Item 12 Appendix 2
West Dunbartonshire Council · 17 December 2025
Back to West Dunbartonshire Council — 17 December 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
Annual Audit Report West Dunbartonshire Council Charitable Trusts– year ended 31 March 2025 November 2025 APPENDIX 2
Page 2
Annual Audit Report Letter The Trustees West Dunbartonshire Council Charitable Trusts 16 Church Street Dumbarton G82 1QL 25th November 2025 Forvis Mazars 100 Queen Street Glasgow G1 3DN Dear Committee Members and Controller of Audit, Annual Audit Report – Year ended 31 March 2025 We are pleased to present our Annual Audit Report for West Dunbartonshire Council Charitable Trusts for the year ended 31 March 2025. The purpose of this report is to summarise our audit findings and conclusions. This report has been prepared in accordance with the responsibilities set out within the Audit Scotland’s Code of Audit Practice (“the Code”). This report is intended solely for the Trustees for the purpose of communicating certain matters that, in our professional judgement, are relevant to your oversight of the financial reporting process. Except where required by law or regulation, it should not be used, quoted or made available to any other parties without our prior written consent. We appreciate the courtesy and co-operation extended to us by your team throughout our audit. We would be happy to discuss the contents of this report, or any other matters regarding our audit, with you in more detail. Yours faithfully Tom Reid (Director) Forvis Mazars LLP Forvis Mazars LLP – 100 Queen Street- Glasgow- G1 3DN Tel: 0141 227 2400 – www.forvismazars.com/uk Forvis Mazars LLP is the UK firm of Forvis Mazars Global, a leading global professional services network. Forvis Mazars LLP is a limited liability partnership registered in England and Wales with registered number OC308299 and with its registered office at 30 Old Bailey, London, EC4M 7AU. Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001139861. VAT number: GB 839 8356 73
Page 3
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 3 Contents 01 Executive summary 02 Status of our audit 03 Audit approach and risk summary 04 Significant findings 05 Summary of misstatements 06 Fraud considerations Appendix A: Internal control conclusions Appendix B: Draft management representation letter Appendix C: Draft audit report Appendix D: Confirmation of our independence Appendix E: Other communications This document is to be regarded as confidential to West Dunbartonshire Council Charitable Trusts. It has been prepared for the sole use of the Trustees as those charged with governance. No responsibility is accepted to any other person in respect of the whole or part of its contents. Our written consent must first be obtained before this document, or any part of it, is disclosed to a third party.
Page 4
Please adhere to these instructions when utilising this slide: You have the flexibility to choose a colour for the background of the cover pages, divider slides, and closing slides from the following options: - white, - Indigo Dye, - True Blue, - or any colour from the ‘Vision’ colours palettes (see slide 2). 01Executive Summary
Page 5
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 5 Executive summary Scope We have been engaged to audit the financial statements of West Dunbartonshire Council Charitable Trusts for the year ended 31 March 2025 which are prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2024-25. We have conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs’), relevant ethical and professional standards, and the requirements set out in the Audit Scotland’s Code of Audit Practice 2021. Our responsibilities and powers are derived from our appointment by the Accounts Commission under the Part VII of the Local Government (Scotland) Act 1973. Audit status Our audit procedures are now substantially complete for the year ended 31 March 2025. Please refer to the ‘Status of our audit’ section for a list of significant audit matters outstanding at the date of this report. We will provide an update to The Trustees on completion of those outstanding matters by way of a follow-up letter. Areas of focus and audit approach, and significant findings We have not made any changes to our initial risk assessment and planned audit approach that was communicated to The Trustees in our Annual Audit Plan. Our significant risks and other areas of focus are set out in the ‘Audit approach and risk summary’ section, with a summary of our audit approach over those areas. Significant findings from our audit are set out in the ‘Significant findings’ section. Significant control deficiencies We did not identify any significant deficiencies in internal control Audit misstatements A summary of the adjusted and unadjusted misstatements above our reporting threshold we have identified to date is set out in the ‘Summary of misstatements’ section. Audit opinion At the time of issuing this report and subject to the satisfactory conclusion of our remaining audit work, we anticipate issuing an unqualified opinion, without modification, as set out in Appendix C.
