Item 11 - Appendix 1
West Dunbartonshire Council · 29 October 2025
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Annual Audit Report West Dunbartonshire Council– year ended 31 March 2024 October 2025 APPENDIX 1
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Audit Committee West Dunbartonshire Council 16 Church Street Dumbarton G82 1QL 21 October 2025 Forvis Mazars 100 Queen Street Glasgow G1 3DN Dear Committee Members and Controller of Audit, Annual Audit Report – Year ended 31 March 2024 We are pleased to present our Annual Audit Report for the year ended 31 March 2024. The purpose of this document is to summarise our audit conclusions and findings from our considerations of the wider scope audit specified in the Code of Audit Practice 2021 namely, financial management; financial sustainability; vision, leadership and governance; and use of resources to improve outcomes. The scope of our work, including identified significant audit risks, and other key judgement areas, was outlined in our Annual Audit Plan, which we presented to you on 4 September 2024 and our progress report which we presented to you on 11 June 2025. We have reviewed our Annual Audit Plan and concluded that the significant audit risks and other key judgement areas set out in that report remain appropriate. We would like to express our thanks for the assistance of your team during our audit. If you would like to discuss any matters in more detail then please do not hesitate to contact me on 07816 354 994 Yours faithfully Tom Reid (Audit Director) Forvis Mazars LLP Annual Audit Report letter 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
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3 Contents 01 Executive summary 02 Status of the audit 03 Audit approach 04 Significant findings 05 Internal control conclusions 06 Summary of misstatements 07 Wider Scope 08 Best Value A Appendix A: Draft management representation letter B Appendix B: Draft audit report C Appendix C: Confirmation of our independence D Appendix D: Other communications E Appendix E: Wider scope and Best Value ratings Our reports are prepared in accordance with Terms of Appointment Letter from Audit Scotland dated 18 May 2022 through which the Accounts Commission has appointed us as external auditor of West Dunbartonshire Council (the Council) for financial years 2022/23 to 2026/27. We undertake our audit in accordance with Part VII of the Local Government (Scotland) Act 1973, as amended; and our responsibilities as set out within Audit Scotland’s Code of Audit Practice 2021. Reports and letters prepared by appointed auditors and addressed to the Council are prepared for the sole use of the Council and made available to Audit Scotland and the Accounts Commission, the Controller of Audit. We take no responsibility to any member or officer in their individual capacity or to any other third party.
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01Executive Summary
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5 Executive summary Audit conclusions and significant findings The detailed scope of our work as your appointed auditor for 2023/24 is set out in Audit Scotland’s Code of Audit Practice 2021. Our responsibilities and powers are derived from Part VII of the Local Government (Scotland) Act 1973 and, as outlined in our Annual Audit Plan, our audit has been conducted in accordance with International Standards on Auditing (UK) and means we focus on audit risks that we have assessed as resulting in a higher risk of material misstatement. In section 4 of this report we have set out our conclusions and significant findings from our audit. This section includes our conclusions on the audit risks and areas of management judgement in our Annual Audit Plan, which include: • Management override of controls; • Valuation of the net defined benefit (liability)/surplus; • Valuation of property, plant and equipment; and • Liabilities from service concession arrangements. Misstatements and internal control recommendations Section 5 sets out internal control recommendations and section 6 sets out audit misstatements; there are no unadjusted misstatements. Section 7 outlines our work on the Council’s arrangements to achieve economy, efficiency and effectiveness in its use of resources. Status and audit opinion We have substantially completed our audit in respect of the financial statements for the year ended 31 March 2024. At the time of preparing this report, significant matters remain outstanding as outlined in section 2. We will provide an update to you in relation to the significant matters outstanding through issuance of our final Annual Audit Report. Subject to the satisfactory conclusion of the remaining audit work, we have the following conclusions: Audit opinion We expect to issue an unqualified opinion, without modification, on the financial statements of the Council and its group. Our proposed audit opinion is included in the draft auditor’s report in Appendix B. Matters on which we report by exception We are required by the Accounts Commission to report to you if, during the course of our audit, we have found that adequate accounting records have not been kept; the financial statements and the audited part of the Remuneration Report 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.
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6 Executive summary (continued) Conclusions from our audit testing and audit opinion (continued) Other information We are required to report on whether the other information (comprising of Management’s Commentary, Statement of Responsibilities and the unaudited parts of the Remuneration 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. Management Commentary and Annual Governance Statement We are required to report on whether the information given in the Management Commentary and Annual Governance Statement is consistent with the financial statements; and has been properly prepared in accordance with the statutory guidance issued under the Local Government in Scotland Act 2003 and Delivering Good Governance in Local Government Framework 2016. We have no matters to report in respect of the Management Commentary and Annual Governance Statement. Wider 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 Council and to consider any objection made to the accounts. We confirm that no such correspondence from electors has been received. Whole of Government Accounts (WGA) The Council is below the threshold for auditor assurance set by the Scottish Government for all public bodies in Scotland. We are therefore not required to perform any examination of the Council’s WGA return. However, we will submit the required assurance statement to the National Audit Office on conclusion of our audit.
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7 Executive summary (continued) Best Value and Wider Scope conclusions As auditors appointed by the Accounts Commission, our wider scope responsibilities are set out in Audit Scotland’s Code of Audit Practice 2021 and sits alongside Best Value requirements detailed the Local Government (Scotland) Act 1973. The Code requirements broaden the scope of the 2023/24 audit and allows us to use a risk-based approach to report on our consideration of the Council’s performance of best value and community planning duties and make recommendations for improvement and, where appropriate, conclude on the Council’s performance. The Code’s wider scope framework is categorised into four areas: • financial management; • financial sustainability; • vision, leadership and governance; and • use of resources to improve outcomes. It remains the responsibility of the Council to ensure proper financial stewardship of public funds, it complies with relevant legislation, and establishes effective governance of their activities. The Council is also responsible for ensuring that it establishes arrangements to secure continuous improvement in performance and, in making those arrangements, ensures resources are being used to improve strategic outcomes and demonstrate the economy, efficiency, and effectiveness throughout the use of its resources. These arrangements should be proportionate to the size and type of the Council, appropriate to the nature of the Council and the services and functions that it has been created to deliver. Wider Scope We identified a significant risk in relation to financial sustainability but anticipate having no risks in arrangements to report in relation to the financial management; vision, leadership and governance; and use of resources to improve outcomes arrangements that the Council has in place. Further detail on our Wider Scope work is provided in section 7 of this report including any significant risks identified. Best Value We anticipate having no risks in arrangements to report in relation to the arrangements that the Council has in place to secure economy, efficiency and effectiveness in its use of resources. Further detail on our Best Value work is provided in section 8 of this report including any significant risks identified.
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02Status of the audit
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9 Status of our audit Our audit work is substantially complete and, subject to the satisfactory resolution of the outstanding matters set out below, there are currently no matters of which we are aware that would require modification of our audit opinion. Area of work Audit quality control and completion procedures: Our audit work is undergoing final stages of review by the Engagement Lead and Engagement Quality Reviewer, and further quality and compliance checks. In addition, there are residual procedures to complete, including updating post balance sheet event considerations to the point of issuing the opinion, obtaining final management representations and agreeing adjustments to the final set of accounts. Medium Area of work Annual Report and Accounts and letter of representation: We will complete our final review of the annual report and accounts upon receipt of the signed version of the accounts and letter of representation. Low 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.
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03Audit Approach
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11 Audit Approach Changes to our audit approach As set out below, we have made the following changes to the audit approach we communicated in our Annual Audit Plan, issued on 4 September 2024. We communicated these changes to Audit Committee members on 11 June 2025: • We identified a key judgement area and enhanced risk relating to liabilities from service concession arrangements. Further detail is provided in section 4. • We communicated our reduced performance materiality level for the Council of £6.808m. Materiality Our provisional materiality at the planning stage of the audit was set at £11.309m for the Council and £11.523m for the Group using a benchmark of 2% of gross revenue expenditure at surplus/deficit level. Our Performance materiality was set at £7.916m for the Council and £8.066m for the Group. In determining the overall materiality levels, we made the following significant judgements; • that the main users of the financial statements are the Scottish Government, other Local Authorities, Regulators, Elected Members, Local Community, and other Stakeholders; • that the primary aggregate that users tend to focus on is gross revenue expenditure at surplus/deficit level, as it reflects the extent of services delivered by the Council; • that users of the financial statements and decision makers (the Council, Audit Committee and Scottish Government) have a high understanding of the inherent uncertainties around accounting estimates and judgements; • that setting 2% of the chosen benchmark is consistent with prior period and as part of our audit, we have gained an understanding that the Council has a well established and experienced finance team capable of applying the relevant Accounting Standards. • Audit Committee members demonstrate an ability to scrutinise financial information at a high level. Based on the final financial statement figures, other qualitative factors listed above and due to the adjusted misstatements identified during our audit (see page 35), the final overall materiality we applied was £11.468m for the Council and £11.588m for the Group, final performance materiality: £6.881m for the Council and £8.112m for the Group; final clearly trivial threshold: £344k for the Council and £348k for the Group. We maintained a specific materiality of £1k for senior councillors and senior employees' remuneration and pension benefits, one banding for other employees' remuneration disclosed in the Remuneration and Staff Report in the Council’s financial statements. During our audit, we reassessed the materiality threshold applied to exit packages disclosed in the Remuneration Report to £50,000 to better reflect the average cost of packages awarded in 2023/24. We applied the following materiality levels to other costs disclosed in the Remuneration Report: • £1,000 for senior councillors and senior employees’ remuneration and pension benefits • one banding for employees’ remuneration. Use of experts We used the experts to assist us to obtain sufficient appropriate audit evidence on specific items of the financial statements. In addition to the experts listed in our Annual Audit Plan, we used Forvis Mazars Real Estate Valuation team to assist in our valuations work.
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12 Audit Approach (continued) Group audit approach Our approach to the audit of the Group is detailed in the table below Group component Approach adopted Key points or matters to report West Dunbartonshire Council (Parent) Full audit No matter to report West Dunbartonshire Leisure Trust Review procedures No matter to report Clydebank Property Company Review procedures No matters to report West Dunbartonshire Energy Limited Liability Partnership Review procedures No matters to report Dumbarton Common Good Review procedures No matters to report West Dunbartonshire Trust Funds Review procedures No matters to report Dunbartonshire and Argyll and Bute Valuation Joint Board Review procedures No matters to report The West Dunbartonshire Health & Social Care Partnership Review procedures No matters to report Full audit - Performance of an audit of the component’s financial information prepared for group reporting purposes using component materiality Audit of balances and/or disclosures - Performance of an audit of specific balances and/or disclosures included in the component’s financial information prepared for group reporting purposes, using component materiality Specific audit procedures - Performance of specific audit procedures on the component’s financial information Review procedures - Review of the component’s financial information prepared for group reporting purposes using the component materiality assigned
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04Significant findings
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14 Significant findings Significant findings, including key areas of management judgement The significant findings from our audit include: • our audit conclusions regarding significant risks and key areas of management judgement outlined in the Annual Audit Plan; • our comments in respect of the accounting policies and disclosures that you have adopted in the financial statements. On page 19 we have concluded whether the financial statements have been prepared in accordance with the financial reporting framework and commented on any significant accounting policy changes that have been made during the year; • any further significant matters discussed with management; and • any significant difficulties we experienced during the audit.
