Agenda Document Pack - Grampian Valuation Joint Board - 30/01/2026
Moray Council · 30 January 2026
Back to Grampian Valuation Joint Board — 30 January 2026 and its agenda
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Grampian Valuation Joint Board Friday, 30 January 2026 NOTICE IS HEREBY GIVEN that at a Meeting of the Grampian Valuation Joint Board is to be held at Council Chambers, Council Office, High Street, Elgin, IV30 1BX on Friday, 30 January 2026 at 09:30. BUSINESS 1. Sederunt 2. Declaration of Member's Interests 3. Minute of the meeting held 31 October 2025 5 - 10 4. Written Questions ** 5. Internal Audit Plan for 2026-27 11 - 14 6. Revenue Budget Monitoring Statement for the Period 1 April to 31 December 2025 15 - 26 7. Financial Planning for 2026-27 and Future Years 27 - 38 8. Audited Accounts Report for the Year Ending 31 March 2025 39 - 116 9. Governance 117 - 120 10. Public Performance 121 - 126 11. Electoral Registration 127 - 130 12. Staff Vacancies, Recruitment and Upskillilng Existing Staff 131 - 134 13. Question Time Page 1
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Watching the Meeting You can watch the webcast live by going to: http://www.moray.gov.uk/moray_standard/page_43661.html Webcasts are available to view for 1 year following the meeting. You can also attend the meeting in person. If you wish to attend in person, please come to the High Street entrance door and a member of staff will let you into the Chamber. Page 2
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GUIDANCE NOTES * Declaration of Group Decisions and Members Interests - At the beginning of the meeting, immediately following the Sederunt, the Convener will, in terms of Standing Order 25, seek declarations from individuals on any financial or other interests. ** Written Questions - Any member can put one question to the Convener about relevant and competent business not already on the Agenda for a meeting of the Board. No member can put more than one question at any meeting. The member must give notice in writing of their question to the Clerk 4 working days prior to the meeting. A copy of any written answer provided by the Convener will be tabled at the start of the relevant meeting. The member who has put the question may, after the answer has been given, ask one supplementary question directly related to the subject matter but no discussion will be allowed. *** Question Time - At each ordinary meeting of the Board, 10 minutes will be allowed for question time when any member can put one question to the Convener regarding any matter within the remit of the Board. The Member who has put the question may, after the answer has been given, ask one supplementary question directly related to the subject matter, but no discussion will be allowed. In the event of further information/investigation being required in order to answer the question, the Clerk who will arrange for a written answer to be provided within 7 working days. Page 3
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Grampian Valuation Joint Board SEDERUNT Councillor Donald Gatt (Chair) Councillor Stephen Smith (Depute Chair) Councillor Desmond Buchanan (Member) Councillor Moray Grant (Member) Councillor Dell Henrickson (Member) Councillor Neil MacGregor (Member) Councillor Marc Macrae (Member) Councillor Ciaran McRae (Member) Councillor Sam Payne (Member) Councillor Mel Sullivan (Member) Councillor Iain Taylor (Member) Councillor Lynn Thomson (Member) Councillor Sonya Warren (Member) Councillor Judy Whyte (Member) Clerk Name: Lindsey Robinson Clerk Telephone: 07966 120593 Clerk Email: committee.services@moray.gov.uk Page 4
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Minute of Meeting of the Grampian Valuation Joint Board Friday, 31 October 2025 Council Chambers, Council Office, High Street, Elgin, IV30 1BX PRESENT Councillor Donald Gatt, Councillor Moray Grant, Councillor Dell Henrickson, Councillor Sam Payne, Councillor Stephen Smith, Councillor Mel Sullivan, Councillor Iain Taylor, Councillor Lynn Thomson, Councillor Sonya Warren, Councillor Judy Whyte SUBSTITUTES Councillor Neil Copland (for Councillor Neil MacGregor) APOLOGIES Councillor Desmond Buchanan, Councillor Neil MacGregor, Councillor Marc Macrae, Councillor Ciaran McRae IN ATTENDANCE Mark Adam, the Assessor and ERO; Jim Barron, Depute Assessor and ERO (Aberdeenshire); Gavin Oag, Depute Assessor and ERO (Aberdeen and Moray); Lorraine Paisey, Treasurer to the Board; Dafydd Lewis, Audit and Risk Manager; and Lindsey Robinson, Committee Services Officer 1. Chair Councillor Donald Gatt chaired the meeting. 2. Declaration of Member's Interests In relation to Standing Order 25 and the Councillors Code of Conduct, the Board noted that there were no declarations from Members who were present at the meeting where any item of business in which they have any financial, or other interest, is to be dealt with. 3. Minute of the meeting held 27 June 2025 The minute of the meeting held 27 June 2025 was submitted and approved by the Board. Item 3. Page 5
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4. Written Questions The Board noted that no written questions had been submitted. 5. Internal Audit Report 2024-25 The meeting had before it a report by the Audit and Risk Manager advising the Board of the internal audit work completed on the Assessor's Service for the financial year ended 31 March 2025, and providing an opinion on the adequacy of the control systems reviewed. During consideration, Councillor Taylor congratulated officers on the outcome of the internal audit. Following consideration, the Board unanimously agreed to note the satisfactory audit opinion derived from audit work completed. 6. Revenue Budget Monitoring Statement 1 April to 30 September 2025 The meeting had before it a report by the Treasurer to the Board, inviting the Board to consider the Revenue Budget Monitoring Statement for the period 1 April to 30 September 2025. During consideration, Councillor Whyte sought clarification on whether the Scottish Assessors Association (SAA) Portal was fully funded. This was confirmed by the Treasurer to the Board. Councillor Whyte further sought clarification on where the interest was apportioned. In response, the Treasurer to the Board confirmed that the interest was not allocated to any specific purpose. Councillor Taylor sought clarification on the current situation with the telephone contract. In response, the Treasurer to the Board stated that it was under investigation but should be refunded. Following consideration, the Board unanimously agreed to: i. note the Revenue Monitoring Statement to 30 September 2025; and ii. note the estimated outturn forecast for the year 2025/26. 7. Financial Planning for 2026-27 and Future Years The meeting had before it a report by the Treasurer to the Board, inviting the Board to consider the indicative budgets that will form the three-year Revenue Budget from 2026/27 onwards, and to discuss the operational issues facing the Assessor and Electoral Registration Officer (ERO) in the medium to long term. Page 6
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Councillor Payne joined the meeting at this juncture. During consideration, Councillor Thomson sought clarification on whether the announcement that the Scottish Parliament election count is to be held the following day would have an impact on the Board budget. In response, the Treasurer to the Board advised that the election count costs do not fall to the Board. Councillor Whyte sought clarification on whether there was a framework for pay scales or if it was at the discretion of the service. In response, the Treasurer to the Board advised that the Board is supported by Moray Council HR department in this. The Assessor and ERO added that the structure was set after an evaluation exercise in 2005, with the grades being set since then and the salaries increasing along with the national pay awards. Councillor Whyte sought further clarification on whether the business case that the Scottish Government has encouraged would be completed collectively by the SAA or would it be completed by each individual assessor across Scotland. In response, the Assessor and ERO advised that it would be a collective response with each assessor contributing to the response. Councillor Sullivan sought clarification on when the next pay review would be, as the last one was 20 years ago, and how one would be triggered. In response, the Treasurer to the Board advised that there was no regular review of the pay scales and that the last review was triggered by external legislation on equal pay. She added that a pay review does not happen without a reason to do so. Following consideration, the Board unanimously agreed to: i. note the current indicative three-year budget from 2026/27 and that this will be further adjusted during the preparation of the Revenue Budget for 2026/27; ii. note the operational issues facing the service; and iii. note the actions to be taken ahead of the budget setting meeting in January 2026. 8. Valuation Roll and Council Tax Valuation List The meeting had before it a report by the Depute Assessor and ERO (Aberdeen and Moray) providing the Board with an operational update on the valuation services provided by the Assessor, including the performance levels achieved during the period 1 April 2025 to 17 October 2025. Page 7
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Following consideration, the Board unanimously agreed to note the contents of the report. 9 Electoral Registration The meeting had before it a report by the Assessor and ERO updating the Board on current developments in electoral registration. During consideration, Councillor Gatt sought clarification on the figures in paragraph 5.4 and how up to date they were. In response, the Assessor and ERO advised that the figures were from 1 week ago so would not have changed. Councillor Grant sought clarification on whether there had been any issues with Internet Service Providers (ISP’s) blocking the emails being sent out. In response, the Assessor and ERO advised that there had been no reports of emails being blocked by ISPs. He added that the main issue was that email addresses are not held for every elector. Following consideration, the Board unanimously agreed to note the contents of the report. 10. Staff Vacancies, Recruitment and Upskilling Existing Staff The meeting had before it a report by the Depute Assessor and ERO (Aberdeenshire) updating the Board on the current levels of staff vacancies, recruitment and the upskilling of existing staff. During consideration, Councillor Whyte sought clarification on whether the Assessors had a professional social media presence. In response, the Depute Assessor and ERO (Aberdeenshire) advised that the SAA had a presence on Linkedin and several regional assessors have signed up. He added that a social media presence needs to be constantly updated to be seen as engaging, and that it was being monitored to see how it develops. Councillor Taylor sought clarification on how the staff were coping with the IT vacancy. In response, the Depute Assessor and ERO (Aberdeenshire) advised that the IT staff in the Assessor's service are in-house developers working on bespoke systems. The vacant post is due to the migration to Aberdeenshire Council IT systems and infrastructure. The vacancy is under review while the process completes and then a decision will be made on whether the post is needed. Councillor Gatt sought clarification on the levels of staff sickness. The Depute Assessor and ERO (Aberdeenshire) advised that although he did not have the exact figures, staff sickness levels were low. He added that there were two members of staff off long-term sick. Page 8
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Councillor Gatt asked whether these posts were being covered on a temporary basis. The Depute Assessor and ERO (Aberdeenshire) advised that as these absences are on a month-to-month basis they have not been covered. Following consideration, the Board unanimously agreed to note the contents of the report. 11. Question Time The Board noted that no additional questions were asked. Page 9
