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Argyll and Bute Council · 20 December 2024
Back to Argyll and Bute Council — 20 December 2024 and its agenda
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Argyll and Bute Council Comhairle Earra-Ghàidheal Agus Bhòid Executive Director: Douglas Hendry Kilmory, Lochgilphead, PA31 8RT Tel: 01546 602127 Fax: 01546 604435 DX 599700 LOCHGILPHEAD 19 December 2024 SUPPLEMENTARY PACK 1 ARGYLL AND BUTE COUNCIL - ON A HYBRID BASIS IN THE COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND BY MICROSOFT TEAMS on FRIDAY, 20 DECEMBER 2024 at 10:30 AM I enclose herewith items 3(a), 4 (a) and 9(a) which were marked to follow on the Agenda for the above meeting. I also enclose 3 replacement pages in relation to item 4(b) which should replace pages 110, 145 and 223 of the agenda pack previously issued. Douglas Hendry Executive Director ITEMS TO FOLLOW / REPLACEMENT PAGES 3. AUDITED ANNUAL ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (a) Recommendation from Audit and Scrutiny Committee held on 17 December 2024 (Pages 3 - 4) (b) Report by Section 95 Officer - Replacement Pages 110, 145 and 223 (Pages 5 - 8) 4. TREASURY MANAGEMENT STRATEGY AND ANNUAL INVESTMENT STRATEGY - MID YEAR REVIEW REPORT 2024/25 (a) Recommendation from Audit and Scrutiny Committee held on 17 December 2024 (Pages 9 - 10) 9. REVISION OF ARGYLL AND BUTE COUNCIL'S SHORT-TERM LET LICENSING POLICY (a) Recommendation from Planning, Protective Services and Licensing Committee held on 18 December 2024 (Pages 11 - 12) Argyll and Bute Council Contact: Hazel MacInnes, Senior Committee Officer Tel:01546 604269 Public Document Pack
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ARGYLL & BUTE COUNCIL COUNCIL LEGAL AND REGULATORY SUPPORT 20 DECEMBER 2024 EXTRACT OF MINUTE OF AUDIT AND SCRUTINY COMMITTEE HELD ON 17 DECEMBER 2024 * 12. AUDITED ANNUAL ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (a) Annual Audit Report - Year Ended 31 March 2024 The Committee gave consideration to a report and a short verbal update outlining the unqualified opinion of the External Auditors, Forvis Mazars, on the audit of the financial statements. Decision The Audit and Scrutiny Committee agreed to note the findings of the report. (Reference: Report by Forvis Mazars, dated December 2024, submitted) (b) 2023-24 Argyll and Bute Council - ISA 580 Letter of Representation Consideration was given to the ISA 580 letter of representation on the audit of the annual accounts of Argyll and Bute Council for the year ended 31 March 2024. Decision The Audit and Scrutiny Committee:- 1. noted the contents of the ISA 580 letter of representation; and 2. agreed to recommend to Council that the ISA 580 letter of representation be approved for signing. (Reference: ISA 580 Letter of Representation by Section 95 Officer, dated December 2024, submitted) (c) Audited Annual Accounts for the year ended 31 March 2024 The Committee gave consideration to a report presenting the Audited Annual Accounts of the Council for the year ended 31 March 2024. The Interim Head of Financial Services advised of a presentational change which would be required to the accounts in respect of Cash and Cash Equivalents as at 31 March 2024, to be reflected within Current Liabilities in the Balance Sheets and the Management Commentary. Page 3 Agenda Item 3a
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Decision The Audit and Scrutiny Committee:- 1. noted that the audit is substantially complete and that Forvis Mazars have advised the Council that they are expecting to issue an unqualified opinion on the Council’s Accounts for the year ended 31 March 2024; 2. agreed to accept and endorse the Annual Accounts, and refer to the Council for approval, subject to a presentational change in respect of Cash and Cash Equivalents as at 31 March 2024, to be reflected within Current Liabilities in the Balance Sheets and the Management Commentary; 3. noted that if the Council receive a follow-up letter from Forvis Mazars confirming that there are no material changes to the Accounts, there would be no impediment to the Council signing off the Annual Accounts; and 4. noted that if the Council receive a follow-up letter from Forvis Mazars confirming there was a material change, it would be a matter for the Council to take forward the approval of the Accounts having regard to that. It was further noted that in this event, a further report would be submitted to the Audit and Scrutiny Committee for their information. (Reference: Report by Section 95 Officer, dated December 2024, submitted) Page 4