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15 Significant findings Management override of controls ] Description of the risk This is a mandatory significant risk on all audits due to the unpredictable way in which such override could occur. 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 there is a risk of material misstatement due to fraud on all audits. How we addressed this risk We addressed this risk through performing audit work over: • Accounting estimates included in the financial statements for evidence of management bias; • Consideration of identified significant transactions outside the normal course of business; and • Journal entries and other adjustments recorded in the general ledger in preparing of the financial statements Audit conclusion Our work is undergoing final stages of review by the Engagement Lead and Engagement Quality Reviewer (See section 2).
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16 Significant findings (continued) Valuation of the net defined benefit (liability)/surplus] Description of the risk The Council’s net defined benefit liability was £21million as at 31 March 2024. Estimation of the net pension asset or liability depends on several complex judgements which are sensitive to changes. These include the discount rate used, the rate at which salaries are predicted to increase, inflation rates and life expectancy. Due to the high degree of estimation uncertainty associated with the valuations, we have determined there is a significant risk in this area. How we addressed this risk We addressed this risk by: • Reviewing the controls that the Council has in place over the information sent to the Scheme Actuary by the fund administrators (Strathclyde Pension Fund); • Challenging the reasonableness of the Actuary’s assumptions that underpin the relevant entries made in the financial statements; • Critically assessing the competency, objectivity and independence of the Actuary; • Liaising with the auditors of the Pension Fund to gain assurance that the overall procedures and controls in place at the Pension Fund are operating effectively; • Comparing assumptions to expected ranges; • Reviewing the accuracy and completeness of the membership data used by the Actuary in preparation of the Actuary’s valuation report; and • Agreeing data in the Actuary’s valuation report for accounting purposes to the relevant accounting entries and disclosures in the Council’s financial statements. Audit conclusion Our work has provided the assurance we sought in each of these areas and there are no material issues to bring to your attention.
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17 Significant findings (continued) Valuation of property, plant and equipment Description of the risk The Council held land and buildings (including council dwellings) with a net book value of £1.2 billion at 31 March 2024. The Council has adopted a rolling revaluation model which sees other land and buildings revalued over a five-year cycle. This may result in individual assets not being revalued for several years. This creates a risk that the carrying value of those assets that have not been revalued in year is materially different from the year end value recorded in the annual accounts. Valuations are based on specialist and management assumptions and changes in these can result in material changes to valuations. Due to the high degree of estimation uncertainty associated with valuations, we have determined there is a significant risk of material misstatement in this area. How we addressed this risk We addressed this risk by: • Assessing the scope and terms of engagement with the Valuer; • Assessing the competence, skills and objectivity of the Valuer; • Assessing how management use the Valuer’s report to value land and buildings included in the financial statements; • Testing the accuracy of the data used in valuations; • Challenging the Council and Valuer’s assumptions and judgements applied in the valuations; • Reviewing the valuation methodology used, including the appropriateness of the valuation basis; • Considering the reasonableness of the valuation by comparing the valuation output with market intelligence; • Testing a sample of revaluations in the year, by agreeing the revaluations recorded in the Annual Accounts to the Valuer’s reports. As part of this testing, we checked whether the movements have been accounted for in accordance with the Code; • Challenging management’s assessment for those assets not subject to valuation in the year; • Checking market movements to assess the materiality of potential movement for 2023/24 for those valued on Existing Use Value on a market comparable basis; and • For those valued on a Depreciated Replacement Cost basis, which would be impacted by changes in build costs during the year, we tested management’s analysis of changes in the Build Costs Information Service (BCIS) index and assessed any decisions management make in this regard. Audit conclusion Our work is undergoing final stages of review by the Engagement Lead and Engagement Quality Reviewer (See section 2).
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18 Significant findings (continued) Liabilities from service concession arrangements] Description of the risk The council has a Public Private Partnership (PPP) contract for the provision of three secondary schools and one primary school, and a Design-Build- Finance-Maintain (DBFM) contract for one secondary school. The contracts include the build of the schools as well as their maintenance and provision of related facilities over the period of each contract. The assets used to provide services at the schools are recognised on the council’s Balance Sheet as operational assets and as a finance lease liability. The council has recognised an asset of £98.765 million and a liability of £89.116 million for PPP and DBFM in its 2023/24 financial statements. The method of accounting for service concession arrangements can be complex and involves management judgement. The Council has identified it as a critical accounting judgement. There is a potential risk of material misstatement if the Council does not appropriately account for its service concession arrangements. How we addressed this risk We addressed this risk by: • Reviewing the processes and relevant controls that the Council has in place over the financial models; • Updating our understanding of the service concession arrangements at the Council; • Reviewing the current financial models to ensure they have been appropriately updated with the inputs and for any substantial changes; • Testing material inputs into the model and agree outputs to the financial statements; and • Reviewing accounting policies and other related disclosures in the financial statements to ensure they are in line with the Code. Audit conclusion Our work has provided the assurance we sought in each of these areas and there are no material issues to bring to your attention. Other areas of management judgement and enhanced risk
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19 Significant findings (continued) Qualitative aspects of IJB’s accounting practices We have reviewed the Council’s accounting policies and disclosures and concluded they comply with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2023/24, as amended by the Update to the Code and Specifications for Future Codes for Infrastructure Assets, published in November 2022, appropriately tailored to the Council’s circumstances. Draft accounts were received from the Council on 28 June 2024. The unaudited accounts were prepared before the 2022/23 audit concluded in December 2024. This meant that officers needed to prepare revised accounts with updated prior year comparative figures. We received the revised accounts on 28 March 2025. We identified some issues with the revised accounts including: • tables in the notes to the accounts with no amounts disclosed • amounts disclosed in the notes to the accounts not agreeing to the primary statements • presentational issues including inconsistent presentation of the numbers and missing line description in the Group Cash Flow statement. Significant matters discussed with management During our audit, we did not communicate any significant matters to management. Significant difficulties during the audit During the audit we have had the full co-operation of management. There were several significant account areas where officers did not provide us with the requested working papers and supporting information until later in the audit. These included: • Property, plant and equipment, in particular the core reconciliation between the fixed asset register and the ledger • Public private partnership, due to updates required for 2022/23 audit adjustments • Group consolidation • Cash flow statement, due to updates required for 2022/23 audit adjustments • Financial instruments. We found issues with the initial working papers submitted by officers for other areas of the accounts, which led to increased audit scrutiny. These included leases, creditors, exit packages, and assets under construction. We also found reconciling the accounts with the trial balance to be a challenging and time-consuming exercise.
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20 Significant findings (continued) Wider responsibilities – statutory reporting The 1973 Act allows any persons interested to inspect the accounts to be audited and the underlying accounting records of the Council. The act also allows any persons interested to object to the accounts. No such objections have been raised. We are required to notify the Controller of Audit when circumstances indicate that a statutory report may be required. • Section 102(1) of the 1973 Act allows us to prepare a report to the Commission about the Council’s accounts; matters that have arisen during the audit that should be brought to the attention of the public; or the performance of the Council in their duties relating to Best Value and community planning. • Section 102(3) of the 1973 Act allows us to make a special report to the Commission if an item of account is contrary to law; there has been a failure on someone’s part to bring into account a sum which ought to have been brought into account; a loss has been incurred or deficiency caused by the negligence or misconduct of a person, or by the failure of a body to carry out a duty imposed on them by any enactment; or a sum which ought to have been credited or debited to one account of a body has been credited or debited to another account and the body has not taken, or is not taking, steps to remedy the matter. • Section 97A of the 1973 Act allows us to undertake or promote comparative and other studies to make and publish recommendations for the securing by local government bodies of Best Value, improving economy, efficiency and effectiveness in the provision of services by local government bodies and improving the financial or other management of local government bodies. We have no indication that a statutory report may be required. Reporting to the NAO in respect of Whole of Government Accounts consolidation data The NAO, as group auditor, requires us to complete the WGA Assurance Statement in respect of its consolidation data. We will submit this information to the NAO after the conclusion of our audit.
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05Internal control conclusions
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22 Internal control conclusions Overview of engagement As part of our audit, we obtained an understanding of the Council’s internal control environment and control activities relevant to the preparation of the financial statements, which was sufficient to plan our audit and determine the nature, timing, and extent of our audit procedures. Although our audit was not designed to express an opinion on the effectiveness of Council’s internal controls, we are required to communicate to the Audit Committee any significant deficiencies in internal controls that we identified in during our audit. 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 necessary control 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 Council’s 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 Council’s internal controls or to identify any significant deficiencies in their design or operation. The matters reported in this section of our report 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 this section should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made. The deficiencies Council’s internal controls that we have identified as at the date of this report are in set out on the following pages. Significant deficiencies in internal control A significant deficiency in internal control is one which, in our professional judgement, has the potential for financial loss, damage to reputation, or a loss of information which may have implications on the achievement of business strategic objectives. Our view is that observations categorised as a significant deficiency is of sufficient importance to merit the attention of the Audit Committee. We have not identified any significant deficiencies in the Council’s internal controls as at the date of this report. Other observations We also record our observations on the Council’s internal controls where, in our professional judgement, there is a need to strengthen internal control or enhance business efficiency that do not constitute significant deficiencies in internal control but which we view as being important for consideration by management.
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23 Internal control conclusions (continued) Other observations (continued) Our other internal control observations, as at the date of this report, are set out in this section. These have been reported to management directly and have been included in this report for your information. Whether internal control observations merit attention by Audit Committee and/ or management is a matter of professional judgment, taking into account the risk of misstatement that may arise in the financial statements as a result of those observations.
