2024/25 Unaudited Annual Accounts

Argyll and Bute Council · 26 June 2025
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ARGYLL AND BUTE COUNCIL COUNCIL
FINANCIAL SERVICES 26 JUNE 2025
2024-25 UNAUDITED ANNUAL ACCOUNTS 
1.  EXECUTIVE SUMMARY 
1.1  This covering report gives an overview of the unaudited annual accounts for 2024-
25 and a summary of the significant movements from 2023-24 and asks members
to approve the unaudited annual accounts for 2024-25 for issue.   
1.2 The Statement of Comprehensive Income and Expenditure shows a deficit on the
provision of services of £12.734m, a surplus on the revaluation of long-term assets
of £3.285m, a gain in respect of post-employment benefits (pension) of £15.011m
resulting in an accounting surplus of £5.562m. 
1.3 The Balance Sheet shows that the net worth of the Council has increased by
£5.562m from £552.020m as at 31 March 2024 to £527.582m as at 31 March 2025.   
1.4 The balance of unusable reserves has increased by £6.029m from £400.319m as
at 31 March 2024 to £406.348m as at 31 March 2025.  The main reason for this
movement is an increase in the Capital Adjustment Account, as well as an
increase in the Accumulated Absence Account, offset by a decrease in the
Pensions Reserve.   
1.5  The balance of usable reserves has decreased by 0.467m from £121.701m as at
31 March 2024 to £121.234m as at 31 March 2025.  This is due to a decrease in
the General Fund of £3.036m, offset by small increases in the Capital Fund and
the Repairs and Renewals Fund, and recognition of Capital Grants Unapplied.   
1.6 In respect of the General Fund Balance movement there has been a decrease of
£3.036m from a balance of £115.741m as at 31 March 2024 to £112.705m as at
31 March 2025.  The movement is in respect of funs used during 2024-25, new
earmarkings agreed in 2024-25, an amount agreed as part of the 2025-26 budget
and the underspend for 2024-25.   
1.7 The performance against budget for financial year 2024-25, after adjusting for
automatic transfers to earmarked reserves, was an overall underspend of
£1.905m, 0.6%.   
1.8 Council is requested to:
a) Note that the Unaudited Annual Accounts for the year ended 31 March 2025
have been considered by the Audit and Scrutiny Committee; and 
b) Agree that the Section 95 Officer will submit the Annual Accounts to the
auditor by the statutory deadline of 30 June 2025.

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ARGYLL AND BUTE COUNCIL COUNCIL
FINANCIAL SERVICES 26 JUNE 2025
2024-25 UNAUDITED ANNUAL ACCOUNTS  
2. INTRODUCTION 
2.1  This covering report gives an overview of the unaudited annual accounts for
2024-25 and a summary of the significant movements from 2023-24 and asks
members to approve the unaudited annual accounts for 2024-25 for issue.   
3. RECOMMENDATIONS 
3.1 Council is requested to:
a) Note that the Unaudited Annual Accounts for the year ended 31 March 2025
have been considered by the Audit and Scrutiny Committee; and 
b) Agree that the Section 95 Officer will submit the Annual Accounts to the
auditor by the statutory deadline of 30 June 2025. 
4. DETAIL 
Introduction 
4.1 The annual accounts set out the financial statements of the Council and its group
for the year ended 31 March 2025.  Its main purpose is to demonstrate the
stewardship of public funds entrusted to the Council. The requirements governing
the format and content of local authorities’ annual accounts are contained in the
Code of Practice on Local Authority Accounting in the United Kingdom (the
Code).  The 2024-25 accounts have been prepared in accordance with this Code
except for IFRS16 Leases – see paragraphs 4.28 to 4.30. 
4.2 There is a statutory requirement to prepare a set of accounts and submit them to
the Council and the Controller of Audit.  The date set by the Scottish Government
for the submission of the unaudited annual accounts is 30 June each year.   
4.3 It should be noted that the annual accounts have still to be audited and therefore
figures are subject to change. Once the audit has been completed the Audit and
Scrutiny Committee will be advised by the external auditor of any material issues
coming to light during the audit and any changes to the accounts. The timing of
this meeting will depend on when the audit is completed. The audited accounts,
audit certificate and Auditors final report will then be submitted to the Council. 
4.4 Since 2010-11, local authorities have been required to prepare financial
statements following International Financial Reporting Standards (IFRS). Under
the Local Authority Accounts (Scotland) Regulations 2014 there is a requirement