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 30 JANUARY 2026 SUBJECT: INTERNAL AUDIT PLAN FOR 2026/27 BY: SERVICE MANAGER INTERNAL AUDIT AND RISK 1. REASON FOR REPORT 1.1 This report advises the Board of the planned internal audit coverage of the Assessor’s Service for the financial year ending 31 March 2026. 2. RECOMMENDATION 2.1 That the Board considers the proposed internal audit coverage, seeks clarification on any points arising, and otherwise notes the report. 3. BACKGROUND 3.1 In terms of the Global Internal Audit Standards applicable to local government and joint boards, an internal audit plan is a requirement for each financial year. The plan takes account of risk and is presented to the Board to enable it to consider and comment on the proposed audit coverage. 3.2 It is recognised that whilst the Assessor’s Service is subject to considerable operational challenges as a consequence of service demands, the costs of the service do not change materially from year to year, with funding predominantly met by requisition from the constituent authorities. The main expenditure continues to relate to staffing costs, with other outlays covering annually recurring items including office rentals and service charges, ICT infrastructure and licensing, and postage outlays. 3.3 Additionally, as in prior years, the main financial systems of the Assessor’s Service mirror those of the Moray Council; hence, audit assurances provided in terms of the controls within the Council systems can be relied upon as being applicable to financial systems relating to the Service. This mitigates the risks associated with the audit and influences the nature and extent of audit work required. Item 5. Page 11
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3.4 It is recognised that there are particular workload pressures for the Service in 2026/27 following the completion of the 2026 non-domestic rates revaluation, including preparations for the Scottish Parliamentary election. It is also noted that the number of staff vacancies remains a particular concern. As such, the timing of the audit will be flexible and responsive to changing circumstances. 3.5 It is anticipated that the audit work proposed will provide the Assessor and the Treasurer with a ‘complete’ opinion on the adequacy and effectiveness of the internal control systems and procedures without any need for ‘a limitation of scope’ in the audit coverage. A ‘limitation of scope’ arises when Internal Audit is unable to draw on sufficient assurances to issue a ‘complete’ audit opinion in accordance with the Public Sector Internal Audit Standards. This opinion will inform the assurance statement relative to governance matters that the Assessor prepares for inclusion in the Board’s annual accounts. 3.6 In this context, it is expected that the work to be undertaken by Internal Audit in relation to the Service’s activities will involve: • Seeking confirmation that the Assessor continues to monitor and evaluate the principal risks facing their Service; • Analytical review of staff payroll costs and non-pay expenditure for the current and prior years and review of any material variances, including assessment of procurement issues where applicable; Page 12
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• Verification of other sources of income to include government contributions in support of service delivery and developments; • Confirmation of the controls relative to collection and submission of changes to the valuation rolls and council tax lists to the constituent Authorities; • Review of the draft annual governance statement to ensure compliance with published best practice guidance; • Follow up on any prior year audit recommendations. 3.7 Completion of this work will provide the necessary coverage for internal audit purposes. The work is carried out independently of the external auditor for different but complementary purposes. 4. CONSULTATIONS 4.1 The Assessor has been consulted in the preparation of this report. 5. CONCLUSION 5.1 Audit planning allows management to inform the audit activity to be undertaken and assists the internal audit team to schedule its work. Page 13
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5.2 This report provides members of the Board with details of the proposed internal audit coverage which will be undertaken to provide independent assurance on the adequacy and effectiveness of the Service’s control environment. Author of Report: Dafydd Lewis, Service Manager Internal Audit and Risk Background Papers: Internal Audit files Ref: DL/GVJB/ Page 14
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 30 JANUARY 2026 SUBJECT: REVENUE BUDGET MONITORING STATEMENT FOR THE PERIOD 1 APRIL TO 31 DECEMBER 2025 BY: TREASURER TO THE BOARD 1. REASON FOR REPORT 1.1 To consider the Revenue Budget Monitoring Statement for the period 1 April to 31 December 2025. 2 RECOMMENDATIONS 2.1 It is recommended that the Board considers and notes: (i) the Revenue Monitoring Statement to 31 December 2025 and; (ii) the estimated outturn forecast for the year 2025/26. 3. CURRENT POSITION 3.1 At its meeting on 31 January 2025, the Board agreed the Revenue Budget for 2025/26 (paragraph 8 of the Minute refers) be set at £5,699,000 and approved the requisitions to constituent authorities of £5,399,000, with £300,000 being funded from the earmarked Electoral Reform reserve. 3.2 APPENDIX 1 shows the monitoring position to 31 December 2025 against the budget. It gives details of the 2025/26 Revenue Budget, actual expenditure to date and the variance of expenditure against budget to date. 3.3 APPENDIX 2 shows the estimated outturn and variance for the year. 3.4 Total net expenditure at 31 December 2025 is £4,096,000 which is an underspend against budget to date of £163,000. 3.5 There are currently 13 vacant posts and recruitment is actively being carried out. Item 6. Page 15
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Year to Date Variances 3.6 Employee costs are currently underspent by £125,000 compared to the budget. This variance is primarily due to unfilled vacancies within the staffing establishment, as previously noted in paragraph 3.5. 3.7 Employers’ National Insurance contributions increased from 1 April 2025 following changes to the UK Government’s fiscal policy. These additional costs were not accounted for in the approved staffing budget at the time of budget setting. Furthermore, the pay award for local government employees was initially budgeted at 3%. However, the final agreed pay deal was 4%. Both the uplift in National Insurance and the higher-than-budgeted pay award have placed additional pressure on the staffing budget. The additional budget required for the amended NI threshold and rate is £83,000. The budget impact of the 1% increase in the pay award is £40,000. Despite these unbudgeted costs, they have been absorbed within the current year’s staffing allocation. 3.8 There is a £15,000 underspend in property costs, mainly attributed to planned repairs and maintenance that has not yet been carried out at the Banff office. The insurance budget has been rephased to tie in with timing of the actual payment which is still due. 3.9 An overspend of £9,000 to date has been recorded for Transport Costs. 3.10 The Supplies and Services budget is currently underspent by £16,000. The main variances are underspends of £64,000 in Postages and £6,000 in Equipment, Furniture & Materials, while the major overspends are £34,000 in IT Maintenance & Support and £10,000 in Valuation Appeals. Additionally, the Telephones budget is also overspent by £5,000 due to ongoing contract charges that have continued beyond the end of the agreement; this issue has been resolved and a refund of £4,000 will be received. 3.11 Specialist Services is currently on budget. This category includes budgeted costs such as external audit fees and the annual actuary charge for the Board’s IAS19 disclosure requirements. There is also expenditure of £27,000 to the Scottish Assessors Association (SAA) Portal, which provides a single point internet access to Valuation Roll and Council Tax information on a Scotland- wide basis, sourced from the locally managed and maintained databases held by each of the Assessorsin Scotland. 3.12 Support charges are processed at 31 March as part of the year end closedown. 3.13 Within Sales and Other Income, an amount of £12,000 has been received from SAA Portal Data income. The total income received is paid over to the SAA at the end of the financial year. 3.14 There are no other significant variances to report at this stage in the year. Page 16
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4. ESTIMATED OUTTURN 2025/26 4.1 Appendix 2 shows the estimated outturn and variances currently projected for the year. 4.2 The revenue budget is currently expected to be underspend by the year end, and at this point in the year the estimated variance is for an underspend of £283,000. 4.3 The projected underspend is partly due to ongoing staff vacancies. The estimated outturn is based on the current staffing establishment and assumes that certain vacant posts will remain unfilled for the remainder of the financial year. Overtime will be required to maintain service delivery, and a provisional amount of £40,000 for this has been included in the forecast. 4.4 The increased employer National Insurance contributions and the higher-than- budgeted 2025/26 pay award, as outlined in paragraph 3.7, have been factored into the estimated outturn. These additional staffing costs are expected to be contained within the overall employee budget due to the level of vacancies. 4.5 Property costs are currently forecast to remain within the approved budget. 4.6 Staff transport costs are forecast to exceed the budget by approximately £10,000 by year-end. This overspend is due to increased service demand and the budget will be reviewed during the planning process for the 2026/27 budget. 4.7 Supplies and Services are forecast to be overspent by £38,000, primarily due to increased costs in ICT Maintenance and Support. An updated estimate of the anticipated overspend was expected from the Aberdeenshire ICT team in Q3; however this has not yet been received, and the forecast overspend therefore remains based on the previous assessment. Additionally, although postage costs are currently aligned with the whole year budget, a one-off increase of £300,000 in postage costs is expected in 2025/26 due to the absent voter write- out and the issue of draft and valuation notices. This exceptional expenditure will be fully funded from the earmarked reserve (see para 4.11). 4.8 Support Services are expected to increase, based on the previous year’s charge adjusted for the current year’s pay award and this will be considered as part of the budget setting process. The final charge will be confirmed and processed as part of the year-end closedown. 4.9 Income from the sale of electoral registers is expected to be received in the second half of the financial year, following publication of the register. The projected outturn is in line with the approved budget, which was increased this year to reflect prior year trends. 4.10 Interest earned on balances held in the Council’s account is forecast to exceed the budget, with current projections at £68,000. This is based on forecasting using the average of 7-day interest rates applied across Council balances. Interest rates have risen in recent years, resulting in higher returns: £97,000 in Page 17
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2024/25, £76,000 in 2023/24, and £33,000 in 2022/23. The current forecast reflects a downward trend in interest rates, leading to a reduced estimate for 2025/26 compared to 2024/25. Earmarked Reserves 4.11 In 2024/25, government funding was allocated to Valuation Joint Boards to support the introduction of the Electoral Integrity Programme (EIP), in line with the requirements of the Elections Act 2022. Key changes introduced under the programme include mandatory voter ID at polling stations, enhanced accessibility for voters with disabilities, and reforms to postal and proxy voting processes. A one-off increase in postage costs of £300,000 is expected in 2025/26, due to the absent voter write-out and the issue of draft and final valuation notices in November and March. The expenditure will be covered by the earmarked reserve. 4.12 It is not anticipated that any drawdown from the General Fund reserve will be required in 2025/26. 5. CONCLUSION 5.1 As at 31 December 2025, total net expenditure is £4,096,000, resulting in an underspend of £163,000 against the budget to date. 5.2 The estimated outturn for the year is a projected underspend of £283,000, of which £265,000 relates to Employee Costs. Other forecast variances are detailed in the body of this report. 5.3 The Assessor and his Senior Management Team continue to monitor and manage budgets closely to ensure expenditure remains within approved limits, and to identify savings wherever possible throughout the year. Author of Report: Aaron Cory, Trainee Accountant Background papers: Held within Accountancy Section, Moray Council Date: 30/01/2026 Page 18
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APPENDIX 1 GRAMPIAN VALUATION JOINT BOARD REVENUE MONITORING STATEMENT FOR PERIOD 1 APRIL TO 31 DECEMBER 2025 Line 2025-26 2025-26 Actual Variance No. Total Budget Budget to Date 31-Dec-25 31-Dec-25 £'000 £'000 £'000 £'000 Employee Costs 1 Salaries 3,240 2,430 2,347 83 2 National Insurance 428 321 307 14 3 Superannuation 324 243 235 8 4 Additional Pensions 26 20 18 2 5 Other Employee Costs 7 5 6 (1) 6 Training 34 25 6 19 Total Employee Costs 4,059 3,044 2,919 125 Property Costs 7 Accommodation Charges 350 275 269 6 8 Repairs and Maintenance 20 10 1 9 9 Energy Costs 16 12 12 - 10 Cleaning 5 4 4 - Total Property Costs 391 301 286 15 Transport Costs 11 Staff Travel and Subsistence 50 38 47 (9) Total Transport Costs 50 38 47 (9) Supplies & Services 12 Equipment, Furniture & Materials 10 8 2 6 Item 6. Page 19