Page 6
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 6 Executive summary (continued) Other information We are required to report on whether the other information (comprising of the Trustees’ Annual Report), is materially inconsistent with the financial statements; is materially inconsistent with our knowledge obtained in the course of the audit; or is materially misstated. No inconsistencies have been identified and we have issued an unmodified opinion in this respect. Wider reporting powers Section 101 of the Local Government (Scotland) Act 1973 requires us to give any person interested, the opportunity to question us about the accounting records of the Charitable Trusts and to consider any objection made to the accounts. We confirm that no such correspondence from electors has been received. Qualitative aspects of Charitable Trusts’ accounting practices We have reviewed Charitable Trusts’ accounting policies and disclosures and conclude that they comply with the Code of Practice on Local Authority Accounting in the United Kingdom 2024-25, appropriately tailored to the Charitable Trusts‘ circumstances. Draft accounts were received from the Charitable Trusts in June 2025 and were of a good quality. Significant difficulties during the audit We have not encountered any significant difficulties and we have had the full co- operation of management. Other matters of significance We encountered no significant difficulties during our audit and had no significant disagreements with management. There was effective co-operation and communication between Forvis Mazars, management, and The Trustees during our audit. All requested information and explanations were provided to us. Other matters we are required by ISA (UK) 260 Communication with Those Charged with Governance to communicate to you have been set out in Appendix E.
Page 7
Please adhere to these instructions when utilising this slide: You have the flexibility to choose a colour for the background of the cover pages, divider slides, and closing slides from the following options: - white, - Indigo Dye, - True Blue, - or any colour from the ‘Vision’ colours palettes (see slide 2). 02Status of our audit
Page 8
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 8 Status of our audit Our audit work is substantially complete and there are currently no matters of which we are aware that would require modification of our audit opinion, subject to the satisfactory resolution of the outstanding matters set out below Status High - Likely to result in a material adjustment or a significant change to disclosures in the financial statements. Medium - Potential to result in a material adjustment or a significant change to disclosures in the financial statements. Low - Not considered likely to result in a material adjustment or a change to disclosures in the financial statements. N/A - Work on Wider Scope and Best Value arrangements therefore no risk of adjustment to the financial statements. Quality Control/Review This includes review by the Engagement Lead and the process will continue up to the point of signing. There are no specific matters to date, but further file review may result in a small number of queries. Low Audit Completion We need to complete standard closing procedures, including • Assessing the impact of any post balance sheet events up to the point of signing the audit report; and • Obtaining the signed letter of management representation Low
Page 9
Please adhere to these instructions when utilising this slide: You have the flexibility to choose a colour for the background of the cover pages, divider slides, and closing slides from the following options: - white, - Indigo Dye, - True Blue, - or any colour from the ‘Vision’ colours palettes (see slide 2). 03Audit approach and risk summary
Page 10
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 10 Audit approach and risk summary Changes to our audit approach There have been no changes to the audit approach. The Annual Audit Plan is due to be issued on 1 December 2025 (alongside the West Dunbartonshire Council audit plan). Materiality Our provisional materiality at the planning stage of our audit was set at £5,368 using a benchmark of 2% of total assets (provisional performance materiality: £4,295 and provisional clearly trivial threshold: £161) The benchmark selected has been adopted due to the Charitable Trust’s significant total assets balance, in comparison to receipts and payments which are less significant in value. In determining to apply 2% of the benchmark, our judgement is that the Charitable Trust’s has an experienced accounting team able to apply Accounting Standards and the Trustees who can give an appropriate level of scrutiny. As a result, we can apply a lower percentage. Based on the final financial statement figure, the final overall materiality we applied was £5,336 (final performance materiality: £4,269 and final clearly trivial threshold: £160).