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to include a management commentary in the accounts. The contents of the
annual accounts are summarised in the paragraphs that follow.
Overview of Accounts and Highlights
4.5 Management Commentary: this outlines the key messages regarding the
objectives and strategy of the Council and its financial performance for the year. It
also looks forward, outlining the future financial plans for the organisation and the
challenges and risks which are faced by the Council.
4.6 Statement of Responsibilities for the annual accounts: this outlines the
Council’s responsibilities and also the responsibilities of the Council’s Section 95
Officer.
4.7 Annual Governance Statement: this statement states its view on the adequacy
of its governance and internal control system. It is the Council’s view that the
systems for governance and internal control operated effectively within Argyll and
Bute Council during 2024-25 and that there were no significant weaknesses.
4.8 Remuneration Report: this report provides details of the remuneration policy,
remuneration and pension benefits of senior councillors and senior officers in
addition to detail on employee exit packages.
4.9 Comprehensive Income and Expenditure Statement (CIES): This statement
shows the accounting cost in the year of providing services in accordance with
generally accepted accounting practices, rather than the amount to be funded
from taxation. Councils raise taxation to cover expenditure in accordance with
regulations; this may be different from the accounting cost. The taxation position
is shown in in the Statement of Movement in Reserves.
4.10 The Council ended the year with an accounting surplus of £5.562m for 2024-25.
This is the accounting surplus based on the IFRS compliant accounts (with the
exception of IFRS16 Leases) rather than the movement in the General Fund
Balance. The total Comprehensive Income and Expenditure comprises of a deficit
on the provision of services of £12.734m, a surplus on the revaluation of long-
term assets of £3.285m, a gain in respect of post-employment benefits (pension)
of £15.011m resulting in an accounting surplus of £5.562m.
4.11 The deficit on the provision of services of £12.734m for 2024-25 compares to a
surplus of £9.765m for 2023-24. The main factors contributing to this change are
an increase in the net cost of services of £41.072m, an increase in financing
costs of £9.387m offset by an increase in overall funding of £28.166m.
4.12 A reconciliation of the deficit on the provision of services of £12.734m, as noted in
the CIES, to the revenue budget outturn of £1.905m underspend is shown in the
table below.

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£000 £000
Surplus/(Deficit) on Provision of Services   (12,734)
Remove statutory adjustments that don't feature in
budget outturn:    
Depreciation 25,906  
Impairment of Assets charged to services 1,828  
Capital Funding (19,569)  
CFCR (1,513)  
Pension Adjustment 12,417  
Statutory Repayment of Debt (11,340)  
Repayment of Finance Leases (5,338)  
Transfers to/from Other Statutory Reserves (1,006)  
Service Concessions 4,861 
Other Adjustments 3,452      
9,698
Movement In General Fund Balance   (3,036)
Funds used during 2024-25 26,457  
Earmarking previously agreed and created during 2024-
25 (11,298) 
New automatic earmarking at the end of 2024-25 (8,278)  
Agreed at 2025-26 Budget – payment to food banks (60)      
4,941
Revenue Budget Underspend/(Overspend)   1,905 
4.13  Balance Sheet: The Balance Sheet shows that the net worth of the Council has
increased by £5.562m from £522.020m as at 31 March 2024 to £527.582m as at
31 March 2025.   The major changes are set out in the table below. 
31/03/2024
£000
31/03/2025
£000
Change
£000
Main Reason
Long
Term
Assets
769,486 792,113 22,627 Increases to the valuation of
Property, Plant and Equipment
assets, largely in respect of
investment in infrastructure
assets. 
Current
Assets
59,624 44,149 (15,475) Reduction in Short-term
Investments, offset by increase
in Cash and Cash Equivalents.
Current
Liabilities
(73,938) (70,380) 3,558 Reduction in Short-term
Borrowing. 
Long
Term
Liabilities
(233,152) (238,300) (5,148) Increase in Long-term
Borrowing, offset by reductions
in Other Long-term Liabilities.  
Total 522,020 527,582 5,562 
4.14 Statement of Movement in Reserves:   This shows the movement on the
different reserves held by the Council, analysed into usable reserves (resource