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13 PPE 1 1 - 1 14 Reference Books 16 11 14 (3) 15 Printing & Stationery 10 9 10 (1) 16 Postages & ER Printing 781 585 521 64 17 Telephones 2 2 7 (5) 18 Advertising 1 1 1 - 19 IT Maintenance & Support 254 232 266 (34) 20 Valuation Appeals 30 9 19 (10) 21 Members' Allowances 4 - - - 22 Fees, Charges & Subs 9 2 5 (3) 23 Specialist Services 30 23 23 - 24 Conference Fees & Subsistence 3 3 - 3 25 Other Supplies & Services 4 3 5 (2) Total Supplies & Services 1,155 889 873 16 Support Services 25 Lead Authority Charge 65 - - - Total Support Services 65 - - - Gross Expenditure 5,720 4,272 4,125 147 Income 26 Sales and Other Income (17) (13) (29) 16 27 Interest on Revenue balances (4) - - - 28 Government Grant Income - - - - Total Income (21) (13) (29) 16 29 Net Expenditure 5,699 4,259 4,096 163 Funded from Reserves 30 NDR Reform - - - - 31 Electoral Reform (300) - - - Total Funded from Reserves (300) - - - Page 20
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32 Requisitions (5,399) (4,049) (4,052) 3 33 (Surplus)/Deficit for Year - 210 44 166 Page 21
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APPENDIX 2 GRAMPIAN VALUATION JOINT BOARD BUDGET FOR PERIOD 1 APRIL TO 30 DECEMBER 2025 Line Total Budget Estimated Out-turn Estimated Variance No. 2025-26 2025-26 2025-26 £'000 £'000 £'000 Employee Costs 1 Salaries 3,240 3,044 196 2 National Insurance 428 402 26 3 Superannuation 324 305 19 4 Additional Pensions 26 23 3 5 Other Employee Costs 7 10 (3) 6 Training 34 10 24 Total Employee Costs 4,059 3,794 265 Property Costs 7 Accommodation Charges 350 342 8 8 Repairs and Maintenance 20 20 - 9 Energy Costs 16 16 - 10 Cleaning 5 6 (1) Total Property Costs 391 384 7 Transport Costs Item 6. Page 23
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11 Staff Travel and Subsistence 50 60 (10) Total Transport Costs 50 60 (10) Supplies & Services 12 Equipment, Furniture & Materials 10 6 4 13 PPE 1 1 - 14 Reference Books 16 16 - 15 Printing & Stationery 10 11 (1) 16 Postages & ER Printing 781 781 - 17 Telephones 2 6 (4) 18 Advertising 1 1 - 19 IT Maintenance & Support 254 279 (25) 20 Valuation Appeals 30 30 - 21 Members' Allowances 4 10 (6) 22 Fees, Charges & Subs 9 9 - 23 Specialist Services 30 30 - 24 Conference Fees & Subsistence 3 2 1 25 Other Supplies & Services 4 7 (3) Total Supplies & Services 1,155 1,189 (34) Support Services 25 Lead Authority Charge 65 74 (9) Total Support Services 65 74 (9) Gross Expenditure 5,720 5,501 219 Income 26 Sales and Other Income (17) (17) - 27 Interest on Revenue balances (4) (68) 64 Total Income (21) (85) 64 Page 24
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28 Net Expenditure 5,699 5,416 283 Funded from Reserves 29 Electoral Reform (300) (300) - Total Funded from Reserves (300) (300) - 30 Requisitions (5,399) (5,399) - 31 (Surplus)/Deficit for Year - (283) 283 Page 25
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 30 JANUARY 2026 SUBJECT: FINANCIAL PLANNING FOR 2026/27 AND FUTURE YEARS BY: TREASURER TO THE BOARD 1. REASON FOR REPORT 1.1 To approve the budget for 2026/27 and to consider the proposed budgets for 2027/28 and 2028/29 that will form the three-year Revenue Budget from 2026/27 onwards, and to discuss the operational issues facing the Assessor & Electoral Registration Officer (ERO) in the medium to long term. 2. RECOMMENDATIONS 2.1 It is recommended that the Board approves: (i) Three year Revenue budget from 2026/27; and (ii) Requisitions to the constituent authorities for 2026/27 to be set at £5,653,000 as detailed in the table in paragraph 6.3, including additional funding provided to the constituent authorities for Non Domestic Rate reform in the draft local government settlement received on 13 January 2026; 2.2 It is recommended that the Board notes: (iii) Operational issues facing the service 3. BACKGROUND 3.1 The main issues for the Assessor’s service to be addressed in setting the budget are: • Financial uncertainty in key areas, particularly accommodation Item 7. Page 27
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• Level of staff turnover/challenges in recruiting and retaining staff 3.2 At the Board meeting on 31 October 2025, members considered a draft three-year budget for initial discussion. The report highlighted several areas still awaiting confirmation, including office accommodation and ICT services. This updated report provides the Board with the latest information on developments since that meeting and adjusts the proposed budget accordingly. An increase on the draft 2026/27 budget of £97,000 is proposed with details provided below. 4. CURRENT POSITION 4.1 The Revenue Monitoring report to 31 December 2025, in a separate report to this Board meeting, discusses the reasons for budget variances currently being reported. The estimated out-turn for the year is net expenditure of £5,416,000; a variance of £283,000 under budget. 4.2 During the preparation of the projected outturn for 2025/26, the Assessor & ERO continued discussions with Finance to discuss possible pressures and savings in the future years budget. These have been incorporated into the appendix and are commented on in the paragraphs below. 4.3 APPENDIX 1 shows the current indicative budget for each of the three years ahead. 5. BUDGET PROPOSALS 2026/27 Salaries and Recruitment 5.1 Salaries and employers’ on-costs make up approximately 70% of the current net expenditure budget of the service. The service is reliant on recruiting and retaining professional staff in order to carry out its statutory functions. However, it has regularly been reported in the budget monitoring reports to the Board that the recruitment of staff is a difficulty for the service. 5.2 The base budget for 2026/27 includes a recruitment and vacancy adjustment in the budget, to incorporate an average level of vacancies and the interval that arises between filling posts. There is a risk associated with this concept, however, as the service aims to have a full staffing complement. 5.3 A pay agreement has been reached for employees covering a two-year period which runs from 1 April 2025 to 31 March 2027: a 4% uplift for year 1 (2025/26) and a 3.5% uplift on all pay points for year 2 (2026/27). The current 2025/26 budget reflects the base budget and the pay award has been applied to next year. An indicative 3% has been applied to future years budgets. These can be seen in APPENDIX 1. Page 28
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5.4 Furthermore, a vacancy factor has been applied to the Valuation Board’s staffing budget to take into account the variances and slippage caused by vacancies, time taken to recruit and employing staff on lower salary scale points than previous postholders. The level of vacancy factor is considered each year when planning the budget to account for the current staffing situation, vacancies etc. as well as likelihood of successful recruitment. 5.5 Based on current underspends, a 12% vacancy factor is proposed and this is reflected in the Appendix, for the next three financial years. At the time of writing this report the current impact of vacancies, by gross budget, is a 16% underspend, but this is forecast to reduce to 10% following recent successful recruitment. 5.6 An additional £1.287m was included in the 2026/27 Scottish Government Budget specifically for the Scottish Assessors Barclay Review. This funding sits within the wider local authority settlement, with a total of £66,000 allocated across the three constituent authorities. The Assessor has advised that additional administrative support for the NDR Barclay Review would be helpful during implementation. It is therefore proposed that this funding is used to support inflationary pay increases for all NDR staff, along with the creation of a new post. The proposed budget in the appendix includes a Grade 3 post plus oncosts. This funding will be incorporated into the requisitions. Accommodation 5.7 The previously anticipated accommodation changes at Woodhill House, which were expected to deliver savings in 2024/25, are no longer progressing. As a result, the service will continue under the existing rental agreement, and the budget reflects the current accommodation costs. An inflationary uplift has been applied to Non-Domestic Rates, water charges, and insurance for 2026/27 and future years, with the insurance contract currently going out to tender. 5.8 Moray Council continues to reduce its corporate building footprint. While initial options to relocate Elgin-based Board staff to the Council HQ were unsuccessful due to storage limitations, discussions are ongoing regarding potential accommodation within the HQ Annexe. This move is expected to generate a small saving compared with current accommodation costs, including Non- Domestic Rates, water charges and service charge.. The principal financial benefit would arise from any future sale of 234 High Street, which would generate a capital receipt. . Any relocation would not take place before mid-May at the earliest, due to operational commitments of the Assessor for the May election. 5.9 Utility costs have shown signs of stabilising compared to the volatility experienced in recent years. While the energy budget was initially set to bear potential fluctuations, actual expenditure has consistently come in under budget. In light of this, a modest reduction in the energy budget is proposed for Page 29
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2026/27. However, to account for potential future increases, a 5% inflationary uplift has been applied to gas and electricity costs for 2027/28 and 2028/29. Other budgets affected by pay awards have been increased proportionately, including Cleaning. IT and procurement 5.10 The service continues to rely heavily on robust and secure ICT infrastructure to support both valuation and electoral registration functions. The current ICT budget includes provision for: • Ongoing support and maintenance of core systems (e.g. In-house Oracle based valuation system, Cloud hosted Electoral Management System) • Software licensing renewals • Hardware replacement cycles 5.11 For 2026/27, an uplift of £65,000 is proposed to reflect increased costs for the modernisation and hosting of the valuation and electoral management systems and the cyclical hardware replacement programme. Other Costs and Savings 5.12 Staff travel costs, primarily incurred through site inspections are expected to maintain at 2025/26 actual expenditure levels. A budget increase of £10,000 is proposed to reflect this anticipated rise and keep within budget. 5.13 A £10,000 increase in budget is proposed in Specialist Services. This category includes expenditure on the external audit fee, the actuary fee, employee disclosure checks and the portal payments to Clackmannanshire Council. The increase is required to cover inflationary increases next year. 5.14 Other operational budgets have been reviewed and adjusted where appropriate. No significant changes are proposed to training, subscriptions, or conference attendance, while access to Aberdeenshire Council’s online training platform has reduced the requirement to purchase as much training from external bodies as previously budgeted for. 5.15 The Scottish Government budget announcement on 13 January set out plans to introduce new Council Tax bands which would apply up-to-date values to those dwellings valued at over £1 million, with the new bands planned to take effect from 1 April 2028. At the time of writing the exact impact this would have on the service is unknown. The Scottish Budget includes provision to fund Assessors to carry out the necessary work but the exact allocation of funds to each individual Assessor is unknown at this time. Reserves Page 30
