4-Appendix 3-AB 2324 OSCR Trusts Management ISA580 Letter of Representation, 01/09/2025 SMT Pre-Agenda Briefing of the Council
Argyll and Bute Council · 24 September 2025
Back to Argyll and Bute Council — 24 September 2025 and its agenda
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Appendix 3 Forvis Mazars 1 Argyll and Bute Council Comhairle Earra Ghàidheal agus Bhòid Financial Services Financial Services Kintyre House, Snipefield Industrial Estate, Campbeltown, Argyll, PA28 6SY Date: 27/09/24 www.argyll-bute.gov.uk Mark Outterside Forvis Mazars 26 Mosley Street Newcastle Upon Tyne NE1 1DF 24 September 2025 Dear Mark, Argyll and Bute OSCR Trusts - Audit for Year Ended 31 March 2024 This representation letter is provided in connection with your audit of the financial statements of Argyll and Bute OSCR Trusts for the year ended 31 March 2024 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. We confirm that the following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience (and, where appropriate, inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you. Our responsibility for the financial statements and accounting information We believe that we have fulfilled our responsibilities for the true and fair presentation and preparation of the financial statements in accordance with Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. The financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). Our responsibility to provide and disclose relevant information We have provided you with: • access to all information of which we are aware that is relevant to the preparation of the financial statements such as records, documentation and other material; • additional information that you have requested from us for the purpose of the audit; and • unrestricted access to individuals within the charitable trusts you determined it was necessary to contact in order to obtain audit evidence. • We confirm as trustees that we have taken all the necessary steps to make us aware, as trustees, of any relevant audit information and to establish that you, as auditors, are aware of this information. As far as we are aware there is no relevant audit information of which you, as auditors, are unaware
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Appendix 3 Forvis Mazars 2 Accounting records We confirm that all transactions that have a material effect on the financial statements have been recorded in the accounting records and are reflected in the financial statements. All other records and related information, including minutes of all management and trustees' meetings, have been made available to you in accordance with the Charities and Trustee Investment (Scotland) Act 2005. Accounting policies We confirm that we have reviewed the accounting policies applied during the year in accordance with Section 10 of Financial Reporting Standard 102 and consider these policies appropriate to faithfully represent the effects of transactions, other events or conditions on the charitable trusts’ financial position and financial performance. Accounting estimates We confirm that the methods, significant assumptions and the data used in making the accounting estimates are appropriate to achieve recognition, measurement or disclosure that is in accordance with the applicable financial reporting framework. We confirm the appropriateness of the measurement process, including related assumptions and models, used by management in determining accounting estimates under UK GAAP, and the consistency of application of the process. We confirm that disclosures related to accounting estimates are complete and appropriate under UK GAAP. Contingencies There are no material contingent losses including pending or potential litigation that should be accrued where: • information presently available indicates that it is probable that an asset has been impaired or a liability had been incurred at the balance sheet date; and • the amount of the loss can be reasonably estimated. There are no material contingent losses that should be disclosed where, although either or both the conditions specified above are not met, there is a reasonable possibility that a loss, or a loss greater than that accrued, may have been incurred at the balance sheet date. There are no contingent gains which should be disclosed. All material matters, including unasserted claims, that may result in litigation against the charitable trusts have been brought to your attention. All known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to you and accounted for and disclosed in accordance with Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Laws and regulations We confirm that we have disclosed to you all those events of which we are aware which involve known or suspected non-compliance with laws and regulations, together with the actual or contingent consequences which may arise therefrom. We have complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of non-compliance. Fraud and error We acknowledge our responsibility as trustees of the charitable trusts, for the design, implementation and maintenance of internal control to prevent and detect fraud and error. We have disclosed to you:
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Appendix 3 Forvis Mazars 3 • all the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud; • all knowledge of fraud or suspected fraud affecting the charitable trusts involving: o management and those charged with governance; o employees who have significant roles in internal control; and o others where fraud could have a material effect on the financial statements. We have disclosed to you all information in relation to any allegations of fraud, or suspected fraud, affecting the charitable trusts' financial statements communicated by employees, former employees, analysts, regulators or others. Related party transactions We confirm that all related party relationships, transactions and balances, have been appropriately accounted for and disclosed in accordance with the Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. We have disclosed to you the identity of the Argyll and Bute OSCR Trusts’ related parties and all related party relationships and transactions of which we are aware. Transactions with trustees We confirm that the charitable trusts has at no time during the year entered into any arrangement, transaction or agreement to provide credit facilities including loans, quasi-loans, credit transactions, mutually beneficial arrangements, or guarantees or security for the foregoing or assumed or assigned any such rights or liabilities for any trustees or their connected persons, except as permitted by the Companies Act 2006 and as disclosed in the financial statements. No trustee or their connected persons had a direct or indirect material interest in any other transaction or arrangement with the charitable trusts other than those disclosed in accordance with section 413 of the Companies Act 2006 or exempted from disclosure by the Act. Future commitments We are not aware of any plans, intentions or commitments that may materially affect the carrying value or classification of assets and liabilities or give rise to additional liabilities. Other Matters We confirm in relation to the following matters that: • COVID-19 – We have assessed the continued impact of the COVID-19 Virus pandemic on the Argyll and Bute OSCR Trusts and the financial statements, including the impact of mitigation measures and uncertainties, and are satisfied that the financial statements and supporting notes fairly reflect that assessment. • Ukraine – We confirm that we have carried out an assessment of the potential impact of the continued conflict in Ukraine on the Argyll and Bute OSCR Trusts and there is no significant impact on the Argyll and Bute OSCR Trusts’ operations from restrictions or sanctions in place. • We confirm that we have assessed the impact on the Argyll and Bute OSCR Trusts of the on-going Global Banking challenges, in particular whether there is any impact on the Argyll and Bute OSCR Trusts’ ability to continue as a going concern, and on the post balance sheet events disclosures. Subsequent events We confirm all events subsequent to the date of the financial statements and for which the Charities and Trustee Investment (Scotland) Act 2005 and relevant legislation and United Kingdom Accounting Standards require adjustment or disclosure have been adjusted or disclosed.
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Appendix 3 Forvis Mazars 4 Should further material events occur after the date of this letter which may necessitate revision of the figures included in the financial statements or inclusion of a note thereto, we will advise you accordingly. Going concern To the best of our knowledge there is nothing to indicate that the charitable trusts will not continue as a going concern in the foreseeable future. The period to which we have paid particular attention in assessing the appropriateness of the going concern basis is not less than twelve months from the date of approval of the financial statements. Annual Report The disclosures within the Annual Report fairly reflect our understanding of the Argyll and Bute OSCR Trusts’ financial and operating performance over the period covered by the financial statements. Unadjusted misstatements We confirm that there are no uncorrected misstatements. Yours sincerely Councillor J Lynch Trustee 24 September 2025