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24 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. Description of deficiency Journals with no description As part of our testing to address the risk of management override of controls, we obtained the Council’s complete ledger and analysed the manual entries using our data analytics software. This included extracting any journal entries which did not have a description. We found 305 instances of journals posted without a description. This is a small proportion of the 31,457 journals processed during the year, however we identify this as a characteristic of a high-risk journal as having no description makes it very difficult to identify what the journal relates to and its appropriateness. Potential effects Descriptions on journal entries assist in understanding the nature of the entry and whether it is appropriate. The absence of descriptions increases the risk of fraud or error in the Council’s financial records. Recommendation Management should ensure all journal entries include a suitable description for why the entry has been made. Management response Journals posted by the system that may not have any description can include intercompany postings or error corrections when journals are out of balance however the general point is accepted. Action will be taken to improve this from the financial year 2026/27 onwards. Responsible officer: Chief Officer Resources Implementation date: 31/03/2026 (for financial year 2026/27 onwards)
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25 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. Description of deficiency Review of Assets Under Construction During our review of asset transfers we found that assets with a carrying value of £4.2 million were transferred to their appropriate operational asset classes in 2023/24 despite the assets becoming operational in the previous financial year. This findings prompted officers to conduct a further review, resulting in the additional transfer of completed assets totalling £5.0 million and a restatement of the prior period financial statements. Potential effects Incomplete recognition of operational assets leads to inaccurate financial reporting and misstatement of asset values. It also results in depreciation not being applied in line with the Council’s accounting policy, which can affect both the accuracy of the financial statements and asset management records. Recommendation Management should establish a routine and timely review process for Assets Under Construction to ensure that completed assets are promptly recognised as operational and depreciation is correctly applied. Management response Steps will be added into the year-end timetable to review assets classified as under construction and ensure they, and any associated transactions, are properly accounted for. Responsible officer: Chief Officer Resources Implementation date: 31/03/2026 (for financial statements 2025/26 onwards)
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26 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. Description of deficiency Lease Register During our 2023/24 review of lease disclosures within the financial statements, we observed that the lease register had not been updated to reflect changes in lease agreements or the removal of expired lease arrangements. This issue was also identified in the prior period, with management previously committing to ensure the register would be kept up to date. Potential effects Failure to maintain an accurate lease register may result in incomplete or incorrect lease disclosures in the financial statements. This could lead to inaccurate financial reporting and non- compliance with accounting standards. Recommendation Management should regularly review and update the lease register, ensuring that all new, modified, and expired lease agreements are accurately recorded. This process should be embedded in the financial reporting cycle and supported by appropriate oversight to ensure the completeness and accuracy of lease disclosures. Management response A review will be conducted of the procedures to manage the lease register with identified improvement actions implemented. This will be carried out in conjunction with the roll out of the new financial ledger system to enable officers to ensure we make best use of any available functionality within the new system. Responsible officer: Chief Officer Resources Implementation date: 31/03/2027
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27 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. Description of deficiency Exit Package Disclosure Our review of the exit package disclosure identified several inconsistencies with supporting employee records, including duplicate employee entries, discrepancies in employee names across systems, and the inclusion of West Dunbartonshire Leisure Trust (WDLT) staff. Potential effects Inaccurate or incomplete exit package disclosures may lead to misstatements in the financial statements and incorrect reporting. Recommendation Management should ensure exit package data is appropriately reviewed and reconciled to data held in the HR and payroll systems. Management response For the preparation of the 2024/25 accounts updated processes were carried out and additional checks performed however this needs further improvement. Finance will engage with HR regarding the information provided to support the accounts as part of the year end process to ensure they reconcile to payments made in the appropriate financial year. Responsible officer: Chief Officer Resources Implementation date: 31/03/2026 (for financial statements 2025/26 onwards)
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28 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. Description of deficiency Non-Domestic Rates (NDR) There was no evidence to confirm that timely and sufficient reviews are being conducted on the Non-Domestic Rates (NDR) system. This was highlighted by several errors identified and reported during our 2023/24 certification exercise. Potential effects Inadequate review processes may result in undetected errors within the NDR system, potentially leading to misstatements in the Council’s financial reporting. Recommendation Management should implement and document a formal review process for the NDR system, ensuring that regular and robust checks are performed. Management response The review of rates reliefs was not undertaken in 2023/24 due to a server migration which had an adverse effect on the scheduled tasks for the NDR team. The server migration was an urgent change required to complete our statutory requirement of NDR billing and collections. This was due to be completed early in 2023/24 however due to issues identified during this, it was not completed until August 2023 following significant work from our software provider, ICT service and NDR staff. This delay caused a significant backlog of work for the service and the decision was taken not to review reliefs in order to complete outstanding work as per our statutory requirements in terms of NDR administration. Responsible officer: Chief Officer Resources Implementation date: N/A (as it was an issue in 23/24 which is already rectified)
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29 Internal control conclusions (continued) Other deficiencies in internal control In our view, there is a need to address the deficiencies in internal control set out in this section (which are not deemed to be significant deficiencies) to strengthen internal control or enhance business efficiency. Our recommendations should be actioned by management in the near future. Description of deficiency Property Gross Internal Areas We identified some differences between property gross internal areas per the Council’s records and those use by the external valuer in its 2023/24 valuations. We obtained reasonable explanations for the differences and confirmed that overall the differences would not result in the revalued properties being materially misstated individually or in total. Potential effects Incomplete and/or incorrect property information limits the Council’s ability to review and challenge the valuations made by its external valuer. This increases the risk of misstatement in the annual accounts. Recommendation Officers should: • Review and update the Council’s records to reflect any changes arising from capital works or operational changes. • Work with the external valuer to ensure greater consistency in source data ahead of future valuation cycles. • Introduce a reconciliation step during the valuation process to identify significant gross internal area variances for review. Management response The Council recognises the importance of maintaining accurate and consistent property data to support the valuation process and ensure the integrity of asset valuations reported in the annual accounts. Work is underway to review and update property records to reflect recent capital works and operational changes. Officers will liaise with the external valuer to ensure alignment of gross internal area data and establish a clear process for reconciling any significant variances identified during future valuation cycles. Responsible officer: Chief Officer Resources Implementation date: 31 March 2026
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30 Internal control conclusions (continued) Follow up on previous internal control points We set out below an update on internal control points raised in the prior year. Description of deficiency Fixed Assets Register The fixed asset register provided to audit did not reconcile to the non-current asset balances in the annual accounts. Over the course of the audit officers updated the register and, although the overall difference is now trivial, it still does not fully reconcile. Potential effects Discrepancies between the fixed asset register and the annual accounts may result in incorrect or incomplete disclosures. Recommendation Officers should review and update the fixed asset register to ensure it is accurate and complete. 2023/24 update Ongoing. The Council has initiated a project to replace its financial reporting system, with plans to fully integrate a fixed asset register into the new platform. This enhancement is aimed at reducing the risk of errors linked to the current spreadsheet-based approach. While the new system is expected to take around two years to implement, notable progress has already been made; for the 2023/24 financial year, officers significantly improved the existing fixed asset register, and we only identified minor errors. Management response As per the 2023/24 update this issue has been progressed and further improvement will be delivered through the implementation of the new financial ledger system. This will include carrying out an exercise to ensure uploaded date reconciles to the financial statements. Responsible officer: Chief Officer Resources Implementation date: 31/03/2027
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31 Internal control conclusions (continued) Follow up on previous internal control points (continued) Description of deficiency Bank reconciliations Our review of bank reconciliations identified a significant number of unmatched reconciling items dating back to the 2019/20 financial year. This had resulted from challenges officers had matching transactions relating to virtual credit cards between the financial ledger and bank statements. Potential effects Delays in clearing reconciling items identified in bank reconciliations increases the risk of fraud and error in the financial statements. Recommendation Officers should work to complete the exercise to review and clear all historic transactions with the virtual credit cards. 2023/24 update Ongoing. The issue has not yet been fully resolved; however, we found that the Council has made some progress in reducing the number of unmatched items. Management response The creditors bank reconciliation shows items that are in the financial ledger but not on the bank statement and vice versa. There are compensating values which cannot be cleared until all transactions are posted for the virtual embedded cards. Officers continue to work to clear all earlier transactions with the virtual embedded cards. This does not represent a weakness in the bank reconciliation as the reconciliation is identifying the differences that require action to be taken. Responsible officer: Chief Officer Resources Implementation date: 31/03/2027
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32 Internal control conclusions (continued) Follow up on previous internal control points (continued) Description of deficiency IT General Control: User Access Review We identified that the Council is not following its policy of performing periodic review of user access to the Agresso, Financial Ledger, system. We found, at the time of testing, that the last review was carried out in November 2021. The last comprehensive review, where managers were asked to review if system users in their team had changed post, responsibilities or left, was carried out in 2019. Potential effects Unauthorised users could have inappropriate access to systems which increases the risk of data breaches and fraud. Recommendation The Council should ensure Agresso user accounts are reviewed on a regular basis to verify: - that the user account is still valid (i.e. that the user account should be active); - access rights granted to the user account are aligned with the employee's functions within the Council. 2023/24 update Ongoing. The deficiency remains and is yet to be resolved by management. Management response Management accept that regular reviews of Agresso user access are not carried out. This is due to a need to commit limited resource to areas of work where most value can be delivered. It is further noted there are compensatory controls in place to minimise risk including segregation which means no single user can prepare an entry and approve it. Consideration will be given to how efficiently user access reviews can be carried out when the new financial ledger system is implemented. Responsible officer: Chief Officer Resources Implementation date: 31/03/2027
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33 Internal control conclusions (continued) Follow up on previous internal control points (continued) Description of deficiency IT General Control: Backup management policy We noted that, while systems are subject to backup protocols, the Council has no central backup policy. Potential effects The absence of clear guidance could increase the risk of data loss and impact business continuity. Recommendation The Council should implement a central backup policy covering: • location of backups • monitoring of backup jobs • retention timelines • testing of data restoration • disaster recovery (including testing). 2023/24 update Ongoing. The Council previously indicated that a comprehensive review of its backup strategy was in progress, covering the associated technical infrastructure and licensing requirements. At the time of reporting, the supporting backup policy is not yet in place. Management response The frequency and arrangements of back ups are covered in the Council’s Physical Server Configuration and Security policy, A standalone back up policy will be completed by end October and reported to the Council’s ICT Board. Responsible officer: Chief Officer People & Technology Implementation date: 31/10/2025
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34 Internal control conclusions (continued) Follow up on previous internal control points (continued) Description of deficiency Accounting for non-current assets We identified significant errors on the processing of non-current assets. This included the valuation of council dwellings, depreciation calculations, the capitalisation of staff costs and misclassification of assets. Potential effects If the accounting for non-current assets is not improved, future accounts could be materially misstated. Recommendation The council should review its capital accounting procedures for non-current assets, with a view to improving the systems used to record entries, compliance with accounting requirements, review processes, and communication with asset owners. 2023/24 update Complete. We did not identify any significant valuation, depreciation or capitalisation errors in 2023/24. However, we have a reported issues we identified with classification of assets under construction in a new internal control recommendation (see page 25).
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35 Internal control conclusions (continued) Follow up on previous internal control points (continued) . Description of deficiency Debtors and creditors overstatement We identified a number of errors in the disclosures of debtors and creditors. This had the effect of reducing both assets and liabilities by £3.222 million. Potential effects There is a risk that the figures in the Balance Sheet are overstated. Recommendation Management should review the year-end procedures to ensure that debtors and creditors are correctly accounted for. 2023/24 update Ongoing. Our review of the 2023/24 schedules did not find any issues with the debtors ledger. However, we found errors in the creditors ledger, leading to a reclassification adjustment of £4.3 million within the creditors disclosure note in the annual accounts. Management response The £4.3m related to one transaction that was miscoded within creditors. It related to an IJB reserve which was classified as an NHS creditor in error. This was a classification error in a note to the accounts rather than an error on the face of the balance sheet. Steps will be taken to ensure balances relating to the IJB are posted to the correct code. Responsible officer: Chief Officer Resources Implementation date: 31/03/2026
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06Summary of misstatements
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37 Summary of misstatements We set out below and on the following pages a summary of the misstatements we identified during our audit, above the trivial threshold for adjustment of £344k. We identified no unadjusted misstatements above our reporting threshold as at the date of this report The table in this section outlines the misstatements we identified that have been adjusted by management. Our overall materiality, performance materiality, and clearly trivial (reporting) threshold were reported in our Annual Audit Plan, issued on 4 September 2024 and our progress report which we presented to you on 11 June 2025.