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5.16 It is not expected that the use of reserves will be required to balances spend in 2026/27 and the reserve balance at 31 March 2026 is expected to remain at the approved maximum level of £237,000. In line with the Board’s policy, agreed on 3 March 2020, a minimum general reserve of 2.5% of estimated annual net expenditure should be maintained. Based on the estimated 2025/26 net expenditure of £5,416,000, this equates to a minimum reserve of £135,400. This provides the Board with flexibility to utilise up to £101,600 to mitigate inflationary pressures or other unforeseen costs in 2026/27. The proposed budget for 2026/27 is fully balanced without the need for any use of reserves. 5.17 The balance on earmarked reserves are £567,000 for Non Domestic Rates Reform, and £376,000 in the Electoral Integrity Programme. Risks 5.18 At the last meeting, it was noted that Assessors across Scotland are experiencing significant and unsustainable pressures due to wide-ranging reforms and increased statutory responsibilities. The Board highlighted concerns around reduced staffing levels, challenges in recruiting and retaining Chartered Surveyors, increased workloads, financial pressures, including ICT development and inflationary costs, and the ongoing risk that statutory functions may not be delivered effectively without stabilised and increased funding. 5.19 In September, members of the Scottish Assessors’ Association Executive met with representatives from COSLA and the Scottish Government to discuss funding challenges following the submission of initial reports to the Scottish Parliament. Key concerns included the shift to a three-yearly revaluation cycle, new legislative requirements such as pre-agreements, draft valuation rolls, and the two-stage appeals process, all of which have increased workload and complexity. Recruitment and retention of qualified Chartered Surveyors remains a major concern, including for the GVJB, where staffing shortages are well known to Board members. The Scottish Assessors Portal, a vital public-facing tool, is outdated and requires c£2.5 million for replacement, funds that are currently unavailable from Assessors’ budgets. Long-term funding uncertainty was also highlighted, with some Valuation Joint Boards projecting reserve exhaustion and no capacity to absorb inflationary or pay-related pressures. The Scottish Government acknowledged these challenges and encouraged Assessors to develop a business case outlining baseline and reform-related costs, with potential for targeted funding to support IT and AI-driven innovations. Council tax reform, should it materialise, will bring further pressure on the service. The overall concern is that, if further investment in local assessors is not forthcoming, they will struggle to deliver their statutory duties. 5.20 These challenges are also evident within the GVJB and are reflected in the Boards’s revenue monitoring reports. Prolonged vacancies and difficulties recruiting have resulted in significant underspends in employee costs, even with a significant vacancy factor applied at budget setting. To meet statutory Page 31
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deadlines, overtime has been required at peak periods, placing further strain on limited resources. Additionally, essential operational costs, particularly ICT and postages, continue to rise and are increasingly difficult to control. These pressures highlight the ongoing financial and staffing constraints faced by the Board in delivering its statutory functions. Risk Para ref Potential impact £000s Above average vacancy factor (12% to 10%) for 3 years 5.5 292 ICT inflation increase 5.11 65 Total 357 5.21 There are also risks arising from changing service requirements, which can also affect the financial requirements of the service. 5.22 There is a risk of additional costs arising from unplanned elections. The snap UK Parliamentary General Election in 2024 incurred around £30k in overtime costs, while by-elections are usually more manageable. However, unplanned elections following a Scottish Parliamentary election are more likely due to councillors becoming MSPs and may still create pressures, with costs estimated at around 10% of a snap UKPGE. 5.23 The proposed base 2026/27 Revenue Budget is set out in APPENDIX 1. The proposed net expenditure budget represents a reduction of £46,000 compared to 2025/26, reflecting the one-off additional £300,000 Postages budget in 2025/26 that is funded from earmarked reserves. The proposed requisitions show an increase of £254,000 from 2025/26, which is also £97,000 higher than the draft 2026/27 budget reported to the Board in October. A summary of the total net increase in requisitions of £254,000 is provided below. Budget movements 2026/27 £000s Increases Staffing budget – 3.5% pay award, increments, travel, additional pensions, other employee costs 158 NDR Admin Post (funding from additional grant) 47 Postages & ER Printing 20 IT Maintenance & Support 65 Members Allowances 6 Specialist Services 10 Other Supplies & Services 3 Lead Authority Charge 12 Page 32
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Decreases Training (14) Property Costs (16) Office Equipment (4) Reference books (1) Valuation Appeals (15) Fees, Charges & Subs (1) Interest on Revenue Balances (16) Net increase in core budget 254 6 REQUISITIONS 6.1 The table below shows the requisition for each constituent authority which would be required in order to fund the Board’s base revenue budget for 2026/27 as presented in this report. 6.2 The constituent authorities have previously agreed that expenditure by the Board should be apportioned between authorities pro rata to the population figures for each council. The population figures used are the latest published by the National Records of Scotland in their Mid-Year Population Estimates, for mid- 2024. 6.3 The proposed requisitions of £5,653,000 are an increase from the 2025/26 requisitions by £254,000 in total, including £66,000 of additional funding provided to the constituent authorities for Non-Domestic Rate reform in the draft local government settlement Population Requisition % Indicative Requisition 2026/27 £ Requisition 2025/26 £ Increase on 2025/26 Requisition % Aberdeen City 231,780 39.16 2,213,715 2,093,192 5.76% Aberdeenshire 265,080 44.79 2,531,979 2,418,212 4.70% Moray 95,010 16.05 907,307 887,596 2.22% Total 591,870 100.00 5,653,000 5,399,000 4.70% Page 33
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7 CONCLUSION 7.1 Preparing the three year Revenue Budget has been a challenging task, trying to balance the increasing demands made upon the service against the financial constraints imposed on the public sector. 7.2 The budget includes some savings and efficiencies where possible and has maintained the increased vacancy management factor. The Assessor will continue to look for potential efficiencies where possible. 7.3 The proposed budget and requisitions to the constituent authorities for 2026/27 are £5,653,000. 7.4 Inevitably there has also been increases in the cost base and there is significant uncertainty regarding staff costs beyond 2026/27. 7.5 There is potential to use general reserves to cushion the impact of increased budgets, where these cannot be covered by savings. However, this should be balanced against the potential risks to the Board identified in this report and no use of reserves is recommended. Author of Report: Aaron Cory, Trainee Accountant Background papers: Held within Accountancy Section, Moray Council Ref: Page 34
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GRAMPIAN VALUATION JOINT BOARD BUDGET Appendix 1 FINANCIAL PLANNING Line 2025-26 2026-27 2027-28 2028-29 No. Budget Proposed Proposed Proposed Budget Budget Budget £000 £000 £000 £000 Employee Costs 1 Salaries 3,240 3,401 3,508 3,617 2 National Insurance 428 450 466 482 3 Superannuation 324 341 351 362 4 Additional Pensions 26 24 24 25 5 Other Employee Costs 7 4 4 4 6 Training 34 20 20 20 Total Employee Costs 4,059 4,240 4,373 4,510 Property Costs 7 Accommodation Charges 350 346 350 350 8 Repairs and Maintenance 20 10 10 10 9 Energy Costs 16 14 15 15 10 Cleaning 5 5 6 6 Total Property Costs 391 375 381 381 Transport Costs 11 Staff Travel and Subsistence 50 60 62 63 Total Transport Costs 50 60 62 63 Supplies & Services Item 7. Page 35
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12 Equipment, Furniture & Materials 10 6 6 6 13 Protective Clothing 1 1 1 1 14 Text & Reference Books 16 15 15 16 15 Printing & Stationery 10 10 10 10 16 Postages & ER Printing 781 501 501 501 17 Telephones 2 2 2 2 18 Advertising 1 1 1 1 19 IT Maintenance & Support 254 319 319 319 20 Valuation Appeals 30 15 20 20 21 Members Allowances 4 10 10 10 22 Fees, Charges & Subs 9 8 8 8 23 Specialist Services 30 40 40 40 24 Conference Fees and Subsistence 3 3 3 3 25 Other Supplies & Services 4 7 7 7 Total Supplies & Services 1,155 938 943 944 Support Services 26 Lead Authority Charge 65 77 79 81 Total Support Services 65 77 79 81 Gross Expenditure 5,720 5,690 5,838 5,979 Income 27 Sales and Other Income (17) (17) (18) (18) 28 Interest on Revenue balances (4) (20) (8) (8) Total Income (21) (37) (26) (26) 29 Net Expenditure 5,699 5,653 5,812 5,953 Page 36
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Funded from Reserves 30 Electoral Reform (300) - - - 31 Requisitions (5,399) (5,653) (5,812) (5,953) 32 (Surplus)/Deficit for Year - - - - Page 37
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 30 JANUARY 2026 SUBJECT: AUDITED ANNUAL ACCOUNTS FOR YEAR ENDING 31 MARCH 2025 BY: TREASURER TO THE BOARD 1. REASON FOR REPORT 1.1 To submit the audited Annual Accounts for the financial year ending 31 March 2025 to the Board for consideration and approval. 2 RECOMMENDATION 2.1 It is recommended that the Board: i. approves that the Annual Accounts are signed, having regard to the Annual Report from the External Auditor considered earlier at this meeting; ii. notes the variance of £730,000 for 2024/25; iii. if the Annual Accounts are approved for signing, agrees that £297,000 is returned to constituent authorities, leaving a balance on the General Fund of £237,000; iv. notes the balance on earmarked reserves of £567,000 for Non Domestic Rates Reform, and £376,000 in the newly created Electoral Integrity Programme; and v. approves the Letter of Representation 3. BACKGROUND 3.1 Joint Boards are required to account for their activities to the communities that they serve and to have the financial effect of those activities audited by External Auditors. 3.2 In accordance with the Local Authority Accounts (Scotland) Regulations 2014, it is a statutory requirement that the Board meets to consider and approve for signature the audited Annual Accounts and, following the signing of the Annual Item 8. Page 39
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Accounts, provides appropriately signed statements to the External Auditor, Grant Thornton. 3.3 A copy of the audited Annual Accounts for 2024/25 are appended to this report as APPENDIX 1. There have been presentational amendments in the accounts which do not affect the amount which falls due to be returned to the constituent authorities. There have been amendments to the pension figures within the audited Annual Accounts following a revised statement issued by the actuary during the audit. The revision related to the omission of certain lump-sum benefit payments (such as retirement and death grants) from the original data supplied by the North East Scotland Pension Fund. The actuary has now incorporated the full cashflows for the 12-month period, and the updated results include an adjusted asset ceiling calculation. These changes resulted in only minor movements in the underlying pension asset and liability values, with the impact of the asset ceiling offsetting the amendments. Accordingly, there has been no effect on the Board’s usable reserves or on the amounts due to constituent authorities. 3.4 The Auditor’s draft Report to the Board and the Controller of Audit is the subject of a separate report to this meeting. The report confirms that there are no unadjusted misstatements in the accounts to report to those charged with governance. The Independent Auditor’s report gives an unqualified opinion, which means that the financial statements give a true and fair view of the Board’s financial position for 2024/25. 3.5 With a total underspend of £886,000, there was no requirement to utilise the budgeted £156,000 from reserves thus giving an overall surplus of £730,000. Of this total, £58,000 and £376,000 was transferred to the NDR Reserve and EIP reserve respectively for future commitments, while £600 was transferred out of the General Fund Reserve to bring the balance back to the maximum permitted under the Board’s Reserves Policy. The remaining balance of £297,000 is available to return to the constituent authorities. 3.6 The closing balance of the usable reserves is: £237,000 in General Fund, £567,000 in NDR Reform and £376,000 in EIP. 3.7 The surplus to be returned to the constituent authorities is in proportion to the percentage of requisitions for 2024/25 and is as follows: 2024/25 Proposed Surplus Refund to Authorities % £ Aberdeen City Council 39.16 116,305 Aberdeenshire Council 44.79 133,026 Moray Council 16.05 47,669 Total 100.00 297,000 Page 40