Page 11
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 11 Audit approach and risk summary (continued) Significant risks Fraud risk Judgement Error Substantive audit procedures Tests of controls Misstatement identified Control recommendations Conclusion Page ref to finding Management override of controls Yes No No Yes No No No Risk is satisfactorily addressed and no issues were noted. 13
Page 12
Please adhere to these instructions when utilising this slide: You have the flexibility to choose a colour for the background of the cover pages, divider slides, and closing slides from the following options: - white, - Indigo Dye, - True Blue, - or any colour from the ‘Vision’ colours palettes (see slide 2). 04Significant findings
Page 13
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 13 Significant findings The significant findings from our audit include our conclusions regarding the significant risks we identified and other key areas of judgement, which are set out in this section. Significant risks Management override of controls Description of the risk In all entities, management at various levels within an organisation are in a unique position to perpetrate fraud because of their ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Due to the unpredictable way in which such override could occur, we consider there to be a risk of material misstatement due to fraud and thus a significant risk on all audits. blank How we addressed this risk We addressed this risk through performing audit work over: • Consideration of identified significant transactions outside the normal course of business; and • Journal entries recorded in the general ledger and other adjustments made in preparation of the financial statements. blank Audit conclusion Our work has provided the assurance we sought and there are no material issues to bring to your attention
Page 14
Please adhere to these instructions when utilising this slide: You have the flexibility to choose a colour for the background of the cover pages, divider slides, and closing slides from the following options: - white, - Indigo Dye, - True Blue, - or any colour from the ‘Vision’ colours palettes (see slide 2). 05Summary of misstatements
Page 15
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 15 Summary of misstatements Unadjusted misstatements Our overall materiality, performance materiality, and clearly trivial (reporting) are outline on page 10 of this report. We identified no misstatements above our reporting threshold, or that we deem to be material by nature, as at the date of this report which were not adjusted.
Page 16
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 16 Summary of misstatements (continued) Adjusted misstatements The misstatements in the table below have been adjusted by management. We report all individual misstatements above our reporting threshold that we identify during our audit and which management had adjusted and any other misstatements we believe The Trustees should be made aware of. Details of adjustment Nature CIES CIES Balance Sheet Balance Sheet Blank Blank Dr Cr Dr Cr Dr Alexander Cameron Bequest Receipts Cr Alexander Cameron Bequest reserves Interest income was incorrectly recognised in 2024/25, rather than when the amount was received in 2023/24 Factual 1,987 1,987 Aggregate effect of adjusted misstatements blank 1,987 1,987
Page 17
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 17 Summary of misstatements (continued) Prior year adjusted misstatements The misstatements in the table below have been adjusted by management. We report all individual misstatements above our reporting threshold that we identify during our audit and which management had adjusted and any other misstatements we believe The Trustees should be made aware of. Details of adjustment Nature CIES CIES Balance Sheet Balance Sheet Blank Blank Dr Cr Dr Cr Dr Alexander Cameron Bequest reserves Cr Alexander Cameron Bequest Receipts Interest income was incorrectly recognised in 2024/25, rather than when the amount was received in 2023/24 Factual 1,987 1,987 Aggregate effect of adjusted misstatements blank 1,987 1,987
Page 18
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 18 Summary of misstatements (continued) Disclosure misstatements We identified the following disclosure misstatements during our audit that have been corrected by management: • Audit fees for 2024/25 were disclosed as £10,000 and have now been updated to £10,190 • £2,029 was incorrectly disclosed as receipts for Alexander Cameron Bequest, due to an internal transfer between “investment” and “other asset”. This was due to journal transactions being incorrectly recorded when officers prepared the unaudited accounts. Prior year disclosure misstatements • £5,515 was incorrectly disclosed as receipts for Alexander Cameron Bequest, due to an internal transfer between “investment” and “other asset”. This was due to journal transactions being incorrectly recorded when officers prepared the unaudited accounts
Page 19
Please adhere to these instructions when utilising this slide: You have the flexibility to choose a colour for the background of the cover pages, divider slides, and closing slides from the following options: - white, - Indigo Dye, - True Blue, - or any colour from the ‘Vision’ colours palettes (see slide 2). 06Fraud considerations
Page 20
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 20 Fraud considerations We have a responsibility to plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. Your responsibilities Management has primary responsibility for the prevention and detection of fraud. It is important that management, with your oversight, place a strong emphasis on fraud prevention, which may reduce opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud because of the likelihood of detection and punishment. This involves a commitment to creating a culture of honesty and ethical behaviour which is reinforced by your active oversight. Our responsibilities We have a responsibility for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether due to fraud or error. The distinguishing factor between fraud and error is whether the underlying action that results in a misstatement is intentional or unintentional. Two types of intentional misstatements are relevant to us – misstatements resulting from fraudulent financial reporting, and misstatements resulting from the misappropriation of assets. ISA presumed fraud risks As set out in the ‘Audit approach and risk summary’ section, the risks of fraud in management override of controls were identified as significant risks Our overall approach to fraud Inquired with management, Trustees, and internal audit Assignment and supervision of appropriate audit personnel Evaluated the selection and application of accounting policies Obtained written representation from management Incorporated elements of unpredictability into our audit procedures Maintained professional scepticism Our overall conclusion We did not identify any actual or suspected fraud involving West Dunbartonshire Council Charitable Trusts management, employees with significant roles in the Council’s internal control or others, where the fraud resulted in a material misstatement in the financial statements.
