. This net increase reflected the timing of recruitment of vacant posts and turnover in staffing being higher than anticipated, both of which were offset by the pay offer for 2025/2026 which was higher than had been budgeted for. The actual spend as at 11 July 2025 was £0.871 million. The Head of Finance (Strategy) advised members that the audit of the annual accounts was due to commence and it was intended to submit the external auditor’s annual audit report and the audited annual accounts to the Board at its meeting on 1 December 2025. The Board decided: (1) that the forecast to 31 March 2026 of a breakeven position, as detailed in Appendix A to the report, be noted; and (2) that the actual expenditure as at 11 July 2025 of £0.871 million, as detailed in Appendix A to the report, be noted. [Reference: Minutes of 2 June 2025 (Paragraph 3)] 4 Resignation of Assessor and Electoral Registration Officer A report dated 21 August 2025 by the Clerk was submitted advising of the resignation of the Assessor and Electoral Registration Officer and to set out arrangements to fill the subsequent vacancy. The Assessor and Electoral Registration Officer had submitted her resignation and would leave her post on 31 December 2025. As a result of this resignation, the post of Assessor and Electoral Registration Officer would become vacant. Appropriate arrangements would be put in place to advertise the post and for a Recruitment Panel to be convened for shortleeting and recruitment. The Board decided: (1) that the resignation of the Assessor and Electoral Registration Officer be noted; and (2) that the recruitment and selection process for the post of Assessor and Electoral Registration Officer be noted. 5 Progress Update A report dated 25 August 2025 by the Assessor and Electoral Registration Officer was submitted on:- an overview of the Service current issues and Service priorities an update on performance issues affecting the future direction of the Joint Board Statistical information, illustrating progress made in terms of key areas of the work undertaken by Lanarkshire Valuation Joint Board, was provided in the appendices to the report. 6
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The Assessor and Electoral Registration Officer responded to a member’s question regarding electoral reform and the move towards digitalisation. The Board decided: that the report be noted. [Reference: Minutes of 2 June 2025 (Paragraph 16)] 6 Urgent Business There were no items of urgent business. 7
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 1 December 2025 Report by: Treasurer to Lanarkshire Valuation Joint Board Subject: Revenue Budget Monitoring 2025/2026 - Lanarkshire Valuation Joint Board 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide an update on the 2025/2026 Revenue Budget, including the forecast for the year to 31 March 2026, and the actual expenditure as at 31 October 2025 [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that the forecast underspend to 31 March 2026, and the actual to date at 31 October 2025, both shown in Appendix A, be noted. [1recs] 3. Background 3.1. This is the third revenue budget monitoring report presented to the Lanarkshire Valuation Joint Board for the financial year 2025/2026. 3.2. The report provides an update on the Lanarkshire Valuation Joint Board Revenue Budget (section 5) and details the financial position as at 31 October 2025 (detailed in Appendix A). 4. Employee Implications 4.1. None 5. Financial Implications 5.1. In June 2025, the Board approved a net budget of £4.082 million for 2025/2026. This was to be funded by council requisitions (£1.541 million from each council) and £1.000 million from Reserves. Since then, additional funding has been received in relation to New Burdens Funding. The impact of this is detailed in sections 4.2 and 4.3. 5.2. Electoral Integrity Programme New Burdens Funding: The UK Government has allocated £0.040 million of one-off funding to the Board for ‘New Burdens’ in relation to absent voters. The budget shown in Appendix A takes account of the additional funding and includes an additional expenditure budget to allow spend to be made appropriately. 3 9
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5.3. As a result of the new Electoral Integrity New Burdens Funding, the level of anticipated spend for 2025/2026 has been refined. Taking this into account means that the budgets for Net Expenditure and Funding have both been increased by a £0.040 million. The budget realignments are detailed in Table 1 and included in the monitoring report in Appendix A. Table 1: Revised Budget 2025/2026 2024/2025 £ Base Net Expenditure Budget (June 2025) 4.082 Plus Increase to reflect New Burdens funding (£0.040m) (section 4.2) 0.040 Revised Net Expenditure Budget 4.122 Funded by: Requisitions and Reserves (December 2025) 4.082 Plus New Burdens funding (section 4.2) 0.040 Revised Funding from Requisitions and Reserves 4.122 5.4. Summary of 2025/2026 Budget: This adjustment takes the overall net budget to £4.122 million. This revised budget is included in Appendix A. 5.5. 2025/2026 Probable Outturn and Revenue Monitoring Appendix A shows the results of the Probable Outturn exercise. The financial forecast to 31 March 2026 is a Transfer from Reserves of £0.722 million. This is compared to a budgeted Transfer from Reserves of £1.000 million. This means that the Board’s Reserves will be in a better position than budgeted, by £0.278 million. 5.6. The improved position is mainly the result of the ongoing underspend in Employee Costs (£0.279m) partially offset by overspends in Transport and Plant (£0.007m) Administration Costs (£0.056m) and Central Administration Costs (£0.025m). In addition, within Income there is an anticipated over recovery of interest receivable on the Board’s revenue balances (£0.088m). Explanations for these variances are detailed below. Employee Costs: The underspend of £0.279 million has increased by £0.029 million since the previous forecast (September 2025) and reflects the timing of recruitment of vacant posts and turnover in staffing being higher than anticipated when last reported to the Board. Transport and Plant: The overspend (£0.007m) reflects the increased number of Board employees carrying out work in relation to the annual canvass. Administration Costs: The overspend (£0.056m) reflects additional costs incurred to cover printing, stationery and postage costs for the issue of Draft Valuation Notices, Revaluation Notices and Absent Voter Notices during 2025/2026 (£0.065m). This is partially offset by an underspend reflecting lower than budgeted costs of Engaging Counsel in relation to valuation appeals (£0.010m). Income: The over recovery of interest receivable on the Board’s revenue balances (£0.089m) reflects higher than budgeted interest rates in 2025/2026. Central Support Costs: The overspend (£0.025m) relates to Central Administration costs for services provided being higher than budgeted. 10
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5.7. It should be noted that the probable outturn position is based on best information at 31 October 2025. This forecast will continue to be monitored in line with the ongoing recruitment and will be affected by any further turnover of employees above the budgeted level. 5.8. Reserves: As noted in section 4.5, in order to balance Probable Outturn position, there will be a transfer from Reserves of £0.722 million. At the end of 2024/2025, the Board carried forward £2.475 million into 2025/2026. Taking these together means that a balance of £1.753 million will be carried into 2026/2027. 5.9. Period 8 Monitoring Position: As at 31 October 2025, the projected outturn variance is an underspend of £0.278 million, reflecting current staffing levels and the planned filling of vacant posts. New recruitment is currently taking place and depending on start dates this has impacted on the forecast for the year. This projected outturn variance in spend is offset by a reduction in the Transfer from Reserves in Appendix A. 5.10. The actual spend to 31 October 2025 is net income position of £2.145 million, reflecting the timing of spend / income received to date, and indicative of the forecast position for the year. 6. Climate Change, Sustainability and Environmental Implications 7.1. There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Board’s Revenue Budget is that there is an overspend. The risk has been assessed as low given the detailed budget management applied. The risk is managed through four weekly Budget Monitoring Meetings at which any variance is analysed. In addition, the probable outturn exercise ensures early warning for corrective action to be taken where appropriate. 8. Integrated Impact Assessment and Consultation Requirements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy, and therefore, no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in this report. Jackie Taylor Treasurer 5 November 2025 Previous References Lanarkshire Valuation Joint Board – 1 September 2025 List of Background Papers Revenue Budget 2025/2026 – Lanarkshire Valuation Joint Board – 2 December 2024 11
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Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Graham Booth, Finance Manager (Strategy) Ext: 2699 (Tel: 01698 452699) E-mail: graham.booth@southlanarkshire.gov.uk 12
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Appendix A LANARKSHIRE VALUATION JOINT BOARD Revenue Budget Monitoring Report Period Ended 31 October 2025 (No.8) Annual Budget Projected Outturn Projected Outturn Variance Against Budget (Over) / Under % Variance Year to Date Actual 31/10/25 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 3,045 2,766 279 under 9.16% 1,587 1 Property Costs 0 0 0 - 0.0% 0 Supplies & Services 159 159 0 - 0.0% 134 Transport & Plant 5 12 (7) over (140.0%) 2 Administration Costs 499 555 (56) over (11.2%) 389 2, a Payments to Other Bodies 31 33 (2) over (6.5%) 30 Financing Charges 14 14 0 - 0.0% 2 Total Controllable Exp. 3,753 3,539 214 under 5.7% 2,144 Total Controllable Inc. (18) (107) 89 over recovered 494.4% - 3 Net Controllable Exp. 3,735 3,432 303 under 8.1% 2,144 Add Central Support Costs (Office Accommodation £0.208m and Central Administration £0.179m) 387 412 (25) over (6.5%) 1 Total Budget 4,122 3,844 278 under 6.7% 2,145 Funded By: North Lanarkshire Council (1,541) (1,541) 0 - 0.0% (899) South Lanarkshire Council (1,541) (1,541) 0 - 0.0% (899) New Burdens Funding (40) (40) 0 - 0.0% 0 a Transfer To / (From) Reserves (1,000) (722) (278) under recovered (27.8%) 0 4 Net Budget 0 0 0 - n/a 347 Variance Explanations 1. Employee Costs: The forecast underspend reflects current vacant posts for which the recruitment is ongoing. This assumes, staff in post and posts that are in the process of recruitment costed to the end of the year. It also includes an assumption regarding further turnover of staff, based on previous experience. Any further vacancies will impact on the annual forecast. 2. Administration Costs: The forecast overspend reflects increased printing, stationery and postage costs for additional areas of workload carried out during 2025/2026. 3. Income: The forecast over recovery reflects greater than budgeted interest receivable on revenue balances. 4. Transfers To / (From) Reserves: The forecast use of Reserves is reduced by £0.278m and mainly reflects the underspend in Employee Costs (refer 1). Virement a. Electoral Registration New Burdens Funding (£nil effect) – Increase Admin Costs by £0.040m and Increase Funding by £0.040m (section 4.2 – 4.3). 13
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4th Floor 102 West Port Edinburgh EH3 9DN T: 0131 625 1500 E: info@audit-scotland.gov.uk www.audit-scotland.gov.uk Lanarkshire Valuation Joint Board 1 December 2025 Audit of 2024/25 annual accounts Independent Auditor’s Report 1. My audit work on the 2024/25 annual accounts is now substantially complete. Subject to receipt of a revised set of annual accounts for final review, I anticipate being able to issue unmodified audit opinions in the Independent Auditor's Report on 1 December 2025. The proposed Independent Auditor’s Report is attached at Appendix A. Annual Audit Report 2. Under International Standards on Auditing in the UK (ISA (UK)), I am required to report specific matters identified from the audit of the annual accounts to those charged with governance of Lanarkshire Valuation Joint Board in sufficient time to enable appropriate action. For Lanarkshire Valuation Joint Board, I present for the Board’s consideration my draft Annual Audit Report on the 2024/25 audit. The section headed "Significant findings and key audit matters" sets out the issues identified in respect of the annual accounts, including those that I am required to report to you. 3. The Annual Audit Report also sets out conclusions on the wider scope areas that frame public audit as set out in the Code of Audit Practice. 4. The Annual Audit Report will be issued in final form after the audit of the annual accounts has been completed. Uncorrected misstatements 5. I also report to those charged with governance all uncorrected misstatements in the annual accounts which I have identified during the course of my audit, other than those of a trivial nature, and request that these misstatements be corrected. 6. There are no uncorrected misstatements to report. Other ISA (UK) matters 7. In presenting this letter and the Annual Audit Report to the Lanarkshire Valuation Joint Board, I seek confirmation from those charged with governance on the following matters: • if they are aware of any instances of actual, suspected, or alleged fraud, • if they are aware of any subsequent events that have occurred since the date of the financial statements, • if they are content that the methods, assumptions, and data used in making accounting estimates in the annual accounts are appropriate, 4 15
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• if all related party relationships and transactions they are aware of are reflected in the annual accounts, and • if they are aware of any non-compliance with laws and regulations. 8. Any issues that I have identified from my audit in relation to other ISA (UK) matters that I am required to report to those charged with governance have been reported in the section headed “Other matters to report” in the Annual Audit Report. Representations from the Treasurer 9. As part of the completion of the audit, I am seeking written representations from the Treasurer of Lanarkshire Valuation Joint Board, who is the Section 95 Officer, on aspects of the annual accounts, including the judgements and estimates made. 10. A draft letter of representations is attached at Appendix B. This should be signed and returned to me by the Section 95 Officer with the signed annual accounts prior to the Independent Auditor’s Report being signed. 16
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Appendix A: Proposed Independent Auditor’s Report Independent auditor’s report to the members of Lanarkshire Valuation Joint Board and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements I certify that I have audited the financial statements in the annual accounts of Lanarkshire Valuation Joint Board for the year ended 31 March 2025 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the Comprehensive Income and Expenditure Statement, Balance Sheet, Movement in Reserves Statement, Cash Flow Statement, 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 2024/25 (the 2024/25 Code). In my opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the Lanarkshire Valuation Joint Board as at 31 March 2025 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2024/25 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 I conducted my 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. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I was appointed by the Accounts Commission on 16 March 2023. My period of appointment is five years, covering 2022/23 to 2026/27. I am independent of the Lanarkshire Valuation Joint Board in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard was not provided to the Lanarkshire Valuation Joint Board. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Conclusions relating to going concern basis of accounting I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 17
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Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Lanarkshire Valuation Joint Board’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. These conclusions are not intended to, nor do they, provide assurance on the Lanarkshire Valuation Joint Board’s current or future financial sustainability. However, I report on the Lanarkshire Valuation Joint Board’s arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website. Risks of material misstatement I report in my Annual Audit Report the most significant assessed risks of material misstatement that I identified and my judgements thereon. Responsibilities of the Treasurer and Lanarkshire Valuation Joint Board for the financial statements As explained more fully in the Statement of Responsibilities, the Treasurer 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 Treasurer 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 Treasurer is responsible for assessing the Lanarkshire Valuation Joint Board’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 there is an intention to discontinue the Lanarkshire Valuation Joint Board’s operations. The Lanarkshire Valuation Joint Board is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements My 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 my 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. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using my 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 18
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Scotland Act 2003 are significant in the context of the Lanarkshire Valuation Joint Board; • inquiring of the Treasurer as to other laws or regulations that may be expected to have a fundamental effect on the operations of the Lanarkshire Valuation Joint Board; • inquiring of the Treasurer concerning the Lanarkshire Valuation Joint Board’s policies and procedures regarding compliance with the applicable legal and regulatory framework; • discussions among my 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 my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Lanarkshire Valuation Joint Board’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, 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 my auditor’s report. Reporting on other requirements Opinion prescribed by the Accounts Commission on the audited parts of the Remuneration Report I have audited the parts of the Remuneration Report described as audited. In my 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 Treasurer 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 part of the Remuneration Report. My responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial 19
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statements or my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I 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 my 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 I am required to report by exception I am required by the Accounts Commission to report to you if, in my opinion: • adequate accounting records have not been kept; or • the financial statements and the audited part of the Remuneration Report are not in agreement with the accounting records; or • I have not received all the information and explanations I require for my audit. I have nothing to report in respect of these matters. Conclusions on wider scope responsibilities In addition to my responsibilities for the annual accounts, my conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in my Annual Audit Report. Use of my 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, I do 20
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not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Pauline Murray Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN 21
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Appendix B: Letter of Representations (ISA (UK) 580) Pauline Murray, Senior Audit Manager Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN Dear Pauline Lanarkshire Valuation Joint Board Annual accounts 2024/25 This representation letter is provided in connection with your audit of the annual report and accounts of Lanarkshire Valuation Joint Board, for the year ended 31 March 2025 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view and have been properly prepared, and for expressing other opinions on the Remuneration Report, Management Commentary, and Annual Governance Statement. I confirm to the best of my knowledge and belief, and having made such enquiries as I considered necessary, the following representations given to you in connection with your audit of Lanarkshire Valuation Joint Board’s annual accounts for the year ended 31 March 2025. General I have fulfilled my responsibilities for the preparation of the 2024/25 annual accounts as set out in your 2024/25 Annual Audit Plan. All the accounting records, documentation, and other matters which I am aware are relevant to the preparation of the annual accounts have been made available to you for the purposes of your audit. All transactions undertaken by Lanarkshire Valuation Joint Board have been recorded in the accounting records and are properly reflected in the financial statements. I confirm that the effects of uncorrected misstatements are immaterial, individually and in aggregate, to the financial statements as a whole. As you have reported, there are no uncorrected misstatements. Financial Reporting Framework The annual accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2024/25 (2024/25 Code), and the requirements of the Local Government (Scotland) Act 1973, the Local Government in Scotland Act 2003, and the Local Authority Accounts (Scotland) Regulations 2014. In accordance with the Local Authority Accounts (Scotland) Regulations 2014, I have ensured that the financial statements give a true and fair view of the financial position of Lanarkshire Valuation Joint Board at 31 March 2025 and the transactions for 2024/25. 22
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Accounting Policies and Estimates All material accounting policies applied are as shown in the note included in the financial statements. The accounting policies are determined by the 2024/25 Code, where applicable. Where the 2024/25 Code does not specifically apply, I have used judgement in developing and applying an accounting policy that results in information that is relevant and reliable. All accounting policies applied are appropriate to Lanarkshire Valuation Joint Board’s circumstances and have been consistently applied. The methodology, significant assumptions, and data used in making accounting estimates are reasonable, and have been properly reflected and disclosed in the financial statements in accordance with the 2024/25 Code. Judgements made in making estimates have been based on the latest available and reliable information. Estimates have been revised where there are changes in the circumstances on which the original estimate was based or as a result of new information or experience. Going Concern Basis of Accounting I have assessed Lanarkshire Valuation Joint Board’s ability to continue to use the going concern basis of accounting and have concluded that it is appropriate. I am not aware of any material uncertainties that may cast significant doubt on Lanarkshire Valuation Joint Board’s ability to continue to adopt the going concern basis of accounting. Assets All assets at 31 March 2025 of which I am aware have been reported in the financial statements. I carried out an assessment at 31 March 2025 as to whether there is any indication that an asset may be impaired and have recognised any impairment losses identified in the financial statements. There are no plans or intentions that are likely to affect the carrying value or classification of the assets recognised in the financial statements. Owned assets are free from any lien, encumbrance, or charge, except as disclosed in the financial statements. Liabilities All liabilities at 31 March 2025 of which I am aware have been reported in the financial statements. Provisions have been recognised in the financial statements for all liabilities of uncertain timing or amount at 31 March 2025 of which I am aware where the conditions specified in IAS 37, as adapted by the 2024/25 Code, have been met. The amount recognised as a provision is the best estimate of the expenditure likely to be required to settle the obligation at 31 March 2025. Where the effect of the time value of money is material, the amount of the provision has been discounted to the present value of the expected payments. The accrual recognised in the financial statements for annual leave untaken by 31 March 2025 has been estimated on a reasonable basis. 23
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The pension assumptions made by the actuary in the IAS 19 report for Lanarkshire Valuation Joint Board have been reviewed and I confirm that they are consistent with management's own view. The pension asset has been assessed against the asset ceiling as determined through IFRIC 14, and no pension asset has been recognised in the financial statements. I am satisfied that the assumptions applied in the calculation are consistent with management’s own view. There are no plans or intentions that are likely to affect the carrying value or classification of the liabilities recognised in the financial statements. Contingent Liabilities There are no significant contingent liabilities, other than those disclosed in Note 10 to the financial statements, arising either under formal agreement or through formal undertakings requiring disclosure in the financial statements. All known contingent liabilities have been fully and properly disclosed in accordance with IAS 37, as adopted by the 2024/25 Code. Litigation and Claims All known actual or possible legal claims have been disclosed to you and have been accounted for and disclosed in the financial statements in accordance with the 2024/25 Code. Fraud I understand my responsibilities for the design, implementation, and maintenance of internal control to prevent fraud and I believe I have appropriately fulfilled those responsibilities. I have provided you with all information in relation to: • my assessment of the risk that the financial statements may be materially misstated as a result of fraud, • any allegations of fraud or suspected fraud affecting the financial statements, and • fraud or suspected fraud that I am aware of involving management, employees who have a significant role in internal control, or others that could have a material effect on the financial statements. Laws and Regulations 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. Related Party Transactions All material transactions with related parties have been appropriately accounted for and disclosed in the financial statements in accordance with IAS 24, as adopted by the 2024/25 Code. I have made available to you the identity of all of Lanarkshire Valuation Joint Board’s related parties and all the related party transactions of which I am aware. Remuneration Report The Remuneration Report has been prepared in accordance with the Local Authority Accounts (Scotland) Regulations 2014, and all required information of which I am aware has been provided to you. 24