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Management Commentary www.argyll-bute.gov.uk _______________________________________________ Page 18 Balance Sheet The Balance Sheet summarises the Council’s assets and liabilities as at 31 March 2024 and explanatory notes are provided. The net worth of the Council has increased by £143.744m from £667.070m as at 31 March 2023 to £810.814m as at 31 March 2024. The major changes are set out in the table below. Main Balance Sheet Changes 31/03/2023 £000 31/03/2024 £000 Change £000 Main Reason Long Term Assets 886,601 769,486 (117,115) Largely due to the decrease in the value of the pension debtor partially offset by increase in the value of revalued assets. Current Assets 90,693 68,530 (22,163) Reduction in short term investments due to the early repayment of long term loans, and deferral of new external long term borrowing to finace capital plans, in favour of internal borrowing; off-set by an increase in short term debtors. Current Liabilities (68,592) (82,844) (14,252) Increase in short term borrowing and decrease in short term deposits and bank balances, in line with treasury management strategy. Long Term Liabilities (241,632) (233,152) 8,480 Reduction in long-term borrowing due to the early repayment of loans during the year and increase in the value of unfunded pension liabilities. Total 667,070 522,020 (145,050) Provisions The Council has provisions totalling £4.520m on the Balance Sheet as detailed in Note 29 to the Accounts. The larger provisions, those £0.250m or over, are summarised below. • £2.740m for landfill sites. A provision for landfill sites was created in 2014-15 reflecting the Council’s liability for restoration and ongoing maintenance in respect of landfill sites operated by the Council at Glengorm, Gartbreck and Gott Bay. These have been provided for based on the net present value of estimated future costs. • £1.025m for NPDO and Hub DBFM Payments. This provision is held in relation to disputed performance deductions and unbilled utility costs. Pension Asset The Council is required to account for its share of the Strathclyde Pension Fund assets and liabilities. The information included in the Accounts is provided by the Pension Fund actuaries following the annual valuation of the Fund. The Council’s share of the assets of the Strathclyde Pension Fund have been assessed on an actuarial basis using the projected unit method, an estimate of the pensions that will be payable in future years dependent on the assumptions about mortality rates, salary levels etc. The asset relates to benefits earned by existing or previous employees up to 31 March 2024. There has been a decrease in the pension valuation asset from £139.014m in 2022-23 to £0m in 2023- 24. This is as a result of the application of an asset ceiling applied in accordance with the requirements of IAS19. Page 5 Agenda Item 3b
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Balance Sheet www.argyll-bute.gov.uk _________________________________________________ Page 53 £'000 £'000 Note £'000 £'000 Long Term Assets Property Plant & Equipment 15 451,018 - Other Land and Buildings 457,369 10,872 - Vehicles, Plant, Furniture and Equipment 11,012 235,076 - Infrastructure Assets 239,372 8,892 - Community Assets 9,110 3,286 - Surplus Assets 4,620 21,440 - Assets Under Construction 35,724 730,584 Total Property Plant & Equipment 757,207 2,345 Heritage Assets 16 2,569 733 Intangible Assets 17 888 2,553 Investment Property 18 2,514 5,492 Long Term Investments 27 492 5,880 Long-Term Debtors 22 5,816 139,014 Other Long Term Debtors (Pensions) 31 - 886,601 Total Long Term Assets 769,486 Current Assets 1,130 Inventories 1,043 27,186 Short Term Debtors (Net of Impairment) 23 38,368 1,554 Assets Held for Sale 24 1,619 60,000 Short Term Investments 27,500 823 Cash and Cash Equivalents 25 - 90,693 Total Current Assets 68,530 Current Liabilities (11,818) Short-term Borrowing 27 (13,478) (50,044) Short-term Creditors 26 (52,374) (1,450) Provisions 29 (1,665) (5,280) Other Short Term Liabilities 28 (5,336) - Cash and Cash Equivalents 25 (9,991) (68,592) Total Current Liabilities (82,844) Long-term Liabilities (132,155) Borrowing Repayable within a Period in Excess of 12 Months 27 (107,458) (107,033) Other Long-term liabilities 28 (101,697) - Other Long-term liabilities (Pensions) 31 (19,578) (2,444) Provisions 29 (2,855) - Capital Grant Receipts in Advance 30 (1,564) (241,632) Total Long-term Liabilities (233,152) 667,070 Total Assets less Liabilities 522,020 31 March 202431 March 2023 Page 6