Page 21
Please adhere to these instructions when utilising this slide: You have the flexibility to choose a colour for the background of the cover pages, divider slides, and closing slides from the following options: - white, - Indigo Dye, - True Blue, - or any colour from the ‘Vision’ colours palettes (see slide 2). Appendices A: Internal control conclusions B: Draft management representation letter C: Draft audit report D: Confirmation of our independence E: Other communications A
Page 22
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 22 Appendix A: Internal control conclusions Other deficiencies in internal control A deficiency in internal control exists if: • A control is designed, implemented, or operated in such a way that it is unable to prevent, detect, and/ or correct potential misstatements in the financial statements; or • A control that is necessary to prevent, detect, and/ or correct misstatements in the financial statements on a timely basis is missing. The purpose of our audit was to express an opinion on the financial statements. As part of our audit, we have considered the Charitable Trusts’ internal controls relevant to the preparation of the financial statements to design audit procedures to allow us to express an opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Charitable Trusts’ internal controls or to identify any significant deficiencies in their design or operation. The matters reported in Appendix A are limited to those deficiencies and other control recommendations that we have identified during our normal audit procedures and which we consider to be of sufficient importance to merit being reported. If we had performed more extensive procedures on internal control, we might have identified more deficiencies to report or concluded that some of the reported deficiencies need not in fact have been reported. Our comments in Appendix A should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made. We have not identified any internal control observations as at the date of this report.
Page 23
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 23 Appendix B: Draft management representation letter Tom Reid Forvis Mazars 100 Queen Street Glasgow G1 3DN [Date] Dear Tom, West Dunbartonshire Council Charitable Trusts - Audit for Year Ended 31 March 2025 This representation letter is provided in connection with your audit of the financial statements of West Dunbartonshire Council Charitable Trusts 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 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).
Page 24
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 24 Appendix B: Draft management representation letter 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 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. 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.
Page 25
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 25 Appendix B: Draft management representation letter 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: 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: • management and those charged with governance; • employees who have significant roles in internal control; and • 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.
Page 26
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 26 Appendix B: Draft management representation letter 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 West Dunbartonshire Council Charitable 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: Ukraine – We confirm that we have carried out an assessment of the potential impact of the continued conflict in Ukraine on the West Dunbartonshire Council Charitable Trusts and there is no significant impact on the West Dunbartonshire Council Charitable Trusts’ operations from restrictions or sanctions in place. 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. 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.
Page 27
Title position
Maximum vertical position for content
Minimum vertical position for content
Subtitle position
27
Appendix B: Draft management representation letter
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 West Dunbartonshire Council Charitable 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
{signature}
{name}
TrusteePage 28
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 28 Appendix C: Draft audit report Independent auditor’s report to the trustees of West Dunbartonshire Council Charitable Trusts and the Accounts Commission Report on the audit of the financial statements Opinion on the financial statements We certify that we have audited the financial statements in the statement of accounts of West Dunbartonshire Council Charitable Trusts (“the Charities”) for the year ended 31 March 2025 under 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 statements comprise the Statement of Receipts and Payments Account, the Statement of Balances and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and a receipts and payments basis. In our opinion the accompanying financial statements: • properly present the receipts and payments of the Charities for the year ended 31 March 2025 and their statement of balances at that date; and • have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulations 9(1), (2) and (3) of The Charities Accounts (Scotland) Regulations 2006. Basis for opinion We conducted our 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. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charities in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of the trustees for the financial statements The trustees are 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 trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Page 29
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 29 Appendix C: Draft audit report Auditor’s responsibilities for the audit of the financial statements Our 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 our 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 economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using our understanding of the local government sector and charity sector to identify that the Local Government (Scotland) Act 1973, Charities and Trustee Investment (Scotland) Act 2005 and The Charities Accounts (Scotland) Regulations 2006 are significant in the context of the Charities • inquiring of the Trustees as to other laws or regulations that may be expected to have a fundamental effect on the operations of the Charities • inquiring of the Trustees concerning the Charities’ policies and procedures regarding compliance with the applicable legal and regulatory framework; • discussions among our 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 our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Charities’ 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 our auditor’s report.