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Management Commentary I confirm that the Management Commentary has been prepared in accordance with statutory guidance, and the information is consistent with the financial statements. Corporate Governance I confirm Lanarkshire Valuation Joint Board has undertaken a review of the system of internal control during 2024/25 to establish the extent to which it complies with proper practices set out in Delivering Good Governance in Local Government: Framework 2016. I have disclosed to you all deficiencies in internal control identified from this review or of which I am otherwise aware. I confirm that the Annual Governance Statement has been prepared in accordance with the Delivering Good Governance in Local Government: Framework 2016 and the information is consistent with the financial statements. There have been no changes in the corporate governance arrangements, or issues identified, since 31 March 2025 which require to be reflected in the Annual Governance Statement or annual accounts. Events Subsequent to the Date of the Balance Sheet All events subsequent to 31 March 2025 for which IAS 10, as adopted by the 2024/25 Code, requires adjustment or disclosure have been adjusted or disclosed. Prior Year Restatement I confirm that, in respect of the restatement to correct a material misstatement in the prior period’s financial statements that affects the comparative information: • I am satisfied that the revised accounting treatment is more appropriate under the applicable financial reporting framework, and • the comparative information now accurately reflects the prior period's financial statements had this accounting treatment been applied in the prior period. Yours sincerely, Jackie Taylor Treasurer of Lanarkshire Valuation Joint Board 25
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Lanarkshire Valuation Joint Board 2024/25 Annual Audit Report - DRAFT Prepared for Lanarkshire Valuation Joint Board and the Controller of Audit December 2025 27
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Lanarkshire Valuation Joint Board: 2024/25 Annual Audit Report - DRAFT | 2 Contents Key messages 3 Introduction 4 Audit scope and responsibilities 5 Audit of the annual accounts 7 Wider Scope 16 Appendix 1 19 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility. 28
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Key messages | 3 Key messages Audit of the 2024/25 annual report and accounts 1 All audit opinions stated that the annual accounts were free from material misstatement. 2 Two material adjustments were made to the accounts to reflect changes in classification of spend and a revised treatment of civil penalties, these are detailed in Exhibit 2. These adjustments had no impact on the Joint Board’s outturn position. 3 All audit adjustments required to correct the financial statements were processed by Lanarkshire Valuation Joint Board. Wider scope 4 The Joint Board has a medium-term financial strategy in place which provides a framework for managing the significant financial challenges. 5 The Joint Board has effective and appropriate arrangements in place for securing Best Value. 29
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Introduction | 4 Introduction Purpose of the Annual Audit Report 1. The purpose of this Annual Audit Report is to report the significant matters identified from the 2024/25 audit of Lanarkshire Valuation Joint Board’s annual accounts and the wider scope areas specified in the Code of Audit Practice (2021). 2. The Annual Audit Report is addressed to Lanarkshire Valuation Joint Board, hereafter referred to as ‘the Joint Board’ and the Controller of Audit, and will be published on Audit Scotland’s website in due course. Appointed auditor and independence 3. Pauline Murray, of Audit Scotland, has been appointed as external auditor of the Joint Board for the period from 2022/23 until 2026/27. As reported in the Annual Audit Plan, Pauline Murray and the audit team are independent of the Joint Board in accordance with relevant ethical requirements, including the Financial Reporting Council’s Ethical Standard. There have been no developments since the issue of the Annual Audit Plan that impact on the continued independence of the engagement lead or the rest of the audit team from the Joint Board, including no provision of non-audit services. Acknowledgements 4. We would like to thank the Joint Board and its staff, particularly those involved in preparation of the annual accounts, for their cooperation and assistance during the audit. We look forward to working together constructively over the remainder of the five-year audit appointment. 30
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Audit scope and responsibilities | 5 Audit scope and responsibilities Scope of the audit 5. The audit is performed in accordance with the Code of Audit Practice, including supplementary guidance, International Standards on Auditing (ISA) (UK), and relevant legislation. These set out the requirements for the scope of the audit which includes: • An audit of the financial statements and an opinion on whether they give a true and fair view and are free from material misstatement. • An audit opinion on statutory other information published with the financial statements in the annual accounts, namely the Management Commentary, Annual Governance Statement and an opinion on the audited part of the Remuneration Report. • Concluding on the financial sustainability of the Joint Board and a review of the Annual Governance Statement. • Reporting on the Joint Board’s arrangements for securing Best Value. • Provision of this Annual Audit Report. Responsibilities and reporting 6. The Code of Audit Practice sets out the respective responsibilities of the Joint Board and the auditor. A summary of the key responsibilities is outlined below. Auditor’s responsibilities 7. The responsibilities of auditors in the public sector are established in the Local Government (Scotland) Act 1973. These include providing an independent opinion on the financial statements and other information reported within the annual accounts, and concluding on the Joint Board’s arrangements in place for the wider scope areas and Best Value. 8. The matters reported in the Annual Audit Report are only those that have been identified by the audit team during normal audit work and may not be all that exist. Communicating these does not absolve the Joint Board from its responsibilities outlined below. 31
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Audit scope and responsibilities | 6 Lanarkshire Valuation Joint Board’s responsibilities 9. The Joint Board has primary responsibility for ensuring proper financial stewardship of public funds, compliance with relevant legislation and establishing effective arrangements for governance, propriety, and regularity that enables it to successfully deliver its objectives. The features of proper financial stewardship include: • Establishing arrangements to ensure the proper conduct of its affairs. • Preparation of annual accounts, comprising financial statements that give a true and fair view and other specified information. • Establishing arrangements for the prevention and detection of fraud, error and irregularities, and bribery and corruption. • Implementing arrangements to ensure its financial position is soundly based. • Making arrangements to secure Best Value. • Establishing an internal audit function. National and performance audit reporting 10. The Auditor General for Scotland and the Accounts Commission regularly publish national and performance audit reports. These cover a range of matters, many of which may be of interest to the Joint Board. Details of national and performance audit reports published over the last year can be seen in Appendix 1. 32
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Audit of the annual accounts | 7 Audit of the annual accounts Main judgements All audit opinions stated that the annual accounts were free from material misstatement. Two material adjustments were made to the accounts to reflect changes in classification of spend and a revised treatment of civil penalties, these are detailed in Exhibit 2. These adjustments had no impact on the Joint Board’s outturn position. All audit adjustments required to correct the financial statements were processed by the Joint Board. Audit opinions on the annual accounts 11. The Joint Board’s annual accounts were approved on 1 December 2025 and certified by the appointed auditor on XX December 2025. The Independent Auditor’s Report is included in the Joint Board’s annual accounts, and this reports that, in the appointed auditor’s opinion, these were free from material misstatement. 12. As reported in the Independent Auditor’s report, in my opinion as the appointed auditor: • The financial statements give a true and fair view and were properly prepared in accordance with the financial reporting framework • The audited part of the Remuneration Report, Management Commentary and the Annual Governance Statement were all consistent with the financial statements and properly prepared in accordance with the applicable requirements. Audit timetable 13. The unaudited annual accounts and all working papers were received in accordance with the agreed audit timetable. Audit Fee 14. The audit fee for the 2024/25 audit was reported in the Annual Audit Plan and was set at £9,510. There have been no developments that 33
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Audit of the annual accounts | 8 impact on planned audit work required, therefore the audit fee reported in the Annual Audit Plan remains unchanged. Materiality 15. The concept of materiality is applied by auditors in planning and performing an audit, and in evaluating the effect of any uncorrected misstatements on the financial statements or other information reported in the annual accounts. 16. Broadly, the concept of materiality is to determine whether misstatements identified during the audit could reasonably be expected to influence the decisions of users of the annual report and accounts. Auditors set a monetary threshold when determining materiality, although some issues may be considered material by their nature. Therefore, materiality is ultimately a matter of the auditor’s professional judgement. 17. Materiality levels for the Joint Board were determined at the risk assessment phase of the audit and were reported in the Annual Audit Plan, which also reported the judgements made in determining materiality levels. These were reassessed on receipt of the unaudited annual accounts. Materiality levels were updated and these can be seen in Exhibit 1. Exhibit 1 2024/25 Materiality levels for Lanarkshire Valuation Joint Board Materiality Amount Materiality – set at 2% of gross expenditure £74,000 Performance materiality – set at 75% of materiality. As outlined in the Annual Audit Plan, this acts as a trigger point. If the aggregate of misstatements identified during the audit exceeds performance materiality, this could indicate further audit procedures are required. £55,000 Reporting threshold – set at 5% of materiality. £3,500 Source: Audit Scotland Significant findings and key audit matters 18. ISA (UK) requires auditors to communicate significant findings from the audit to those charged as governance, which is the Joint Board. 19. The Code of Audit Practice also requires public sector auditors to communicate key audit matters. These are the matters that, in the 34
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Audit of the annual accounts | 9 auditor’s professional judgement, are of most significance to the audit of the financial statements and require most attention when performing the audit. 20. In determining key audit matters, auditors consider: • Areas of higher or significant risk of material misstatement. • Areas where significant judgement is required, including accounting estimates that are subject to a high degree of estimation uncertainty. • Significant events or transactions that occurred during the year. 21. The significant findings and key audit matters to report are outlined in Exhibit 2. Exhibit 2 Significant findings and key audit matters Significant findings and key audit matters Outcome 1. Civil Penalties The Joint Board had recognised a £2.028 million debtor and £2.022 million creditor in the unaudited accounts in relation to civil penalties. Civil penalties are issued where a person fails to comply with an assessor information notice within an outlined timeframe. When the requested information is returned within 14 days of the penalty first being issued, then the penalty is mitigated. When the information is not returned and civil penalties are collected, the Joint Board is responsible for passing the income (excluding any costs for administration) over to the Scottish Government. The unaudited accounts recognised a debtor in the balance sheet of £2.028 million, reflecting the value of civil penalties that were outstanding to be paid at the year-end. A corresponding creditor of £2.022 million was also held, this reflected a mixture of monies paid and mitigation. The monies collected to date have not Audit’s view is that an agency relationship exists – the Joint Board are collecting the penalty income on behalf of the Scottish Government. The Joint Board does not set the amount of the penalty (this is done by the Scottish Government) and the Joint Board does not bear any credit risk in relation to these which indicates an agency relationship. Where an agency relationship exists, the creditor recognised in the accounts should total the value of any monies collected in year, a portion of which will remain in the Joint Board’s accounts to cover administration costs paid to the Scottish Government. The Joint Board does not require to recognise a debtor in relation to fines issued but not yet collected. Income in relation to administration costs is valid and does not require to be adjusted. Due to the significant value of civil penalties, we recommended that the Joint Board include an additional note to the accounts outlining the nature and value of the agency relationship – see Note 23 in the audited accounts. 35
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Audit of the annual accounts | 10 Significant findings and key audit matters Outcome exceeded the administration costs therefore no monies have been paid over to the Scottish Government. All audit adjustments required to correct this change in treatment were processed. This had no impact on the Joint Board’s outturn position. 2. Finance and Investment Income As part of our testing of expenditure transactions, it was identified that £0.122 million of interest received from the investment of revenue balances was included within the service expenditure line, effectively netting the balance off. As this is investment income, as per the Code, we recommended that this should be shown on a separate line within the Comprehensive Income and Expenditure Statement (CIES) under ‘Financing and Investment Income and Expenditure’. An adjustment was made to the audited accounts to move the interest to a different line in the Comprehensive Income and Expenditure Statement This did not impact on the surplus reported. A prior year restatement was also required, to reflect the updated net cost of services for 2023/24. Again, this did not impact on the surplus reported. A restatement note has been included in the revised annual accounts to reflect the updated figures for 2023/24 – see Note 2 in the audited accounts. Source: Audit Scotland Qualitative aspects of accounting practices 22. ISA (UK) 260 also requires auditors to communicate their view about qualitative aspects of the body’s accounting practices, including accounting policies, accounting estimates, and disclosures in the financial statements. Accounting policies 23. The appropriateness of accounting policies adopted by LVJB was assessed as part of the audit. These were considered to be appropriate to the circumstances of the Joint Board, and there were no significant departures from the accounting policies set out in the Code of Practice on Local Authority Accounting in the United Kingdom (the Code). Accounting estimates 24. Accounting estimates are used in number of areas in the Joint Board’s financial statements, including the valuation of the pension. Audit work considered the process management of the Joint Board has in place around making accounting estimates, including the assumptions and data used in making the estimates, and the use of any management experts. Audit work concluded: • There were no issues with the selection or application of methods, assumptions, and data used to make the accounting estimates, and these were considered to be reasonable. 36
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Audit of the annual accounts | 11 • There was no evidence of management bias in making the accounting estimates. Disclosures in the financial statements 25. The adequacy of disclosures in the financial statements was assessed as part of the audit. The quality of disclosures was adequate, with additional levels of detail provided for disclosures around areas of greater sensitivity, such as the implementation of IFRS 16 and valuation of the pension liability. Significant matters discussed with management 26. All significant matters identified during the audit and discussed with the Joint Board’s management have been reported in the Annual Audit Report. Audit adjustments 27. Audit adjustments were required to the financial statements to correct misstatements that were identified from the audit. Details of all audit adjustments greater than the reporting threshold of £3.5k are outlined in Exhibit 3. Exhibit 3 Audit adjustments Details Financial statements lines impacted Comprehensive Income and Expenditure Statement (CIES) Balance Sheet Audit adjustments to financial statements Dr Cr Dr Cr £000 £000 £000 £000 1. As outlined in Exhibit 2, adjustments were required due to the agency relationship relating to civil penalties. Short-term Debtors (2.028) Short-term Creditors 2.023 2. As outlined in Exhibit 2, adjustment to the CIES for investment income. Service Expenditure (0.122) 37
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Audit of the annual accounts | 12 Details Financial statements lines impacted Comprehensive Income and Expenditure Statement (CIES) Balance Sheet Financing and Investment Income and Expenditure 0.122 3. The Short-term Debtors balance included £0.1 million in relation to taxation due to the timing of payments. This balance was to be moved however was not actioned until after the unaudited accounts were submitted. Short-term Debtors (0.1) Cash and Cash Equivalents 0.1 Net impact on financial statements 0.122 (0.122) 2.024 (2.029) Audit adjustments in disclosures 1. The statutory charge for the repayment of debt of £0.069 million or Right of Use depreciation of (£0.087 million) was not included in Note 19 to the accounts. Note 19 has been updated to include an additional line ‘Statutory repayment of debt’ for £0.069 million and ‘charges for depreciation of NCA’ has been updated from (£0.020 million) to (£0.107 million). 2. Note 12 to the Accounts ‘Property, Plant and Equipment’ was updated to include the Right of Use Asset of £0.551 million and the corresponding depreciation amount of £0.087 million, increasing depreciation per note 12 from £0.020 million to £0.107 million. As a result, the Net Book Value per note 12 of the accounts increased from £0.093 million to £0.557 million, ensuring consistency with the balance sheet. 3. The Joint Board received an updated pension report from its actuaries on 29 May 2025, which disclosed a more up-to-date pension asset value of £15.473 million. Due to the application of a ceiling cap on the pension asset, this did not impact the 2024/25 financial statements however Note 16 to the accounts ‘Defined Benefit Pension Schemes’ was updated to reflect the increase in pension asset of £0.185 million. 4. The remuneration report disclosures for R Pacitti in relation to salaries paid in the 2024/25 financial year was updated from £10,983 to £5,736 and the movement in accrued pension benefits since 31 March 2024 was updated from £347 to (£6,653) to ensure this was an accurate reflection of the position in year. 38
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Audit of the annual accounts | 13 Details Financial statements lines impacted Comprehensive Income and Expenditure Statement (CIES) Balance Sheet 5. The presentation of the Cash Flow Statement was revised to better reflect certain transactions. Lease payments of £0.069 million are now shown under Financing Activities, and interest received of £0.122 million is included within the Surplus on Provision of Services. Previously these were presented as two separate adjustments which previously netted to £Nil under Adjustments for Non-Cash Movements and Items that are Investing or Financing Activities. There was no change to the Net Increase in Cash and Cash Equivalents reported as a result of these amendments. Source: Audit Scotland 28. Management of the Joint Board processed audit adjustments for all other misstatements identified greater than the reporting threshold. As a result, there are no uncorrected misstatements to report. Significant risks of material misstatement identified in the Annual Audit Plan 29. Audit work has been performed in response to the significant risks of material misstatement identified in the Annual Audit Plan. The outcome of audit work performed is summarised in Exhibit 44. Exhibit 4 Significant risks of material misstatement to the financial statements Risk of material misstatement Planned audit response Outcome of audit work Fraud caused by management override of controls Per ISA (UK) 240, this is a presumed risk that applies to all entities due to the recognition that management is in a unique position to perpetrate fraud because of management’s ability to override controls that otherwise appear to be operating effectively. The audit team will: • Evaluate the design and implementation of controls over journal entry processing. • Make inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries and other adjustments. • Test journals entries, focusing on those that are assessed as higher risk. Audit work performed found: • The design of controls over journal processing were appropriate and these were implemented as intended. • No inappropriate or unusual activity relating to the processing of journal entries was identified from discussions with individuals involved in financial reporting. • No significant issues were identified from testing of journal entries. 39
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Audit of the annual accounts | 14 Risk of material misstatement Planned audit response Outcome of audit work • Evaluate significant transactions outside the normal course of business. • Assess the adequacy of controls in place for identifying and disclosing related party relationships and transactions in the financial statements. • Assess changes to the methods and underlying assumptions used to prepare accounting estimates and assess these for evidence of management bias. • No significant issues were identified from transactions outside the normal course of business. • The controls in place for identifying and disclosing related party relationships and transactions were adequate. • No significant issues were identified with changes to methods and underlying assumptions used to prepare accounting estimates and there was no evidence of management bias. Conclusion: no evidence of fraud caused by management override of controls. Source: Audit Scotland Risks of material misstatement 30. As part of our assessment of audit risks, we identified two further areas where we considered there to be risks of material misstatement to the financial statements. Based on our assessment of the likelihood and magnitude of risks, we did not consider these to represent significant risks. These areas were kept under review as part of our audit process and we have noted our findings below: Valuation of the pension liability 31. There is a significant degree of subjectivity in the measurement and valuation of the pension liability included in the annual accounts. The valuation is based on specialist and management assumptions and changes in these can result in material changes to the pension liability. We utilised the work of PwC as auditor expert in assessing the reasonableness of the methodology used and assumptions made by the Joint Board’s actuary, Hymans Robertson LLP, in arriving at the IAS 19 pension valuation as at 31 March 2025. 32. In accordance with IFRIC14, the pension asset recognised within the financial statements was capped at the estimated future benefit to the Council. Following review of the assumptions applied by the actuary in arriving at the asset ceiling cap, I am satisfied that it is in accordance 40
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Audit of the annual accounts | 15 with IFRIC14. The net pension asset was nil. An adjustment to Note 16 ‘Defined Benefit Pension Schemes’ was made following receipt of an updated report from Hymans Robertson – see Exhibit 43. Implementation of IFRS 16 33. From 1 April 2024, a new International Financial Reporting Standard, IFRS 16 came into effect for local government bodies. This represents a significant change in how lease arrangements are accounted for and disclosed in the annual accounts. 34. IFRS 16 introduces a new ‘Right of Use’ asset class to the balance sheet and also recognises the corresponding lease liability. This applies to all leases. 35. We have reviewed the accounting treatment of leases in the annual accounts, including associated disclosures, to ensure compliance with guidance. 36. Lanarkshire Valuation Joint Board made all IFRS 16 adjustments and disclosures for property – see Exhibit 43. We are satisfied that the overall estimate of the liability is not materially misstated. Prior year recommendations 37. There were no recommendations made in our 2023/24 annual audit report for follow up. 41