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4 LETTER OF REPRESENTATION 4.1 As part of the completion of the audit, the auditors seek written representations from the Board on aspects of the annual accounts, including the judgements and estimates made. A copy of the Letter of Representation is appended to this report as APPENDIX 2. 5 CONCLUSION 5.1 The Board generated a surplus of £730,000 in 2024/25. If the Annual Accounts are approved, £297,000 will be returned to constituent authorities, leaving a balance on the General Fund of £237,000, and earmarked reserve balances of £567,000 in NDR Reform, and £376,000 in EIP. Author of Report: Aaron Cory, Trainee Accountant Background papers: Held within Accountancy Section, Moray Council Date: 30 January 2026 Page 41
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Appendix 1 AUDITED ACCOUNTS ANNUAL ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 GRAMPIAN VALUATION JOINT BOARD Item 8. Page 43
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If you need information from the Moray Council in a different language or format, such as Braille, audio tape or large print, please contact: ياروم سلجم لبق نم تامولعم لىإ ةجاح ي ف متنك اذإ نوكتو ةغلب وأ ويدوأ ةناوطسأ ،يا ربلا لثم فلتخم لكش لىعوأ ةفلتخم نوكت نأ مط ب لاصّتلإا ءاجّرلاف ةظيلغ فورح لامعتساب ةعوب Jei pageidaujate tarnybos Moray tarybos teikiamą informaciją gauti kitokiu formatu, pvz., Brailio raštu, garso įrašu ar stambiu šriftu, kreipkitės: Jeśli potrzebują Państwo informacji od Rady Okręgu Moray w innym formacie, takim jak alfabet Braille'a, kasety audio lub druk dużą czcionką, prosimy o kontakt: Se necessitar de receber informações por parte do Concelho de Moray num formato diferente, como Braille, cassete áudio ou letras grandes, contacte: Ja Jums vajadzīga informācija no Marejas domes (Moray Council) citā valodā vai formātā, piemēram, Braila rakstā, audio lentā vai lielā drukā, sazinieties ar: ای نابز رگید یسک ےس لسنوک ےروم وک پآرگاتروص راکرد تامولعم ںیم لاثم ںوہ ˝ ،فورح ےڑب ای پیٹ ویڈآ ،ےلیرب ہطبار رک امرف ینابرہم وت ںیئامرف: : Treasurer to the Board, Financial Services, High Street, Elgin, IV30 1BX 01343 563125 accountancy.support@moray.gov.uk Page 44
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Contents MANAGEMENT COMMENTARY .......................................................................................... 1 STATEMENT OF RESPONSIBILITIES FOR THE ANNUAL ACCOUNTS ............................ 9 ANNUAL GOVERNANCE STATEMENT ............................................................................. 11 REMUNERATION REPORT ............................................................................................... 20 COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 ................................................................................................................. 27 MOVEMENT IN RESERVES STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 .... 28 BALANCE SHEET AS AT 31 MARCH 2025 ....................................................................... 29 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 ............................ 30 NOTES TO THE ACCOUNTS ............................................................................................. 31 Note 1 Accounting Policies .............................................................................................. 31 Note 2 Accounting Standards That Have Been Issued But Have Not Yet Been Adopted 33 Note 3 Critical Judgements in Applying Accounting Policies ............................................. 33 Note 4 Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty ....................................................................................................................... 33 Note 5 Material Items of Income and Expenditure ........................................................... 35 Note 6 Events After The Reporting Period ....................................................................... 35 Note 7 Expenditure and Funding Analysis and Adjustments between Accounting Basis and Funding Basis under Regulations .............................................................................. 36 Note 8 Expenditure and Income Analysed by Nature ...................................................... 38 Note 9 Earmarked Portions of the General Fund ............................................................. 39 Note 10 Financing and Investment Income and Expenditure ............................................ 39 Note 11 Property, Plant and Equipment .......................................................................... 39 Note 12 Short Term Debtors ........................................................................................... 42 Note 13 Cash and Cash Equivalents ............................................................................... 42 Note 14 Short Term Creditors ......................................................................................... 43 Note 15 Other Long Term Liabilities ................................................................................ 43 Note 16 Financial Instruments ......................................................................................... 43 Note 17 Usable Reserves ................................................................................................ 44 Note 18 Unusable Reserves ............................................................................................ 45 Note 19 External Audit Costs .......................................................................................... 48 Note 20 Cashflow – Analysis of Net Deficit on the provision of services for non cash movements ...................................................................................................................... 48 Note 21 Requisition and Grant Income ............................................................................ 48 Note 22 Leases ............................................................................................................... 50 Note 23 Related Parties ................................................................................................... 51 Note 24 Defined Benefit Pension Scheme ....................................................................... 52 GLOSSARY OF TERMS ..................................................................................................... 61 Independent auditor’s report ............................................................................................... 63 Page 45
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1 MANAGEMENT COMMENTARY Strategy and objectives The Assessor & Electoral Registration Officer is responsible for the provision of valuation assessment and registration services across the Aberdeen City Council, Aberdeenshire Council and Moray Council areas. These strictly defined and regulated services are delivered by the Assessor & Electoral Registration Officer, as an independent statutory official, in partnership with the Grampian Valuation Joint Board, an independent local government body established by The Valuation Joint Boards (Scotland) Order 1995 and comprising members from each of the constituent authorities. The Board is required to appoint and resource an Assessor. The constituent authorities are required to appoint and resource an Electoral Registration Officer (ERO) and, by agreement, the Board has undertaken this responsibility on behalf of the local authorities. Costs incurred by the Board are apportioned between the councils based on the respective population of each council area. The priorities for 2024/25 were: • Implement a full household canvass • Publish revised registers of electors • Maintain a complete and accurate Valuation Roll in terms of the Local Government (Scotland) Act 1975 • Disposal of proposals and appeals under the new two-stage non-domestic proposal and appeal system • Maintain a complete and accurate Council Tax Valuation List in terms of the Local Government Finance Act 1992 Monitoring regimes The Electoral Commission has a performance monitoring framework in place for EROs across the UK and statistics are provided annually to the Commission and to the Cabinet Office following the completion of the annual canvass and the publication of revised registers. Quarterly revaluation proposal and appeal resolution returns are made to the Scottish Government that in turn publishes the local and national data. Key performance indicators to monitor performance in relation to the updating of the Council Tax Valuation List and the Valuation Roll are set by the Board and are reported quarterly to the Board and annually to Scottish Government. Business model The organisation delivers the outcomes that are required by statute in a dual strand approach with the Board providing resources and oversight and the Assessor & ERO delivering the specialised independent professional services of valuation assessment and electoral registration. The organisation operates a hybrid home/office working model and has physical offices in Aberdeen, Banff and Elgin. The Assessor & ERO and his staff work closely with the other Scottish Assessors and EROs via the Scottish Assessors’ Association (SAA) to deliver a service across Page 46
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2 MANAGEMENT COMMENTARY (continued) Aberdeen City, Aberdeenshire and Moray council areas that is consistent with that being delivered across all 32 local authority areas in Scotland. The sharing of expertise and representation through the SAA is a good example of shared services across Scotland that includes a national website and data source for a wide range of stakeholders that includes citizens, business, third sector, public agencies, government and research bodies. Appeal outcome data and performance indicators measure the effectiveness of the organisation’s valuation assessment role and the Electoral Commission’s performance framework monitors the registration outcomes. The organisation met the demands placed upon it in terms of its valuation assessment and electoral registration duties during the 2024/25 financial year. Key performance indicators (KPI) The organisation’s code of corporate governance established a KPI reporting and three-year review regime. They seek to quantify the effectiveness of the organisation’s activities in relation to the Valuation Roll of non-domestic property assessments and the Valuation List of domestic property council tax band allocations. The Assessor & ERO provides performance reports at every meeting of the Board and an annual public performance report is published online at the end of every calendar year. Revised KPI targets for the three years from 2024/25 onwards were agreed by the Board at its January 2024 meeting. The KPI outcomes for 2024/25 are shown in the “Maintain a complete and accurate Valuation Roll in terms of the Local Government (Scotland) Act 1975 & Maintain a complete and accurate Council Tax Valuation List in terms of the Local Government Finance Act 1992” sections below. A review of the organisation’s priorities and operations Implement a full household canvass The 2024 canvass was delayed slightly due to the snap general election and commenced in August 2024, extending through to January 2025. It used the established method of firstly using a data matching exercise to determine the appropriate approach to be taken on a household-by-household basis. The data matching exercise compared the registration database to government records and the results returned to the registration officer. Where the results suggested that there was no change in the household composition, a canvass communication letter summarising the registration information for the household was issued and the household was invited to only respond if there were changes at the property. Where the results indicated that changes in a household composition may have taken place, a different canvass procedure followed that required a response from the household and follow- up actions by the ERO. All properties which required a personal visit were canvassed by a member of the canvass team. For the 2024 canvass we used e-communications to contact over 90,000 households, representing a saving in staff and financial resources, and a reduction in the amount of printed material issued. During the course of the 2024 canvass, a total of 332,005 canvass communications were issued by post, a slight increase compared to the 323,691 issued in 2023, and well below the numbers issued prior to the introduction of the reformed canvass model. Canvass staff made over 50,000 personal visits to households during the canvass period and over 7,000 personal contacts were made by telephone. Page 47