Page 30
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 30 Appendix C: Draft audit report Reporting on other requirements Other information The trustees are responsible for the other information in the statement of accounts. The other information comprises the Trustees’ Annual Report. Our 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 our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Trustees’ Annual Report to the extent explicitly stated in the following opinion prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Trustees’ Annual Report In our opinion, based on the work undertaken in the course of the audit, the information given in the Trustees' Annual Report 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 Charity Accounts (Scotland) Regulations 2006. Matters on which we are required to report by exception We are required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in our opinion: • proper accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Use of our 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, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
Page 31
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 31 Appendix C: Draft audit report [Signature] Tom Reid, Director For and on behalf of Forvis Mazars LLP 100 Queen Street Glasgow G1 3DN [ Date]
Page 32
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 32 Appendix D: Confirmation of our independence We communicate any matters which we believe may have a bearing on the independence or the objectivity of Forvis Mazars LLP and the audit team. As part of our ongoing risk assessment, we monitor our relationships with you to identify any new actual or perceived threats to our independence within the regulatory or professional requirements governing us as your auditors. We confirm that no new threats to independence have been identified since issuing our Annual Audit Plan and therefore we remain independent. Fees for work as the Charitable Trusts’ auditor Having substantially completed our work for the 2024/25 financial year, we can confirm that our fees are as follows: Area of work 2024/25 fees 2023/24 fees Auditor remuneration £10,190 £10,000
Page 33
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 33 Appendix E: Other communications blank Other communication Response Compliance with Laws and Regulations We have not identified any significant matters involving actual or suspected non-compliance with laws and regulations. We will obtain written representations from management that all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing financial statements have been disclosed. External confirmations We did not experience any issues with respect to obtaining external confirmations. Related parties We did not identify any significant matters relating to the audit of related parties. We will obtain written representations from management confirming that: a. they have disclosed to us the identity of related parties and all the related party relationships and transactions of which they are aware; and b. they have appropriately accounted for and disclosed such relationships and transactions in accordance with the requirements of the applicable financial reporting framework. Going Concern We have not identified any evidence to cause us to disagree with Trustees that West Dunbartonshire Council Charitable Trusts will be a going concern, and therefore we have not identified any evidence to cause us to consider that the use of the going concern assumption in preparation of the financial statements is not appropriate. We will obtain written representations from management, confirming that all relevant information covering a period of at least 12 months from the date of approval of the financial statements has been taken into account in assessing the appropriateness of the going concern basis of preparation of the financial statements.
Page 34
Title position Maximum vertical position for content Minimum vertical position for content Subtitle position 34 Appendix E: Other communications (continued) blank Other communication Response Subsequent events We are required to obtain evidence about whether events occurring between the date of the financial statements and the date of the auditor’s report that require adjustment of, or disclosure in, the financial statements are appropriately reflected in those financial statements in accordance with the applicable financial reporting framework. We will obtain written representations from management that all events occurring subsequent to the date of the financial statements and for which the applicable financial reporting framework requires adjustment or disclosure have been adjusted or disclosed. Matters related to fraud Our audit was designed to obtain reasonable assurance whether the financial statements as a whole are free from material misstatement due to fraud. Please refer to the section titled ‘Fraud considerations’ for our fraud considerations and conclusion. We will obtain written representations from management and, where appropriate, The Trustees, confirming that a. they acknowledge their responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud; b. they have disclosed to the auditor the results of management’s assessment of the risk that the financial statements may be materially misstated as a result of fraud; c. they have disclosed to the auditor their knowledge of fraud or suspected fraud affecting the entity involving: i. management; ii. employees who have significant roles in internal control; or iii. others where the fraud could have a material effect on the financial statements; and d. they have disclosed to the auditor their knowledge of any allegations of fraud, or suspected fraud, affecting the entity’s financial statements communicated by employees, former employees, analysts, regulators or others.
Page 35
Contact Forvis Mazars www.auditregister.org.uk The contents of this document are confidential and not for distribution to anyone other than the recipients. Disclosure to third parties cannot be made without the prior written consent of Forvis Mazars LLP. Forvis Mazars LLP is the UK firm of Forvis Mazars Global, a leading global professional services network. Forvis Mazars LLP is a limited liability partnership registered in England and Wales with registered number OC308299 and with its registered office at 30 Old Bailey, London, EC4M 7AU. Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001139861. VAT number: GB 839 8356 73 © Forvis Mazars 2024. All rights reserved. Tom Reid Audit Director Tel: +44 7816 354 994 tom.reid@mazars.co.uk