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Wider Scope | 16 Wider Scope For less complex bodies, wider-scope audit work considers the financial sustainability of the body and the services that it delivers over the medium to longer term, and the arrangements for securing Best Value. Conclusion The Joint Board has a medium-term financial strategy in place but will continue to face significant financial challenges in the future. The Joint Board has a medium-term financial strategy which provides a framework for managing the significant financial challenges. The Joint Board has appropriate arrangements in place for securing Best Value. Audit approach to wider scope and Best Value Wider scope 38. The Annual Audit Plan reported the Joint Board was considered to be a less complex body for the wider scope audit. Therefore, the wider scope audit does not cover all four wider scope areas and is instead limited to concluding on the financial sustainability of the Joint Board. Best Value 39. Under the Code of Audit Practice, the duty on auditors to consider the arrangements an audited body has in place to secure Best Value applies to audited bodies that fall within section 106 of the Local Government (Scotland) Act 1973, which the Joint Board does. 40. Consideration of the arrangements the Joint Board has in place to secure Best Value have been carried out alongside the wider scope audit. Conclusions on Financial Sustainability 41. The Joint Board is mainly funded by requisitions from its constituent members, North Lanarkshire Council and South Lanarkshire Council. 42. The Joint Board approved its 2024/25 budget in December 2023, with budget net expenditure of £4.008 million and a planned contribution of £0.4 million from the Joint Board’s reserves. This was reviewed and updated throughout the year, which resulted in a forecast transfer to reserves of £0.414 million. 42
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Wider Scope | 17 43. The actual outturn reported for 2024/25 was net expenditure of £3.490 million and total funding income of £3.990 million, resulting in a net surplus position of £0.5 million and an underspend of £0.9 million against budget. The improved position was a result of ongoing underspends in employee costs (£0.788 million) and interest received on the Joint Board’s revenue balances of (£0.078 million). 44. The audit work performed on the arrangements the Joint Board has in place for securing financial sustainability found that these were effective and appropriate. This judgement is evidenced by the Joint Board: • making appropriate arrangements to develop medium-term financial plans. The Joint Board’s budget for 2025/26 was approved in December 2024, including assumptions in relation to reduced Council contributions, pay award and pension contributions. The revised expenditure budget totals £4.082 million and is funded by reduced contributions from Councils and the budgeted use of reserves of £1 million. • having a reserves strategy in place to manage the use of reserves if the required level of savings cannot be met. The Joint Board acknowledges the impact of the difficult financial climate on its constituent authorities and continues to seek to generate efficiencies in the provision of services and utilise reserves where appropriate. 45. Overall, the Joint Board’s financial strategy provides assurance over the medium-term financial outlook and therefore the provision of services however will continue to face significant financial challenges in the future. The Joint Board has appropriate arrangements in place for securing Best Value 46. The Joint Board has a specific responsibility to ensure that arrangements have been made to secure best value. 47. An updated Strategic Workforce Plan was approved by the Management Team in March 2025. The plan includes: • Wider environment and workface challenges • Analysis of the current workforce • Planning for future challenges in relation to workstreams and staffing. 48. The Joint Board’s service performance is measured by standard performance indicators agreed between the Scottish Government and the Scottish Assessors’ Association. The Joint Board reports 43
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Wider Scope | 18 performance against its key performance indicator targets in the annual accounts: • Of 2,080 new Council Tax entries added, 92% were completed within 3 months of the effective date against a target of 87%. 96% were completed within 6 months against a target of 92%. • Of 1,020 alterations to the non-domestic valuation roll, 48% were completed within 3 months of the effective date against a target of 77% and 74% were completed within 6 months against a target of 92%. These targets were not met due to the challenges presented by the shortage of qualified staff, combined with the new processes in place to deal with non-domestic proposals and the requirement to provide draft valuations for 10% of the current valuation roll to the Scottish Government by the end of March 2025. 49. The audit work performed on the arrangements the Joint Board has in place for securing Best Value found these were effective and appropriate. This judgement is evidenced by: • the Joint Board having well established and effective governance arrangements in place, with Best Value being a key aspect of the governance arrangements. • the arrangements the Joint Board has in place to secure financial sustainability which help ensure the effective use of available resources. • The Joint Board’s performance information is accessible to all stakeholders, including service users via South Lanarkshire Council’s committee website linked from the Joint Board’s website. 44
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Appendix 1 | 19 Appendix 1 Supporting national and performance audit reports Report name Date published Local government budgets 2024/25 15 May 2024 Scotland’s colleges 2024 19 September 2024 Integration Joint Boards: Finance and performance 2024 25 July 2024 The National Fraud Initiative in Scotland 2024 15 August 2024 Transformation in councils 1 October 2024 Alcohol and drug services 31 October 2024 Fiscal sustainability and reform in Scotland 21 November 2024 Public service reform in Scotland: how do we turn rhetoric into reality? 26 November 2024 NHS in Scotland 2024: Finance and performance 3 December 2024 Auditing climate change 7 January 2025 Local government in Scotland: Financial bulletin 2023/24 28 January 2025 Transparency, transformation and the sustainability of council services 28 January 2025 Sustainable transport 30 January 2025 A review of Housing Benefit overpayments 2018/19 to 2021/22: A thematic study 20 February 2025 Additional support for learning 27 February 2025 Integration Joint Boards: Finance bulletin 2023/24 6 March 2025 Integration Joint Boards finances continue to be precarious 6 March 2025 General practise: Progress since the 2018 General Medical Services contract 27 March 2025 Council Tax rises in Scotland 28 March 2025 45
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Lanarkshire Valuation Joint Board 2024/25 Annual Audit Report - DRAFT - DRAFT Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 Email: info@audit.scot www.audit.scot AS.5.0 46
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 1 December 2025 Report by: Treasurer to Lanarkshire Valuation Joint Board Subject: Audited Accounts 2024/2025 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise members of the requirement to approve the Audited Accounts for 2024/2025 for signature, following the external audit of the Accounts [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [ (1) that it be noted that the Accounts 2024/2025 received a clean audit certificate (section 4.3.); (2) that the audited Accounts 2024/2025, be approved for signature (Appendix 1); and (3) that it be noted that the audited Accounts 2024/2025 will be available on the Board’s website (section 4.4). [1recs] 3. Background 3.1. The Board’s external auditor, Audit Scotland, is required to supply an audit certificate outlining the findings of the audit process undertaken in relation to the Accounts 2024/2025. 3.2. Following the publication of The Local Authority Accounts (Scotland) Regulations 2014, the members of the Board have to meet to consider whether to approve the audited Accounts for signature. The members are also required to have regard to any report made or advice provided on the Accounts by the auditor. 4. Audited Accounts 4.1. As noted in 3.2. above, members are now required to approve the audited Accounts for signature. Appendix 1 attached provides a copy of the Accounts for members’ consideration. 4.2. The Board’s current external auditors, Audit Scotland, have completed an audit which extends across the 2024/2025 Accounts and related matters. 4.3. In summary, the report provides a clean audit certificate. There were no issues arising from the 2024/2025 audit work which merited a recommendation or action plan point. For members’ information, there was an agreed change to the presentation of the Accounts to reflect the agency relationship that exists for the collection of civil penalties issued on behalf of the Scottish Government. This did not impact on the Board’s in-year operating position. 5 47
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4.4. The audited Accounts for 2024/2025 will be uploaded to the Lanarkshire Valuation Joint Board website. Paper copies are also available on request from Finance Services, Floor 4, Council Offices, Almada Street, Hamilton or from the Assessor’s office at David Dale House, Blantyre. 5. Employee Implications 5.1. None 6. Financial Implications 6.1. The financial details of the Auditor’s report are contained within section 4 above. 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 8. Other Implications 8.1. The main risk associated with the Board’s Annual Report and Accounts is a qualified audit report. The risk was minimised by the detailed preparation in relation to the year end process and training undertaken by key finance staff. Finance and the Board’s staff work together to achieve key deadlines and actions set from timetables. This has resulted in a clean audit certificate. 9. Integrated Impact Assessment and Consultation Requirements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Jackie Taylor Treasurer 7 November 2025 Previous References Lanarkshire Valuation Joint Board Unaudited Annual Report and Accounts 2024/2025 (Board Meeting, 2 June 2025) List of Background Papers External Auditor’s 2024/25 Annual Audit Report Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Graham Booth, Finance Manager (Strategy) Ext: 2699 (Tel: 01698 452699) E-mail: graham.booth@southlanarkshire.gov.uk 48
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LANARKSHIRE VALUATION JOINT BOARD ANNUAL ACCOUNTS 2024/2025 5 49
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2 List of Contents Contents Membership of the Board (2024/2025) 3 Management Commentary 4 Statement of Responsibilities 10 Annual Governance Statement 12 Remuneration Report 16 Comprehensive Income and Expenditure Statement 21 Balance Sheet 22 Movement in Reserves Statement 23 Cash Flow Statement 25 Notes to the Financial Statements Note 1 - Accounting Policies 27 Note 2 - Prior Period Adjustments 29 Note 3 - Accounting Standards issued but not Adopted 30 Note 4 - Critical Judgements in Applying Accounting Policies 30 Note 5 - Expenditure and Funding Analysis 31 Note 6 - Notes to the Expenditure and Funding Analysis - Adjustments Between Funding and Accounting Basis 32 Note 7 - Adjustments between Accounting Basis and Funding Basis Under Regulations 33 Note 8 - Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty 34 Note 9 - Events after the Balance Sheet date 34 Note 10 - Contingent Liabilities 34 Note 11 - Leases 35 Note 12 - Property, Plant and Equipment – Movement on Balances 36 Note 13 - Short Term Debtors 36 Note 14 - Short Term Creditors 37 Note 15 - Related Party Transactions 37 Note 16 - Defined Benefit Pension Schemes 37 Note 17 - External Audit Costs 41 Note 18 - Grant Income 41 Note 19 - Balance Sheet Reserves 42 Note 20 - Financing and Management of Liquid Resources 43 Note 21 - Comprehensive Income and Expenditure Statement - financing and investment income and expenditure 43 Note 22 - Going Concern 43 Note 23 - Agency Relationship (Civil Penalties) 43 Audit Report 44 50
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3 Membership of the Board (2024/2025) Lanarkshire Valuation Joint Board (herein after referred to as ‘the Board’) is comprised of Elected Members from its two constituent local authorities. The serving Members of the Board during financial year 2024/2025 were as noted below: South Lanarkshire Council North Lanarkshire Council Councillor Walter Brogan (Convener) Councillor Jim Reddin (Depute Convener) Councillor Janine Calikes Councillor Bob Burgess Councillor Ross Clark Councillor Lesley Jarvie Councillor Colin Dewar Councillor Tom Johnston Councillor Lynsey Hamilton Councillor Martin Hose Councillor Anne Thomas Councillor Margaret Hughes Councillor Gavin Wylie Keatt Councillor Kenneth Duffy (until 11 October 2024) Councillor Mark McGeever Councillor James McPhilemy (from 11 October 2024 until 19 December 2024) Councillor Nicky Shevlin (from 19 December 2024) Chief Officers Assessor and Electoral Registration Officer: Renzo Pacitti BSc MRICS (until 15 April 2024) Christine Maxwell BSc MRICS (from 16 April 2024) The following appointed office bearers of the Board are employed on a substantive basis by South Lanarkshire Council: Clerk: Paul Manning (Chief Executive of South Lanarkshire Council) Treasurer: Jackie Taylor (Executive Director of Finance and Corporate Resources, South Lanarkshire Council) 51
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4 Management Commentary 2024/2025 The management commentary provides an overview of the key messages in relation to the objectives and strategy of Lanarkshire Valuation Joint Board (the Board) and its financial performance for the year ended 31 March 2025. It also provides an indication of the issues and risks that may impact upon the Board’s finances in the future. The Board was established by the Valuation Joint Boards (Scotland) Order 1995 and came into existence on 1 April 1996. It provides a range of valuation and electoral registration services to and on behalf of South Lanarkshire Council and North Lanarkshire Council (the constituent authorities), working in partnership with other Valuation Joint Boards and professional bodies throughout Scotland. Core Purpose, Vision, Service Function and Core Objectives The Board's previous Service Plan was approved at the Board meeting in March 2022 and covered the period April 2022 through to March 2025. A new Service Plan covering the period April 2025 through to March 2028 was approved by the Board in June 2025. The Plan incorporates the Board's Vision statement which is "to deliver quality in the work which we undertake, provide efficient services to all service users, and ensure completeness and accuracy of the Electoral Register, Valuation Roll and the Valuation (Council Tax) List”. The Plan sets out the key business areas identified for Lanarkshire Valuation Joint Board over the three-year period, with a view to ensuring that the Board’s services are delivered as effectively and efficiently as possible to service users. Where deemed appropriate, each key business area is supported by a series of priorities and measurable key actions, against which performance is regularly reported to the Board. Review of Performance The Board's performance against key performance indicator (KPI) targets during 2024/2025 is detailed below: Of 2,080 new Council Tax entries added, 92% were completed within 3 months of the effective date against a target of 87%. 96% were completed within 6 months against a target of 92%. Of 1,102 alterations to the non-domestic valuation roll, 48% were completed within 3 months of the effective date against a target of 77% and 74% were completed within 6 months against a target of 92%. The three-monthly and six-monthly targets were not met regarding non-domestic valuation, essentially due to the challenges presented by the shortage of experienced qualified staff, combined with the new processes in place to deal with the non-domestic proposals, and the requirement to provide draft valuations for 10% of the current valuation roll to the Scottish Government by the end of March 2025. With regards to electoral registration, within the period 2024/2025, the principal activities centred on maintaining the completeness and accuracy of the registers. However, during this period a snap UK Parliamentary Election was called for the 4 July. In addition to this there were 2 local by- elections held in North Lanarkshire on the 10 October. The annual canvass of electors 2024 was delayed until late August due to the snap election being called. It was run under canvass reform; data matching was used at the outset of the canvass to help identify those properties where the residents are more likely to have changed. All Electoral Registration Officers in Great Britain were required to match specified data they hold regards registered electors against the Department for Work and Pensions’ Customer Information System (DWP CIS) dataset. This dataset is already used in the electoral registration process to verify an applicant's identity. During the 2024 canvass, circa. 259,500 households were issued with a Canvass Communication A letter (CCA), which advised who was on the register and that unless there was a change in the household no return was required. A further stage to the reformed annual canvass process 52
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5 involved the issuing of circa 61,000 Canvass Forms (CF) to households which did not match, during the aforementioned exercise. Furthermore, where no response was received a Canvass Communication B reminder letter (CCB) was issued to circa. 50,000 households. The household visit, the final element of the 2024 canvass, was able to proceed nearer the end of the year, with circa 36,600 properties being canvassed. The canvass reforms also allowed for e-communications that included telephone and email contact. The canvass was concluded successfully, along with the Polling District and Polling Places Review, and the registers were published later than usual on 1 February 2025. Rolling Registration activity, introduced in 2000 to assist in maintaining the Electoral Register, continued throughout 2024/2025 with the bulk of the registration applications being received via the central government online registration system (www.gov.uk/register-to-vote). More information on the Board's performance during 2024/2025 can be found on the Board’s website at www.lanarkshire-vjb.gov.uk Financial Performance Revenue The Comprehensive Income and Expenditure Statement on page 21 summarises the total costs of providing services and the income available to fund those services. The Board set a net operating expenditure budget for 2024/2025 of £4.390 million to be funded by contributions from the two constituent local authorities. The budget was based on experience of expenditure and income levels during previous years and included a planned contribution from the Board’s reserves of £0.400 million. This budget included funding received from the Scottish Government for the implementation of the Barclay Review. In comparison to this revised 2024/2025 budget, the Board returned a surplus of income over expenditure of £0.500 million which, compared with the budgeted deficit of £0.400 million, meant there was £0.900 million of an improvement in the Board’s position. This surplus excludes the accounting adjustments relating to pensions and short-term accumulating absences. In the main, the improved financial position reflected reductions in spend due to turnover of staff and ongoing recruitment difficulties in the sector. The Table below compares the revised budget of the Board at the 31 March 2025. The difference between the net expenditure figure below and that reported in the Comprehensive Income and Expenditure Statement is due to the accounting adjustments, which are analysed in Note 5 Expenditure and Funding Analysis on page 31. Financing Charges in the table below includes Financing and Investment Income and Expenditure as detailed in the Net Expenditure Chargeable to General Fund column of Note 5 on page 31. Lanarkshire Valuation Joint Board Revenue Budget 2024/2025 Budget Actual Variance £000 £000 £000 Employee Costs 3,316 2,534 782 Property Costs 202 108 94 Supplies and Services 159 182 (23) Transport and Plant 10 11 (1) Administration Costs 677 645 32 Payments to Other Bodies 31 30 1 Financing Charges 13 8 5 Total Expenditure 4,408 3,518 890 Income (18) (28) 10 Net Expenditure 4,390 3,490 900 Funded by: Contributions from Councils (3,628) (3,628) 0 Funding from Other Bodies (362) (362) 0 Total (3,990) (3,990) 0 Surplus / (Deficit) for the Financial Year (400) 500 900 53
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6 As noted in the table, the main underspend was in respect of employee costs, reflecting a combination of the turnover of staff and difficulties in the recruitment of staff. In addition, there is an over recovery in income from the interest received on the Board’s revenue balances of the Board. Balance Sheet The Board’s Balance Sheet as at 31 March 2025 reported net assets of £2.047 milion compared with net assets of £1.525 million as at 31 March 2024, a movement of £0.522 million during the year. This is due to the recognition of Right of Use assets (£0.444 million) and the liability (£0.482 million) in respect of leases. In addition, there is an increase in cash and cash equivalents reflecting the timing of spend across financial year end (£0.595 million). Adding the surplus on the Balance Sheet as at 31 March 2024 (£0.500 million) to the Board’s General Reserve carried forward from 2023/2024 (£1.975 million), gives the Board a closing General Reserve position of £2.475 million at the end of 2024/2025. This is shown in Note 5 Expenditure and Funding Analysis on page 31 and the Movement in Reserves Statement on page 23. Pension Fund The disclosure requirements for pension benefits under International Accounting Standard 19 are detailed at Note 16. The appointed actuary assessed the Board’s share of Strathclyde Pension Fund as a net asset of £nil as at 31 March 2025. This reflects the assumptions used by the actuary, including financial and demographic assumptions, resulting in a significant increase to the Pension Asset since the previous year. The 2024/2025 pension reports provided by the actuary indicate an increased Asset (a surplus) for this year (compared to 2023/2024), and in line with IFRIC14, an asset ceiling has been applied. This reduced the Asset from £15.473 million to £0 and reflects the present value of employer future service costs less the present value of future employer contributions, over the future working lifetime of the active scheme. The Pension Liability is indicative of a broad position however, the reader should be aware that the Board is meeting its pension costs on an annual basis. Note 16: Defined Benefit Pension Schemes on page 37 provides more details on pensions including the factors affecting the pension asset such as assumptions about mortality, salary inflation, pension inflation and discount rates. The Board’s actuary has confirmed that the IAS19 Balance Sheet is based on financial market values and future market expectation indicators as at 31 March 2025 to comply with the standard. Provisions, contingencies and write-offs The Board is not aware of any eventualities which may have a material effect on its financial position and has therefore made no provision for such eventualities. Contingent assets and liabilities are disclosed as a note to the financial statements. No debts were written off during the financial year. Service Changes and Future Developments The Board noted the annual update of Lanarkshire Valuation Joint Board’s Service Plan at its meeting of 6 March 2024. Such updates on the service plan are provided annually to the Board. Future developments being anticipated in the following service areas: Electoral Registration Following the introduction of the Elections Act 2022, new legislative undertakings associated with the Act have included the introduction of Voter I.D. for certain elections and changes associated with the arrangements associated with overseas electors. Guidance on both matters are available from the Board website alongside forms to download or links to the Electoral Commission for more information. Work continued early 2024 on the preparation for the UK Parliamentary General 54