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38 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 Audit Committee should be made aware of. Details of adjustment CIES CIES Balance Sheet Balance Sheet Blank Dr (£ ‘000) Cr (£ ‘000) Dr (£ ‘000) Cr (£ ‘000) Dr: Legal Expenses Cr: Provisions Increase in legal provision based on management’s current best estimate of potential liability. The adjustment was based on further information becoming available after the unaudited accounts were prepared. 400 400 Dr: Borrowing Due in Less than 1 year Cr: PWLB Reclassification between long term and short term borrowings. 46,652 46,652 Dr: HRA Expenditure Cr: HRA Interest and Similar Charges Reclassification of HRA expenditure recognised in interest and similar charges 1,038 1,038 Dr: Creditors (NHS Bodies) Cr: Creditors (Other Local Authorities) Movement of classification of the Integration Joint Board balance from NHS Bodies to Other Local Authorities. 4,302 4,302
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39 Summary of misstatements (continued) Adjusted misstatements Details of adjustment CIES CIES Balance Sheet Balance Sheet Blank Dr (£ ‘000) Cr (£ ‘000) Dr (£ ‘000) Cr (£ ‘000) Dr: Property, plant and equipment (OLB opening balance) Cr: Property, plant and equipment (OLB current year) To reflect a 2022/23 audit adjustment which was finalised after the 2023/24 unaudited accounts were submitted. 9,219 9,219 Dr: Depreciation (CIES) Cr: CR Property, plant and equipment (OLB Accumulated depreciation) Being current year depreciation computed and charged on 2022/23 Assets Under Construction transferred to Other Land and Buildings. 162 162 Dr: Property, plant and equipment Dr: PPP (Short term) Dr: PPP and finance lease (long term) Cr: Short term borrowings Cr: Usable reserves Cr: Unusable reserves Being adjustment to correctly state the prior year comparatives in the 2023/24 financial statements. 9,485 97 1,413 504 1,005 9,486
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40 Summary of misstatements (continued) Adjusted misstatements Details of adjustment CIES CIES Balance Sheet Balance Sheet Blank Dr (£ ‘000) Cr (£ ‘000) Dr (£ ‘000) Cr (£ ‘000) Dr: Short term debtor Cr: Short term borrowings Being reclassification journal for miscoding on general ledger. 81 81 Dr: Unusable reserves Cr: Usable reserves Being net transfer impact of loan reprofiling. 1,234 1,234 Dr: Usable reserves Cr: Unusable reserves Being journal to accurately state the statutory adjustment for service concession. 467 467 Dr: PPP and Finance Lease Liabilities Dr: Short term borrowings Cr: PPP (short term) Being adjustment to agree the financial statements to the PPP model. 293 504 797
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41 Summary of misstatements (continued) Adjusted misstatements (continued) Details of adjustment CIES CIES Balance Sheet Balance Sheet Blank Dr (£ ‘000) Cr (£ ‘000) Dr (£ ‘000) Cr (£ ‘000) Dr: Property, plant and equipment Cr: (Gain) /loss on Disposal of non-current assets Being adjustment to accurately state the gain/loss on disposal of non-current assets. 146 146 Dr: Revaluation reserve Cr: Net cost of service Cr: Property, plant and equipment Being adjustment to account for movements in revaluation of Other land and buildings. 2,940 4,805 1,865 Dr: Gross expenditure (Miscellaneous services) Cr: Gross income (Miscellaneous services) Being reclassification of Central Support Allocation. 8,857 8,857 Aggregate effect of adjusted misstatements 10,457 12,981 78,698 76,174
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42 Summary of misstatements (continued) Disclosure misstatements We identified the following disclosure misstatements during our audit that have been corrected by management: • Remuneration report: ❖ Update to disclosure of information subject to audit. ❖ Correction of disclosure on Table 3: Senior Officers Remuneration and Table 7 Pension Benefits for Senior Officers. ❖ Correction of disclosure of Exit packages on Table 8. • Movement in reserves statement: Correction of Total Comprehensive Expenditure and Income aggregates for 2022/23. • Cash flow statements: Alignment of the financing cash flows per the Reconciliation of Liabilities arising from Financing Activities to the Financing Activities line in the Cash Flow Statement. • Accounting policy: Corrections to missing information, abbreviations and references. • Notes to the Financial Statements: Correction to page and note referencing and formatting, and to ensure agreement of balances to the primary statements. • Note 16.2 Operating Leases – Council as Lessor: During our 2023/24 review of lease disclosures within the financial statements, we observed that the lease register had not been updated to reflect changes in lease agreements or the removal of expired lease arrangements (see page 26 for control recommendation). The Council therefore updated the note to remove reference to immaterial leases and only disclose future minimum lease payments receivable under material leases. Officers provided appropriate supporting documentation to support the revised disclosure note and judgements made. There were also adjustments to the Management commentary for minor consistency and presentational matters.
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43 Summary of misstatements (continued) Uncorrected Disclosure misstatements We identified the following disclosure misstatement during our audit that has not been corrected by management: Note 22 Defined Benefit Pension Scheme The external auditor of Strathclyde Pension Fund reported an unadjusted error in the Fund’s 2023/24 annual accounts due to understatement of private equity, debt infrastructure and direct portfolio assets. We have apportioned this error to the Council based on its share of the Fund’s assets. This results in the fair value of plan assets being understated by £3,989k in the Council’s accounts. This adjustment would have no overall impact on the Comprehensive Income and Expenditure Statement or Balance Sheet due to application of the asset ceiling accounting adjustment which limits the Council’s ability to recognise a pension asset. We will obtain written representations confirming that, after considering the unadjusted disclosure misstatements, both individually and in aggregate, in the context of the annual report and financial statements taken as a whole, no adjustments are required.
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07Wider scope
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Commentary on Wider Scope Overall Summary
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46 Commentary on Wider Scope Wider scope summary As auditors appointed by the Accounts Commission, our wider scope responsibilities are set out in the Code of Audit Practice 2021 and sits alongside Best Value requirements detailed in the Local Government (Scotland) Act 1973. The Code requirements broaden the scope of the 2023/24 audit and allow us to use a risk-based approach to report on our consideration of the Council’s performance of best value and community planning duties and make recommendations for improvement and, where appropriate, conclude on the Council’s performance. The Code’s wider scope framework is categorised into four areas: • financial management; • financial sustainability; • vision, leadership and governance; and • use of resources to improve outcomes. Overall summary by reporting criteria From the satisfactory conclusion of our audit work, we have the following conclusions: Blank Reporting criteria Commentary page reference Identified risks? Actual risks identified? Other recommendations made? Financial management 47 No No No Financial sustainability 53 Yes – see risk 1 on page 54 No No Vision, leadership and governance 56 No No No Use of resources to improve outcomes 61 No No No
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Commentary on Wider Scope Financial management Financial management is concerned with financial capacity, sound budgetary processes and whether the control environment and internal controls are operating effectively.
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48 Financial management (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Financial management culture West Dunbartonshire Council has a clearly structured approach to financial management, shaped by a challenging fiscal environment. With a net expenditure budget exceeding £307 million for 2025/26 and a projected cumulative funding gap of £55.6 million by 2029/30, the Council is operating under significant financial pressure. These challenges are largely driven by inflation, high interest rates, and flat cash annual settlement from the Scottish Government. In response, the Council has adopted long-term financial strategies and multi-year budget planning to maintain stability and sustainability. The Council’s financial culture includes a commitment to strategic oversight and governance. Its capital strategy, spanning a decade, guides investment decisions while accounting for revenue implications and borrowing risks. Financial performance is closely monitored through the Strategic Plan (2022–2027), with reviews ensuring alignment with corporate priorities done twice a year. Difficult decisions have shaped the Council’s financial ethos, including an 11.5% council tax increase after a 2024/25 freeze, and service reductions in 2025/26. However, the Council has shown a balanced approach by protecting key services such as school transport and health and social care. Public engagement is a key feature of the Council’s financial culture, with citizen panels and consultations influencing budget decisions. The partial restoration of grass-cutting services in response to feedback illustrates a willingness to adapt and remain responsive to community needs. West Dunbartonshire Council has a resilient financial management culture and demonstrates good oversight of its finances. No significant issues identified.
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49 Financial management (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Financial management culture (continued) Governance and risk management arrangements are embedded in the Council’s Local Code of Corporate Governance. This framework ensures robust internal controls, including codes of conduct, financial regulations, and a strategic risk register. Regular training and induction for new councillors further reinforces a culture of informed decision-making and accountability. Accountability The Council demonstrates accountability through its internal control systems, which include codes of conduct, financial regulations, and a risk management framework. These structures ensure that responsibilities are clearly defined, and risks are managed effectively. Regular performance reporting further reinforces transparency. In 2023/24, the Council faced significant financial challenges, recording a £7.1 million deficit and a £15.8 million reduction in its general fund. With free reserves falling below the reserves policy minimum of 3%, the Council approved a recovery plan in June 2024 to rebuild its reserves. This reflects a proactive approach to financial stewardship and a commitment to restoring fiscal stability. The Council demonstrates a clear commitment to accountability through effective governance and proactive financial management. No significant issues identified.
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50 Financial management (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Accountability (continued) The Council’s budget-setting process is inclusive and well-structured, with savings options reviewed in two stages and regular budgetary control reports presented to committee. These reports include updates on revenue, capital budgets, and earmarked reserves, introduced in 2023. This ensures that financial decisions are transparent and aligned with strategic priorities. Public accountability is further strengthened through stakeholder engagement and community involvement. Over 770 residents participated in the 2025/26 budget survey, with inclusive representation ensured through diversity monitoring. Initiatives like “working4business” and the Community Budgeting programme highlight the Council’s commitment to collaborative decision- making and local empowerment.
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51 Financial management (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Arrangements to prevent and detect fraud, error and other irregularities, bribery and corruption The Council has several safeguards in place to prevent and detect fraud and corruption. These include a whistleblowing policy, an anti-fraud strategy, and codes of conduct for councillors and officers. Together, these frameworks promote ethical behaviour and accountability across the organisation. A dedicated fraud team investigates a wide range of issues, including tenancy fraud, procurement irregularities, misuse of council tax reductions, and fraudulent claims related to welfare, social care, and blue badges. Their work is supported by internal audits and risk assessments that help identify weaknesses and ensure compliance with financial controls. The Council encourages public reporting of suspected fraud through accessible channels—phone, email, and an online form. It also promotes awareness through staff training and process reviews. Digital systems like IDOX Enterprise enhance traceability and reduce manual errors, strengthening the Council’s overall fraud prevention efforts. The Council has appropriate measures in place to prevent and detect fraud, supported by clear policies, a dedicated fraud team, and accessible reporting channels. No significant issues identified.
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52 Financial management (continued) Follow up of previously-reported recommendations In December 2024 we reported one recommendation to the Council to address risks identified from our Wider Scope audit for financial management. As part of our work in 2023/24, we followed up the progress made by the Council against the recommendation made and determined whether the risk remained during the year. b l a n k Financial management finding as previously reported Management response and implementation timeframe Work undertaken and judgements made in 2023/24 Conclusions reached 1 Compliance with Finance Circular 10/2022 –Level 2 The Council approved application of the service concession flexibility in December 2022. Scottish Government Finance Circular 10/2022 requires that reporting to Council is explicit that this change is prudent, sustainable and affordable over the life of the asset. The Council paper does not make this clear. Recommendation: The Council should ensure significant changes in accounting arrangements are clearly reported to Council with justification that these are prudent, sustainable and affordable. Management Response: The financial and operational impact of any future material changes to accounting arrangements will be reported to Council as required by the relevant Finance Circular, or equivalent. Responsible officer: Chief Officer Resources Implementation timescale: 1 April 2024 Progress against the recommendation During the 2023/24 audit, we reviewed the Scottish Government issued financial circulars to Councils to identify if these would have significant impact on the Council’s financial position. We assessed how management has communicated any impact to members. Circulars issued were primarily the Local Government Finance Circular 11/2022: settlement for 2023-2024, outlining the funding for the year, and the Local Government Finance Circular 3/2023, detailing the capital grants. These settlements provided resource and capital funding, including increases to the General Revenue Grant and specific allocations for policies like the Free School Meals policy and the pay deal for the local government workforce. We noted that these are annual circulars that form part of the Council's budget setting process and are always considered in assessing the impact of budget gaps and associated savings. Conclusions These circulars were integrated into the budget-setting process and did not present any unexpected impact beyond what was already planned and communicated to members. Based on our findings, this recommendation is now closed.
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Commentary on Wider Scope Financial sustainability Financial sustainability looks forward to the medium and longer term to consider whether the body is planning effectively to continue to deliver its services or the way in which they should be delivered.
