Item 08 - 2024 25 West Dunbartonshire Council Annual Audit Report
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 August 2026 ___________________________________________________________________ Subject: 2024/25 West Dunbartonshire Council Annual Audit Report 1. Purpose 1.1 The purpose of this report is to present West Dunbartonshire Council’s (the Council) 2024/25 Annual Audit Report to Members and Controller of Audit prior to approving the 2024/25 Audited Annual Accounts for the Council. 1.2 The report provides Members with an update on the external audit of the Council’s Annual Accounts for the year ended 31 March 2025. 2. Recommendations 2.1 Members are requested to consider the Annual Audit Report to Members and Controller of Audit 2024/25 for the Council – 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 As the external auditor of the Council, it is Mazar’s responsibility to undertake their audit work in accordance with International Standards on Auditing, the principles contained in the Code of Audit Practice issued by Audit Scotland in June 2021 and the ethical standards issued by the Auditing Practices Board. 4. Main Issues 4.1 The audit of the 2024/25 accounts is substantially complete; however, the Annual Audit Report identifies that, at the time of preparing the report, some minor matters remain outstanding. In addition, Mazars have noted they expect to issue an unqualified opinion on the annual accounts. 4.2 The findings of the audit are contained within the annual audit report for which is appended to this report (Appendix 1). ITEM 8
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4.3 The report confirms that the audit work performed has not identified any significant control deficiencies and has identified one material misstatement which has been corrected. This is detailed on page 7 of the external auditor’s report (Appendix 1). 4.4 The report identifies eight recommendations for improvement for the Council (see Appendix A of the Annual Audit Report). The report also details the Council’s management responses in relation to these recommendations and provides an update on the recommendations identified in the 2022/23 or 2023/24 Annual Audit Report (six of which have been noted as complete). 4.5 Any recommendations for improvement set out in the annual audit report are of reduced value, as we have been unable to incorporate them into the 2025/26 financial year as they were communicated too late and as resources are tied up responding to audit queries there is limited time to implement changes. 4.6 The Audit Opinion is detailed on page 5 of the report which advises that Mazars expect to issue an unqualified opinion on the Council’s Annual Accounts and the Charities Annual Accounts. 4.7 Page 27 of the report makes reference to two uncorrected misstatements: Forvis Mazars has estimated a £4.299m overstatement in housing stock valuation because the social housing discount was not applied to the market-value of buy-back properties held on the balance sheet. The Council has made the decision not to adjust the value, as the external valuer advised that the EUV-SH methodology is complex and requires full recalibration of Beacon assumptions, rent differentials and asset-type inputs, rather than a desktop adjustment based on high- level indices. As the buy-backs will be reflected in the full valuation of housing stock as at 31 March 2026 , and given the uncertainty over the reliability of the audit estimate, this has been left as an unadjusted audit difference. A £1.061m balance sheet adjustment to adjust the carrying value of the Council’s PPP and Finance Lease liabilities due to updates to the PPP and DBFM accounting models. 4.8 Page 107 of the Annual Audit Report makes reference to the potential of additional fees being charged as a consequence of ‘overruns’. There is a process by which Mazars need to make representation to Audit Scotland to justify charging additional fees, after which the Council will be contacted. Council will be aware that the Chief Executive has formally raised dissatisfaction with the Mazars audit in previous years and formally requested a rebate on previous audit fees which neither party agreed to. Any claim for additional fees due to overruns will be initially reviewed by the Chief Officer
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Resources to assess the reasonableness of the claim and ensure the root cause of any overrun is properly identified and apportioned. 5. People Implications 5.1 There are no people implications in relation to this report. 6. Financial and Procurement Implications 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 Laurence Slavin Chief Officer – Resources Date: 13 August 2026 Person to Contact: Carol Alderson, Finance Manager Email: carol.alderson@west-dunbarton.gov.uk Appendices: Appendix 1 – Proposed 2024/25 Annual Audit Report Background Papers: Draft Annual Accounts 2024/25 to Council – 17 June 2025