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7 Election, which was then held on 4 July 2024. All tasks and procedures were undertaken timeously in line with the associated election plan & risk register. Valuation: Non-domestic Work over the period 2024/2025 continued maintaining the valuation roll. The significant numbers of outstanding 2017 running roll appeals, the vast majority of which were lodged as a result of the pandemic, were dealt with before the disposal deadline of 31 December 2024. However, due to the shortage of experienced rating surveyors with the knowledge and expertise needed to deal with non-domestic rating work the task was onerous and impacted on expected service delivery and other planned work streams. Regarding the 2023 Revaluation proposals of which circa.1,400 were received, Proposal Determination Dates (PDD’s) were scheduled throughout the year. The last date for a PDD to be set for the 2023 Revaluation proposals being 30 September 2025. In addition to the aforementioned workstreams, the Scottish Government required the Board to provide, a 1 in 10 sample (approx. 2,300 subjects), of draft 2026 Revaluation values, by the end of March 2025, causing further impact on service delivery. New procedures, in relation to civil penalties, began in earnest in December 2024. These penalties are issued in response to the non-return of Assessor Information Notices. Board staff now manage the creation of the civil penalties together with the invoicing and mitigation of such penalties, through South Lanarkshire Council’s sundry debtor’s system. Due to the volume of Assessor Information Notices issued, alongside a possible 9 penalties for each notice, it has been recognised that our administration team’s workload has increased dramatically. Valuation: Domestic In respect of Council Tax, work continued to maintain the Valuation List, entering new houses on the List as well as reviewing bands of houses which have been sold (where there have been alterations which may result in a band increase), as efficiently as possible. Regarding proposals, although we continue to receive large numbers to deal with, the number of proposals being converted to appeals is still comparatively low when compared to previous years. Recent changes to the proposal/appeals system have resulted in several proposals deemed invalid, being heard by the First-tier Tribunal then further appealed to the Upper Tribunal for Scotland. This new step in the appeal process has brought with it additional time and cost burdens which will have to be closely monitored. In addition, the management team are fully aware of discussions with regards to a future Council Tax Revaluation and recognise that it is essential that early preparations are put in place to ensure that the Board have adequate resources to undertake such a task. Financial Outlook Most economic commentators forecast that pressures on public finances will continue for the foreseeable future. The Board recognises the impact of this difficult financial climate on its constituent authorities and consequently it continues to seek to generate efficiencies where possible. The Board’s Budget was updated in December 2024 and refreshed the Strategy into 2025/2026. A Medium-Term Financial Strategy for 2026/2027 to 2028/2029 was presented to the Board in June 2025. The Financial Strategy assists in managing several key risks which directly impact on the funding available to deliver the Board’s objectives. It also identifies a future strategy in respect of financial reserves and future work to be done by the Board to manage financial pressures. The Budget for 2025/2026 was approved in December 2024 and included assumptions in relation to pay award and use of reserves. The revised expenditure budget totals £4.082 million and is funded by contributions from councils (including the Barclay allocations) and the use of Reserves (£1.000 million). Early indications are that due to employee turnover, the forecast use of Reserves for the year is £0.800 million, rather than the budgeted £1.000 million. Taking this into account will leave £1.675 55
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8 million in Reserves for future years. This equates to 36% of the Board’s annual budget for 2025/2026. The Table below summarises the impact on Reserves across 2025/2026 and the 3 years of the new 2026/2027 to 2028/2029 Strategy. It shows that in the final year of the Strategy (2028/2029), the Board will have utilised all of the Reserves balance available. Moreover, there will be a shortfall in that year as the required use of Reserves in 2028/2029 is £0.645 million but there are only Reserves available of £0.158 million. Reserves Forecast and Strategy – June 2025 2025/2026 £m 2026/2027 (year 1) £m 2027/2028 (year 2) £m 2028/2029 (year 3) £m Opening Balance 2.475 1.675 0.702 0.158 Transfer to Reserves / (Utilisation of Reserves) (0.800) (0.973) (0.544) (0.158) Closing Balance 1.675 0.702 0.158 0.000 In order to reduce this reliance on reserves, and manage the shortfall anticipated, the Board need to reduce costs in the years up to 2028/2029. This cost reduction will need to be considered alongside workload and staffing requirements. There is also the potential that further funding may become available for Council Tax valuations in future, however there is no estimate of any value at this time or what additional workload and staffing requirements will be required for this valuation work. A review will be undertaken on the reliance on Reserves into 2026/2027 and will include planning scenarios on how the estimated future funding shortfall can be managed, while minimising the impact on statutory duties. The risk of the removal of Barclay funding will form part of this consideration. The Board’s Financial Strategy will continue to be revised annually, with consideration given to any changes in the financial horizon and will be presented to the Board as appropriate. Risks and Uncertainties The Board noted the Risk Register Update 2025 at its meeting in March 2025. The main risks highlighted are the continued difficulties faced in recruiting and retaining qualified valuation staff, and the uncertainty surrounding the funding going forward, for the duties brought about by the Barclay review into non-domestic rates, particularly the 3 yearly revaluations. In respect of the first highlighted risk, following discussions with South Lanarkshire Council’s Personnel Services, a review of the salary being paid to the Board’s graduate surveyors was undertaken. A program of appropriate in-house training has meant that our graduate trainee valuers are now able to undertake the outstanding workload associated with the 2023 Revaluation proposals and further analysis work to enable the 2026 Revaluation work to proceed. In addition, the training has enabled our graduate surveyors to submit their final paperwork to the Royal Institution of Chartered Surveyors to gain membership. Regarding the second risk, dialogue continues with the Scottish Government to ensure that all new statutory requirements emanating from the Barclay review are properly funded. All risks are monitored by the Board’s management team with a view to mitigating each risk, whether as an existing or emerging risk. Working Practices Working arrangements are hybrid, where employees split their time between the office and their home. However, where a business need is identified, staff are required to attend the office every day. Conclusion Despite the ongoing challenges with regards to the recruitment and retention of qualified staff, performance overall was positive across all 3 main business areas, albeit the non-domestic performance targets were not met. 56
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9 Sound financial management and medium-term planning has enabled the Board to successfully manage the financial challenges faced during the financial year 2024/2025. However, there remain several challenges going forward, not least those posed by 3 yearly non-domestic revaluations: the next being 1 April 2026. The impact of changes to the non-domestic appeals system, not yet fully realised; only once the Proposal Determination Date’s are set and decision notices issued, will the conversion rate of proposals to full appeals be known. We wish to acknowledge the significant efforts of all staff contributing to the Board's operational performance, of budget managers and support staff whose financial stewardship have contributed to the Board's financial position as at 31 March 2025, and to everyone involved in the preparation of the Annual Accounts. Jackie Taylor Christine Maxwell Cllr Walter Brogan Treasurer Assessor and ERO Convener 57
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10 Statement of Responsibilities This statement sets out the respective responsibilities of the Board and the Treasurer for the Annual Accounts. The Board’s Responsibilities The Board is required to: • Make arrangements for the proper administration of its financial affairs, and to ensure that one of its officers has responsibility for the administration of those affairs. For the Board, that officer is the Executive Director of Finance and Corporate Resources for South Lanarkshire Council, designated as the Treasurer of the Board. • Manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets. • Ensure the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014) and is compatible with that legislation, in accordance with proper accounting practices (section 12 of the Local Government in Scotland Act 2003). • Approve the Annual Accounts for signature. I confirm that these Annual Accounts were approved for signature by the Board at its meeting on 1 December 2025. Councillor Walter Brogan Convener of Lanarkshire Valuation Joint Board 58
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11 The Treasurer’s Responsibilities The Treasurer is responsible for the preparation of the Board'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 Treasurer has: • Selected suitable accounting policies, and applied them consistently. • Made judgements and estimates that were reasonable and prudent. • Complied with legislation. • Complied with the Code of Practice on Local Authority Accounting in the United Kingdom. The Treasurer has also: • Kept adequate accounting records which were up to date. • Taken reasonable steps for the prevention and detection of fraud and other irregularities. I certify that the annual accounts give a true and fair view of the financial position of the Board at the reporting date and the transactions of the Board for the year ended 31 March 2025. Jackie Taylor Treasurer of Lanarkshire Valuation Joint Board 59
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12 Annual Governance Statement This statement sets out the framework within which the Board has proper arrangements for the governance of the Board’s affairs, thereby facilitating the effective exercise of its functions, ensuring that appropriate arrangements are in place for the management of risk, and that appropriate systems of internal control are in place. The Annual Governance Statement has been prepared within the context of the Board’s governance framework and meets legislative requirements to include the Annual Governance Statement within the Annual Accounts. A consolidated Code of Corporate Governance was approved at the Board meeting of 4 March 2019, and this is still applicable. Scope of Responsibility In delivering its aims and objectives, the Board 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 Board also has a statutory duty to make arrangements to secure best value under the Local Government in Scotland Act 2003. In discharging this responsibility, the Board’s elected members and senior officers are responsible for putting in place proper arrangements for its affairs and facilitating the effective exercise of its functions. This includes arrangements proper arrangements for the management of risk. Governance Framework The Board operates a system of internal control designed to manage risk to a reasonable level. Internal controls 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 Board’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 main features of the Board’s Corporate Governance arrangements are:- • Consolidated Code of Corporate Governance; • Clearly defined Standing Orders, Scheme of Delegation and Financial Regulations and Tender Procedures; • Comprehensive business planning arrangements, setting key targets and action plans designed to achieve our corporate objectives; • Arrangements to manage risk, including a risk management strategy, a Corporate Risk Register and business continuity plans; • Clear customer complaints procedures; • Policies to regulate employee related matters, including the Employee Code of Conduct and Disciplinary Procedures; and • Regular public performance monitoring. As part of the overall control arrangements, the system of internal control is designed to ensure that assets are safeguarded, transactions are authorised and properly recorded, and material errors are detected and corrected. This system 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 Board. In particular, the system includes:- • Financial management supported by Financial Regulations; • Detailed budgeting systems; • Regular reviews of periodic and annual financial reports which compares financial forecast information against the annual budgets; 60
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13 • Setting targets to measure performance, including financial performance; • The preparation of regular financial reports that consider forecast expenditure levels, as well as actual expenditure and income against the annual budget; and • A range of policies such as the Counter Fraud, Bribery and Corruption Policy. These continue to be updated to reflect best practice and support a culture of ethical behaviour amongst employees and councillors. On 2 June 2025, the Board considered the adequacy and effectiveness of the Board’s governance arrangements and internal control environment and approved the Annual Governance Statement and Accounts. South Lanarkshire Council is the administering authority. All financial transactions of the Board are processed through the financial systems of the Council and are subject to the same controls and scrutiny as those of the Council. This includes a rolling programme of reviews by the Council’s Internal Audit Manager. Financial Sustainability and Reserves The 2025/2026 Budget Strategy paper presented to the Board in December 2024 referenced the level of Reserves and a plan for their use moving forward, across financial years 2024/2025 and 2025/2026. A Medium-Term Financial Strategy was then presented to the Board on 2 June 2025, which similarly noted the level and adequacy of reserves, and detailed a plan to utilise those to sustain the Board’s budget over the next 3 years. Review of Effectiveness The Board purchases its internal audit service from South Lanarkshire Council, through a Service Level Agreement. The role of Internal Audit is to provide an independent audit opinion on the adequacy and effectiveness of the Board’s governance, risk management and internal control systems based on audit work undertaken in the year. The internal audit service provided to the Board operates in accordance with the Public Sector Internal Audit Standards (revised 2017). A rolling programme of audits are undertaken on an annual basis targeted at the areas of greatest risk. The Internal Audit Manager provides an annual report to the Board and an audit opinion on the adequacy and effectiveness of the Board’s governance, risk management and internal control systems based on audit work undertaken in the year. The annual report for 2024/2025 was presented to the Board on 2 June 2025. In 2024/2025, the Internal Audit opinion is that, overall, reasonable assurance can be placed on the adequacy and effectiveness of Lanarkshire Valuation Joint Board’s framework of governance, risk management and control arrangements for the year ending 31 March 2025. Statement on the Role of the Chief Financial Officer CIPFA published the statement on the role of the Chief Financial Officer in 2010 and under the Code, the Board is required to state whether it complies with the statement, and if not, to explain how their governance arrangements deliver the same impact. The Board’s financial management arrangements comply with the principles set out in CIPFA’s statement on the Role of the Chief Financial Officer. Continuous Improvement As part of the annual audit review, recommendations are provided which not only assist management to improve their control environment, but also provide an assessment of the adequacy of existing systems and procedures, including highlighting any necessary improvements to maintain and improve the Board’s governance arrangements going forward. The External Auditor's Annual Report to the Board 2023/2024 did not identify any Governance actions for implementation during 2024/2025. 61
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14 Working Practices Agile working practices include home/office blended working arrangements, and sourcing more information digitally with the continued use of electronic communications, where deemed appropriate. Where a business need is identified, staff are required to attend the office every day. The Board’s staff are to be commended on their ability to adapt to changing processes to ensure that all statutory functions are carried out. Assurance In conclusion, there were no significant weaknesses identified in the Annual Audit Report relating to improvements requiring action in 2024/2025. Systems are in place to continually review and improve the control environment and governance arrangements operated by the Board. The effectiveness of governance is dependent on the actions of officers of the Board and by the work of Internal and External Audit. It is the Board’s view that the governance arrangements were effective during financial year 2024/2025. Significant Governance Areas The Board’s management team identifies risks to which the Lanarkshire Valuation Joint Board is exposed, and documents the controls in place to help mitigate each risk. At the latest review in January 2025, 4 risks were deemed high but are mitigated by these controls, and are summarised in the table below. Risk Classification Key Risk Description of Risk Controls in Place 1 Operational, Continuity and Performance Lack of central IT support. Lack of central IT support for the Board provided by constituent authorities. 1) Service Level Agreement (SLA) with constituent authority in place. 2) IT Business Systems Manager and an IT Team Leader attend relevant part of the Board’s monthly Management Team meetings. 2 Financial Insufficient budget from SLC/NLC. Insufficient budget from SLC/NLC could lead to statutory duties not being undertaken. 1) Realignment of budgets. 2) Quarterly meeting with Treasurer to the Board to discuss budgetary matters. 3) Notification to Clerk as part of budget planning. 4) Notification to the board as part of budget planning. 5) Monitor revenue budget at monthly management meetings. 6) Three-year budgetary planning. 3 People Failure to recruit and or retain valuation staff. Failure to retain or recruit staff, including those with appropriate qualifications. 1) Work life balance, conditions of service, personnel policies and job families regularly reviewed. 2) PDR process in place. 3) Recruitment of trainee valuers employed when 62
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15 Risk Classification Key Risk Description of Risk Controls in Place Inability to match work life balance, conditions of service, personnel policies, salaries of other valuation joint boards, local authorities, constituent authorities or private sector. appropriate, with structured training plan in place. 4) Existing staff offered appropriate training, including training towards professional qualifications where deemed appropriate. 5) Ongoing monitoring of grading matrix alongside key duties to ensure fair and equal pay with lead authority to retain staff. 6) Review of structure, to deploy employees effectively to ensure statutory duties are met. 7) Ongoing discussions with Personnel in relation to recruitment issues. 4 Financial Lack of funding for new duties associated with the Barclay review into non- domestic rates Insufficient funding for new duties could lead to difficulties in delivery of statutory undertakings. There is no detail on future years’ funding from the Scottish Government for such duties. 1) Risk to the new statutory duties has previously been raised and continues to be discussed with Scottish Government officials, and directly with the Minister for Public Finance. 2) Three yearly budget planning assists with the identification of when funding levels become critical to service delivery. Christine Maxwell Councillor Walter Brogan Assessor and ERO Convener 63
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16 Remuneration Report The remuneration report provides details of the Board’s remuneration policy for senior Board members and senior employees. Introduction The Remuneration Report has been prepared in accordance with the Local Authority Accounts (Scotland) Regulations 1985 (as amended by the Local Authority Accounts (Scotland) Regulations 2014. These Regulations require various disclosures about the remuneration and pension benefits of senior Board members and senior employees. All information disclosed in tables 1 – 3 and 5 and 6 in this Remuneration Report and details of exit packages have been audited by Audit Scotland. The other sections of the Remuneration Report have been reviewed by Audit Scotland to ensure that they are consistent with the financial statements. Senior Employees The remuneration 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 Officers of Scottish local authorities. COSLA Industrial Relations Circular 11-23b sets the amount of salary for Chief Officers for 2024/2025. Senior Councillors The Convener and Depute Convener of the Lanarkshire Valuation Joint Board are remunerated by the Council of which they are a council member, as shown in Table 3. The remuneration of councillors is regulated by the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2007 (SSI No. 2007/183) as amended most recently by the Local Governance (Scotland) Act 2004 (Remuneration) Amendment Regulations 2024 (SSI 2024/24). The Regulations provide for the grading of Councillors for the purposes of remuneration arrangements, as either the Leader of the Council, the Provost, Senior Councillors or Councillors. These regulations also set out the amounts a councillor may be paid for being a Convener or Depute Convener of a Joint Board. This is inclusive of any amount payable to them as either a Councillor or Senior Councillor. The Board has an arrangement with each Council who remunerates the Convener and Depute Convener/s to reimburse the Council for the additional costs of that councillor arising from them being a Convener or Depute Convener of the Board. The disclosures made in this report are limited to the amounts paid to the Council by the Board for remuneration and does not reflect the full value of the remuneration that may be paid to the councillor. Trade Unions (Facility Time Publication Requirements) Regulations 2017 In addition to the regulations governing senior employees and councillors, the Trade Union (Facility Time Publication Requirements) Regulations 2017, which applied from 1 April 2017, require public sector employers to collect and publish a range of information on trade union facility time in respect of their employees who are Trade Union Representatives. The Trades Unions (Facility Time Publication Requirements) is available on the Board’s website. There are no employees within the Board who are Trade Union Representatives, as noted on the Board’s website. 64
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17 General Pay Bands for Senior Employees The number of officers who received remuneration (excluding pension contributions) in excess of £50,000 for the financial year is shown in Table 1: Table 1 - General Pay Band Disclosure for Senior Employees Annual Remuneration Number of Employees Number of Employees £ 2024/2025 2023/2024 50,000 – 54,999 1 5 55,000 – 59,999 2 3 60,000 – 64,999 3 0 65,000 – 69,999 0 0 70,000 – 74,999 0 1 75,000 – 79,999 1 0 80,000 – 84,999 1 1 85,000 – 114,999 (Note 1) 0 0 115,000 – 119,999 0 1 120,000 – 129,999 (Note 1) 0 0 130,000 – 134,999 1 0 Note 1: These are merged pay bands covering more than £5,000 due to the fact that no employees fell into these bands in either financial year. Disclosure of Remuneration Tables 2 and 3 provide details of the remuneration paid to the Board’s senior employees, Convener and Depute Convener. Comparative figures for 2023/2024 have been shown. Table 2 – Senior Employees Name / Post Salary / Fees Taxable Expenses Compensation for Loss of Office Any other Remuneration 2024/2025 Total 2023/2024 Total G Bennett Assessor and Electoral Registration Officer (To 31 May 2023) n/a - - - n/a £22,000 (Full Time Equivalent £133,535) R Pacitti Assistant Assessor and Electoral Registration Officer Assessor and Electoral Registration Officer (To 15 May 2024) n/a £5,736 (Full Time Equivalent £135,937) - - - - - - n/a £5,736 (Full Time Equivalent £135,937) £15,631 (Full Time Equivalent £81,594) £103,973 (Full Time Equivalent £129,224) C Maxwell Assistant Assessor and Electoral Registration Officer (To 15 May 2024) Assessor and Electoral Registration Officer (From 15 May 2024) £3,563 (Full Time Equivalent £84,438) £128,240 (Full Time Equivalent £133,729) - - - £3,563 (Full Time Equivalent £84,438) £128,240 (Full Time Equivalent £133,729) £81,594 65
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18 The senior employees included in Table 2 include any Board employee: • Who has responsibility for management of the Board to the extent that the person has power to direct or control the major activities of the Board (including activities involving the expenditure of money), during the year to which the report relates, whether solely or collectively with other persons; • Who 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; or • Whose annual remuneration, including remuneration from a local authority subsidiary body, is £150,000 or more. Table 3 – Conveners and Depute-Conveners Name / Post Salary / Fees Taxable Expenses Compensation for Loss of Office Any other Remuneration 2024/25 Total 2023/24 Total W Brogan Convener £5,575 - - - £5,575 £5,029 J Reddin Depute Convener £4,007 - - - £4,007 £3,773 Total £9,582 - - - £9,582 £8,802 Pension Rights Pension benefits for councillors and Lanarkshire Valuation Joint Board employees are provided through the Local Government Pension Scheme (LGPS). The Board’s employees had a final salary pension scheme prior to 1 April 2015. This means that pension benefits are based on the final year’s pay and the number of years that person has been a member of the scheme. As of 1 April 2015, the Board’s employees are now part of a defined benefit pension scheme worked out on a career average basis. Benefits built up are calculated using pensionable pay each scheme year, rather than final salary. All benefits built up prior to this date are protected. From 1 April 2009, a five-tier contribution system was introduced with contributions from scheme members based on how much pay falls into each tier. This is designed to give more equality between the costs and benefits of scheme membership. Under The Local Government Pension Scheme (Scotland) Regulations 2014, the earnings ranges used to determine annual contribution rates are to be increased each year by any increase applied to pensions under the Pensions (Increase) Act 1971. In accordance with this the salary bands for 2023/2024 were uprated by the Consumer Price Index (CPI) increase for 2024/2025. The member contribution rates and tiers for 2024/2025 are shown in Table 4 along with those that applied in 2023/2024. Name / Post Salary / Fees Taxable Expenses Compensation for Loss of Office Any other Remuneration 2024/2025 Total 2023/2024 Total J Dell Assistant Assessor and Electoral Registration Officer £81,938 - - - £81,938 £37,923 (Full Time Equivalent £79,182) Total £224,724 - - - £224,724 £261,121 66