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3 MANAGEMENT COMMENTARY (continued) Publish revised registers of electors As a result of the snap general election and the delayed start of the annual canvass, revised registers were published on 1 February 2025 rather than in December 2024. The table below provides a summary of the last three revised registers for local government and Scottish Parliament elections. The revised registers showed a slight increase in the number of registered electors and small decrease in the number of electors with postal votes. Revised registers Number of electors Number of postal voters 1 December 2022 448,915 119,611 1 December 2023 452,084 117,065 1 February 2025 454,284 113,064 During the period from 1 December 2023 to 31 January 2025, 53,075 additions and 49,804 deletions were made to the registers. During the same period, 39,546 initial invitations to register (ITRs) were issued along with 15,625 first and second reminders and staff carried out ITR visits to 9,716 properties. Disposal of proposals and appeals following the 2023 Revaluation under the new two-stage non-domestic proposal and appeal system The two-stage process involves the ratepayer setting out the details of their challenge to the valuation roll entry made by the Assessor, including an alternative valuation. The Assessor is then required to review the challenge, the “proposal”, and either accept or reject the proposal or implement a different outcome, either by agreement or at his own discretion. Depending on the particular circumstances, the proposer may be able to appeal the decision to the Local Taxation Chamber of the First-tier Tribunal for Scotland. This new system has resulted in a reduction in the number of “appeals” received by the Assessor following a revaluation but it is still a demanding workstream for ratepayers, their representatives, and the Assessor’s staff. The disposal of proposal and appeals has been a challenging task for the valuation staff. The rigorous proposal disposal programme is currently on target although a national challenge to the methodology used in contractor’s basis valuations is ongoing and it is possible that this may only be resolved following a Tribunal hearing. Our new IT system to manage proposals and appeals has been successfully implemented and used to record and manage proposal and appeal outcomes. The administrative requirements of the new 2-stage system have proven to be particularly burdensome and time-consuming, but various templates have been created to help reduce this. Dealing with proposals and appeals has clearly impacted other workstreams during the year. Maintain a complete and accurate Valuation Roll in terms of the Local Government (Scotland) Act 1975 & Maintain a complete and accurate Council Tax Valuation List in terms of the Local Government Finance Act 1992 These two priorities use quantitative target-based performance indicators rather than qualitative measures. Achieving these targets relies partly on the timeous receipt of information from external parties, including the owners and occupiers of dwellings and non- domestic properties. The figures can therefore be misleading as an indicator of how the organisation has performed. Valuer vacancies during the year, along with Page 48
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4 MANAGEMENT COMMENTARY (continued) a rigorous proposal disposal timetable and the second audit of self-catering properties have significantly affected the organisation’s ability to meet the timescales suggested by the key performance indicators. The last 3 year’s figures are shown in the tables below. Valuation Roll – number of alterations made to Valuation Roll/time taken from effective date of alteration to Valuation Roll to date of issue of valuation notice (KPIs) Year < 3 months 3-6 months > 6 months Total Number Number % Number % Number % 2022/23 527 30.4 338 19.5 867 50.1 1,732 2023/24 915 36.0 424 16.7 1,206 47.4 2,545 2024/25 542 27.8 303 15.5 1,105 68.2 1,950 Target 65 20 15 Council Tax – number of dwellings entered into Valuation List/time taken from date of entry in Valuation List to date of issue of valuation notice (KPIs) Year < 3 months 3-6 months > 6 months Total Number Number % Number % Number % 2022/23 1,938 71.1 623 22.9 164 6.0 2,725 2023/24 1,961 64.7 507 16.7 563 18.6 3,031 2024/25 2,109 67.8 497 16.0 505 16.2 3,111 Target 94 3 3 Despite the challenges of the year, particularly the level of valuer vacancies, the organisation has still fulfilled its statutory requirements to maintain the Valuation Roll and the Valuation List. The figures in the council tax table above shows a slight positive trend in performance, but the particular circumstances and challenges of each year can still provide an additional narrative. The self-catering audit in 2024 was resource intensive and led to significant retrospective alterations to the council tax valuation list and the non-domestic valuation roll. If self-catering properties were excluded from the KPI statistics for 2024/25, the KPI figures would have been as follows; 2024/25 < 3 months 3-6 months > 6 months Total Number Number % Number % Number % Valuation Roll 542 32.7 303 18.3 812 49.0 1,657 Council Tax 2,109 75.2 497 17.7 200 7.1 2,806 Page 49
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5 MANAGEMENT COMMENTARY (continued) Future challenges The priority for the next year is, as always, to continue to fulfil our statutory duties across all three service strands: council tax, valuation for rating, and electoral registration. The Scottish Parliament’s Local Government, Housing and Planning Committee is currently holding a short inquiry on the potential for changes to the current council tax system. In addition, proposed amendments have been put forward to the Housing (Scotland) Bill, currently making its way through the Scottish Parliament, to implement a council tax revaluation no later than 1 April 2029. The organisation will need to be ready to adapt to meet the challenges any revaluation or reform might entail The Assessor and the wider management team will monitor the situation through the Scottish Assessors Association and its regular liaison with Scottish Government officials. In relation to valuation for rating, work in advance of the implementation of the next general revaluation will continue alongside the disposal of the proposals and appeals lodged following the 2023 revaluation. The level of vacancies in the valuation team will make these tasks challenging but we will continue to develop IT solutions to assist. The recruitment of suitably qualified professional staff has been a particular difficulty for the Grampian Assessor although some posts were successfully filled during 2024/25. Work to promote career opportunities in Assessors’ offices is underway at a national level but in the meantime we are still actively trying to recruit, and the vacancies remain advertised on our website. The coming year is another demanding one in relation to electoral registration. A significant exercise relating to the renewal of reserved absent votes involves contacting close to 100,000 electors before the end of January 2026. In addition, legislative changes to allow electors at devolved elections to apply online for absent votes are planned, as is a change to allow 16- year-olds to vote in reserved elections. Coupled with Scottish Parliamentary boundary changes and the planned Holyrood elections in May 2026, this will ensure that 2025/26 is another busy year on the electoral front. Advance planning and operational agility will be crucial. Principal risks and uncertainties The organisation maintains an operational and strategic risk register which is continually monitored and reviewed by the management team. The principal risks and uncertainties relate to dynamic valuation assessment and electoral registration statutory frameworks, challenges in terms of financial resources and, particularly, securing sufficient valuation expertise to deliver our services. Cyber security is an ever-present and high-profile risk and the provision of IT services by Aberdeenshire Council and the support of their IT team is a key factor in mitigating risks to the Board. Apart from the normal control measures in terms of financial and operational planning, the Assessor & ERO and the management team continue to mitigate risk and uncertainty through partnership working through the Scottish Assessors Association (SAA) and external agencies. The Assessor & ERO is Chair of the Association’s Basic Principles Committee, Secretary to the Domestic Subjects Committee, Vice-Chair of the Electoral Registration Committee and a member of the Electoral Management Board for Scotland and the UK Government’s Nations Review Group. Together with the management team’s representation on all the SAA committees, the organisation is well placed to monitor and meet the challenges of any changes to its valuation assessment and registration functions. Page 50
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6 MANAGEMENT COMMENTARY (continued) Financial Performance Revenue Expenditure The Grampian Valuation Joint Board, at its meeting on 26 January 2024, approved the 2024/25 Revenue Budget of £5.178m (2023/24 £5.210m), a decrease of 1%. The requisitions to constituent authorities were set at £5.022m (2023/24 £5.034m) with approved use of reserves of £0.156m. The core budget was set at £4.754m, with an additional £0.268m budgeted for NDR Reform. The Joint Board receive quarterly Revenue Monitoring reports during the year in order to keep the board members fully informed as to the latest position, and projected outturn. The actual net expenditure in 2024/25 was £4.167m (2023/24 £4.536m) resulting in an underspend of £1.011m for the year. The budgeted use of General Reserve of £0.156m is not required, thus giving an overall variance of £0.855m. Of this total, £0.058m was transferred to the NDR Reserve and £0.376m to an earmarked reserve for Electoral Integrity Programme (EIP) for future commitments of the government grant received in the year, while £0.001m was transferred from the General Fund Reserve to bring the balance back to the maximum permitted under the Board’s Reserves Policy. In 2024/25, the Board adopted IFRS 16 Leases, as incorporated into the 2024/25 Code of Practice on Local Authority Accounting. The primary impact of the new standard is that arrangements previously treated as operating leases must now be accounted for by recognising a right-of-use asset and a corresponding lease liability as of 1 April 2024. IFRS 16 has been applied, with the cumulative effect recognised on 1 April 2024. This means that a right-of-use asset and lease liability for the office accommodation at Woodhill House, Aberdeen has been created and is reflected in the accounts. The underspend in the service budget is due to the removal of the lease payment, which was previously recorded as a service cost. However, this change does not affect the overall surplus because the lease payment has been replaced by two separate entries: lease interest and lease principal repayments. These are now accounted for below the service line, in line with accounting standards. So while the service appears to have underspent, the cost has simply been reclassified, not removed. Factoring in IFRS16 Leases payments for Woodhill House of £0.125m the remaining balance of £0.297m is available to return to the constituent authorities. The Comprehensive Income and Expenditure Statement shows a surplus of £0.220m on the provision of services for the year. After allowing for the reversal of statutory charges for International Accounting Standard 19 Employee Benefits (IAS19) of (£0.174m), depreciation totalling (£0.146m) and IFRS 16 Leases principal £0.107m this leaves the net £0.433m to be transferred in to reserves: £0.058m to the NDR Reserve, £0.376m to the EIP Reserve and £0.001m out of the General reserve. The following table shows a summary of the figures for the main variances between budget and actual for the year to 31 March 2025. These figures are monitored and reported to the Board throughout the year, and exclude accounting adjustments related to pensions, short- term accumulating absences and depreciation. Actual under/overspends are explained in the detailed variance analysis below. Page 51
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7 MANAGEMENT COMMENTARY (continued) 2023/24 2024/25 2024/25 2024/25 Actual Budget Actual Variance £000 £000 £000 £000 3,491 Employee Costs 3,942 3,530 (412) 331 Property Costs 356 233 (123) 57 Transport Costs 50 53 3 730 Supplies and Services 784 775 (9) 69 Support Service Recharges 65 71 6 (76) Interest and Investment Income (4) (97) (93) (66) Government Grants and other Service Income (15) (398) (383) 4,536 Net (Under)/Overspend Against Budget 5,178 4,167 (1,011) Funded by: (5,034) Requisitions (5,022) (5,022) - - Approved use of Reserves (156) - 156 (498) Outturn for the year - (855) (855) - Add: IFRS 16 Lease Interest and Principal - 125 125 (498) Adjusted Outturn for the year - (730) (730) The main variances from budget during the year were: • Employee Costs - Local Government pay award exceeded the 3% budget provision, but the additional cost was offset by the overall underspend in staffing. The underspend was primarily due to vacancies and part-year vacancies throughout the year, largely due to staff vacancies and ongoing challenges in recruiting suitably qualified staff. • Property Costs - Accommodation Charges are underspent by £0.100m, primarily due to IFRS 16 Leases payment. - Repairs and Maintenance costs are £0.023m under budget. • Supplies and Services - Postages and ER Printing costs are £0.014m under budget. - Printing and stationery costs had an underspend of £0.014m. - An overspend of £0.010m for Specialist Services, SAA Portal Contributions for 2024/25 is a large contributor to this. • Interest and Investment Income - The £0.093m variance in interest income is mainly due to favourable interest rates during the year. • Government Grants - £0.376m of the variance in Government Grants is for the Electoral Integrity Programme funding received which is in an earmarked reserve for use in 2025/26. Page 52