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54 Financial sustainability Significant risks We have outlined below the significant risks in arrangements that we have identified as part of our continuous planning procedures, and the work undertaken to respond to each of those risks. Blank Significant Risk in Arrangements Identified Work undertaken and the results of our work 1 Financial sustainability The council forecasts cumulative budget gaps rising from £9.2 million in 2025/26 to £51 million in 2029/30. This is a potential risk to its financial sustainability, and its ability to maintain its services for the people of West Dunbartonshire. Work undertaken We reviewed the Council’s • financial strategy; • financial position and track record in delivering planned recurrent and non-recurrent savings in 2023/24; • financial performance in 2024/25 and updates to its financial planning during the year, including the implications for general reserves balances; • regular reporting to Members on financial performance, savings plans and financial risks; and • progress in developing plans to address future years budget gaps. Results of our work • The Council last updated its long-term financial strategy in December 2023. The strategy estimates budget gaps over a five-year period to 2028/29. It also provides contextual information on the economic and national environment the Council is operating in. • The Council did not achieve all its planned savings in 2023/24 and reported an overspend for the year. • While the council initially faced a projected £11.6 million funding gap for 2023/24, this increased to over £21 million by December 2023. The final budget gap of £8.3 million (after an initial savings option of £2.3 million was agreed) was closed using reserves and other savings options. The Council however ended the financial year reporting an overspend of £7.1 million for 2023/24. • The Council agreed a balanced budget for 2024/25. The budget included agreed savings of £5.3 million and use of reserves of £3.1 million as the main measures to meet a funding gap of £15.1 million. In 2023./24, the Council significantly increased its general fund reserves through application of the service concession flexibility and superannuation savings from reduced employer pension contributions. • Officers present regular financial updates and budgetary control reports to Council meetings. These provide an update on the general services revenue budget and the Council’s capital programme. Reports include additional information on budget variances greater than £50,000 and updates on the progress of agreed savings. • The Council establishes budget working groups each August to identify and review savings options aligned with priorities, which are then considered in two stages (December and March) giving councillors more time for informed decision-making. Conclusion The Council continues to face significant financial challenges, with ongoing reliance on reserves and savings measures to address budget gaps. It has made improvements to financial planning and reporting in response to these challenges.
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55 Financial sustainability (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Financial planning Officers provide four financial updates annually to Council meetings, outlining the Council’s financial challenges and projected revenue budget gaps under best, worst, and mid- range scenarios. These forecasts are based on evolving financial planning assumptions and show a rising cumulative mid-range budget gap, from £10.3 million in 2025/26 to £55.6 million by 2029/30. This highlights the scale of the financial pressures ahead. To support long-term planning, the Council maintains a general services capital plan and a five-year Housing Capital Plan for its Housing Revenue Account. Although the general service capital plan is formally reviewed every three years, it is updated annually to reflect changes in financial assumptions. The Council’s Long Term Financial Strategy, refreshed in December 2023, incorporates long-range impacts such as population decline and reduced government funding. A budget working group, involving senior leadership, meets from August until the budget is agreed to assist in identifying savings and scrutinising options. While the group has no decision-making authority, it plays a key role in shaping proposals and ensuring alignment with Council priorities. The Council has improved its financial forecasting which means it is well sighted on its financial challenges, which it is working proactively to address. No significant issues identified.
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Commentary on Wider Scope Vision, leadership and governance Vision, Leadership and Governance is concerned with the effectiveness of scrutiny and governance arrangements, leadership and decision making, and transparent reporting of financial and performance information.
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57 Vision, leadership and governance (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Clarity of plans to implement the vision The Council’s vision is clearly articulated across key public documents, notably the Strategic Plan 2022– 2027. The Strategic Plan outlines the Council’s values and priorities, supported by annual performance reports. It focuses on resilient communities, a greener environment, a flourishing economy, and an inclusive, adaptable organisation, with targeted actions to reduce inequality and support disadvantaged groups. The Housing Solutions Strategy 2025 sets out specific goals to reduce homelessness and improve temporary accommodation, backed by performance data and stakeholder consultation. It includes measurable targets, such as reducing rehousing times for vulnerable groups, demonstrating a focused approach to housing challenges. The Strategic Housing Investment Plan (SHIP) and Capital Strategy provide detailed frameworks for delivering affordable housing and managing major capital projects. These plans include funding priorities, project timelines, and governance structures, ensuring transparency and accountability in implementation. The Council’s plans to implement its vision are clearly laid out across strategic documents, with defined priorities, measurable targets, and structured delivery mechanisms. No significant issues identified.
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58 Vision, leadership and governance (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Strategy and priorities West Dunbartonshire Council’s strategy is anchored in its Strategic Plan 2022–2027, which sets out a clear vision. Leadership is guided by a commitment to transparency, accountability, and continuous improvement. The Council uses annual performance reports and delivery plans to track progress against its strategic priorities, ensuring that elected members and officers are aligned in delivering outcomes for residents. Governance is supported by regular reporting to committees and the use of tools like Pentana to monitor strategic actions. The Council’s approach ensures that decision-making is evidence-based and responsive to changing needs. The Council has a well-structured strategic framework that clearly outlines its vision, leadership priorities, and governance approach. No significant issues identified.
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59 Vision, leadership and governance (continued) Our overall assessment (continued) Area assessed Our findings Our judgements Risks identified Governance arrangements West Dunbartonshire Council’s governance framework is built around full Council meetings, service-specific committees, and the Audit Committee. The Audit Committee is chaired by the Leader of the largest opposition party, reflecting recognised good practice and promoting independent oversight. These structures ensure that decision-making is subject to appropriate checks and balances. Council and Audit Committee meetings are consistently well attended, with councillors engaging actively in reviewing papers and scrutinising proposals. Audit Committees are held in person, while Council meetings offer flexibility for attendance either in person or remotely, supporting wider participation and accessibility. Transparency is further supported through the publication of meeting papers and minutes on the Council’s website. Council meetings are open to the public and include an open forum where residents can submit questions in advance, encouraging civic engagement. The Council’s has robust and inclusive governance arrangements, with clear structures for oversight, public engagement, and performance monitoring. No significant issues identified.
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60 Vision, leadership and governance (continued) Our overall assessment (continued) Area assessed Our findings Our judgements Risks identified Financial and performance information The Council provides clear and accessible financial and performance reporting through audited annual accounts, budgetary control reports, and strategic performance updates. These reports include key financial variances, savings progress, and service-level performance indicators. Performance is tracked against the Strategic Plan and Delivery Plans, with mid-year and year-end updates presented to service committees. The Annual Performance Report highlights achievements, resident feedback, and benchmarking data, supporting transparency and public accountability. Benchmarking and feedback tools, including the Local Government Benchmarking Framework, help the Council compare its performance with others and identify areas for improvement. Public Performance Reporting summaries are published online, ensuring residents stay informed. The Council has established clear and transparent reporting arrangements that support effective governance and accountability. No significant issues identified.
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Commentary on Wider Scope Use of resources to improve outcomes Audited bodies need to make best use of their resources to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. This includes demonstrating economy, efficiency, and effectiveness through the use of financial and other resources and reporting performance against outcomes.
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62 Use of resources to improve outcomes (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Resources deployed to improve strategic outcomes The Council’s “Fit for Future” programme is a key driver of service improvement and efficiency. It systematically reviews services to identify areas for savings, better resource use, and opportunities to integrate digital solutions. These reviews aim to enhance operational effectiveness and support innovation and transformation, helping the Council adapt to changing needs and financial pressures. Our 2023/24 Best Value thematic work covered workforce innovation and how the Council is responding to workforce challenges. See Section 8 of this report. The Council use of service reviews is helping it to ensure resources are being deployed effectively. No significant issues identified.
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63 Use of resources to improve outcomes (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Needs of service users being met The Council uses detailed delivery plans to guide how each service contributes to its strategic priorities. These plans outline specific actions, address performance challenges, and reflect service-level priorities identified during planning. Each plan includes measurable performance indicators and annual targets, allowing the Council to track progress and drive continuous improvement. Updates are reported mid-year and at year-end to service committees and made publicly available on the Council’s website, ensuring transparency and accountability. To ensure services meet the needs of residents, the Council actively engages with communities through public consultations, a Citizens Panel, and monthly telephone surveys. These mechanisms allow residents to share views on local issues and service delivery, helping shape decisions and priorities. The Council publishes findings from these engagements online, demonstrating a commitment to openness and responsiveness. In preparing the 2024/25 budget, the Council conducted a resident survey with over 770 responses, covering its four strategic priorities. The survey included diversity monitoring across age, sexual orientation, religion, disability, and ethnicity, to ensure broad representation. This approach helps the Council understand and respond to the needs of different community groups, strengthening its ability to deliver equitable services. The Council demonstrates a clear and inclusive approach to aligning service delivery with strategic priorities and its residents’ needs. No significant issues identified.
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64 Use of resources to improve outcomes (continued) Our overall assessment Area assessed Our findings Our judgements Risks identified Arrangements to deliver continuous improvements in priority services West Dunbartonshire Council promotes continuous improvement through its Strategic Plan, which sets clear objectives and targets across key services. Delivery plans include measurable indicators and annual goals, with progress reviewed mid-year and year-end. In education, targeted support is guided by data showing 43% of learners have additional support needs and 28% receive free school meals. The “Fit for Future” programme supports service innovation by bringing in experts to review operations and identify efficiencies. Although the last full-service review was completed in December 2022, the digital team continues to enhance services through automation, training, and project support. Improvements like the IDOX Enterprise system have streamlined planning services, boosted efficiency and helped to sustain the identification of budget savings options. Community Learning and Development is delivered through teams such as Working4U, offering support in employment, education, and financial wellbeing. A 2024 inspection by HM Inspectorate confirmed strong leadership and effective collaboration, reinforcing the Council’s commitment to improving outcomes for residents. The Council shows a clear commitment to continuous improvement through well- defined priorities, measurable targets, and regular performance tracking. Recent service innovation and digital enhancements have resulted in service efficiencies. No significant issues identified.
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08Best Value
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66 Best Value (continued) Overall summary by reporting criteria From the satisfactory conclusion of our audit work, we have the following conclusions: Blank Reporting criteria Commentary page reference Identified risks? Actual risks identified? Other recommendations made? Best Value 67 No No No Effectiveness of performance reporting 71 No No No Thematic reviews 75 No No Yes – see commentary on pages 75 and 77 Statutory Performance Indicators 81 No No Yes – see commentary on page 83
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67 Best Value Best Value summary Under the Code of Audit Practice, the audit of Best Value is fully integrated within our annual audit work. We are required to assess the seven Best Value themes at the Council over the period of the audit appointment. We have used a risk-based approach that is proportionate to the size and type of the body, to assess whether the Council has made proper arrangements for securing Best Value and is complying with its community planning duties. We have also followed up on previously reported Best Value findings, and have assessed the pace and depth of improvement implemented by the Council. At least once every five years, the Controller of Audit will report to the Accounts Commission on the Council’s performance in meeting its Best Value duties. We also conduct thematic reviews as directed by the Accounts Commission. In 2023/24 this was about workforce innovation. At the planning stage of the audit, we undertook work to understand the arrangements that the Council has in place under each of the reporting criteria and we considered whether there were any risks to our audit in those arrangements. We have kept our understanding of arrangements under review and updated our risk assessment throughout the audit to reflect emerging issues that may suggest significant risks in arrangements exist. The following pages outline the work that we have undertaken for each of the seven Best Value themes and any improvements or risks in arrangements that have been identified as part of our assessment. We have reported recommendations for the risks identified.