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19 Table 4 – Pension Contribution Rates Pensionable Pay Contribution rate 2024/2025 Pensionable Pay Contribution Rate 2023/2024 On earnings up to an including £27,000 5.50% On earnings up to an including £25,300 5.50% On earnings above £27,000 and up to £33,000 7.25% On earnings above £25,300 and up to £31,000 7.25% On earnings above £33,000 and up to £45,300 8.50% On earnings above £31,000 and up to £42,500 8.50% On earnings above £45,300 and up to £60,400 9.50% On earnings above £42,500 and up to £56,600 9.50% On earnings above £60,400 12.0% On earnings above £56,600 12.0% From April 2015, if a person works part-time their contribution is based on their part-time pay. Prior to this, if a person worked part-time, their contribution rate was worked out on the whole-time pay rate for the job, with actual contributions paid on actual pay earned. There is no automatic entitlement to a lump sum. Members may opt to give up (commute) pension for lump sum up to the limit set by the Finance Act 2004. From 1 April 2015, benefits are calculated on the basis of a revalued annual pension built up of 1/49th of pensionable pay each year, plus inflation to keep up with the cost of living. Prior to this date, the accrual rate guaranteed a pension based on 1/60th of final pensionable salary and years of pensionable service and prior to 2009 the accrual rate guaranteed a pension based on 1/80th and a lump sum based on 3/80th of final pensionable salary and years of pensionable service. The value of the benefits has been calculated without exercising any option to commute pension entitlement into a lump sum and without any adjustment for the effects of future inflation. In those cases where members have transferred pension entitlements from previous employments, the pension figures shown relate to the benefits that the person has accrued as a consequence of their total local government service, and not just their current appointment. It also reflects both employer and employee contributions. The Pension entitlement of Senior Employees for the year to 31 March 2025 are shown in the Table 5, together with the contribution made by the Board to each senior employees’ pension during the year. The accrued pension benefit reflects both the employer and employee contributions. Table 5 – Pension Benefits: Senior Employees Name / Post Accrued Pension Benefits March 2025 Movement in accrued pension benefits since 31 March 2024 Pension Contribution made by Board 2024/2025 Pension Contribution made by Board 2023/2024 G Bennett Assessor and Electoral Registration Officer (To 31 May 2023) Pension Lump Sum n/a n/a n/a n/a £0 £4,246 R Pacitti Assessor and Electoral Registration Officer (to 15 April 2024) Pension Lump Sum £67,283 £110,629 £1,494 (£6,653) £714 £23,083 67
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20 Name / Post Accrued Pension Benefits March 2025 Movement in accrued pension benefits since 31 March 2024 Pension Contribution made by Board 2024/2025 Pension Contribution made by Board 2023/2024 C Maxwell Assistant Assessor and Electoral Registration Officer (From 6 April 2022) Pension Lump Sum £57,202 £90,006 £20,148 £35,153 £8,567 £15,748 J Dell Assistant Assessor and Electoral Registration Officer (From 9 October 2023) Pension Lump Sum £37,341 £48,010 £3,227 £4,369 £5,326 £7,319 Total £14,607 £50,396 Table 6 – Pension Benefits: Conveners and Depute Conveners Name / Post Pension Contribution made by Board 2024/2025 Pension Contribution made by Board 2023/2024 W Brogan, Convener £362 £971 J Reddin, Depute Convener £260 £729 Exit Packages There were no exit packages agreed or paid for in 2024/2025 or 2023/2024. Christine Maxwell Councillor Walter Brogan Assessor and ERO Convener 68
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21 Comprehensive Income and Expenditure Statement for the year ended 31 March 2025 This statement shows income generated by the Board during the year and how it was spent on services and financing costs. 2023/2024 2024/2025 Note Actual Restated Actual £000 £000 2,909 Employee Costs 2,748 208 Property Costs 108 115 Supplies and Services 182 5 Transport and Plant 11 598 Administration Costs 623 30 Payments to Other Bodies 30 58 Financing Charges (Note a) 145 3,923 Total Expenditure 3,847 (4,075) Income (4,018) (152) Net Cost of Services (171) (80) Financing and Investment Income and Expenditure (Note a) (69) 21 (232) (Surplus)/Deficit on the Provision of Services (240) 282 Re-measurement of the Net Defined Benefit (Asset)/Liability (282) 16 282 Other Comprehensive Income and Expenditure (282) 50 Total Comprehensive Income and Expenditure (522) Note a: An amount of £0.088 million, in respect of interest received on revenue balances, has been restated in 2023/2024 from Financing Charges to Financing and Investment Income and Expenditure, as detailed in Note 2, page 29. The surplus on the Provision of Services does not change, this is a change to presentation only. 69
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22 Balance Sheet as at 31 March 2025 This statement shows the resources of the Board and means by which they were financed. It shows the values as at the Balance Sheet date of the assets and liabilities recognised by the Board. 31 March 2024 31 March 2025 Note £000 £000 Non-Current Assets: 113 Property, Plant and Equipment 557 11,12 0 Pension Asset 0 16 113 Total Non-Current Assets 557 Current Assets: 106 Short Term Debtors 66 13 1,992 Cash and Cash Equivalents 2,587 2,098 Total Current Assets 2,653 Current Liabilities: (193) Short Term Creditors (246) 14 - Short Term Lease Liability (78) 11 (193) Total Current Liabilities (324) 2,018 Total Assets less Current Liabilities 2,886 Long Term Liabilities (493) Pension Liability (435) 16 - Long Term Lease Liability (404) 11 (493) Total Long Term Liabilities (839) 1,525 Total Assets less Liabilities 2,047 Financed By: Unusable Reserves (493) Pension Reserve (435) 19 (70) Accumulating Compensated Absences Reserve (68) 19 113 Capital Adjustment Account 75 19 Usable Reserves 1,975 General Fund Reserve 2,475 19 1,525 2,047 The notes on pages 27 to 42 form part of the financial statements. The unaudited accounts were approved for issue by the Board on 2 June 2025, and the audited accounts were authorised for issue on 1 December 2025. The audited accounts are signed on behalf of the Board by: Jackie Taylor Treasurer of Lanarkshire Valuation Joint Board 70
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23 Movement in Reserves Statement for the year ended 31 March 2025 This statement shows the movement in the year on the different reserves held by the Board, analysed into usable reserves and unusable reserves. The surplus on the provision of services shows the true economic cost of providing the Board’s services, which is fully analysed in the Comprehensive Income and Expenditure Statement on page 21. This cost excludes other statutory charges to the General Fund balance. The net increase / (decrease) before transfers to / from other statutory reserves shows the statutory General Fund balance before any discretionary transfers to or from the other statutory reserves of the Board. General Fund Balance Total Usable Reserves Unusable Reserves Total Reserves £000 £000 £000 £000 Balance as at 31 March 2024 1,975 1,975 (450) 1,525 Movement in Reserves during 2024/2025 Surplus on the provision of services 240 240 - 240 Other comprehensive income and expenditure - - 282 282 Total comprehensive income and expenditure 240 240 282 522 Adjustments between accounting basis and funding basis (note 5) 260 260 (260) 0 Net increase before transfers to / from other statutory reserves 500 500 22 522 Transfers to / from other statutory reserves - - - - Increase / (Decrease) in 2024/2025 500 500 22 522 Balance as at 31 March 2025 2,475 2,475 (428) 2,047 71
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24 Movement in Reserves Statement for the year ended 31 March 2024 General Fund Balance Total Usable Reserves Unusable Reserves Total Reserves £000 £000 £000 £000 Balance as at 31 March 2023 1,721 1,721 (146) 1,575 Movement in Reserves during 2023/2024 Surplus on the provision of services 232 232 - 232 Other comprehensive income and expenditure - - (282) (282) Total comprehensive income and expenditure 232 232 (282) (50) Adjustments between accounting basis and funding basis (note 5) 22 22 (22) 0 Net increase before transfers to / from other statutory reserves 254 254 (304) (50) Transfers to / from other statutory reserves - - - - Increase / (Decrease) in 2023/2024 254 254 (304) (50) Balance as at 31 March 2024 1,975 1,975 (450) 1,525 72
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25 Cash Flow Statement This statement shows the changes in cash and cash equivalents of the Board during the year. The statement shows how the Board generates and uses cash and cash equivalents by classifying them as either operating, investing or financing activities. • The level of net cash arising from operating activities is a key indicator of the extent to which the operations of the Board are funded by way of taxation and grant income or from service users and constituent authorities. • Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Board’s future service delivery. • Cash flows arising from financing activities are useful in predicting claims on future cash flows in respect of leasing. Further analysis of movements is provided in the cash flow notes following the statement. 2023/2024 2024/2025 £000 £000 232 Surplus/(Deficit) on the Provision of Services 240 (143) Adjust Surplus/(Deficit) on the Provision of Services for non-cash movements 424 89 Adjust for items included in the Surplus/(Deficit) on the Provision of Services that are investing and financing activities 0 178 Net cash flows from operating activities 664 0 Investing Activities 0 0 Financing Activities (69) 178 Net increase or decrease in cash and cash equivalents 595 1,814 Cash and cash equivalents at 1 April 1,992 1,992 Cash and cash equivalents at 31 March 2,587 Cash Flow Statement Note – Non Cash Movements The balance of non-cash movements is made up of the following elements: 2023/2024 2024/2025 £000 £000 22 Depreciation, impairment and amortisation of assets 107 (6) Movement in Debtors 40 (70) Movement in Creditors 55 4 Movement in Pension Liability 224 (4) Movement in the Employee Statutory Adjustment Account (2) - Movement in the Flexible Working Scheme Adjustment Account - (89) Interest received - (143) Net Cash flows from the provision of services for non-cash movements 424 Cash Flow Statement Note – Financing Activities The cash flows for financing activities include the following item: 2023/2024 2024/2025 £000 £000 0 Cash payments for the reduction of the outstanding liabilities relating to leases (69) 89 Net cash flows from financing activities (69) 73
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26 Cash Flow Statement Note – Cash and Cash Equivalents The balance of Cash and Cash Equivalents is made up of the following elements: 2023/2024 2024/2025 £000 £000 1,992 Short term deposits 2,587 1,992 Total Cash and Cash Equivalents 2,587 74
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27 Notes to the Financial Statements Note 1: Accounting Policies General Principles Lanarkshire Valuation Joint Board is required to prepare annual accounts by the Local Authority Accounts (Scotland) Regulations 2014, section 12 of the Local Government in Scotland Act 2003 requires they be prepared in accordance with proper accounting practices. The general policies adopted in compiling and presenting the Accounts are those recommended by the Code of Practice on Local Authority Accounting in the United Kingdom 2023/2024 issued jointly by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC), supported by International Financial Reporting Standards (IFRS). There are no significant departures from those recommendations. The Annual Accounts has been prepared under the historic cost convention. All accounting policies have been applied consistently. Debtors and Creditors Accruals basis The Comprehensive Income and Expenditure Statement is compiled on an accruals basis. Income and expenditure activities are accounted for in the year in which they take place, not simply when payments are made or received. Where goods and services have been sold but the income not received by 31 March 2025 or goods have been received but not paid for by 31 March 2025 then the Comprehensive Income and Expenditure Statement has been amended to reflect the outstanding amounts and a debtor or creditor for the relevant amount is recorded in the Balance Sheet. (i) Debtors All specific and material sums payable to the Board have been brought into account. (ii) Creditors Sundry Creditors are accrued on the basis of payments made during the first three weeks following 31 March 2025; together with specific accruals in respect of further material items. (iii) Accumulating Compensated Absences International Accounting Standard 19 (IAS19) states that ‘an organisation should account for employment benefits when employees earn them and the authority is committed to providing them, even if the actual provision might be in future years.’ All salaries and wages earned up to 31 March 2025 are included irrespective of when actual payments were made. The requirements of IAS 19 have been fully applied in the current year, in respect of annual leave provision, including recognition of the net liability and an accumulating compensated absences reserve in the Balance Sheet and entries in the Comprehensive Income and Expenditure Statement for movements in the liability relating to the scheme. (iv) Pension Costs The Board participates in the Local Government Superannuation Scheme (Strathclyde Pension Fund), which is administered by Glasgow City Council. The cost of providing pensions for employees is charged to the Comprehensive Income and Expenditure Statement in accordance with the statutory requirements governing the particular pension schemes to which the Board contributes. While the requirements of IAS19 have been fully applied in the current year, the Pension report provide by the actuary has indicated a significant net Asset (a surplus). The significant nature of the Asset has been reviewed, and in line with IFRIC14, the asset has been de-recognised to equate to the level of the asset ceiling, provided by the Fund’s actuary. This reflects the net present value of future service costs less the net present value of future obligations over the future working lifetime as at 31 March 2025. This derecognition has been applied through the Comprehensive Income and 75
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28 Expenditure Statement. Previous year budget and expenditure information has been provided to allow comparability. In assessing liabilities for retirement benefits for the 2024/2025 Annual Accounts (included in the net asset), a discount rate based on the current rate of return on a high-quality corporate bond of equivalent currency and term to the scheme was used. The Actuary has advised that a rate of 5.8% per annum is appropriate (2023/2024 – 4.85%). Actuarial Gains and Losses – changes in the net pension asset / liability that arise because of events have not coincided with assumptions made at the last actuarial valuation or because the actuaries have updated their assumptions – debited to the Pension Reserve. (v) Allocation of Central Support Expenses The allocation of Central Support Expenses is the cost of those South Lanarkshire central support departments which provide a service to the Board. The individual support departments are Administration Services, Personnel, Information Technology and Finance Services. The method of allocation is determined by each individual department and in most instances is a time-based allocation of employee costs or the recharge of actual costs incurred. The recharge is made on a consistent basis. (vi) Borrowing Facilities The Board is a separate legal entity and has South Lanarkshire Council as its lead authority. The loans’ fund of South Lanarkshire Council acts as banker to the Board and consequently lends or borrows according to the required cash flow and activities of the Board. (vii) Financial Instruments Where an instrument has a maturity of less than 12 months the fair value is taken to be the principal outstanding. Creditors due within 12 months are not classed as a financial instrument. (viii) Agency Relationship Where the Board is acting as an agent for another party (for example in the collection of Civil Penalties), income and expenditure are recognised only to the extent that commission is receivable by the Board for the agency service rendered or the Board incurs expenses directly on its own behalf in rendering the services. Intangible Assets Expenditure on non-monetary assets that do not have physical substance but are controlled by the Board as a result of past events (for example, software licences) is capitalised when it is expected that it will bring benefits to the Board for more than 12 months. Intangible Assets are measured at cost. The depreciable amount of an intangible asset is amortised over its useful life in the Comprehensive Income and Expenditure Statement. The useful life of these assets is deemed to be 1-5 years. The Board has no Intangible Assets. Leases The Board adopted IFRS 16 (Leases) with effect from 1 April 2024. The main impact of the requirements of IFRS 16 is that, for arrangements previously accounted for as operating leases (where any leased equipment and property were not recognised as an asset, and future rents were not recognised as a liability), a right-of-use asset and a lease liability are now included on the balance sheet from 1 April 2024. The Board has elected to apply recognition exemptions to low value assets (below £0.010 million when new) and to short-term leases (existing leases that expire on or before 31 March 2025), and new leases with a duration of less than 12 months. A contract is, or contains a lease, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. 76
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29 In transitioning to IFRS16 the Board elected to use the Modified Retrospective Approach. This approach allows entities to adopt the standard without restating prior periods, recognising the cumulative effect of the new leases standard as an adjustment to opening balances. This approach involved: • Calculating lease liabilities at the transition date, as the present value of remaining lease payments discounted at the incremental borrowing rate. • Recognising a right of use asset, equal to the lease liability (adjusted for prepayments/accruals). • Recognise any difference between assets and liabilities in opening reserves (typically the General Fund Reserve). Property, Plant and Equipment Assets that have physical substance and are held for use in the supply of services or 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 merely maintains the condition of an asset e.g. repairs and maintenance 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 in the manner intended by management. Assets are then carried in the Balance Sheet using the following measurement bases: • other land and buildings – fair value, determined by the amount that would be paid for the asset in its existing use (existing use value – EUV). • vehicles, plant and equipment – where non- property assets that have short useful lives or low values (or both), depreciated historical cost basis is used as a proxy for fair value. Depreciation Depreciation is provided for on all Property, Plant and Equipment assets and is calculated on the following bases: • other buildings – straight-line allocation over the useful life of the property as estimated by the valuer (other buildings 10 – 40 years). • vehicles, plant and equipment – straight line allocation over the useful life of the asset (5 – 20 years). • over the term of the remaining lease of David Dale House. Note 2: Prior Period Adjustments An amount of £0.088 million, in respect of interest received on revenue balances, has been restated in 2023/2024 from Financing Charges to Financing and Investment Income and Expenditure, without impacting the reported Surplus on the Provision of Services. This restatement is in line with the Code of Practice on Local Authority Accounting in the UK and now accounts for this figure correctly in the accounts for both years. The restatement is included in the Comprehensive Income and Expenditure Statement (CIES) on page 21; the Expenditure and Funding Analysis on page 31; and Note 21 CIES Financing and Investment Income on page 43. There are no other prior period adjustments included within the 2024/2025 Annual Accounts. 77
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30 Note 3: Accounting Standards Issued but Not Adopted The Accounting Code of Practice requires the Board to disclose information relating to the impact of an accounting change that is required by a new standard that has been issued but not yet adopted. At the balance sheet date, the following new standards and amendments to existing standards have been published but not yet adopted by The Code and are not expected to have an impact on the Board’s financial statements and are noted below: • IAS 21 The Effects of Changes in Foreign Exchange Rate (Lack of Exchangeability) issued in August 2023. The amendments to IAS 21 clarify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking, as well as require the disclosure of information that enables users of financial statements to understand the impact of a currency not being exchangeable. • IFRS 17 Insurance Contracts issued in May 2017. IFRS 17 replaces IFRS 4 and sets out principles for recognition, measurement, presentation and disclosure of insurance contracts. IFRS 17 affects any company that writes insurance contracts - such contracts are not written by the Council. • The changes to the measurement of non-investment assets within the 2025/26 CIPFA Code of Practice include adaptations and interpretations of IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets. These include setting out three revaluation processes for operational property, plant and equipment, requiring indexation for tangible non-investment assets and a requirement to value intangible assets using the historical cost approach. The Council follows current valuation guidelines as laid down by The Code Note 4: Critical Judgements in Applying Accounting Policies In applying the accounting policies, the Board is obliged to highlight whether it has had to make certain judgements about complex transactions or those involving uncertainty about future events. The critical judgements made in the Annual Accounts are: • In assessing the potential for significant costs arising from Valuation Appeal Panels, the Board has considered its level of exposure as low and therefore no provision for an outflow of money has been made. • The Accounts have been prepared on a going concern basis as it is expected that despite the uncertainty around future local government funding, a medium-term Financial Strategy has been developed in conjunction with the Board’s constituent authorities. This gives certainty regarding the medium-term financial outlook and the level of service provision. • If a Pension Scheme was in deficit (a liability), this would be recognised in the Accounts. Conversely, if the Pension scheme was in a surplus (an Asset), in line with IFRIC14, this would not be recognised on the basis that there is no ability to recover any surplus from the fund, nor recover any of the funds from future contributions. The surplus/deficit is arrived at by obtaining a valuation from the actuary. In the event of a surplus, consideration is given to whether it can be recognised based on whether the surplus can be recovered, or the contributions can be reduced. It is believed that under the agreement with Strathclyde Pension Fund, such a surplus cannot be recovered. 78
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31 Note 5: Expenditure and Funding Analysis The Expenditure and Funding Analysis shows the expenditure and income figures reported to Lanarkshire Valuation Joint Board and, through a single adjustments column, reconciles it to the accounting figures presented in the Comprehensive Income and Expenditure Statement. 2023/2024 2024/2025 Net Exp. Chargeable to GF Adjustment between Funding and Accounting Basis (Note 6) Net Exp. in CIES Net Exp. Chargeable to GF Adjustment between Funding and Accounting Basis (Note 6) Net Exp. in CIES Restated Restated £000 £000 £000 £000 £000 £000 2,887 22 2,909 Employee Costs 2,534 214 2,748 208 208 Property Costs 108 108 115 115 Supplies and Services 182 182 5 5 Transport and Plant 11 11 627 (29) 598 Administration Costs 645 (22) 623 30 30 Payments to Other Bodies 30 30 37 21 58 Financing Charges (Note a) 106 39 145 3,909 14 3,923 Total Expenditure 3,616 231 3,847 (4,075) (4,075) Income (4,018) (4,018) (166) 14 (152) Net Cost of Services (402) 231 (171) (88) 8 (80) Financing and Investment Income and Expenditure (Note a) (98) 29 (69) (254) 22 (232) (Surplus) or Deficit (500) 260 (240) Note a: An amount of £0.088 million, in respect of interest received on revenue balances, has been restated in 2023/2024 from Financing Charges to Financing and Investment Income and Expenditure, as detailed in Note 2 on page 29. The surplus does not change, this is a presentation change only. 2023/2024 2024/2025 General Fund General Fund £000 £000 (1,721) Opening General Fund Balance (1,975) (254) (Surplus) or Deficit (500) - Transfers To/From Reserves - (1,975) Closing General Fund Balance (2,475) 79
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32 Note 6: Notes to the Expenditure and Funding Analysis - Adjustments Between Funding and Accounting Basis 2024/2025 2024/2025 2024/2025 2024/2025 Adjustments for Capital Purposes (note a) £000 Net Change for the Pensions Adjustments (note b) £000 Other Differences (note c) £000 Total Adjustments between Funding and Accounting Basis £000 Employee Costs - 216 (2) 214 Property Costs - - - - Supplies and Services - - - - Transport and Plant - - - - Administration Costs - (22) - (22) Payments to Other Bodies - - - - Financing Charges 39 - - 39 Total Expenditure 39 194 (2) 231 Income - - - - Net Cost of Services 39 194 (2) 231 Financing and Investment Income and Expenditure - 29 - 29 (Surplus) or Deficit 39 223 (2) 260 2023/2024 2023/2024 2023/2024 2023/2024 Adjustments for Capital Purposes (note a) £000 Net Change for the Pensions Adjustments (note b) £000 Other Differences (note c) £000 Total Adjustments between Funding and Accounting Basis £000 Employee Costs - 25 (3) 22 Property Costs - - - - Supplies and Services - - - - Transport and Plant - - - - Administration Costs - (29) - (29) Payments to Other Bodies - - - - Financing Charges 21 - - 21 Total Expenditure 21 (4) (3) 14 Income - - - - Net Cost of Services 21 (4) (3) 14 Financing and Investment Income and Expenditure - 8 - 8 (Surplus) or Deficit 21 4 (3) 22 Note a – Adjustment for Capital Purposes This column adds in depreciation and impairment and revaluation of gains and losses in the financing charges line. Note b – Net Change for the Pensions Adjustment Net change for the removal of pension contributions and the addition of IAS19 Employee benefits pension related expenditure and income: 80