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Group Balance Sheet www.argyll-bute.gov.uk ________________________________________________ Page 131 £'000 £'000 £'000 £'000 Long Term Assets Property Plant & Equipment 451,018 - Other Land and Buildings 457,369 10,872 - Vehicles, Plant, Furniture and Equipment 11,012 235,076 - Infrastructure Assets 239,372 14,922 - Community Assets 15,051 3,286 - Surplus Assets 4,620 21,440 - Assets Under Construction 35,724 736,614 Total Property Plant & Equipment 763,148 2,345 Heritage Assets 2,569 733 Intangible Assets 888 2,553 Investment Property 2,514 5,880 Long-Term Debtors 5,816 8,579 Long-Term Investments 3,857 139,014 Other Long-Term Debtors (Pensions) - 296 Investment in Associates and Joint Ventures 299 896,014 Total Long Term Assets 779,091 Current Assets 1,145 Inventories 1,059 27,256 Short Term Debtors (Net of Impairment) 38,544 1,554 Assets Held for Sale 1,619 60,000 Short Term Investments 27,500 3,279 Cash and Cash Equivalents - 8,927 Investment in Associates and Joint Ventures 10,238 102,161 Total Current Assets 78,960 Current Liabilities (11,676) Short-term Borrowing (13,323) (50,725) Short-term Creditors (53,076) (1,450) Provisions (1,665) (5,280) Other Short Term Liabilities (5,336) - Cash and Cash Equivalents (7,923) (45) Liabilities in Associates and Joint Ventures (6) (69,176) Total Current Liabilities (81,329) Long-term Liabilities (132,155) Borrowing Repayable within a Period in Excess of 12 Months (107,458) (107,033) Other Long-term liabilities (101,697) (75) Other Long-term liabilities (Pensions) (19,578) (2,444) Provisions (2,855) - Capital Grant Receipts in Advance (1,564) - Liabilities in Associates and Joint Ventures (78) (241,707) Total Long-term Liabilities (233,230) 687,292 Total Assets less Liabilities 543,492 31 March 202431 March 2023 Page 7
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ARGYLL & BUTE COUNCIL COUNCIL LEGAL AND REGULATORY SUPPORT 20 DECEMBER 2024 EXTRACT OF MINUTE OF AUDIT AND SCRUTINY COMMITTEE HELD ON 17 DECEMBER 2024 * 13. TREASURY MANAGEMENT STRATEGY AND ANNUAL INVESTMENT STRATEGY - MID-YEAR REVIEW 2024/25 Having noted that the Local Government (Scotland) Act 2003, and supporting regulations, requires local authorities to have regard to the CIPFA Code of Practice on Treasury Management and that the code requires full Council to receive an annual Treasury Management Strategy Statement, including the Annual Investment Strategy for the year ahead, a Mid-year Review Report and an Annual Report following the year end, the Committee gave consideration to a report which provided the Mid-year Review for 2024/25. Decision The Audit and Scrutiny Committee agreed to recommend to Council:- 1. that the report and the treasury activity during the period 1 April to 30 September 2024 be noted; and 2. that the changes to the prudential indicators as set out in paragraph 5.2 of the report are approved. (Reference: Report by Section 95 Officer, dated 29 November 2024, submitted) Page 9 Agenda Item 4a
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ARGYLL & BUTE COUNCIL COUNCIL LEGAL AND REGULATORY SUPPORT 20 DECEMBER 2024 EXTRACT OF MINUTE OF PLANNING, PROTECTIVE SERVICES AND LICENSING COMMITTEE HELD ON 18 DECEMBER 2024 *4. REVISION OF ARGYLL AND BUTE COUNCIL’S SHORT-TERM LET LICENSING POLICY Consideration was given to a report proposing amendments to the Council’s Short-Term Let Licensing Policy to reflect legislative changes introduced by the Civic Government (Scotland) Act 1992 (Licensing of Short-term Lets) Order 2024, experience and discussions with other local authorities, Scottish Government, the Short-Term Let Licensing Team, customers and the Association of Scottish Self Caterers (ASSC). Decision The Committee: 1. considered this report and the revised Short-Term Let Licensing Policy detailed in Appendix 1; and 2. recommended to Council approval of the revised Short-Term Let Licensing Policy. (Reference: Report by Executive Director with responsibility for Regulatory Services and Environmental Health dated 2 December 2024, submitted) Page 11 Agenda Item 9a
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