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68 Best Value (continued) Our overall assessment of the Best Value themes Best Value theme Our findings Our judgements Service improvement considerations Risks identified Vision and leadership See page 57 for the findings of our wider scope work on vision and leadership The Council has a well-structured strategic framework that clearly outlines its vision, leadership priorities, and governance approach None identified. No significant issues identified. Governance and accountability See page 59 for the findings of our wider scope work on governance. The Council’s has robust and inclusive governance arrangements, with clear structures for oversight, public engagement, and performance monitoring. None identified. No significant issues identified.
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69 Best Value (continued) Our overall assessment of the Best Value themes (continued) Best Value theme Our findings Our judgements Service improvement considerations Risks identified Effective use of resources See page 62 for our findings on how the Council is ensuring its resources are deployed to improve strategic outcomes. Our 2023/24 Best Value thematic work covered workforce innovation and how the Council is responding to workforce challenges (see pages 75 to 80) The Council use of service reviews is helping it to ensure resources are being deployed effectively. None identified. No significant issues identified. Partnerships and collaborative working The Council embeds partnership working into its strategic framework through the Community Planning West Dunbartonshire (CPWD) initiative. This includes a management group, delivery and improvement groups focused on five strategic priorities, and locality planning that engages statutory bodies, third-sector organisations, and local communities. The Council’s approach ensures that partnership activity is coordinated and strategically focused. It aims to realise added value, support new and existing collaborations, and provide oversight of interdependencies across services. This framework also helps mitigate the social and financial impact of decisions on partner organisations, reinforcing the importance of shared responsibility and integrated planning. The Council’s partnership framework is well-structured and inclusive, but its effectiveness depends on continued coordination and strategic oversight to ensure shared outcomes and mitigate impacts across partners. None identified. No significant issues identified.
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70 Best Value (continued) Our overall assessment of the Best Value themes (continued) Best Value theme Our findings Our judgements Service improvement considerations Risks identified Working with communities We did not assess this theme in 2023/24. N/A N/A N/A Sustainability We did not assess this theme in 2023/24. N/A N/A N/A Fairness and equality We did not assess this theme in 2023/24. N/A N/A N/A
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71 Best Value (continued) Effectiveness of performance reporting Effective performance management arrangements should be in place to promote the effective use of the local authority’s resources. Performance is systematically measured across all areas of activity, and performance reports are regularly scrutinised by managers and elected members. The performance management system is effective in addressing areas of underperformance, identifying the scope for improvement and agreeing remedial action. We have outlined below a summary of what the Council is reporting in relation to service performance including the Council’s assessment of progress against its service priority measures and reporting on its relative performance (from the Local Government Benchmarking Framework and other information used locally). Effectiveness of performance reporting theme Our findings Our judgements Our conclusions Risks identified Effective performance management Each service area within the Council develops annual delivery plans that align with the four strategic priorities outlined in the Strategic Plan. These plans include performance indicators, strategic actions, and service challenges, with progress reviewed mid-year and at year-end. Reports are submitted to relevant service committees and published online to promote transparency and public scrutiny. Performance data is also shared through the Council’s Annual Report and the Local Government Benchmarking Framework (LGBF), offering trend analysis and comparisons with other local authorities. This information is presented to the senior leadership team via the Performance and Monitoring Review Group, ensuring oversight and peer-level scrutiny, including by the Chief Executive. Throughout the year, performance data is monitored as it becomes available and discussed at service-specific management meetings. The Council also incorporates feedback from residents through telephone surveys and the Citizens Panel, which helps assess progress against strategic priorities and key achievements. The Council has embedded a comprehensive and transparent performance management framework that supports strategic alignment, accountability, and continuous improvement. By integrating delivery plans, benchmarking data, and public reporting, it ensures that performance is regularly monitored and scrutinised at both operational and strategic levels. The inclusion of resident feedback further strengthens the Council’s commitment to responsive and inclusive service delivery. The Council’s approach to performance reporting is well-structured and effective, supporting informed decision-making and public accountability. No significant issues identified.
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72 Best Value (continued) Effectiveness of performance reporting (continued) Improvement plans reflect a pace and depth of improvement that will lead to the realisation of the local authority’s priorities and the long-term sustainability of services. The Council should demonstrate a trend of improvement over time in delivering its strategic priorities. We have outlined below our assessment on whether the Council can demonstrate a trend of improvement over time in delivering its priorities. Effectiveness of performance reporting theme Our findings Our judgements Our conclusions Risks identified Improvement plans Scottish Councils continue to face mounting financial, demand, and workforce pressures, which have stalled improvements in performance and efficiency. The LGBF National Benchmarking Overview Report 2023/24 shows that 68% of indicators have improved since 2010/11, but the Council’s performance falls below this benchmark, with only 50% improving. More concerning is the year-on-year comparison, where just 35.24% of indicators improved since 2022/23, ranking the Council 30th out of 32 in Scotland. Financial sustainability remains a key area of concern, especially given the broader context of declining local government budgets in real terms. Despite these challenges, the Council’s Strategic Plan outlines four main priorities—Our Communities, Our Environment, Our Economy, and Our Council—each supported by performance indicators. Of the 50 targets set, 33 were met or exceeded, 10 narrowly missed, and 7 were not met. This suggests a focus on maintaining steady progress rather than setting overly ambitious goals. The Council’s website and quarterly performance reports provide accessible insights into its efforts to improve services, although LGBF data indicates persistent challenges in several areas. The Council has been notably impacted by the wider strain on local government resources, as reflected in its below-average performance across LGBF indicators. To strengthen its performance management, the Council would benefit from aligning its Strategic Plan more closely with LGBF measures and incorporating prior year comparisons in quarterly strategic reports. This would enhance transparency and better demonstrate progress over time. The Council faces performance challenges but can strengthen its approach by better aligning its strategic goals with national performance benchmarks. No significant issues identified.
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73 Best Value (continued) Best Value finding as previously reported Management response and implementation timeframe Work undertaken and judgements made in 2023/24 Conclusions reached Capital plan slippage To reduce the level of slippage on the capital plan, the Council should review its project management processes. Management Response: (West Dunbartonshire Council Best Value Assurance Improvement Plan – July 2018): Carry out review of current practice against good practice guide and identification of improvement actions. Analysis of drivers of slippage in capital projects (previous five years) to identify common issues and improvement actions. Update project management framework and supporting policies/ guidance. Put in place review programme for project management framework. Implementation timescale: January 2019 Progress against the recommendation We discussed progress with Council officers and reviewed supporting documentation. The Council has strengthened its capital plan management by reviewing its ten-year commitments and overhauling reporting arrangements in 2023/24. From April 2024, changes to budgets and project profiles are now reported in real time to the Strategic Asset Management Group, improving oversight and responsiveness. Monitoring is conducted bi-monthly, with tailored approaches for low-risk and high-risk budgets. In 2023/24, the Council reported a significant underspend of £131.5 million against its capital budget. Recognising affordability constraints, the Council scaled back its capital programme to £122.2 million for 2024/25. The draft outturn for 2024/25 showed a much smaller variance of -£9.8 million, reflecting improved project prioritisation and financial control. Budgetary Control Reports (BCRs) have been refined to better highlight material issues and support decision-making. The latest BCRs show increased focus on delayed or underfunded projects, with clearer reporting structures. Further improvements could be made by enhancing report consistency, summarising amendments more effectively, and using fixed project references to aid reconciliation across reporting periods. Complete The Council has taken meaningful steps to strengthen its capital programme management through improved reporting, clearer oversight, and more realistic budgeting. Early signs of progress are evident in reduced variances and more focused monitoring. This puts the Council in a better position to deliver capital projects more effectively in future years. Follow up of previously-reported recommendations We are required to follow up Accounts Commission findings, Controller of Audit recommendations and any outstanding improvement actions reported in Best Value Assurance Reports and Annual Audit Reports. In July 2024 we reported two recommendations to the Council to address risks identified from our Best Value audit. As part of our work in 2023/24, we followed up the progress made by the Council against the recommendations made and determined whether the risk(s) remained during the year.
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74 Best Value (continued) Follow up of previously-reported recommendations (continued) Best Value finding as previously reported Management response and implementation timeframe Work undertaken and judgements made in 2023/24 Conclusions reached Staff absence Some staff are finding the pace of change challenging and staff absence remains an issue. The council is taking positive steps to try and address this and should continue to explore opportunities for improvement. Management Response: (West Dunbartonshire Council Best Value Assurance Improvement Plan – July 2018) Implement action plans supporting employee wellbeing strategy with focus specifically on physical and mental health . Additional functionality to be added to workforce management system to enable more effective reporting/ management of sickness absence. Target team specific change support/ training on a project by project basis. Introduce routine scrutiny of attendance management process compliance through workforce management system reports. Lean process improvement approach embedded in wider strategic improvement framework. Implementation timescale: October 2019 Progress against recommendation The Council reports annually to the Joint Consultative Forum (council officers, elected members and trade union representatives) on employee wellbeing and attendance. The latest report was in June 2024. The council’s performance data shows that there has been a small improvement in full time equivalent days lost per employee for all staff (13.7 full time equivalent average days lost in 2023/24 compared to 14.0 average days in 2022/23). This is the second year in a row that the council’s sickness absence levels have decreased. The main reasons for absence continue to be minor illness, acute medical conditions and personal stress. Front line employees have the highest levels of sickness. The council launched additional wellbeing support in 2023/24, including additional employee counselling, self-help resources and financial and physical wellbeing support. The council has also trained mental health first aiders and wellbeing advocates. Mental health first aiders act as a listening ear and signpost employees to support. They also gather and share feedback from front line employees on wellbeing needs and initiatives. The wellbeing advocates share information relating to wellbeing resources. The council has a range of other initiatives to support employee wellbeing. Progress on these projects was limited in 2023/24 due to resource restrictions and other demands on the council’s People and Change team. Ongoing. The council launched additional wellbeing support in 2023/24 and has made some progress in reducing sickness absence rates. Management response: After the improvement in sickness absence in 2023/24 there has been a slight increase in 2024/25 to 14.34 FTE days per FTE employee. This was the first time sickness absence levels had increased since 2021/22 and is in the context of high sickness absence levels in the wider UK labour market as evidenced by the 2025 CIPD Health and Wellbeing at Work Report. Additionally, sickness absence to date in 2025/26 has reduced compared to the same period in 2024/25 indicating a more positive position than the previous year. Additional provisions to support employee wellbeing have been introduced through changes to the family friendly leave policies such as neo natal leave, paternity leave and shared parental leave. Improvements have been made to ensure absence data is available to managers in real time at an individual and service level to support good management practice. Responsible officer: Chief Officer People & Technology Timescale: N/A – measures to manage sickness absence are part of routine ongoing activity.