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33 • For Employee Costs and Administration Costs this represents the removal of the employer contributions made by the Board as allowed by statute and the replacement with current service costs and past service costs. • For Financing and Investment Income and Expenditure – the net interest on the defined benefit liability is charged to the Comprehensive Income and Expenditure Statement. Note c – Other Differences Other differences between amounts debited/credited to the Comprehensive Income and Expenditure Statement and amounts payable /receivable to be recognised under statute: • For Employee Costs this represents the accrual made for the cost of holiday/leave entitlements earned by employees but not taken before the year-end which employees can carry forward into the next financial year. These require to be included within the Net Cost of Services under generally accepted accounting practices, however, are not chargeable to the General Fund. Note 7: Adjustments between Accounting Basis and Funding Basis Under Regulations This note details the adjustments that are made to the total Comprehensive Income and Expenditure Statement recognised by the Board in the year in accordance with proper accounting practice to arrive at the resources that are specified by statutory provisions as being available to the Board to meet future revenue expenditure. Useable Reserves 2024/2025 2023/2024 £000 £000 Adjustments to Revenue Resources Pension Costs (transferred to (or from) the Pensions Reserve (58) 286 Holiday Pay (transferred to the Employee Statutory Adjustment Account) (2) (4) Statutory provision for the Repayment of Debt – Leases (69) Reversal of entries in the surplus or deficit on the Provision of Services in relation to capital expenditure (these items are charged to the Capital Adjustment Account) 107 22 Total Adjustments to Revenue Resources (22) 304 Adjustments between Revenue and Capital Resources Capital expenditure finance from revenue balances (transfer to Capital Adjustment Account) 0 0 Total Adjustments between Revenue and Capital Resources 0 0 Total Adjustments (22) 304 Total Comprehensive Income and Expenditure 522 (50) Net Increase / (Decrease) before transfers to / from Reserves 500 254 Increase / (Decrease) in year 500 254 81
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34 Note 8: Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty The Annual Accounts contain estimated figures that are based on assumptions made by the Board 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 Board’s Balance Sheet at 31 March 2025 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows: Items Uncertainties Effect if Actual Results Differ from Assumptions Pension Asset / (Liability) Estimation of the net asset 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, commissioned by Strathclyde Pension Fund, is engaged to provide the Board with expert advice about the assumptions to be applied. The effect on the net pension asset of changes in individual assumptions can be measured. E.g. a 0.1% decrease in the discount rate assumption would result in a decrease in the pension asset of £0.363 million. The assumptions interact in complex ways. During 2024/2025, the actuaries advised that the net pension asset had increased by: £3.486 million attributed to the updating of financial assumptions; increased by £0.039 million attributable to changes in demographic assumptions; and increased by £0.182 million due to other experience. The net asset had decreased by £0.454 million due to the expected return on pension fund assets. In line with IFRIC14, while there is a net asset, an asset ceiling has been applied to the Balance Sheet. Note 9: Events after the Balance Sheet The unaudited Annual Accounts were authorised for issue by the Treasurer of Lanarkshire Valuation Joint Board on 2 June 2025. There were no events that occurred between 1 April 2024 and the date that the Annual Accounts were authorised for issue that would have an impact on the financial statements. Note 10: Contingent Liabilities Pensions A circular from the Scottish Public Pensions Agency (Local Government Pension Scheme 2020/04) refers to a ruling that same-sex survivors were originally entitled to survivor benefits, taking into account the member’s service from 6 April 1978. Following the Goodwin Tribunal, regulatory amendments will now need to be made with effect from the same date to extend that entitlement to male survivors of female members. While this could have a financial impact on future years’ costs, and the impact cannot yet be quantified, current information from the Board’s actuaries suggests that any impact is likely to be minimal. Given the uncertainty, and the expected immaterial nature of any potential impact, no provision has been made in the Accounts. The Board’s actuaries also highlighted an awareness of 2 other court cases which may impact on pension benefits in the future. The first was the Walker case where it was ruled that surviving spouses in same sex marriages should be entitled to the same benefits as those in different sex marriages and also the O’Brien case where it was ruled that recognition of part time benefits should apply to service for the period prior to 7 April 2000. The actuaries understanding is that these are unlikely to be significant judgements in terms of impact on future pension obligations of 82
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35 Employers. Again, given the uncertainty, and the immaterial nature of any potential impact, no provision has been made in the Accounts. Valuation Appeals Number of Appeals: Voluminous numbers of appeals have been received in connection with the pandemic with the possibility of additional expenditure in legal costs as a consequence of these appeals. Neither the value nor the timing of these costs can be reliably estimated at this time as legislation drafted by the Scottish Government to assist in dealing with such appeals has yet to be implemented. The Board recognises that a contingent liability may exist in respect of potential costs arising from these appeals. Note 11: Leases The Board adopted IFRS 16 from 1 April 2024, to recognise right of use assets. IFRS 16 will mean that leases where the Board acts as lessee will come onto the balance sheet and lessor accounting is effectively unchanged. Right-of-use assets and lease liabilities will have been calculated as if IFRS 16 had always applied but recognised in 2024/2025 and not by adjusting prior year figures. The main impact of the new requirements is that, for arrangements previously accounted for as operating leases (i.e. without recognising the leased vehicles, plant, equipment, property and land as an asset and future rents as a liability), a right-of-use asset and a lease liability are now on the balance sheet at 1 April 2024. Leases for items of low value (below £0.010 million) and leases that expire on or before 31 March 2025 are exempt from the new arrangements. A weighted average incremental borrowing rate, in line with the time period of the lease, has been applied to lease liabilities as at 1 April 2024. The rate applied was 4.61% As a lessee, the Board has previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the Board. Under IFRS 16, the Board recognises right-of-use assets and lease liabilities for most leases. The Board has decided to apply recognition exemptions to low value assets (below £0.010 million when new) and to short-term leases (existing leases that expire on or before 31 March 2025), and new leases with a duration of less than 12 months. The Board recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. The Board's lease contracts comprise leases of operational buildings and equipment. Most are individually immaterial however, material leases include the lease for the ground floor at David Dale House, Blantyre which commenced in April 2021 for a term of 9.3 years. Rentals were set at the start of the lease. The value of the asset as at 31 March 2025 was £0.464 million. This table shows the change in the value of right-of-use assets held under leases by the Board. These are included within overall Property, Plant and Equipment in Note 12. Right of Use Assets 2024/2025 Buildings £000 Balance 1 April 551 Revaluations 0 Depreciation (87) Disposals 0 Balance 31 March 464 83
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36 The Board incurred the following expenses and cashflows in relation to leases. Transactions under Leases 2024/2025 £000 Comprehensive Income and Expenditure Statement Interest Expense on Lease Liabilities 24 Expense relating to exempt leases of low-value items 37 Cashflow Statement Interest paid 24 Minimum lease payments 69 Total Cashflow for Leases 93 The lease liabilities are due to be settled over the following time bands (measured at the undiscounted amounts of expected cash payments). Maturity Analysis of Lease Liabilities 2024/2025 Lease Liability £000 Not later than one year 78 Later than one year and not later than five years 368 Later than five years 36 Total Undiscounted Liabilities 482 Note 12: Property, Plant and Equipment 2024/2025 2023/2024 £000 £000 Cost or Valuation At 1 April 181 181 Recognise Right of Use Assets 551 - Additions 0 0 At 31 March 732 181 Accumulated Depreciation At 1 April 68 46 Depreciation 107 22 At 31 March 175 68 Net Book Value at 31 March 557 113 Note 13: Short Term Debtors The debtors figure comprises prepayments and is analysed as follows: 2024/2025 2023/2024 £000 £000 Information Technology Annual Support and Maintenance 47 103 Membership Fees / Annual Subscriptions 4 3 Credit Note Relating to 2023/2024 (charges received in error) 7 - Insurance Services 8 - Total 66 106 84
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37 Note 14: Short Term Creditors The creditors figure is analysed as follows: 2024/2025 2023/2024 £000 £000 Royal Mail – Postal Charges 3 3 North Lanarkshire Council – Depute Convenor Salary 5 5 Accumulated Compensated Absences – Annual Leave 68 70 Other – Employee Cost Accrual 118 111 Audit Scotland 1 1 Administration and Legal Costs 51 3 Total 246 193 Note 15: Related Party Transactions The Board is required to disclose material transactions with related parties. During the year transactions arose with the following related parties: 2024/2025 2024/2025 2023/2024 2023/2024 Receipts Payments Receipts Payments £000 £000 £000 £000 South Lanarkshire Council 1,814 410 2,004.5 407 North Lanarkshire Council 1,814 5 2,004.5 7 Fife Council - 1 - 3 Total 3,628 416 4,009 417 The Board occupied the premises at David Dale House, 45 John Street, Blantyre, G72 0JG during 2024/2025, and are recharged for the cost of accommodation by South Lanarkshire Council. Included within payments to South Lanarkshire Council is a charge of £0.201 million for the lease and service charge of office accommodation at David Dale House (2023/2024: £0.207 million). Further details of the lease costs are shown in Note 11, Leases (page 35). Note 16: Defined Benefit Pension Schemes As part of the terms and conditions of employment, the Board offers retirement benefits. The Board participates in the Local Government Pension Scheme (Strathclyde Pension Fund), a funded defined benefit scheme, administered by Glasgow City Council. The scheme is supported by contributions from both employer and employees. The 2024/2025 pension reports provided by the actuary indicate an increased Asset (a surplus) for this year (compared to 2023/2024), and in line with IFRIC14, an asset ceiling has been applied. This reduces the Asset from £15.473 million to £nil and reflects the present value of employer future service costs less the present value of future employer contributions, over the future working lifetime of your active scheme. Transactions relating to Retirement Benefits The cost of retirement benefit is recognised in the reported cost of services when it is earned by the Board’s employees, rather than when the benefits are eventually paid as pensions. However, the charge that is statutorily required to be made against the Board’s funding from councils is based on the pension contributions payable by the Board in the year, and an adjustment is made in the Movement in Reserves Statement to this effect. The following transactions have been made in the Comprehensive Income and Expenditure Statement. 85
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38 Comprehensive Income and Expenditure Statement 2024/2025 2023/2024 £000 £000 Cost of Services: Service cost comprising: Current service cost 356 431 Past Service Cost (including curtailments) 0 0 Financing and Investment Income and Expenditure Net interest expense 29 8 Total post-employment benefit charged to the Deficit on the Provision of Services 385 439 Other Post Employment Benefit Charged to the Comprehensive Income and Expenditure Statement: Re-measurement of the net defined benefit liability/(asset) comprising: • return on pension fund assets 454 (1,651) • actuarial (gains) or losses arising on changes in demographic assumptions (39) (57) • actuarial (gains) or losses arising on changes in financial assumptions (3,486) (1,354) • actuarial (gains) or losses arising on changes in other experience (182) 2,588 • actuarial (gains) or losses arising on de-recognition of Pension Asset 3,029 759 • actuarial (gains) or losses arising on present value of Unfunded Liability (58) (3) Total post-employment benefit charged to the Comprehensive Income and Expenditure Statement (282) 282 Net Charge to the Surplus/Deficit on the Provision of Services brought forward 385 439 Movement In Reserves Statement • reversal of net charges made to the surplus or deficit for the provision of services for post-employment benefits in accordance with the Code (224) (4) Actual amount charged against the General Fund balance for pensions in the year: • employers’ contributions payable to the scheme 161 435 Pensions Assets and Liabilities Recognised in the Balance Sheet The amount included in the Balance Sheet arising from the Lanarkshire Valuation Joint Board’s obligation in respect of its defined benefit plan is as per the Table overleaf. The net asset arising from the Board’s involvement in the defined benefit scheme totals £15.473 million at 31 March 2025. However, this has been limited to £nil in line with the accounting requirements of IFRIC 14 to limit the recognition of a pension asset to the extent to which the Board can recover the benefits through either refunds or reduced contributions. As the Board is not able to withdraw from the scheme or recover funds directly, the asset is therefore limited to the forecast reductions in contributions as compared to the forecast future service costs. This has limited the recognition of the pension asset to £nil. Separately the Board has continued to recognise the unfunded element of its pension liabilities as there are no scheme assets to cover the future costs of these liabilities as they are due going forward. 86
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39 2024/2025 2023/2024 £000 £000 Present value of the defined obligation (20,392) (23,193) Fair value of pension fund assets 35,865 35,039 De-Recognition of Pension Assets (Surplus) to Asset Ceiling (15,473) (11,846) Present Value of the Unfunded Liability Accounted for Separately (435) (493) Net asset / (liability) arising from defined benefit obligations (435) (493) A reconciliation of the Board’s share of the present value of the Fund’s defined obligation is as follows: 2024/2025 2023/2024 £000 £000 Opening Balance at 1 April (23,193) (21,526) Current Service Cost (356) (431) Interest Cost (1,119) (1,020) Contributions by scheme participants (124) (137) Re-measurement gains and losses actuarial gains and losses arising on changes in demographic assumptions 39 57 actuarial gains and losses arising from changes in financial assumptions 3,486 1,354 actuarial gains and losses arising from changes in other experience 182 (2,235) Past service gains / losses - - Settlements and curtailments - - Estimated Unfunded benefits paid 30 29 Estimated Benefits paid 663 716 Closing Balance at 31 March (20,392) (23,193) A reconciliation of the movement in the Board’s share of the fair value of the Fund’s assets is as follows: 2024/2025 2023/2024 £000 £000 Opening Fair Value of Pension Fund Assets 35,039 32,377 Interest Income 1,688 1,537 Re-measurement gains and (losses) expected return on pension fund assets (454) 1,651 actuarial gains and losses - - other experiences - (353) The effect of changes in foreign exchange rates - - Contributions by members 124 137 Contributions by the employer 131 406 Contributions in respect of Unfunded Benefits 30 29 Benefits Paid (693) (745) Closing Fair Value of the Scheme Assets 35,865 35,039 87
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40 Analysis of Pension Fund Assets 31/03/25 31/03/24 Quoted prices in active markets Quoted prices not in active markets Total Quoted prices in active markets Quoted prices not in active markets Total £000 £000 £000 £000 £000 £000 Cash and Cash Equivalents 0 873 873 54 595 649 Equity Instruments 7,430 23 7,453 7,077 8 7,085 Debt Instruments 0 0 0 0 0 0 Real Estate 0 2,706 2,706 0 2,755 2,755 Derivatives 0 0 0 0 0 0 Private Equity 0 8,290 8,290 0 8,365 8,365 Investment Funds 131 16,412 16,543 144 16,041 16,185 Asset Backed Securities 0 0 0 0 0 0 Structured Debt 0 0 0 0 0 0 Total 7,561 28,304 35,865 7,275 27,764 35,039 Basis for Estimating Assets and Liabilities Liabilities have been assessed on an actuarial basis using the projected unit credit method, to provide an estimate of the pensions that will be payable in future years dependant on assumptions about mortality rates, salary levels etc. The Local Government Pension Scheme has been assessed by Hymans Robertson LLP, an independent firm of actuaries, with estimates for the Strathclyde Pension Fund being based on the latest valuation of the scheme as at 31 March 2025. The principal assumptions used by the actuary were: 2024/2025 2023/2024 Years Years Mortality Assumptions: Longevity at 65 for current pensioners Male 21.0 21.1 Female 23.2 23.2 Longevity at 65 for future pensioners Male 22.5 22.6 Female 24.4 24.4 Financial Assumptions: % % Rate of inflation / pension increase rate 2.75 2.75 Rate of increase in salaries 3.45 3.45 Return on assets 3.5 9.90 Rate for discounting scheme liabilities 5.8 4.85 Take up option to convert annual pension into retirement lump sum Pre April 2009 / (Post April 2009) 75(75) 75(75) The estimation of the defined benefit obligation is sensitive to the actuarial assumptions set out in the table above. The sensitivity analyses overleaf 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 assumptions analysed changes while all the other assumptions remain constant: 88
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41 Approximate % increase in employer’s liability Approximate monetary amount £000 Change in assumption at 31 March 2025 0.1% decrease in real discount rate 2% 363 1 year increase in member life expectancy 4% 816 0.1% increase in the salary increase rate 0% 34 0.1% increase in the pension increase rate 2% 339 Asset and Liability Matching Strategy The Fund has an asset and liability matching (ALM) strategy that matches, to the extent possible, the types of assets invested to the liabilities in the defined benefit obligation. The Fund has matched assets to the pension obligations by investing in long-term fixed interest securities and index linked gilt edged investments with maturities that match the benefits payments as they fall due. A large proportion of the assets relate to equities (69%) and bonds (21%). The scheme also invests in properties (8%) and cash (2%). The comparative year’s figures for equities and bonds are 78% and 12% respectively. The ALM strategy is monitored annually or more frequently if necessary. Impact on the Board’s Cash Flow The objectives of the fund are to keep employers’ contributions at a constant a rate as possible. The Fund has an agreed strategy to achieve a funding rate of 100% in the longer term. The Scheme is a multi-employer defined benefit plan and employers’ contributions have been determined so that employee and employer rates are standard across all participating local authorities. Employers’ contributions were set at 6.5% for 2024/2025 based on the last triennial valuation completed on 31 March 2023. Following completion of the triennial valuation as at 31 March 2023, employers’ contribution rates have been set at 6.5% for the next year (2025/2026). The total contributions expected to be made by the Board to the Fund for the year ending 31 March 2026 is approximately £0.122 million. The weighted average duration of the defined benefit obligation for Fund members is 17 years. Note 17: External Audit Costs The Board has incurred the following external audit costs: 2024/2025 2023/2024 £000 £000 Fees payable to Audit Scotland with regard to external audit services carried out by the appointed auditor for the year 10 9 Total 10 9 Note 18: Grant Income The following Government Grants were received during the year: 2024/2025 2023/2024 £000 £000 Scottish Government Grant – Barclay Funding 718 698 Department of Levelling Up, Housing and Communities Funding 362 - Total 1,080 698 89
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42 Note 19: Balance Sheet – Reserves Unusable Reserves 2024/2025 2023/2024 Capital Adjustment Account Pension Reserve Employee Statutory Adj. Account Total Capital Adjustment Account Pension Reserve Employee Statutory Adj. Account Total £000 £000 £000 £000 £000 £000 £000 £000 Opening Balance 1 April 113 (493) (70) (450) 135 (207) (74) (146) Movement in Pension Reserve - 58 - 58 - (286) - (286) Movement in Annual Leave Accrual - - 2 2 - - 4 4 Statutory repayment of debt 69 - - 69 - - - - Charges for Depreciation of Non Current Assets (107) - - (107) (22) - - (22) Amortisation of Intangible Assets - - - - - - - - Closing Balance as at 31 March 75 (435) (68) (428) 113 (493) (70) (450) Usable Reserves 2024/2025 2023/2024 General Fund Reserve Total General Fund Reserve Total £000 £000 £000 £000 Opening Balance 1 April 1,975 1,975 1,721 1,721 Increase / (Decrease) in Reserve 500 500 254 254 Closing Balance as at 31 March 2,475 2,475 1,975 1,975 90
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43 Note 20: Financing and Management of Liquid Resources Liquid resources are held by South Lanarkshire Council as lead authority and are available to the Board as required. Note 21: Comprehensive Income and Expenditure Statement – financing and investment income and expenditure 2024/2025 2023/2024 £000 Restated £000 Pension Interest Cost and Expected Return on Pensions Assets 29 8 Interest Payable on Leases 24 0 Interest Received on Revenue Balances (Note a) (122) (88) Total (69) (80) Note a: An amount of £0.088 million, in respect of interest received on revenue balances, has been restated in 2023/2024 from Financing Charges to Financing and Investment Income and Expenditure, as detailed in Note 2, page 29. Note 22: Going Concern As at 31 March 2025, the Balance Sheet of the Board shows a Net Asset position of £2.047 million. There are statutory arrangements for funding the long-term deficit in respect of the net pension liability and the statutory accumulated absences, as detailed in the Movement in Reserves Statement on page 23, leaving a General Fund Reserve of £2.475 million to be carried forward for use in future years in line with the 2026/27 to 2028/29 Financial Strategy reported to the Board in June 2025. Note 23: Civil Penalties The Board acts as agent on behalf of the Scottish Government in the collection and payment of Penalties. The Board issue penalties where required and pays over the income collected to the Scottish Government on receipt of the monies, a portion of which will remain in the Board’s accounts to cover administration costs. The Scottish Government set the value of these penalties and the Board does not bear any credit risk from these penalties not being paid. These penalties are often mitigated on receipt of information. As at 31 March 2025, the value of civil penalties issued and due to be collected by the Board totalled £2.023 million. 91
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44 Independent auditor’s report to the members of Lanarkshire Valuation Joint Board and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements I certify that I have audited the financial statements in the annual accounts of Lanarkshire Valuation Joint Board for the year ended 31 March 2025 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the Comprehensive Income and Expenditure Statement, Balance Sheet, Movement in Reserves Statement, Cash Flow Statement, 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 2024/25 (the 2024/25 Code). In my opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the Lanarkshire Valuation Joint Board as at 31 March 2025 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2024/25 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 I conducted my 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. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I was appointed by the Accounts Commission on 16 March 2023. My period of appointment is five years, covering 2022/23 to 2026/27. I am independent of the Lanarkshire Valuation Joint Board in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard was not provided to the Lanarkshire Valuation Joint Board. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Conclusions relating to going concern basis of accounting I 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 I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Lanarkshire Valuation Joint Board’s ability to continue to adopt the going concern basis of 92