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8 MANAGEMENT COMMENTARY (continued) • Approved use of reserves - Due to the above variances, the approved use of reserves was not required. General Reserve In setting the 2024/25 Revenue Budget, the Treasurer clarified that the cumulative balance on the uncommitted part of the General Fund should be calculated on the budget for the Joint Board’s core costs alone and exclude budgets with a separate funding stream e.g. NDR earmarked reserve for implementation of the Barclay Review. The NDR reserve does not go by the same principles, given the nature of funding for NDR reform by the Scottish Government. The General Reserve balance at 31 March 2025 is £0.237m, with an additional £0.567m and £0.376m earmarked for the NDR reform Implementation and the Electoral Integrity Programme respectively. Going Concern The Balance Sheet at 31 March 2025 shows an excess of assets over liabilities of £1.562m (net asset of £1.200m at 31 March 2024). The North East Scotland Pension Fund is required to carry out actuarial valuations every three years. Future actuarial valuations of the North East Scotland Pension Fund will consider the appropriate employee/employer’s rate to meet the commitments of the Fund and the constituent authorities of the Board are required to fund the liabilities of the Board as they fall due. Accordingly, it has been considered appropriate to adopt a going concern basis for the preparation of these Annual Accounts. Councillor Donald Gatt Convener Mark J Adam MRICS AEA (Cert – Scotland) Assessor & Electoral Registration Officer Lorraine Paisey CA Treasurer Page 53
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9 STATEMENT OF RESPONSIBILITIES FOR THE ANNUAL ACCOUNTS The Board’s Responsibilities The Board is required to: • make arrangements for the proper administration of its financial affairs and to secure that the proper officer of the Board has the responsibility for the administration of those affairs (section 95 of the Local Government (Scotland) Act 1973). In the Valuation Joint Board, that officer is the Treasurer to the Board; • manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; • ensure the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014) and the Local Authority (Capital Finance and Accounting) (Scotland) (Coronavirus) Amendment Regulations 2021, and so far as is compatible with that legislation, in accordance with proper accounting practices (section 12 of the Local Government Scotland Act 2003); • approve the Annual Accounts for signature. I confirm that these Annual Accounts were approved for signature by the Board at its meeting on Signed on behalf of the Grampian Valuation Joint Board Councillor Donald Gatt Convener Page 54
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10 The Treasurer’s Responsibilities The Treasurer to the Board is responsible for the preparation of the Board’s Annual Accounts in accordance with proper practices as required by legislation and as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2024/25 (the Accounting Code). In preparing these annual accounts, the Treasurer has: • selected suitable accounting policies and then applied them consistently; • made judgements and estimates that were reasonable and prudent; • complied with legislation; • complied with the local authority Accounting Code (in so far as it is compatible with legislation); • kept adequate accounting records which were up to date; • taken reasonable steps for the prevention and detection of fraud and other irregularities. I certify that the financial statements give a true and fair view of the financial position of the Board at the reporting date and the transactions of the Board for the year ended 31 March 2025. Lorraine Paisey CA Treasurer Page 55
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11 ANNUAL GOVERNANCE STATEMENT Scope of responsibility The Board was established in terms of The Valuation Joint Boards (Scotland) Order 1995 and is the valuation authority for Aberdeen City Council, Aberdeenshire Council and Moray Council. The Board is responsible for the provision of valuation assessment services for local taxation purposes. Through an agreement to share services, the Board also provides electoral registration services for the same three constituent authorities. The Board is responsible for ensuring that its business is conducted in accordance with the law and proper standards. It must ensure that public money is safeguarded, properly accounted for, and used economically, efficiently and effectively. The Board is considered to be a local authority in terms of the Local Government etc. (Scotland) Act 1994 and has a duty to deliver continuous improvement as set out in the Local Government in Scotland Act 2003. In discharging this overall responsibility, the Board is responsible for putting in place proper arrangements for the governance of its affairs and facilitating the effective exercise of its valuation and registration functions. This includes arrangements for the management of risk. Responsibility for delivery - members and officers In terms of the above Order, the Board membership comprises 6 members appointed by Aberdeen City Council, 6 members appointed by Aberdeenshire Council and 3 members appointed by Moray Council. To fulfil its operational role, the Board is responsible for the appointment of an Assessor, and deputes as appropriate, in terms of section 27 of the Local Government etc. (Scotland) Act 1994. In practice the Assessor and Deputes manage the provision of valuation assessment and electoral registration services on a day-to-day basis, with the Board providing resources, a governance framework and a monitoring regime for financial and operational performance. The Assessor is also appointed as the Electoral Registration Officer (ERO) for the Board’s three constituent authorities. This too is a statutory position with the ERO and Deputes appointed in terms of section 8 of the Representation of the People Act 1983. In 2024 the Board agreed to appoint the Principal Admin Officer as a Depute Electoral Registration Officer to provide additional resilience and support to the ERO. The Board has approved and adopted a local code of corporate governance that is reviewed biennially and is available at www.grampian-vjb.gov.uk The purpose of the governance framework The governance framework comprises the systems, processes, cultures and values by which the Board is directed and controlled, and the activities used to engage with the community. It enables the Board to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective valuation assessment and registration services. The system of internal control is a significant part of that framework and is designed to manage risk to an acceptable level, and provide reasonable, but not absolute, assurance that the statutory requirements of the Assessor and ERO are met and policies, aims and objectives can be delivered. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Board’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. Page 56
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12 ANNUAL GOVERNANCE STATEMENT (continued) The governance framework The key elements of the systems and processes that comprise the Board’s governance arrangements are described in terms of the seven principles of good governance defined in the framework and summarised as follows: Governance Principle 1 - behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law. The Board’s code of conduct provides a clear standard in terms of conduct and behaviour, as does the Board’s personnel related policies that deal with mainstreaming equalities into the fabric of the organisation, dignity of the individual, whistleblowing, special leave and personal development. These policies go beyond behavioural matters and reflect the positive approach to workforce development to the extent that career development schemes are in place across all three service strands: non-domestic property valuation assessment, domestic property valuation assessment and electoral registration. As such, career pathways are available to almost all staff. In order to avoid duplication, the Board relies on the registers of interests and gifts maintained by the relevant constituent authorities for elected members. A register of interests has been established for all employees and a register of gifts is also maintained. The Assessor & ERO and Deputes are bound by the policies of the Board and must also adhere to the professional standards regime set by the Royal Institution of Chartered Surveyors (RICS). The Management Team make fresh declarations of interest annually. Issues relating to actions taken or not taken by officials can be addressed through the organisation’s complaints handling procedure. This procedure was updated in 2021 following the revision of the national Complaints Handling Procedures (CHP) scheme by the Scottish Public Services Ombudsman. The Assessor & ERO works closely with the Electoral Commission, the Electoral Management Board for Scotland and Police Scotland. If necessary, suspected fraudulent registration or absent vote applications are referred to the Police Scotland single point of contact. Governance Principle 2 - ensuring openness and comprehensive stakeholder engagement. The Board’s decision-making processes are well established with decisions concerning finance, performance and governance being taken by the Board. Standing orders and regulations govern how decisions are made and appropriate legal, financial and other professional advice is considered as part of the decision-making process. At an operational level, stakeholder involvement falls within the domain of the Assessor & ERO. The ERO and the Principal Admin Officer attend regular meetings with other ERO colleagues and the Electoral Commission as part of an electoral registration communications and outreach network. One of the principal aims in attending these meetings is to develop best practice in how to engage with underrepresented groups, put relevant information into the consciousness of electors and to learn from the experiences of others. The introduction of Voter ID was a focus for the ERO during the year as it was required to be shown when voting in person at the 2024 general election. The online voting information page on the Board’s website continues to be updated so users can easily access information or application forms for the service or action that they require. This was particularly important again during 2024/25 due to the changes brought in by the Elections Act 2022. Page 57