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75 Best Value (continued) Thematic reviews The Accounts Commission reports nationally on thematic aspects of local government bodies’ approaches to, and performance in, meeting their Best Value and community planning duties. As appointed auditors of the Council we are required to report on Best Value and related thematic work as prescribed by the Accounts Commission. For the thematic work in 2023/24, we are required to carry out an overview of workforce innovation. As part of this review, we are required to report on the areas documented in the table below. The full thematic review report for the Council can be found on Audit Scotland website. Thematic themes Our findings Our judgements Risks identified Workforce strategy and priorities West Dunbartonshire Council’s People First Strategy 2022– 2027 outlines how its workforce supports strategic goals, focusing on wellbeing, engagement, learning, and digital transformation. The updated workforce planning framework introduced in 2023 includes tools and training to help managers align staffing with service needs and budget. Despite improvements, challenges persist due to financial pressures and an ageing workforce, with a 4% drop in headcount and increased use of the SWITCH redeployment register. The Council has taken steps to improve recruitment, develop career pathways, and enhance workforce data through a real-time planning console. While annual reports provide detailed workforce profiles, service-level plans lack future projections. The Council is encouraged to better use available data to identify resource gaps and strengthen succession planning. Staff engagement is supported through platforms like Trickle and consultation with trade unions. The council’s workforce planning strategy is aligned with its strategic plan and supports the “our council is inclusive and adaptable” strategic priority. The council could make better use of data available at organisation and service level, and through the workforce planning console, to identify future resource needs and improve succession planning. Workforce data (Level 2) Risk- The council is not able to easily identify resource gaps, through the workforce planning console, and make informed resourcing and recruitment decisions. Recommendation- The council should ensure workforce data allows officers to identify resource gaps and supports succession planning. Management’s response- Action is agreed as already part of planned developments to console. Responsible officer- Chief Officer P&T/Strategic People & Change Manager Implementation date- March 2025
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76 Best Value (continued) Thematic reviews (continued) Thematic themes Our findings Our judgements Risks identified Digital technology and the workforce The council continues to embrace digital transformation as a means to enhance service delivery and productivity. It is exploring the use of automation tools such as chatbots, electronic forms, and payroll process improvements. The rollout of 365 SharePoint is underway to support remote working and improve data sharing across services. Through its Fit for Future programme, the council has completed seven service reviews, identifying potential savings between £0.47 million and £1.08 million. Although no new reviews have been requested since December 2022, the digital team has continued to support services with automation, training, and digital solutions. Officers attribute the pause in reviews to a shift in focus towards budget savings and service restructuring. Efforts to improve the digital experience for employees include the introduction of a tech desk at the main office, which has reduced ICT service line calls, with plans for expansion to other sites. The council is also running a digital skills programme in 2024/25, supported by digital champions and senior digital leads, aiming to build awareness, improve data use, and promote shared responsibility for digital transformation. The council recognises that digital transformation can help it deliver services more effectively and improve productivity. It has made some savings and efficiencies from improvements in how it uses technology. The council is working to improve the digital experience and accessibility for employees and promote a culture of digital awareness. No significant issues identified.
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77 Best Value (continued) Thematic reviews (continued) Thematic themes Our findings Our judgements Risks identified Flexible working and other innovative staff deployment The council’s flexible working policy acknowledges that arrangements may evolve in response to changing business and service user needs. It outlines key considerations for managers and employees to ensure agile working supports service delivery and people management. Annual reviews of these arrangements are required by line managers to maintain effectiveness. Although the policy was last updated in March 2020, working practices have shifted significantly with the rise of remote and hybrid models. The council is now exploring updates or a new policy to better reflect current working patterns. It also offers flexible and phased retirement options through LGPS and STPS, helping retain experienced staff while supporting transitions. The council actively monitors service delivery and workforce wellbeing through platforms like Pentana, Trickle, and annual reporting to the Joint Consultative Forum. Staff surveys and wellbeing initiatives—such as counselling and financial support—have been introduced, though progress on broader wellbeing projects has been limited due to capacity. Redeployment through SWITCH and voluntary exit schemes have supported budget savings and workforce restructuring. The council has a well-established approach to hybrid and flexible working. It has made savings through its use of voluntary severance and early retirement schemes. The council has used its redeployment register to find suitable roles for staff displaced by service restructures. The council’s flexible working policy has been in place for several years. Since then, the way people work has changed significantly with home and hybrid working becoming common. Hybrid and flexible working policy (Level 3) Risk- The council’s policy does not fully reflect current working practice. Recommendation- The council should develop a new flexible/hybrid working policy or update its existing policy. Management’s response- Action is agreed as already part of planned policy review and will likely only require an update. Responsible officer- Chief Officer P&T/Strategic People & Change Manager Implementation date- December 2024
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78 Best Value (continued) Thematic reviews (continued) Thematic themes Our findings Our judgements Risks identified Developing future skills and capacity The council continues to face recruitment challenges in specialist roles and is exploring alternative approaches such as graduate, school leaver, and apprenticeship programmes. Internal talent development is also being considered, with the Health and Safety team highlighted as a successful example of use of a graduate programme. Collaboration with West College Scotland and participation in job fairs have supported efforts to attract new talent. Workforce initiatives have shown positive results, including improved attendance and survey feedback indicating staff feel valued. Digital transformation is beginning to show impact, with tools like chatbots and the Fit for Future programme contributing to service improvements and cost savings. The workforce planning console has enhanced data quality and supported organisational planning, while SWITCH has helped retain staff and manage redeployment effectively. The council faces recruitment challenges and is exploring different approaches. This includes using its graduate programme to resolve difficulties hiring specialist staff. The council can demonstrate savings and benefits from its measures to develop skills and capacity. No significant issues identified.
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79 Best Value (continued) Thematic reviews (continued) Thematic themes Our findings Our judgements Risks identified Joint workforce arrangements across services and partners West Dunbartonshire Council shares services with neighbouring councils in internal audit, civil contingencies, and ICT. It operates a joint internal audit and fraud service with Inverclyde Council. The shared civil contingencies service, led by Renfrewshire Council, has been in place since 2016 and includes coordinated support across four councils. ICT collaboration includes a shared data centre with East Dunbartonshire Council, a Microsoft 365 learning hub, joint procurement, and system hosting. These arrangements have supported efficiencies and service improvements, with further opportunities identified for expanding shared ICT services. Officers report benefits such as improved career development, retention of key skills, and enhanced knowledge sharing. Beyond shared services, the council supports health and wellbeing through West Dunbartonshire Leisure Trust and promotes volunteering via West Dunbartonshire Community and Volunteering Service. Barriers to expanding shared services include differences in employee terms and governance structures, though the lead authority model has proven effective in overcoming these issues. The council shares services with other councils in three main areas, with benefits including improved resilience. It is looking to expand existing arrangements and has identified potential for further ICT collaboration. No significant issues identified.
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80 Best Value (continued) Thematic reviews (continued) Thematic themes Our findings Our judgements Risks identified Measuring the impact of workforce planning Officers track the implementation of workforce planning strategic actions using Pentana and provide annual updates to the Corporate Services Committee. The May 2024 report highlighted good progress in delivering these actions. The Council’s annual workforce plan update includes case studies that demonstrate the impact of its initiatives. One example is the Citizen, Culture and Facilities Service, which adopted a new training model that enhanced staff capability and resilience. The update also features a workforce profile and monitoring report with extensive employment data. While this information is valuable, there is further opportunity to use it more effectively to anticipate future resource needs and strengthen succession planning. The council actively monitors the progress of its workforce planning strategic actions and reports progress annually. No significant issues identified.
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81 Best Value (continued) Statutory Performance Indicators We are required to report on the Council’s effectiveness and appropriateness of arrangements in place for complying with the Direction issued in December 2021, including the balance and timeliness of reporting to members along with its accessibility for citizens and communities. The table below details our overall assessment of the Council’s statutory performance indicators arrangements: Council’s arrangements Our findings Our judgements Risks identified Statutory Performance Indicator 1: Improving local services and local outcomes Statutory Performance Indicator (SPI) 1 requires a council to report its performance in improving local public services and progress against agreed desired outcomes. The Council’s website includes a section with information to help the public measure its performance. This includes: • The strategic plan and related performance indicators • Annual performance report • Service annual delivery plans • Mid year service performance • Historical performance information • Links to the Local Government Benchmarking Framework and My Local Council tool. The Council reports mid and year-end progress against delivery plans to councillors through its service committees. The annual performance report is presented to the Council. The Council has appropriate arrangements in place for complying with SPI 1. No significant issues identified.
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82 Best Value (continued) Statutory Performance Indicators (continued) Council’s arrangements Our findings Our judgements Risks identified Statutory Performance Indicator 2: Demonstrating Best Value Under SPI 2 requirements, councils must report both their own evaluations and those conducted by external audit, scrutiny, and inspection bodies regarding their performance in meeting the duty of Best Value. Additionally, councils are expected to disclose how they have responded to these assessments. This ensures transparency and accountability in public service delivery and continuous improvement. The Council’s website provides access to external audit and inspection reports, including links to relevant documents. School- specific webpages also offer inspection reports and performance data. However, the website does not consistently present information on how the Council has responded to external evaluations across all service areas, which limits the visibility of its improvement actions. In response to the 2022/23 audit, Council officers committed to enhancing the education section of the website. This includes integrating the West Dunbartonshire improvement framework, school performance statistics, inspection reports, standards and quality reports, and school improvement plans. The Council also aims to publish broader information on its responses to external assessments across all services. Progress against the Best Value duty is tracked through strategic objectives, annual performance reports, and service delivery plans. SPI 2 requires councils to report both their own evaluations and those from external audit, scrutiny, and inspection bodies, including how they have responded to these assessments in relation to Best Value. The Council’s website provides access to audit and inspection reports, including school performance data. However, it does not consistently show how the Council has responded to these assessments across all service areas. See page 82 for further information and follow up on our recommendations made to the Council.
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83 Best Value (continued) Follow up of previously-reported recommendations We are required to follow up Accounts Commission findings, Controller of Audit recommendations and any outstanding improvement actions reported in our Best Value Assurance Reports and Annual Audit Reports. In December 2024 we reported one recommendations to the Council to address risks identified from our Statutory performance indicator review. As part of our work in 2023/24, we followed up the progress made by the Council against the recommendations made, and determined whether the risk remained during the year. b l a n k Best Value finding as previously reported Management response and implementation timeframe Work undertaken and judgements made in 2023/24 Conclusions reached 1 SPI 2: Demonstrating Best Value (Level 2) The Council does not fully comply with the requirements of SPI 2. Recommendation – The Council should ensure it publishes details of how it has responded to external audit and inspection reports. Management Response – Going forward external inspection reports and correlating action/school improvement plans will be published on the individual service pages of the Council website. This information will also be highlighted on the performance pages of the website Responsible officer – Chief Officer Citizen Culture & Facilities Implementation date – We understand that officers have now implemented the management response. We will review the Council’s compliance with SPI 2 as part of our 2023/24 audit. Progress against the recommendation We made enquiries of officers on progress made since our findings and recommendation and inspected the Council website and other publications. The Council is yet to include up to date information on how it has responded to assessments made by audit, scrutiny and inspection bodies for all service areas on its website. The Council is yet to update the individual school pages. Individual School pages should additionally include: • School Standard and Quality Report • School Improvement Plan • School Handbook. As of August 2025, the Council has commenced updating the Individual Schools pages following delays in gaining permissions to update the website. It expects to complete this exercise in October 2025. Conclusions Ongoing. The Council has not yet completed work planned to address our recommendation. Management response: Work is ongoing and is targeted to be complete by the end of 2025 Responsible officer: Chief Officer Education Timescale: 31/12/2025
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Appendices A: Draft management representation letter B: Draft audit report C: Confirmation of our independence D: Other communications E: Wider scope and Best Value ratings
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85 Appendix A: Draft management representation letter Forvis Mazars 100 Queen Street Glasgow G1 3DN XX October 2025 Dear Tom Reid, West Dunbartonshire Council- Audit for Year Ended 31 March 2024 This representation letter is provided in connection with your audit of the financial statements of West Dunbartonshire Council (the Council) and Group for the year ended 31 March 2024 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view in accordance with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 (the Code), and applicable law. I 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 I can properly make each of the following representations to you. My responsibility for the financial statements and accounting information I believe that I have fulfilled my responsibilities for the true and fair presentation and preparation of the financial statements in accordance with the Code, as amended by the Code and applicable law. My responsibility to provide and disclose relevant information I have provided you with: • access to all information of which I am 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 Council and Group you determined it was necessary to contact in order to obtain audit evidence. I confirm as Chief Officer Resources that I have taken all the necessary steps to make me aware of any relevant audit information and to establish that you, as auditors, are aware of this information. As far as I am aware there is no relevant audit information of which you, as auditors, are unaware. I confirm that there is no information provided to you as part of the audit that I consider legally privileged.