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backed reserves which can be used to fund expenditure) and unusable reserves
(required purely for accounting purposes and are not backed by resources). 
4.15 The total Council reserves have increased from £522.020m as at 31 March 2024
to £527.582m as at 31 March 2025, an increase of £5.562m.   
4.16 The balance of Unusable Reserves has increased by £6.029m from £400.319m
as at 31 March 2024 to £406.348m as at 31 March 2025.  The main reason for
this movement is an increase in the Capital Adjustment Account, as well as an
increase in the Accumulated Absence Account, offset by a decrease in the
Pensions Reserve.   
4.17 The balance of Usable Reserves has decreased by £0.467m from £121.701m as
at 31 March 2024 to £121.234m as at 31 March 2025.  This is due to a decrease
in the General Fund of £3.036m, offset by small increases in the Capital Fund
and the Repairs and Renewals Fund, and recognition of Capital Grants
Unapplied.   
4.18 In respect of the General Fund movement, there has been a decrease of
£3.036m from a balance of £115.741m as at 31 March 2024 to £112.705m as at
31 March 2025.  Details of the movement in the balance is summarised within the
table below.   
£000
Balance on General Fund 31 March 2024 115,741
Funds used during 2024-25 (26,457)
Earmarking previously agreed and created during 2024-25 13,298
New automatic earmarking at the end of 2024-25 (as per
policy on end of year flexibility) 8,278
Underspend in 2024-25 (as referred to above) 1,905
Agreed at 2025-26 Budget – payment to food banks (60)
Balance on General Fund 31 March 2025 112,705 
4.19 Cash Flow Statement:  The Cash Flow Statement shows the changes in cash
and cash equivalents of the Council during the reporting year. The statements
shows how the Council generates and uses cash and cash equivalents by
classifying cash flows as operating, investing and financing activities.  The Cash
and Cash Equivalents increased by £14.865m. 
4.20 Notes to the Financial Statement:  The notes section provides further
information and explanation on some of key figures included within the accounts.
The notes conform to the guidance issued by CIPFA/LASAAC within the Code of
Practice on Local Authority Accounting. 
4.21 Council Tax Income Account:  This account shows the gross income raised
from council tax levied and deductions made under the Local Government
Finance Act 1992.  The resultant net income is transferred to the CIES.  Council
Tax rate for Band D was £1,479.20 for 2024-25 which represented no increase
from 2023-24.   The income transferred to the General Fund for Council Tax in
2024-25 was £66.948m.  This compared to £61.909m in 2023-24. A large part of

