Appendix2FollowupLetterABcharities
Argyll and Bute Council · 24 September 2025
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The Corner Bank Chambers 26 Mosley Street Newcastle Upon Tyne NE1 1DF Tel: +44 (0)113 394 2000 www.mazars.com Forvis Mazars LLP is the UK firm of Mazars, an integrated international advisory and accountancy organisation. Mazars LLP is a limited liability partnership registered in England and Wales with registered number OC308299 and with its registered office at Tower Bridge House, St Katharine’s Way, London E1W 1DD. Registered by the Institute of Chartered Accountants in England and Wales to carry out audit work. The Trustees Argyll and Bute Council OSCR Trusts Kilmory Lochgilphead Argyll PA31 8RT Direct line +44 (0) 7824 086 593 Email mark.outterside@mazars.co.uk 28 April 2025 Dear Trustees Update of the audit of Argyll and Bute Council OSCR Trusts – Annual Audit Report. As required by International Standards on Auditing (UK), I am writing to communicate that we have completed the audit of Argyll and Bute Council OSCR Trusts. Summary of misstatements I attach a summary of misstatements identified during the audit as Appendix A to this letter. If you wish to discuss these or any other points, then please do not hesitate to contact me. Yours faithfully Mark Outterside Director Appendix 2
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Appendix A – Adjusted & Unadjusted Misstatements and Follow-up on Previously Reported Internal Control Recommendations There were no adjusted and unadjusted misstatements identified during the audit above the trivial threshold of £490. Adjusted disclosure amendments The following disclosure adjustments have been made: • Audit Fees have been updated in the Statement of Financial Activities and note 6. • Several minor adjustments to the annual report and accounts have been made. Unadjusted disclosure amendments Trustees’ Annual Report – The Trustees' Annual Report for the charity does not include a summary of the main achievements of the charity, which is a requirement as per Audit Scotland Technical Guidance. Other deficiencies in internal control Description of deficiency There is an insufficient audit log in respect of grant payments/expenditure. When testing grant expenditure cut- off, we observed that transactions did not have a unique identifier, making it difficult to reconcile them with the corresponding decision records. Potential effects Insufficient audit trails can compromise the effectiveness of the audit process. Recommendation We recommend that the Trusts improve the audit trail for grant expenditure so that transaction entries can be explicitly reconciled to their relevant corresponding decision records. Follow up on previous internal control recommendations Description of deficiency We noted that the Argyll and Bute Council administers more than 5 charitable trusts. Of these, two, namely the Bailey Gilles Bequest and Miss Anne Dixon Burgh Bequest were dormant during the period. Potential effects Administering several charities could pose an extended administrative burden on the Council’s staff. Recommendation We recommend that Argyll and Bute OSCR Trust Trustees consider some of the available proposals for the simplification of accounting for charitable trusts for example: • Reorganise their charities through merging or winding them up, particularly when they appear to be failing to meet their charitable aims (e.g. by not disbursing funds) • Consider appointing an external trustee as this would remove the charity from the scope of section 106. 2023/24 update Ongoing – The Trust has confirmed that it will continue to work with the legal services to identify if there are any further opportunities to do this in 2024/25.