Item 07 - Audited 2024-25 West Dunbartonshire Council Annual Accounts
West Dunbartonshire Council · 26 August 2026
Back to West Dunbartonshire Council — 26 August 2026 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council: 26 August2026 Subject: Audited 2024/25 West Dunbartonshire Council Annual Accounts 1. PURPOSE 1.1 The purpose of this report is to ask Members to scrutinise and approve West Dunbartonshire Council’s (the Council) 2024/25 Audited Financial Statements. 2. RECOMMENDATIONS 2.1 Members are requested to: a. Note the audit of the Council’s 2024/25 Audited Financial Statements is substantially complete and the external auditors have advised they expect to issue an unqualified opinion on them. b. Approve the information provided within the Audited Annual Accounts 2024/25 included as appendix 1 to this report. 3. BACKGROUND 3.1 Forvis Mazars (Mazars) have been appointed as the Council’s external auditors from financial year 2022/23 for a period of five years. 3.2 The Council’s unaudited 2024/25 Annual Accounts, including the Group Accounts, were reported to Council on 18 June 2025 and submitted to the Accounts Commission on 28 June 2025, in accordance with established deadlines. 3.3 The report submitted to the 18 June 2025 Council presented an unaudited position of an unearmarked General Service reserve of £3.642m and provided Members with information on variances for the year. The unaudited unearmarked position for the Housing Revenue Account reserve was £0.611m. 4. MAIN ISSUES 4.1 The audit of the accounts for 2024/25 is substantially complete, however, the External Audit Report (considered as a separate agenda item at this Council meeting) outlines that, at the time of preparing this report, some matters remain outstanding. In addition, Mazars have noted they expect to issue an unqualified opinion and the draft opinion has been inserted into the Annual Accounts included at Appendix 2. Page 1 ITEM 7
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West Dunbartonshire Council Annual Accounts 4.2 Assuming here are no further changes to the Accounts, there were three adjustments to the draft accounts which were below the audit mis-posting threshold and impacted the Council’s financial position as detailed in Appendix 1. This was to reverse a capital receipt accrual due to the sale not being completed as expected. This decreased the Council’s useable reserves by £0.241m offset by a credit to usable reserves of £0.050m as a result of other non-material adjustments. There was also a further adjustment that had no impact on the Council’s financial position (Appendix 2). The Council was initially advised by its treasury advisors that, following implementation of IFRS 16 - Leases, there was no requirement to remeasure the PPP liability. However, following audit review, it was concluded that remeasurement was required. An adjustment has therefore been made to the balance sheet and related disclosures to reflect the remeasurement of the PPP liability in line with IFRS 16 requirements. In addition there some presentational changes which are detailed within the annual audit report. 4.3 In 2024/25 the changes between unaudited accounts and audited accounts resulted in the balance sheet movement as noted below. These adjustments did not affect the usable reserves positions of the Council. Unaudited £,000 Audited £,000 Change £,000 Long Term Assets 1,284,680 1,284,685 5 Current Assets 78,025 77,682 (343) Current Liabilities (401,947) (402,729) (782) Long Term Liabilities (593,419) (614,569) (21,150) Total 367,339 345,069 (22,270) Usable Reserves (13,316) (13,125) 191 Unusable Reserves (354,023) (331,944) 22,079 Total Reserves (367,339) (345,069) 22,270 4.4 The changes were due to the remeasurement of the PPP liability (£21.984m), which is an accounting adjustment which only affects the Council’s unusable reserves and an adjustment to the short term debtors balance to reverse the capital receipt accrual and recognising the property within assets held for sale (£0.338m) offset by the reversal of two short term creditor balances (£0.050m). 4.5 The overall general fund reserves decreased by £0.191m from £12.463m to £12.272m due to the reversal of the capital receipt accrual detailed in 4.2. Page 2
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General Fund Housing Revenue Account Free Reserve £,000 Earmarked Reserve £,000 Total Reserve (£,000) Free Reserve £,000 Earmarked Reserve £,000 Total Reserve (£,000) Unaudited Accounts 3,642 8,821 12,463 611 0 611 Correction to capital receipts (191) 0 (191) 0 0 0 Audited Accounts 3,451 8,821 12,272 611 0 611 4.6 Mazars have issued a clean audit opinion in relation to the Council Accounts. 4.7 The management commentary on pages 1 to 17 of the Annual Accounts summarises the major matters contained within the document and provides an explanation of the Council’s financial position as at 31 March 2025. 4.8 The Annual Governance Statement on pages 19 to 23 of the accounts provides assurance that the Council has in place a sound system of governance control and identifies a number of areas where officers have identified improvements can be made. General 4.9 4.10 There has been improvement in the 2024/25 audit process; however, it has continued to present challenges. The audit work commenced in January 2026, a period when the finance team was under significant pressure to prepare the 2026/27 budget due to the late local government settlement announcement on 13 January 2026. Following this, the team needed to focus on the 2026/27 budget process and subsequently the 2025/26 year‑end. This overlap in priorities resulted in delays at times in providing information back to audit. In addition, there was a substantial volume of HSCP sample testing, despite the HSCP 2025/26 financial statements having already been signed off. Furthermore, recommendations for improvement set out in the annual audit report (considered as a separate agenda item) are of reduced value, as we have been unable to incorporate them into 2025/26 however management responses have been provided and, where appropriate, actions will be taken forward in 2026/27. 4.11 The timetable for the 2025/26 audit has not yet been confirmed, but following the signing of the 2024/25 financial statements, there will be scope to bring the audit cycle further back into alignment with a more traditional timetable. 5. PEOPLE IMPLICATIONS There are no people implications in relation to this report. 6. FINANCIAL AND PROCUREMENT IMPLICATIONS Page 3
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6.1 There are no financial and procurement implications in relation to this report. 7. RISK ANALYSIS 7.1 No risk analysis was required 8. EQUALITIES IMPACT ASSESSMENT (EIA) 8.1 No equalities impact was required in relation to the production of this report. 9. CONSULTATION 9.1 The views of all Chief Officers have been requested on this report and feedback incorporated herein. 10. STRATEGIC ASSESSMENT 10.1 The report is in relation to a statutory function. As such, it does not directly affect any of the strategic priorities. 11. STRATEGIC ASSESSMENT 11.1 The report is in relation to a statutory function. As such, it does not directly affect any of the strategic priorities. Laurence Slavin Chief Officer - Resources Date: 26 August 2026 Person to Contact: Carol Alderson, Finance Manager Email: carol.alderson@west-dunbarton.gov.uk Appendices 1. Adjustments to 2024/25 West Dunbartonshire Council financial statements 2. Audited Annual Accounts 2024/25 – West Dunbartonshire Council Background Papers Draft Annual Accounts 2024/25 to Council – 17 June 2025 Page 4