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the increase relates to the new policy agreed by Council on 23 November 2023,
to implement the double charge, 100% Council Tax premium on second homes
from 1 April 2024.
4.22 Non-Domestic Rate Income Account: This account is an agent’s statement
that reflects the statutory obligation for billing authorities to maintain a separate
Non-Domestic Rate Account. Non-Domestic Rate Income amounted to a share
of £41.334m for 2024-25 allocated from the national pool. This compares to
£37.645m in 2023-24. Our own net income amounted to £46.981m and we made
a contribution to the national pool of £5.647m for 2024-25.
4.23 Group Accounts: The Code places a requirement on the Council to consider its
interests in external organisations. Where this interest is considered to be
material, the authority is required to prepare a full set of Group financial
statements for inclusion in its annual accounts.
4.24 The Council is considered to have a ‘controlling interest’ in LiveArgyll, a wholly
owned subsidiary of Argyll and Bute Council. All financial transactions and
balances of the Council and Live Argyll are consolidated within the Group
financial statements on a line by line basis. In addition, the Council’s Common
Good Funds have been fully consolidated into the Group financial statements on
the same basis.
4.25 The Council also has a ‘significant interest’ in Dunbartonshire and Argyll & Bute
Valuation Joint Board, with significant influence over its financial and operating
policies, termed an associate, and is an equal partner in the Argyll and Bute
Integration Joint Board with NHS Highland, termed a joint venture. Associates
and joint ventures have been consolidated using the equity method, where a
share of net assets, operating results, and other gains and losses are
incorporated.
4.26 The inclusion of consolidating entities increases Council reserves and net assets
by £20.776m as at 31 March 2025 (£21.472m increase in 2023/24), representing
the Council’s net asset in the other Group entities. This gives an overall net
assets and reserves position for the Group of £548.358m, an increase of
£4.866m from the previous year. The increase in Group reserves is reflective of
the movement in the Council’s reserves position of £5.562m, as outlined above,
offset by a reduction of £0.696m in other Group reserves.
Other Issues
4.27 Prior Year Restatement: As part of the 2024-25 annual accounts process, we
have taken the opportunity to improve transparency in the presentation of a small
number of transactions and balances. These include gross interest paid and
received, inter-company transactions and balances between the Council and Live
Argyll, and the presentation of Cash and Cash Equivalents. In order to ensure
consistency with 2024-25, prior year figures have been restated accordingly.
This is for presentation purposes only and has no impact on the Council’s
previously reported position on the Surplus or Deficit on the Provision of Services,

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or the Net Assets and Reserves position of the Council, for the year ended 31
March 2024. 
4.28 IFRS16 Leases:  A new accounting standard, IFRS16 Leases has been adopted
within the Local Authority Accounting Code of Practice and is applicable to
accounts for the year ending 31 March 2025.  This generally requires all leases to
be recognised on the balance sheet, which impacts both assets and other long
term liabilities (and the CFR).   
4.29 The authority engaged with MUFG, its current treasury advisors, to provide
technical support services in respect of IFRS16 compliance.  However, the
required information has not been made available within the required timescale
and therefore it has not been possible to reflect these new technical requirements
within the unaudited accounts.  It should be noted that, as part of the audit
process, there will be a requirement to restate assets and liabilities in respect of
leasing arrangements, to comply with IFRS16. 
4.30 The necessary disclosures have been made in the unaudited accounts within the
Statement of Responsibilities and Note 2 Accounting Standards Issued but Not
Yet Adopted.   We have also advised our external auditors.   
5. CONCLUSION 
5.1 The unaudited annual accounts have been prepared and are now ready for issue
prior to the deadline of 30 June 2025.  The General Fund Balance has decreased
by £3.036m from a balance of £115.741m as at 31 March 2024 to £112.705m as
at 31 March 2025.  The Balance Sheet shows that the net worth of the Council
has increased by £5.562m from £522.020m as at 31 March 2024 to £527.582m
as at 31 March 2025.  Overall the financial position of the Council remains stable. 
6. IMPLICATIONS 
6.1 Policy: None
6.2 Financial: As outlined within the unaudited accounts.
6.3 Legal: The accounts comply with the Local
Authority Accounting Code of Practice
2024-25 with the exception of accounting
for leases, which continue to accounted
for under IAS 17, rather than on an IFRS
16 basis. 
6.4 HR: None
6.5 Customer Service: None
6.6 Risk: None
6.7 Climate Change: None
6.8 Fairer Scotland Duty: None
6.9 Equalities protected characteristics: None
6.10 Consumer Duty: None
6.11 Islands Communities: None 
6.12 Children’s Rights and Wellbeing: None

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Kirsty Flanagan
Executive Director/Section 95 Officer
19 June 2025 
Councillor Ross Moreland, Policy Lead for Finance and Commercial Services 
Appendix 1 – Unaudited Annual Accounts 2024-25 
For further information contact Carolyn Earl, Interim Head of Financial Services
carolyn.earl@argyll-bute.go.uk