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45 accounting for a period of at least twelve months from when the financial statements are authorised for issue. These conclusions are not intended to, nor do they, provide assurance on the Lanarkshire Valuation Joint Board’s current or future financial sustainability. However, I report on the Lanarkshire Valuation Joint Board’s arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website. Risks of material misstatement I report in my Annual Audit Report the most significant assessed risks of material misstatement that I identified and my judgements thereon. Responsibilities of the Treasurer and Lanarkshire Valuation Joint Board for the financial statements As explained more fully in the Statement of Responsibilities, the Treasurer 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 Treasurer 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 Treasurer is responsible for assessing the Lanarkshire Valuation Joint Board’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 there is an intention to discontinue the Lanarkshire Valuation Joint Board’s operations. The Lanarkshire Valuation Joint Board is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements My 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 my 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. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using my 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 Lanarkshire Valuation Joint Board; • inquiring of the Treasurer as to other laws or regulations that may be expected to have a fundamental effect on the operations of the Lanarkshire Valuation Joint Board; 93
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46 • inquiring of the Treasurer concerning the Lanarkshire Valuation Joint Board’s policies and procedures regarding compliance with the applicable legal and regulatory framework; • discussions among my 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 my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Lanarkshire Valuation Joint Board’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, 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 my auditor’s report. Reporting on other requirements Opinion prescribed by the Accounts Commission on the audited parts of the Remuneration Report I have audited the parts of the Remuneration Report described as audited. In my 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 Treasurer 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 part of the Remuneration Report. My 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 my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I 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. 94
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47 Opinions prescribed by the Accounts Commission on the Management Commentary and Annual Governance Statement In my 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 I am required to report by exception I am required by the Accounts Commission to report to you if, in my opinion: • adequate accounting records have not been kept; or • the financial statements and the audited part of the Remuneration Report are not in agreement with the accounting records; or • I have not received all the information and explanations I require for my audit. I have nothing to report in respect of these matters. Conclusions on wider scope responsibilities In addition to my responsibilities for the annual accounts, my conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in my Annual Audit Report. Use of my 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, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Pauline Murray, Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN 95
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 1 December 2025 Report by: Treasurer to Lanarkshire Valuation Joint Board Subject: Revenue Budget 2026/2027 – Lanarkshire Valuation Joint Board 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise members of the draft budget for the coming financial year (2026/2027) [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that the budget strategy resulting in the budget of £4.428 million being set for 2026/2027, summarised in Appendix 1, be approved; and (2) that the updated Reserves position, detailed in Table 2, be noted. [1recs] 3. Background 3.1. A Financial Strategy for 2026/2027 to 2028/2029 was approved by the Board on 2 June 2025 and set out a position for 2026/2027. During the period since the strategy was approved, a pay award has been agreed for the years 2025/2026 and 2026/2027. This paper will review the previous Budget Strategy assumptions and formally propose the Board’s Revenue Budget for 2026/2027. 3.2. In relation to the Board’s Budget Strategy, the workload across all three key business areas of the Board (Non-Domestic Valuation, Council Tax Valuation and Electoral Registration) means that ways of maintaining service delivery and compliance with statutory duties of the Assessor and Electoral Registration Officer, continue to be reviewed and are reflected in the proposals in this paper. 3.3. Following the 2025/2026 probable outturn exercise, also presented to this meeting, a balance of £0.722 million is anticipated to be transferred from Reserves at the end of this financial year. This is compared to a budgeted Transfer from Reserves of £1.000 million and means that the Board’s Reserves will be in a better position than budgeted, by £0.278 million. This is also an improvement of £0.078 million on the estimated £0.800 million Transfer from Reserves included in the June 2025 report to the Board. 3.4. This will impact on the level of Reserves carried forward into 2026/2027 (estimated at £1.675 million in the June 2025 report to the Board) and will mean a balance on Reserves of £1.753 million for use in 2026/2027 and beyond. In the main, this significant Reserves balance reflects underspends in employee costs due to difficulties in recruitment and retention of staff across recent years. 6 97
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3.5. This paper provides an update on the Budget Strategy reported to the Board in June 2025. Section 4 provides a reminder of the 2026/2027 Budget Strategy approved as part of the Medium-Term Financial Strategy, and an update on the assumptions used. 3.6. Section 5 outlines the level of Reserves available for 2026/2027 and beyond. 4. 2026/2027 Budget Assumptions 4.1. The Board’s Financial Strategy (June 2025) included the following assumptions:- that the Employee Cost Budget reflects the proposed structure which is the minimum the Board can operate within that the budgeted cost of the proposed structure assumes staff are all fully qualified and paid at the highest scale point of each grade. Budgeting in this way allows salary progression for staff through the grade scale that the budget includes a staff turnover target of 8.5% per annum (based on prior years’ experience and with posts budgeted at the top of the grade scale, this is considered appropriate) that a level of pay award has been assumed for each of the 3 years to be funded by the increased use of reserves. Given recent Local Government Pay Award discussions, this is an area of risk that price increases are managed by efficiencies generated by the Board each year that Barclay funding is assumed at the same level as 2025/2026. No further information is known beyond that year as Barclay funding was a commitment for the current parliamentary term, therefore, this is an area of risk that this position may be affected by further in-year underspends that have not yet been foreseen 2026/2027 Updated Assumptions 4.2. As noted in section 3.1, the pay Award for 2025/2026 and 2026/2027 has now been settled. This will impact on the Budget assumptions and is detailed in section 4.3. 4.3. Employee Costs including Pay Award (2025/2026 and 2026/2027): Since this Strategy was approved, the two year pay award for 2025/2026 and 2026/2027 has been confirmed at a level higher than budgeted. The increased Pay Award for 2025/2026 is included in the Probable Outturn position referred to in section 3.3 and has been managed in-year. However, along with the pay award for 2026/2027, the impact requires to be addressed in the budget for 2026/2027. The budget proposed for 2026/2027 includes the combined increase of both years’ pay awards and totals £0.053 million (£0.035 million for 2025/2026 and £0.018 million for 2026/2027). 4.4. As noted above at section 4.1, the draft Budget assumed that the Pay Award is funded by the increased use of reserves and the same is proposed for the increased pay award agreed for 2025/2026 and 2026/2027. This would mean an increased use of reserves of £0.053m in 2026/2027. The Budget proposed in Appendix 1 assumes the costs for a full establishment for the full year but reflects a turnover rate of 8.5%, to reflect recent experience in recruitment and retention of staff. 98
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4.5. 2026/2027 Budget: The impact of the agreed pay awards for 2025/2026 and 2026/2027 has been included in the proposed 2026/2027 Budget in Appendix 1. This expenditure budget has increased by £0.053 million for the combined increase of 2025/2026 and 2026/2027 pay awards, funded by the increased use of reserves. The total Budget is therefore now £4.428 million. 5. Reserves 5.1. The Board’s Strategy in June 2025 included the position across the Board’s Reserves. This is referenced in Table 1 and shows that the Board anticipated a nil balance of Reserves at the end of 2028/2029. This took account of the estimated 2025/2026 Transfer from Reserves which was anticipated at that time. Table 1 – Reserves Forecast and Strategy – June 2025 2025/26 (year 0) £m 2026/27 (year 1) £m 2027/28 (year 2) £m 2028/29 (year 3) £m Opening Balance 2.475 1.675 0.702 0.158 Proposed Utilisation of Reserves (0.800) (0.973) (0.544) (0.158) Closing Balance 1.675 0.702 0.158 0.000 5.2. In the months following the Strategy’s approval, the outturn position and therefore the use of Reserves has been revised further. The 2025/2026 Probable Outturn detailed in the report also presented to this meeting requires the Reserves position in Table 1 to be updated to reflect the revised use of Reserves in 2025/2026 (now £0.722 million rather than the anticipated use of £0.800 million in June 2025). This reflects the greater underspend in Employee Costs and therefore the lesser use of Reserves. 5.3. Table 2 provides an updated Reserves Strategy based on this revised use of Reserves in 2025/2026, and assuming the revised assumptions in relation to the Pay Award. It shows that the Board would now have a balance of £0.727 million at the end of 2026/2027. Table 2 – Reserves Forecast and Strategy – Revised December 2025 2025/26 (year 0) £m 2026/27 (year 1) £m 2027/28 (year 2) £m 2028/29 (year 3) £m Opening Balance 2.475 1.753 0.727 0.129 Proposed Utilisation of Reserves (0.722) (1.026) (0.598) (0.129) Closing Balance 1.753 0.727 0.129 0.000 5.4. Table 2 also shows that in the final year of the Strategy (2028/2029), the Board will have utilised all of the Reserves balance available. Moreover, the budget shortfall in 2028/2029 is estimated at £0.701 million, and there is only £0.129 million available – leaving a shortfall of £0.572 million. The £0.572 million shortfall is more than the position reported to the Board in June 2025 (£0.487 million) and reflects the cumulative use of Reserves for pay award in 2026/2027 and beyond. 5.5. In order to reduce this reliance on Reserves, and manage the shortfall anticipated, the Board is required to make savings where possible in the years up to 2028/2029, however, due to the statutory nature of the service this cost reduction will need to be considered alongside workload and staffing requirements. There is also the potential that further funding may become available for Council Tax reform in future, however, 99
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there is no estimate of any value at this time or what additional workload and staffing requirements will be required for this valuation work. 5.6. A review will be undertaken on the reliance on Reserves into 2026/2027 and will include planning scenarios on how the estimated future funding shortfall can be managed. This will be presented to the Board as required. 5.7. Barclay Funding: There is the continued risk that funding for Barclay may not be recurring and there is the potential that beyond 2025/2026, the Board will require to cover the risk of the Barclay funding being reduced or removed (for context, £0.736 million of Barclay funding was received for 2025/2026). The £1.753 million balance of Reserves at the end of 2025/2026 is considered appropriate to mitigate this risk and manage any reduction in budget into 2026/2027. 5.8. However, should the use of Reserves be needed to offset any loss of Barclay funding, this would mean that action referred to in section 5.5 would have to be taken more quickly in order to balance the budget. An update will be presented to the Board after the Local Government Settlement for 2026/2027 is available, and this will be taken into account in planning scenarios as per the review outlined at section 5.5. 5.9. There is no prescribed minimum or maximum level of Reserves which should be held by a Joint Board. However, it is appropriate that the Board hold some monies in reserve which can be utilised, as and when the need arises, in any financial year. To facilitate this, notwithstanding the position as detailed in Table 2 / Appendix 1, any underspends which may arise in year, will be transferred to Reserves at the end of the financial year. This gives the Board some degree of flexibility in managing its budget across years. 5.10. As a body that is predominantly funded by contributions from councils under the direction of the Board, the Board will manage its budget in year with any risk items identified to the Treasurer as required. Any budget pressures and funding solution would be considered by the Assessor and Electoral Registration Officer and the Treasurer. 6. Employee Implications 6.1. There are no employee implications contained within this report. 7. Financial Implications 7.1. The proposed 2026/2027 Revenue Budget for the Valuation Board is £4.428 million. 7.2. The budget is based on the use of £1.026 million from Reserves for 2026/2027. 7.3. The Reserves balance is expected to be £1.753 million at the end of 2025/2026, as detailed in the Revenue Budget Monitoring and Probable Outturn Position 2025/2026 report and shown in Table 2. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 100
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9. Other Implications 9.1. The main risk in setting this budget is that there is no additional Barclay funding and that the level of expenditure cannot be managed within the budget set. On behalf of the Board, the Treasurer continues to have dialogue with the Scottish Government via COSLA, to confirm funding and spend expectations. 9.2. An additional risk associated with the Valuation Board’s Revenue Budget into 2026/2027 is an overspend as a result of the increased workload across the three main service delivery areas. The risk is managed through four weekly Budget Monitoring Meetings at which any variance is analysed. In addition, the probable outturn exercise ensures early warning for corrective action to be taken where appropriate. 10. Integrated Impact Assessment and Consultation Requirements 10.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 10.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Jackie Taylor Treasurer 31 October 2025 Previous References Revenue Budget 2025/2026 – Lanarkshire Valuation Joint Board – 2 December 2024 Financial Strategy 2026/2027 to 2028/2029 – Lanarkshire Valuation Joint Board – 2 June 2025 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Graham Booth, Finance Manager (Strategy) Ext: 2699 (Tel: 01698 452699) E-mail: graham.booth@southlanarkshire.gov.uk 101
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Appendix 1 Lanarkshire Valuation Joint Board Revenue Budget 2026/2027 Description 2025/2026 Base Budget £m 2026/2027 Required Budget £m Budget Movement (Inc) / Dec £m Note Employee Costs 3.045 3.481 (0.436) Property Costs 0.208 0.212 (0.004) Supplies and Services 0.159 0.159 - Transport and Plant 0.005 0.005 - Administration Costs 0.638 0.644 (0.006) Payments to Other Bodies 0.031 0.031 - Financing Charges 0.015 0.015 - Gross Expenditure 4.101 4.547 (0.446) Income (0.019) (0.119) 0.100 1 Net Expenditure 4.082 4.428 (0.346) Net Expenditure Budget Funded by: Requisition from North Lanarkshire Council 1.541 1.701 (0.160) Requisition from South Lanarkshire Council 1.541 1.701 (0.160) Use of Monies held in Balance Sheet (c/f from previous years) 1.000 1.026 (0.026) Total Funding 4.082 4.428 (0.346) 1. As noted in the June 2025 Budget Strategy Report, the budget has been revised to include interest received on the revenue balances of the Board. This is now shown as Income to the Board. 102
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 1 December 2025 Report by: Internal Audit Manager Subject: Internal Audit Activity Report 1. Purpose of Report 1.1. The purpose of the report is to:- update the Lanarkshire Valuation Joint Board (LVJB) on the mid-year progress, performance and output from the Internal Audit service through to 31 October 2025 update the Board on the Internal Audit Service’s compliance with the Global Internal Audit Standards 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- (1) that progress with delivering the 2025/2026 Internal Audit Plan, as outlined in Appendix One, be noted (2) that performance and audit output from assignments in the period to 31 October 2025, as detailed in Appendix Two and Appendix Three, be noted 3. Background 3.1. South Lanarkshire Council’s (SLC) Internal Audit function forms part of Lanarkshire Valuation Joint Board’s (LVJB’s) wider governance framework. 3.2. Output from the function is the delivery of a planned programme of internal audit assignments. Annually, audit planning is undertaken to determine a programme of suitable audit assignments. Following completion of each audit, the outcome of the assignment is formally reported and an ‘assignment conclusion’ is expressed based on the level of assurance that testing has provided. These assignment assurances, in turn, inform an overall audit assessment of the adequacy and effectiveness of LVJB’s framework of governance, risk management and control arrangements that is reported annually to the Board. 3.3. Delivery of this internal audit service to LVJB is in accordance with applicable Internal Audit Standards. In previous years, the function operated within a set of standards known as the Public Sector Internal Audit Standards (PSIAS). From 1 April 2025, these Standards were replaced by the Global Internal Audit Standards (GIAS) issued by the International Internal Audit Standards Board and endorsed by the Chartered Institute of Internal Auditors. 3.4. A report, detailing the role of those ‘charged with governance’, as set out within GIAS was presented to the Board in March 2025. This outlined the main responsibilities of the Board, as the group ‘charged with governance’ and acting as ‘audit committee’ as being to:- 7 103
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approve the mandate setting out the authority, role and responsibilities under which Internal Audit operates review and approve the internal audit charter as reflecting the Board’s expectations of the internal audit service that will be delivered review the governance, management and reporting arrangements of the internal audit function assist with setting audit priorities ‘champion’ and demonstrate support for Internal Audit obtain assurance that Internal Audit is fulfilling its mandate and is adhering to the Standards meet with the Chief Internal Auditor on a periodic basis review and approve arrangements for the external assessment 3.5. The Board, in March 2025, approved the Internal Audit Mandate and Charter along with the proposed Internal Audit Plan for 2025/2026 and for findings from this programme of work to be reported to the Board. It was agreed that to fully comply with the Standards, the Board would be provided with a mid-year update report setting out progress with the delivery of the 2025/2026 Internal Audit Plan along with a wider update on the internal audit service’s level of compliance with GIAS. Both updates are provided within this report. 3.6. The Board demonstrates support for the Service by engaging constructively with internal audit’s findings, conclusions and advice. The Board should therefore be satisfied that the content of this report is such to allow them to effectively scrutinise and challenge. 4. Audit Plan Progress and Performance 4.1. The Board, having provided the mandate for an internal audit service to be delivered within Lanarkshire Valuation Joint Board (which includes the authority, role and responsibilities under which Internal Audit operates), should satisfy itself that the function is fulfilling its mandate. This involves monitoring both progress and performance. Progress 4.2. The 2025/2026 Internal Audit Plan, approved by the Board March 2025, is outlined in Appendix One. All assignments are being conducted in conformance with GIAS. 4.3. At this mid-year point, October 2025, two assignments, representing 25% of the Plan are complete. See table below and Appendix Three: Audit Year Audit Assignment Scope of Assignment 2025/2026 2024/2025 Annual Assurance Report Preparation and presentation of an annual assurance report to the Board 2025/2026 Follow-Up (formal) Follow-up of action taken to implement agreed audit actions 4.4. In respect of the 2024/2025 Annual Assurance report, this was presented to the Board in June 2025. 4.5. Separately, work to follow up the implementation of audit actions in 2025/2026 has been completed. Such follow up generally relates to audit actions arising from prior year audits. LVJB demonstrated a good level of engagement with assignments concluded in 2024/2025 with an action plan developed and agreed to address areas for improvement from the Voter Authority Certificate (VAC) application process audit. 104
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The agreed action was logged together with a ‘responsible owner’ and a due date. In general, verbal updates (classed as informal follow-up) are obtained when an action falls due and, separately, actions are then formally followed up to confirm that there is evidence of action being taken, with the findings of these reviews reported to the Board within the Annual Assurance Report. The one action agreed from the VAC audit fell due in April 2025 and formal follow-up identified that this was completed on time. At this stage, there are no further actions that will fall due in the remainder of 2025/2026 and no actions remain outstanding from prior years, so there is no requirement for any further follow-up during 2025/2026. However, if new actions arise following 2025/2026 audit work, implementation of these actions will be monitored through to completion (throughout the rest of 2025/2026 and into 2026/2027, as appropriate). 4.6. The remaining 75% of the 2025/2026 Plan is in progress. This includes the provision of this update report, preparation for carrying out fieldwork later in quarter three on the Civil Penalty Invoice Process assignment and work that is ongoing throughout the year (such as the provision of fraud alerts and any ‘shared systems’ work). In addition, planning in relation to the 2026/2027 Internal Audit Plan has also commenced and the Assessor and Electoral Registration Officer (ERO), Management Team and members of the Board will be afforded the opportunity to suggest ideas for consideration before a draft Plan is presented to this Board in March 2026. 4.7. All elements of the 2025/2026 Audit Plan are scheduled to be complete prior to the issue of the Annual Assurance Report to the Board in June 2026. Performance 4.8. To assist the Board to scrutinise performance, a new suite of performance indicators have been developed. These are set out in Appendix Two alongside targets and an overall assessment as to whether it is anticipated that these will be met by the end of the audit year. All indicators have been included for completeness but some are not reported until the end of the audit year. The table notes how these are being progressed in the interim to provide assurance that all aspects of performance are being managed. Some of the indicators are also reported to SLC and these are also included to facilitate a complete overview of the service’s performance. 4.9. There are currently three indicators categorised as ‘amber’. Although they are not yet achieved, this is in line with the planned scheduling of work and the targets are expected to be met by the end of the audit year. A list of these indicators and action being taken is as follows:- Indicator Action Plan completed prior to presentation of Annual Assurance Report to the Board in June 2026 Currently 25% of the Plan is complete. Remaining work scheduled for completion prior to presentation of Annual Assurance Report to the Board in June 2026 in line with agreed scheduling of work. Meetings with Assessor and ERO offered for each audit1 For the main assignment there will be two meetings - one at outset and one upon completion of audit work in line with audit process. Number of training days per employee Team training plan in place and being progressed through to the end of 2025/2026. 1 An opening meeting at the outset of the audit is offered to agree the remit and a closing meeting at the end of the audit is offered to agree the audit report and action plan. 105