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86 Appendix A: Draft management representation letter (continued) Accounting records I 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, Board and committee meetings, have been made available to you. Accounting policies I confirm that I have reviewed the accounting policies applied during the year in accordance with International Accounting Standard 8 and consider these policies to faithfully represent the effects of transactions, other events or conditions on the Council and Group’s financial position, financial performance and cash flows. Accounting estimates, including those measured at fair value I confirm that the methods, significant assumptions and the data used by the Council and Group in making the accounting estimates, including those measured at fair value, are appropriate to achieve recognition, measurement or disclosure that is in accordance with the applicable financial reporting framework. 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. 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 Council and Group 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 the Code, as amended by applicable law. Laws and regulations I confirm that I have disclosed to you all those events of which I am aware which involve known or suspected non-compliance with laws and regulations, together with the actual or contingent consequences which may arise therefrom. The Council and Group has complied with all aspects of contractual agreements that would have a material effect on the accounts in the event of non-compliance.
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87 Appendix A: Draft management representation letter (continued) Fraud and error I acknowledge my responsibility as Chief Officer Resources for the design, implementation and maintenance of internal control to prevent and detect fraud and error and I believe I have appropriately fulfilled those responsibilities. I have disclosed to you: • all the results of my 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 Council and Group involving: o management and those charged with governance; o employees who have significant roles in internal control; and o others where fraud could have a material effect on the financial statements. I have disclosed to you all information in relation to any allegations of fraud, or suspected fraud, affecting the Council and Group’s financial statements communicated by employees, former employees, analysts, regulators or others. Impairment review To the best of my knowledge, there is nothing to indicate that there is a permanent reduction in the recoverable amount of the property, plant and equipment and other assets below their carrying value at the balance sheet date. An impairment review is therefore not considered necessary. Related party transactions I confirm that all related party relationships, transactions and balances, have been appropriately accounted for and disclosed in accordance with the requirements of the Code, as amended and applicable law. I have disclosed to you the identity of the Council and Group’s related parties and all related party relationships and transactions of which I am aware. Charges on assets All the Council and Group's assets are free from any charges exercisable by third parties except as disclosed within the financial statements. Future commitments The Council and Group has no plans, intentions or commitments that may materially affect the carrying value or classification of assets and liabilities or give rise to additional liabilities.
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88 Appendix A: Draft management representation letter (continued) Service Concession Arrangements I am not aware of any material contract variations, payment deductions or additional service charges in 2023/24 in relation to the Council and Group’s service concession arrangements that you have not been made aware of. Subsequent events I confirm all events subsequent to the date of the financial statements and for which the Code, as amended by the Code Update and applicable law, 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, I will advise you accordingly. Impacts of Russian Forces entering Ukraine I confirm that I have carried out an assessment of the potential impact of Russian Forces entering Ukraine on the Council and Group, including the impact of mitigation measures and uncertainties, and that the disclosure in the Annual Report and the subsequent events note 29 to the financial statements fairly reflects that assessment. Tariffs I confirm that I have carried out an assessment of the potential impact of changes in US trade policy in respect of tariffs, including the impact of reciprocal tariffs by other countries, including the impact of mitigation measures and uncertainties, and that the disclosure in the Annual Report and the subsequent events note 29 to the financial statements fairly reflects that assessment. Going concern To the best of my knowledge there is nothing to indicate that the Council and Group will not continue as a going concern in the foreseeable future. The period to which I 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 accounts. Annual Governance Statement I am satisfied that the Annual Governance Statement (AGS) fairly reflects the Council and Group’s risk assurance and governance framework and I confirm that I am not aware of any significant risks that are not disclosed within the AGS. Management Commentary The disclosures within the Management Commentary fairly reflect my understanding of the Council and Group’s financial and operating performance over the period covered by the financial statements.
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89 Appendix A: Draft management representation letter (continued) Unadjusted misstatements We confirm that the effects of the uncorrected misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is attached to this letter as an Appendix 1. Wider scope and Best Value arrangements I confirm that I have disclosed to you all findings and correspondence from regulators for previous and ongoing inspections of which I am aware. In addition, I have disclosed to you any other information that would be considered relevant to your work on wider scope review and Best Value arrangements. Yours faithfully, Chief Officer Resources
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90 Independent auditor’s report to the members of West Dunbartonshire Council 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 annual accounts of West Dunbartonshire Council and its group (“the Council”) for the year ended 31 March 2024 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the group and council-only Comprehensive Income and Expenditure Statements, Balance Sheets, Movement in Reserves Statements, Cash Flow Statements, the council-only Movement on the Housing Revenue Account Statement, the Housing Revenue Account Income and Expenditure Statement, the Council Tax Income Account, the Non-Domestic Rates Income Account and notes to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 (the 2023/24 Code). In our opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the Council and its group as at 31 March 2024 and of its income and expenditure of the Council and its group for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2023/24 Code; and • have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003. 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 were appointed by the Accounts Commission on 18 May 2022. Our period of appointment is five years, covering 2022/23 to 2026/27. We are independent of the Council and its group 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. Non-audit services prohibited by the Ethical Standard were not provided to the Council. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern basis of accounting We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Appendix B: Draft audit report
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91 Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the ability of the Council and its group to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. These conclusions are not intended to, nor do they, provide assurance on the current or future financial sustainability of the Council and its group. However, we report on the Council's arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website. Risks of material misstatement We report in our Annual Audit Report the most significant assessed risks of material misstatement that we identified and our judgements thereon. Responsibilities of the Chief Officer Resources and the Audit Committee for the financial statements As explained more fully in the Statement of Responsibilities, the Chief Officer Resources is 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 Chief Officer Resources determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Chief Officer Resources is responsible for assessing the ability of the Council and its group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the operations of the Council and its group. The Audit Committee is responsible for overseeing the financial reporting process. 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 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 to identify that the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003 are significant in the context of the Council and its group; • inquiring of the Chief Officer Resources as to other laws or regulations that may be expected to have a fundamental effect on the operations of the Council and its group; Appendix B: Draft audit report (Continued)
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92 Appendix B: Draft audit report (continued) • inquiring of the Chief Officer Resources concerning the policies and procedures of the Council and its group 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 Council‘s 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. Reporting on other requirements Opinion prescribed by the Accounts Commission on the audited parts of the Remuneration Report We have audited the parts of the Remuneration Report described as audited. In our opinion, the audited parts of the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Other information The Chief Officer Resources is responsible for the other information in the annual accounts. The other information comprises the Management Commentary, Statement of Responsibilities, Annual Governance Statement, and the unaudited part of the Remuneration 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 Management Commentary and Annual Governance Statement to the extent explicitly stated in the following opinions prescribed by the Accounts Commission.
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93 Appendix B: Draft audit report (continued) Opinions prescribed by the Accounts Commission on the Management Commentary and Annual Governance Statement In our opinion, based on the work undertaken in the course of the audit: • the information given in the Management Commentary 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 statutory guidance issued under the Local Government in Scotland Act 2003; and • the information given in the Annual Governance Statement 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 Delivering Good Governance in Local Government: Framework (2016). Matters on which we are required to report by exception We are required by the Accounts Commission to report to you if, in our opinion: • adequate accounting records have not been kept; or • the financial statements and the audited part of the Remuneration Report 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 Conclusions on wider scope responsibilities In addition to our responsibilities for the annual accounts, our conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in our Annual Audit Report. 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. Tom Reid, Director For and on behalf of Forvis Mazars LLP 100 Queen Street Glasgow G1 3DN XX October 2025
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94 Appendix C: Confirmation of our independence We communicate any matters which we believe may have a bearing on our 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.
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95 Appendix C: Confirmation of our independence (continued) Fees for work as the Council’s auditor We reported our proposed fees for the delivery of our work under the Code of Audit Practice in our Annual Audit Plan presented to the Audit Committee on 4 September 2024 Having substantially completed our work for the 2023/24 financial year, we can confirm that our fees are as follows: Area of work 2023/24 fees 2022/23 fees Auditor remuneration £265,740 £250,450 Pooled costs £9,680 £0 Contribution to PABV costs £67,130 £60,670 Audit support costs £0 £9,500 Sectoral cap adjustment (£7,270) (£4,560) Additional fees for the audit of net defined benefit liability/surplus. We are required to perform additional audit procedures as this is a significant risk area. This includes membership data testing to reflect that the 2023/24 pension liability/surplus will be based on the latest triennial pension fund valuation. £4,208 £0 Additional fees due to overruns. TBC £0 Total fees £335,010 £316,060 Fees for other work We confirm that we have not undertaken any non-audit services for the Council in the year Fees for audit of Charitable Trusts The audit fee in table above does not include the cost of auditing the Council’s charitable trusts. Our fee for the audit of these was £10,000 (2022/23 fees were £6,500). Services provided to other entities within the Council's group We provide audit services to the following group entities; • West Dunbartonshire Integration Joint Board with a total fee of £33,360 (2022/23 fee was £31,470) • Dunbartonshire and Argyle and Bute Valuation Joint Board with a total fee of £9,320 (2022/23 fee was £8,790).
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96 Appendix D: 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 the Chief Officer – Resources that West Dunbartonshire Council 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.
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97 Appendix D: 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 We have designed our audit approach to obtain reasonable assurance whether the financial statements as a whole are free from material misstatement due to fraud. In addition, we have assessed the adequacy of the Council’s arrangements for preventing and detecting fraud or other irregularities as part of the wider scope audit and concluded that they are sufficiently designed and implemented. We will obtain written representations from management, and where appropriate Audit Committee, 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.
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98 Appendix D: Other communications (continued) Blank Other communication Response National Fraud Initiative The National Fraud Initiative (NFI) in Scotland is a counter-fraud exercise led by Audit Scotland and overseen by the UK’s Cabinet Office, designed to prevent and detect fraud. The NFI uses data analytics to compare information held on individuals by different public bodies to highlight the existence of fraud or error. We reviewed the Council’s participation in the NFI exercise. We concluded that the NFI exercise is well integrated into Council processes. However, resource constraint appears to limit its effectiveness in timely investigation and resolution of high risk and other matches.
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99 Appendix E: Wider scope and Best Value ratings We need to gather sufficient evidence to support our commentary on the Council’s arrangements and to identify and report on any risks. We will carry out more detailed work where we identify significant risks. Where significant risks are identified we will report these to the Council and make recommendations for improvement. In addition to local risks, we consider challenges that are impacting the public sector as a whole. We have assigned priority rankings to each of the risks identified to reflect the importance that we consider each poses to your organisation and, hence, our recommendation in terms of the urgency of required action. The table below describes the meaning behind each rating that we have awarded to each wider scope area based on the work we have performed. Rating Description Level 1 The identified risk and/or significant deficiency is critical to the business processes or the achievement of business strategic objectives. There is potential for financial loss, damage to reputation or loss of information. The recommendation should be taken into consideration by management immediately. Level 2 The identified risk and/or significant deficiency may impact on individual objectives or business processes. The audited body should implement the recommendation to strengthen internal controls or enhance business efficiency. The recommendations should be actioned in the near future. Level 3 The identified risk and/or significant deficiency is an area for improvement or less significant. In our view, the audited body should action the recommendation, but management do not need to prioritise.
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Contact Forvis Mazars www.auditregister.org.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 © Forvis Mazars 2024. All rights reserved. Contact information Tom Reid Audit Director Tel: +44 7816 354 994 Tom.Reidl@mazars.co.uk