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4.10. Overall, the progress to date is reasonable and reflects the agreed programming of work. There are no significant concerns at this mid-year point around the overall deliverability of the Plan. The remaining work has been scheduled, and it is anticipated that final reports will be issued, prior to presenting the 2025/2026 Annual Assurance report to the Board in June 2026. 4.11. The Board is asked to note progress with delivering the approved Plan in the period and the overall performance against targets in the period to 31 October 2025. 5. Emerging Risks and Issues 5.1. Audit planning considers LVJB risks (contained in the LVJB risk register), emerging risks and changes in the control environment (e.g. from new legislation, new processes or systems changes) when assessing the assignments for inclusion in the audit plan. For 2025/2026 it was considered appropriate to focus internal audit review on an area where LVJB have new responsibilities (Assessor Information Notice non returns and the raising of civil penalty invoices). Although the risk associated with this new process is not specifically outlined as a top risk in LVJB’s risk register, the Board considered this to be an important area for review given that it was a new area of work for LVJB and assurance on the process and control environment is sought. 5.2. It is prudent to note that new and emerging risks could continue to develop as the year progresses and there has been a mid-year re-assessment of the Plan to ensure that it continues to be risk-based and aligned to the organisation’s objectives and Board’s instruction. At this stage, there are no proposed amendments to the Plan and work has started on the approved assignment. As such, it is unlikely that the Plan will now change across the remainder of the year. If additional work was deemed necessary, proposals will be presented to the Board for approval. 6. Compliance and Standards Update 6.1. It was agreed that, in addition to an update on the progress and performance of the internal audit service in delivering the 2025/2026 Audit Plan, the level of compliance with GIAS would also be set out in this mid-year progress report to the Board. 6.2. A process to map current practice to all elements of the new GIAS is underway. Progress to align to the new GIAS can be seen in the revised and extended suite of performance indicators as set out in Appendix Two and, together with the presentation of a detailed Audit Strategy to a future meeting of the Board in March 2026, will address the main gaps in compliance with GIAS. 7. Governance and Engagement 7.1. The Council’s Internal Audit Manager attends three meetings of the Board each year (one to present the proposed Audit Plan for the year ahead, one to provide a mid- year report on progress with the Plan and performance and one to present the Annual Assurance Report). The authority of the internal audit function is established through its direct reporting relationship to the Board that allows for unrestricted access. 7.2. Arrangements to allow members of the Board to meet privately with the Internal Audit Manager, as required by GIAS, have been made to allow an opportunity to provide feedback around the format of this mid-year update report and to share suggestions for areas for inclusion in the 2026/2027 Internal Audit Plan. 106
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7.3. Further one-to-one or group support will continue to be available to members of the Board, should this be required to support appropriate scrutiny. 8. Employee Implications 8.1. There have been no changes to the team in the period to 31 October 2025 and there are no vacancies within the Service. Training arrangements includes regular team briefs, internal training sessions, attendance at professional body conferences and external seminars and briefings. 9. Financial Implications 9.1. The Internal Audit plan for the year aligns to the budget that has been set as part of the agreed Service Level Agreement (SLA) with LVJB and sufficient resources are in place to deliver the approved programme of audit assignments. 10. Other Implications 10.1. There are no implications for sustainability in terms of the information contained in this report. 10.2. There are no significant concerns, at this point in the year, around the overall deliverability of the Plan. The risk of subsequent amendments to the Plan, arising from a change in the Board’s priorities or risks, are managed through a periodic re- assessment of capacity and the content of the Audit Plan. Any proposed amendments would be presented to the Board for approval. 11. Equality Impact Assessment and Consultation Requirements 11.1. There is no requirement to equality assess the contents of this report. The Assessor and ERO is consulted on each and every audit assignment. Jackie Taylor Executive Director Finance and Corporate Resources 10 November 2025 Previous References 2025/2026 Internal Audit Plan, 3 March 2025 Internal Audit Annual Assurance Report 2024/2025, 2 June 2025 List of Background Papers Figtree extracts of Action Plans Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Yvonne Douglas, Internal Audit Manager Ext: 2618 (Tel: 01698 452618) E-mail: yvonne.douglas@southlanarkshire.gov.uk 107
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Lanarkshire Valuation Joint Board 2025/2026 Internal Audit Plan Appendix One No Assignment Planned Timescales Status 1 Annual Assurance Report 2024/2025 Quarter One Complete – report presented to the Board, June 2025. 2 Follow-Up (Formal) Quarter One Complete – one action was agreed during 2024/2025 audits which fell due for implementation April 2025. Formal follow-up confirmed this was implemented. 3 Follow-Up (Informal) Ongoing through 2025/2026 Ongoing. There are no actions remaining that require formal follow-up at this stage, but if any new actions are raised from 2025/2026 audit work progress with these will be tracked in quarter 4, if applicable. On that basis, assignment status remains ongoing. 4 Update meetings and reports Throughout 2025/2026 In progress and on track - in line with 2025/2026 Board schedule (this mid-year progress report and 2026/2027 Plan to March Board). 5 Fraud Alerts Throughout 2025/2026 In progress and on track - relevant alerts shared with LVJB throughout year 6 Shared systems Throughout 2025/2026 In progress and on track – output will be captured within the 2025/2026 Annual Report. Work to date relates to consideration of the Economic Crime and Corporate Transparency Act 2023. 7 Assessor Information Notice Non-Return – Civil Penalty Invoice Process Quarter Three In progress, planning stage – opening meetings have been held to undertake research relating to the Civil Penalty Invoice process relating to AIN non-return. Fieldwork is programmed to take place during quarter three (November / December). 8 LVJB Audit Plan 2026/2027 Quarter Three to Quarter Four In progress, planning stage – audit consultation on 2026/2027 Internal Audit Plan has commenced. Anticipated draft Plan for 2026/2027 will be presented to the Board in quarter four for approval. 108
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Key audit performance indicators Appendix Two Area Measures reported in Mid-Year Update Report Target Actual to date Status Strategic Annual Internal Audit Report (2024/2025) presented to Board By June 2025 June 2025 Complete Strategic Audits in the audit plan that align to the LVJB’s values 100% 100% Complete Performance Number of LVJB Services covered by (2025/2026) Audit Plan on an annual basis 33%2 33% Complete Performance Meetings with Assessor and ERO offered for each audit3 2 14 Ongoing monitoring Performance Draft reports issued by target date 80% 100%5 Ongoing monitoring Operation Plan completed prior to presentation of Annual Assurance Report to the Board in June 2026. 100% 25% Ongoing monitoring Performance Number of planned assignments that have been deferred to a future year to accommodate unplanned work 0 0 Ongoing monitoring Performance Internal Audit recommendations delivered on time 80% 100% Ongoing monitoring Performance Internal Audit recommendations formally followed up 100% 100% Complete Strategic Number of audits where objectivity or independence is impaired 0 0 Ongoing monitoring Strategic Internal Audit Manager attendance at defined meetings of the Board 100% 100% Ongoing monitoring Strategic Number of formal complaints about the Internal Audit Service 0 0 Ongoing monitoring 2 LVJB main services – Election and Valuation (Council Tax and NDR). Target represents coverage of all services within a rolling three-year Strategic Plan period. 3 An opening meeting at the outset of the audit is offered to agree the remit and a closing meeting at the end of the audit is offered to agree the audit report and action plan. 4 Opening meeting has been offered for Civil Penalty audit – closing meeting will be offered at conclusion of audit work. Progress on this will be reported in Year End Report. 5 Annual report presented by target date so far this year. 109
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Area Measures that will be reported in Year End Report Target Status Operation Number of 2025/2026 audits completed that comply with the requirements of Global Internal Audit Standards 100% Will be reported end of Audit Year Strategic Meeting with members of the Board (in private and without senior management) 1 Wil be reported end of Audit Year – currently scheduled for quarter 3. Strategic 2026/2027 Audit Plan presented to Board By March 2026 Scheduled March 2026 Performance 2025/2026 audit assignments completed within purchased SLA budget days and all days delivered by the end of the audit year (prior to presentation of Annual Assurance Report to Board in June 2026) 100% Will be reported end of Audit Year Strategic Opportunity for Service to provide feedback to Internal Audit to assess level of satisfaction with the Service (questionnaire) By April 2026 Will be reported end of Audit Year Strategic Audit Strategy presented to Board Ahead of 2026/2027 IA Plan Scheduled for March 2026 Operation Number of key performance indicators achieved 100% April 2026 6 Consultative Committee of Accountancy Bodies 7 Anticipate target training days will be achieved by year-end per planned training schedule. Any issues at year end will be highlighted. Area SLC reported measures Target Status Operation Number of open vacancies 0 SLC Reported Operation Employees holding a qualification from a recognised CCAB6 body or Institute of Internal Auditors 75% SLC Reported Operation Number of training days per employee 5 SLC Reported 7 110
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Definition of Measures AREA DEFINITION Operation Measures that assess day to day operational targets for the Service Performance Measures the effectiveness of the Service in its delivery of core objectives Strategic Measures as to how activity aligns to wider organisational objectives STATUS DEFINITION Anticipate that target will not be met by end of audit year Not achieved yet but anticipate that target will be met by end of audit year (with corrective action, if necessary) Target being met at this stage already for open measures or has been fully met for closed measures 111
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Assignments completed 1 April to 31 October 2025 Appendix Three Number Assignment name Draft Issue Final Issue Audit Conclusion I928288 2024/2025 Internal Audit Annual Assurance Report 06/05/25 03/06/25 Preparation and presentation of the 2024/2025 Internal Audit Annual Assurance report. I924286 Formal Follow-Up 01/08/25 01/08/25 All audit actions confirmed as formally followed up. No further actions open or due for completion in remainder of 2025/2026. assignments with action plans (none to date) 112
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h??1 June Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 1 December 2025 Report by: Assessor and Electoral Registration Officer Subject: Progress Update 1. Purpose of Report 1.1. The purpose of the report is to:- provide an overview of the service to members outline current issues and service priorities provide an update on performance highlight issues affecting the future direction of the Joint Board 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- (1) that the content of the report be noted. 3. Service Overview and Priorities 3.1. Electoral Registration 3.1.1. Boundary Reviews The Review of Scottish Boundaries has been approved and will be in place for the publication of the register on 1 December 2025, ready to be effective at the next Scottish Parliament election in May 2026. 3.1.2. Elections Act 2022 The Elections Act introduced the requirement for all postal voters in UK Parliamentary elections to renew their application every 3 years. There are currently circa 80,000 electors due to renew by 31 January 2026. Emails have been sent to those electors where an email address is held in our electoral management system, and a letter will be issued by post in December to those who have not reapplied. Electors who have not supplied an email address have been contacted by letter earlier in the year. Non-responders will lose their postal vote for UK elections if they do not renew by 31 January 2026. This does not affect their postal vote arrangements for Scottish Parliament and local elections if they have one. 3.1.3. Electoral Reform (Scottish Parliament) The Scottish Parliament (Elections etc) (Miscellaneous Amendments) Order 2025 was laid on 24 June 2025. The Standards Committee recommended that the Order be approved on 18 September 2025, and the Scottish Government is committed to having any changes in place at least six months ahead of a major electoral event. 8 113
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3.1.4. Electoral Reform (UK Parliament) The UK Government team is currently working on the manifesto commitments of the new Government, and a new Electoral Resilience and Democratic Engagement Programme (ERDEP) has been set up. This will introduce votes at 16 and possible changes to the election timetable in relation to registration and postal vote deadlines, among other things, relative to UK Parliamentary elections. 3.1.5. Private Member Bill – Absent Voting (Elections in Scotland and Wales) Bill The Absent Voting (Elections in Scotland and Wales) Act 2025 received Royal Assent on 27 October. This Act is a vital step in ensuring voters in Scottish and Welsh parliamentary and local council elections can apply online for postal and proxy votes. Secondary legislation on the next step in this process is now being prepared. However, the Minister has taken the decision to postpone the go live date for online postal vote applications until after the Scottish Parliamentary election on 7 May 2026. The refresh of devolved postal vote signatures has also been postponed for January 2026 to assist with convergence. 3.1.6. Elections Held Since Last Board Meeting None since the last meeting. 3.2. Non-Domestic Valuation A summary of information in this area can be found in Appendices 1.1 to 1.4. 3.2.1. Changes to the 2023 Valuation Roll (Running Roll) A summary of the running roll changes can be seen in Appendices 1.1 and 1.2 for the period 1 April 2025 to 1 November 2025. Resources are currently being diverted to working on this area of work now that the draft R2026 values have been finalised. 3.2.2. 2017 Valuation Roll Appeals (Revaluation and Running Roll) A summary of the position with regards to 2017 Revaluation and Running Roll appeals is contained in Appendix 1.3. Any 2017 appeals outstanding are those that have been referred to the Upper Tribunal for future hearing and determination, of which there are 17 in total. 3.2.3. 2023 Valuation Roll Proposals (Revaluation and Running Roll) Appendix 1.4, table 1 shows that we received 1,401 valid 2023 Revaluation proposals. All of these proposals were dealt with within the statutory timescales, and to date, we have been advised by the first-tier tribunal that a total of 41 of our decision notices were appealed. Of these appeals, 17 have now been resolved with the taxpayer or their agent, and 24 are sitting with the tribunal for citing at a later date. Therefore, the conversion factor of appeal to proposal can be calculated as 2.92%. 3.2.4 2026 Revaluation All non-domestic properties will be revalued on 1 April 2026. This means that Assessors across Scotland will set new Net Annual and Rateable Values for all non- domestic properties based on rental levels as at 1 April 2025. A draft Valuation Roll will be published at the Scottish Assessors’ Association (SAA) website www.saa.gov.uk on 30 November 2025. Draft valuation notices are required to be issued to proprietor/tenant/occupiers following the publication of the draft roll showing the Net Annual and Rateable Value provisionally set to take effect from 1 April 2026 for each property. 114
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LVJB is on schedule to publish the draft valuation roll, and issue 35,000 draft valuation notices. A final valuation notice is scheduled to be issued in March 2026, and this will contain the final Rateable Value that rates bills will be based on. 3.3. Council Tax A summary of information in this area can be found in Appendices 2.1 to 2.4. 3.3.1. New Houses A summary of the position for the period 1 April 2025 to 1 November 2025 is contained at Appendix 2.2. With 95.68% of new houses being added within 3 months. 3.3.2. Proposals and Appeals Appendices 2.3 and 2.4 contain information on the outstanding Council Tax proposals and appeals. 4. Staffing 4.1. Recruiting, Departures and Arrivals Since the last board meeting, a Principal Valuer and a Secretary have left the organisation, with another 2 members of staff due to retire at the end of December. During the last 3 months recruitment has focussed on the following roles: Assistant Assessor, Principal Valuer, Principal Technician, Administration Officer and the Secretary post. In the same period, we have promoted three members of the team from Clerical Assistants to Administration Officers and recently recruited an external applicant to fill the Secretary role. The recruitment process has, for the time being, been exhausted for the Assistant Assessor, Principal Valuer and Principal Technicians posts and to date it can be reported that these posts have not been filled. The next stage of recruitment will focus on a Clerical Assistant, Divisional Valuer and Principal Valuer, early in 2026. 4.2. Staff absence levels for the last rolling year are summarised in Appendix 3.1. 5. Other Matters 5.1. Complaints Received and Dealt with Since Last Progress Update Report Since the last update provided to the Board, there have been no complaints received by the organisation. 5.2. Complaints to the Ombudsman No decisions have been received from the Scottish Public Services Ombudsman (SPSO) since the last meeting of the Board. 6. Employee Implications 6.1. Please see item 4 above. 7. Financial Implications 7.1. No implications. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no climate change, sustainability, or environmental implications in terms of the information contained in this report. 115
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9. Other Implications 9.1. There are no implications for risk in terms of the information contained in this report. 10. Equality Impact Assessment and Consultation Requirements 10.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function, or strategy and, therefore, no impact assessment is required. 10.2. There is no requirement for consultation in respect of this report. 11. Privacy Impact Assessment 11.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. Christine Maxwell BSc MRICS Assessor and Electoral Registration Officer 14 November 2025 Previous References Progress Update Report for Board meeting of 1 September 2025 List of Background Papers None Contact for Further Information If you require further information, please contact: - Christine Maxwell, Assessor and Electoral Registration Officer Phone: 01698 476078 E-mail: assessor@lanarkshire-vjb.gov.uk 116
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Alterations made to the Valuation Roll (including appeal adjustments) between 01/04/2025 and 01/11/2025 Area AS AT 01/04/2025 ADDED DELETED ALTERED AS AT 01/11/2025 SUBJECTS RV SUBJECTS RV SUBJECTS RV SUBJECTS RV SUBJECTS RV North Lanarkshire 11,504 304,591,175 133 1,506,355 71 939,380 143 -2,473,100 11,566 302,685,050 South Lanarkshire 12,031 780,177,309 125 451,050 73 327,920 171 -4,110,039 12,083 776,190,400 LVJB total 23,535 £1,084,768,484 258 £1,957,405 144 £1,267,300 314 -£6,583,139 23,649 £1,078,875,450 Appendix 1.1 117
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Summary of time taken to make alterations (excluding appeal adjustments) to the Valuation Roll Period: 1 April 2025 to 1 November 2025 Area Total altered altered < 3 months altered 3 to 6 months altered > 6 months No. No. %age No. %age No. %age North Lanarkshire 289 209 72.32% 51 17.65% 29 10.03% South Lanarkshire 161 123 76.40% 19 11.80% 19 11.80% LVJB totals 450 332 73.78% 70 15.56% 48 10.67% Appendix 1.2 118
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Valuation Roll Appeals: Revaluation and Running Roll 2017 1. Revaluation Appeals Area Appeals received since 2017 Valuation Roll Appeals resolved as at 1 November 2025 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court (historic) Rateable Value of Appeals in process of appeal to LVAC (historic) Appeals outstanding awaiting determination of Upper Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of Upper Tribunal for Scotland Appeals Outstanding as at 1 November 2025 North Lanarkshire 4,726 4,717 0 £0 9 £373,100 9 South Lanarkshire 4,553 4,548 0 £0 5 £680,350 5 LVJB total 9,279 9,265 0 £0 14 £1,053,450 14 2. Running Roll Appeals Area Appeals received since 2017 Valuation Roll Appeals resolved as at 1 November 2025 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court (historic) Rateable Value of Appeals in process of appeal to LVAC (historic) Appeals outstanding awaiting determination of Local Taxation Chamber Rateable Value of Outstanding Appeals awaiting determination of Local Taxation Chamber Appeals Outstanding as at 1 November 2025 North Lanarkshire 4,672 4,672 0 £0 0 £0 0 South Lanarkshire 5,044 5,041 0 £0 3 £3,612,000 3 LVJB total 9,716 9,713 0 £0 3 £3,612,000 3 Appendix 1.3 119
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Valuation Roll Proposals: Revaluation and Running Roll 2023 1. Revaluation Proposals Area Proposals received since 2023 Revaluation Proposals Determined by Assessor Proposals now Appealed to Local Taxation Chamber by 01/11/2025 Appeals dealtwith by Assessor by 01/11/2025 Appeals still outstanding at Local Taxation Chamber on 01/11/2025 Rateable Value of outstanding appeals at Local Taxation Chamber Appeals referred to Upper Tribunal North Lanarkshire 755 755 19 12 7 £907,300 0 South Lanarkshire 646 646 22 5 17 £11,736,400 0 LVJB total 1401 1401 41 17 24 £12,643,700 0 2. Running Roll Proposals Area Running Roll Proposals received since 01/04/2023 Proposals Determined by Assessor by 01/11/2025 Proposals now Appealed to Local Taxation Chamber Appeals dealt with by Assessor by 01/11/2025 Appeals still outstanding at Local Taxation Chamber on 01/11/2025 Rateable Value of outstanding appeals at Local Taxation Chamber Proposals / Appeals Outstanding as at 1 November 2025 North Lanarkshire 192 126 0 0 0 0 66 South Lanarkshire 201 131 0 0 0 0 70 LVJB total 393 257 0 0 0 0 136 Appendix 1.4 120
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Council Tax Subjects as at 01/11/2025 ENTRIES AS AT 01/04/2025 ADDITIONS DELETIONS CURRENT ENTRIES BAND 'D' EQUIVALENT BAND NORTH SOUTH TOTAL NORTH SOUTH TOTAL NORTH SOUTH TOTAL NORTH SOUTH TOTAL NORTH SOUTH TOTAL A 52496 36065 88561 7 11 18 466 21 487 52037 36055 88092 34693 24038 58731 B 38173 30940 69113 14 12 26 11 8 19 38176 30944 69120 29693 24068 53761 C 20727 27176 47903 82 23 105 4 8 12 20805 27191 47996 18494 24170 42664 D 18633 22706 41339 115 164 279 14 2 16 18734 22868 41602 18734 22868 41602 E 17696 21158 38854 127 119 246 1 1 2 17822 21276 39098 23416 27955 51371 F 10756 14371 25127 133 224 357 4 3 7 10885 14592 25477 17688 23712 41400 G 3201 7312 10513 4 137 141 0 2 2 3205 7447 10652 6276 14583 20859 H 172 593 765 0 9 9 0 2 2 172 600 772 421 1470 1891 TOTAL 161854 160321 322175 482 699 1181 500 47 547 161836 160973 322809 149415 162864 312279 'D' EQIV. 149166 161897 311063 594 1012 1606 345 44 389 149415 162864 312279 JOINT BOARD TOTALS 01/04/2025 01/11/2025 Increase TOTAL CHARGEABLE ENTRIES North 161854 161836 -18 South 160321 160973 652 Total 322175 322809 634 BAND 'D' EQUIVALENT North 149166 149415 249 South 161897 162864 967 Total 311063 312279 1216 Appendix 2.1 121
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Summary of time taken to enter new houses in Valuation (Council Tax) List Period: 1 April 2025 to 1 November 2025 Area Total added added < 3 months added 3 to 6 months added > 6 months North Lanarkshire 482 450 93.36% 24 4.98% 8 1.66% South Lanarkshire 699 680 97.28% 13 1.86% 6 0.86% LVJB totals 1181 1130 95.68% 37 3.13% 14 1.19% Appendix 2.2 122
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Summary of Council Tax Proposals/Appeals received and dealt with as at 1 November 2025 Valid Proposals/Appeals outstanding at 1 April 2025 Proposals/Appeals received since 1 April 2025 Proposals/Appeals completely resolved 01/04/2025 to 01/11/2025 North Lanarkshire 39 29 21 South Lanarkshire 50 41 38 LVJB total 89 70 59 Invalid Proposals/Appeals outstanding at 1 April 2025 Proposals/Appeals received since 1 April 2025 Proposals/Appeals completely resolved 01/04/2025 to 01/11/2025 North Lanarkshire 28 46 55 South Lanarkshire 44 58 64 LVJB total 72 104 119 Combined Proposals/Appeals outstanding at 1 April 2025 Proposals/Appeals received since 1 April 2025 Proposals/Appeals completely resolved 01/04/2025 to 01/11/2025 North Lanarkshire 67 75 76 South Lanarkshire 94 99 102 LVJB total 161 174 178 Appendix 2.3 123
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Summary of resolution of Council Tax Proposals/Appeals Between 1 April 2025 and 1 November 2025 Valid Proposals/Appeals completely resolved 01/04/2025 to 01/11/2025 Number withdrawn Number abandoned Number adjusted Number dismissed by LTC Number adjusted by LTC North Lanarkshire 21 4 10 6 1 0 South Lanarkshire 38 12 23 3 0 0 LVJB total 59 16 33 9 1 0 Invalid Proposals/Appeals completely resolved 01/04/2025 to 01/11/2025 Number withdrawn Number abandoned Number adjusted Number dismissed by LTC Number adjusted by LTC North Lanarkshire 55 2 47 2 4 0 South Lanarkshire 64 2 55 0 7 0 LVJB total 119 4 102 2 11 0 Combined Proposals/Appeals completely resolved 01/04/2025 to 01/11/2025 Number withdrawn Number abandoned Number adjusted Number dismissed by LTC Number adjusted by LTC North Lanarkshire 76 6 57 8 5 0 South Lanarkshire 102 14 78 3 7 0 LVJB total 178 20 135 11 12 0 Appendix 2.4 124
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Appendix 3.1 ABSENCE MANAGEMENT STATISTICS Short-Term Long-Term Unauthorised Total Total Month Absence No of Days Work days available No of Days % No of Days % No of Days % No of Days Work Days Avail % Month % November 2024 69 5.98% 25 2.17% Nil 0% 94 1153 8.15% November 2023 97 1293 7.5% December 2024 11 0.92% 117 9.82% Nil 0% 128 1192 10.74% December 2023 133 1226 10.8% January 2025 43 3.45% 26 2.09% Nil 0% 69 1246 5.54% January 2024 154 1301 11.8% February 2025 44 4.07% 45 4.16% Nil 0% 89 1082 8.23% February 2024 171 1174 14.6% March 2025 88 7.84% 22 1.96% Nil 0% 110 1122 9.80% March 2024 133 1166 11.4% April 2025 13 1.14% 23 2.01% Nil 0% 36 1143 3.15% April 2024 211 1206 17.5% May 2025 27 2.30% 0 0% Nil 0% 27 1173 2.30% May 2024 153 1129 17.5% June 2025 1 0.09% 21 1.79% Nil 0% 22 1173 1.87% June 2024 117 1109 10.6% July 2025 20 1.51% 10 0.75% Nil 0% 30 1325 2.26% July 2024 113 1155 9.8% August 2025 26 2.19% 21 1.78% Nil 0% 47 1188 3.96% August 2024 114 1169 9.8% September 2025 71 5.91% 70 5.82% Nil 0% 141 1202 11.73% September 2024 104 1217 8.5% October 2025 35 2.83% 93 7.51% Nil 0% 128 1238 10.34% October 2024 125 1313 9.5% Averages for 12 37 3.19% 39 3.32% Nil 0% 77 1186 6.50% 135 1205 11.20% 125
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