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13 ANNUAL GOVERNANCE STATEMENT (continued) The Board’s performance management framework is reviewed regularly to drive continuous improvement and ensure effective monitoring of progress and outcomes against stated objectives. Reporting arrangements include regular updates to the Board, the Electoral Commission, the Electoral Management Board for Scotland, the Scottish Government, and online publication of annual performance reports. Protocols are in place to meet requests made under the Freedom of Information Act and, through the Scottish Assessors’ Association, Assessors have established procedures to improve the response standards where common requests for information are made. As part of the Equalities mainstreaming regime, progress has been made towards capturing employee and service user feedback that will inform future service design and delivery. Governance Principle 3 - defining outcomes in terms of sustainable economic, social and environmental benefits. The Board, being focussed around delivery of specialised valuation and electoral registration services has a limited role to play in the wider community planning aspects anticipated by the governance framework set out by CIPFA/Solace. The Board is therefore conscious of the need to ensure that its mode of operation and the delivery of the valuation and registration services reflect the responsibilities towards the communities in Grampian in terms of devolved service delivery models that support the sustainability of communities across the whole region and minimise natural resource demands. In terms of the two specialised services the Board delivers, they are foundation stones to local government and democracy at local, national and international levels, as they provide the means to raise local taxation and to conduct elections/referendums. Operational outcomes for these services are essentially driven by statute and it is pertinent to this governance principle to note that legislation has now been laid to reform local taxation1 and electoral registration2 and thus improve sustainability and economic and social benefits. The implementation of local taxation reform continues to be the subject of scrutiny with the Local Government, Housing and Planning Committee currently holding a short enquiry on the potential for changes to the current council tax system in Scotland. Through the work of the various committees of the Scottish Assessors Association, the Assessor and his team continue to work with other stakeholders to ensure that any changes that may be implemented at a local and national level is sustainable and effective. Electoral registration officers, through the SAA Electoral Registration Committee, were represented on various groups involved in the development and implementation of the Elections Act 2022 and Scottish EROs are now represented in the Nations Review Group which provides feedback and views on the new UK Government’s electoral reform plans. Governance Principle 4 - determining the interventions necessary to optimise the achievement of intended outcomes. As a specialised outcome-orientated organisation, our activities of producing, maintaining, and defending Valuation Rolls, Valuation Lists and Electoral Registers essentially drive the organisation’s agenda. The Board and the Assessor & ERO recognise the financial challenges they face and through established reporting arrangements ensure that Board members have full detail of resource inputs and performance outputs. Regular and detailed financial reports 1 Non-Domestic Rates (Scotland) Act 2020 (legislation.gov.uk) 2 Elections Act 2022 (legislation.gov.uk) Page 58
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14 ANNUAL GOVERNANCE STATEMENT (continued) are made available to the Board and the outcomes for the organisation that are essentially driven by statute, are monitored in terms of performance. The Management Team focus on these outcomes and work closely with internal and external colleagues to innovate and optimise them. Innovation and agility is a fundamental requirement to maintain service delivery, particularly due to changes in legislation, vacancies and the number of colleagues working on a hybrid home/office basis. Governance Principle 5 - developing the entity’s capacity, including the capability of its leadership and the individuals within it. Roles of elected members and officers are clearly defined and constructive working relationships are achieved to ensure clear relationships between the Board, the Assessor and ERO, corporate stakeholders and the public. Standing orders regulate the form and content of board meetings and the Board’s financial regulations provide a framework for financial decisions. Performance reports are reviewed at Board meetings and the Board’s key performance indicators are subject to regular periodic review. As part of its commitment to lifelong learning and to foster a personal development culture and seek to retain personnel the organisation operates an internal recruitment procedure that encourages personal development and ultimately improve leadership capacity. New employees receive induction training on arrival and in the majority of cases are able to participate in a career grade development scheme that seeks to promote personal and professional development. Surveyors, who are members of the Royal Institution of Chartered Surveyors (RICS), are subject to additional compulsory continuing professional development training that is monitored by the RICS. The organisation’s training officer is responsible for monitoring training provision and recording progress. The training officer is also responsible for identifying appropriate training opportunities. All colleagues now have access to Aberdeenshire Council’s online training platform which has greatly expanded the amount of training and personal development resources available. Two colleagues are currently undergoing the Association of Electoral Administrators Certificate in Electoral Administration which should ensure the organisation has a more qualified and knowledgeable workforce in a very specialised field. Further opportunities to study for the certificate will be offered to colleagues later in the year. Functions and roles of statutory posts including the Clerk, Treasurer and Assessor & ERO are clearly defined and the postholders work closely together to achieve the objectives of the organisation. Governance Principle 6 - managing risks and performance through robust internal control and strong public financial management. The Board’s decision-making process is well established with governance, finance and performance issues being reported at board meetings that take place in public (unless exempt under statutory provision) and the board reports are published online and made available to the media. Rules and procedures govern how decisions are made and appropriate legal, financial and other professional advice is considered as part of the decision-making process. Scrutiny is secured through internal and external audit. Page 59
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15 ANNUAL GOVERNANCE STATEMENT (continued) Decisions of the Assessor & ERO are subject to public scrutiny, scrutiny via appeal and complaint processes to the respective judicial bodies and external stakeholders that monitor performance such as the Electoral Commission and the Electoral Management Board for Scotland. In addition, the Scottish Assessors’ website at saa.gov.uk provides practice notes that provide details on how rateable values are determined and allows individual taxpayers to look up the assessment of every non-domestic and domestic property in Scotland and the valuations of an expanding range of subject types. The Board and the Assessor & ERO reported on performance to the Electoral Commission, the Scottish Government and the Scottish Information Commissioner during 2024/25. Risk management is a fundamental part of the organisation’s decision-making process and as such is a standing item on the Assessor & ERO’s management team agenda, with the Board reviewing the risk register on an annual basis. To control and mitigate against risk, the Board’s system of internal control is based on a framework of financial regulations that are revised and updated periodically and supplemented by regular management information, administrative procedures, management supervision and a code of corporate governance. Establishing and maintaining an effective system of internal control is a management function. The Board, through its consideration of reports by internal and external auditors, monitors the effectiveness of internal control procedures. Policies to combat fraud, theft, bribery and corruption are in place, not only in order to protect public finance, but also to ensure the veracity of the statutory rolls, lists and registers that the Assessor & ERO is required to provide. The Assessor and ERO has direct contact with Police Scotland at a local and national level through an allocated Single Point of Contact, the SAA and the Electoral Management Board for Scotland. IT resilience and effectiveness continued to be improved during 2024/25. Close collaboration with Aberdeenshire Council’s IT team has continued and they now have the responsibility for managing the Board’s IT infrastructure and providing IT support to users. A performance management system is in place which calls for reporting of established performance measures to the Board at quarterly intervals throughout the year. An annual Public Performance Report is also published. The Board’s governance arrangements have been developed and maintained to comply with the core functions of various good framework guidelines including Code of Practice on Managing the Risk of Fraud and Corruption, Public Sector Internal Audit Standards (incorporating the principles of the Role of the Head of Internal Audit), Audit Committees: Practical Guidance for Local Authorities and Police, etc. Strong financial management procedures are secured through the work of the Treasurer appointed in terms of s95 of the Local Government (Scotland) Act 1973. This officer provides advice to the Board and the Assessor & ERO on all financial matters and ensures the timely production and reporting of budget estimates, budget monitoring reports and annual accounts. Governance Principle 7 - implementing good practices in transparency, reporting, and audit to deliver effective accountability. Board business is conducted through an established cycle of quarterly meetings. These meetings continued to be held in hybrid form during 2024/25 with some members attending in person and others attending via a video link. Meeting dates are published in advance and reports follow a corporate style and include: the purpose of the report, information relevant to the matter under consideration, a conclusion and recommendations. Minutes of meetings are prepared by a member of Moray Council’s Committee Services team on behalf of the Clerk to Page 60
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16 ANNUAL GOVERNANCE STATEMENT (continued) the Board and are made available on Moray Council’s website with links also available via the Board’s website. Information is disseminated in many forms and targeted at different audiences for different purposes, ranging from statutory returns that follow prescribed layouts, through to media releases and presentations which may be focussed on specific groups of service users. The organisation’s website is regularly updated with news items to ensure that the Grampian community is kept up to date with pertinent information. Assurance and accountability oversight is a key role for the Board which comprises members from a variety of political backgrounds. The Board receives reports on the work of the internal auditor and the external auditor, placing particular focus on recommendations arising from audit work and on the corrective actions proposed by the officials of the Board. Review of effectiveness of governance arrangements The review of effectiveness of the governance framework including the system of internal control is pursued throughout the year by various means involving: • The Board In practice, governance arrangements are monitored over the year with Board meetings taking place four times during each year. The Board consists of members from each of the three councils and from across the political spectrum and considers reports on financial and operational performance and governance matters. It also examines the annual public performance and audit reports. • The management team The management team which has overall responsibility for good governance arrangements, currently comprises the Assessor & ERO, two Depute Assessors & EROs, four Assistant Assessors and the Principal Admin Officer & Depute ERO. • The Assessor and ERO The Assessor & ERO has the statutory responsibility for the publication and maintenance of the Valuation Rolls, Council Tax Valuation Lists and Electoral Registers. The Assessor is essentially the chief executive for the organisation and has a wide range of financial, personnel, governance and reporting responsibilities. • The Treasurer The Treasurer has statutory responsibility for the Board’s financial affairs in terms of Section 95 of the Local Government (Scotland) Act 1973. This officer provides relevant financial advice and support to the Assessor and ERO and elected members at meetings of the Board and otherwise as required. The Board’s financial management arrangements generally conform to the governance requirements of the CIPFA statement on the role of the chief financial officer, and whilst the Treasurer is not a member of the management team, she is actively involved in, and is able to influence, decision-making processes. The Treasurer is responsible for ensuring that an effective system of internal financial control is maintained. The system of internal financial control can provide only reasonable and not absolute assurance that assets are safeguarded, that transactions are authorised and properly recorded, and that material errors or irregularities are either prevented or detected within a timely period. Page 61
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17 ANNUAL GOVERNANCE STATEMENT (continued) The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management supervision and a system of delegation and accountability. The system includes comprehensive budget setting and monitoring arrangements and the preparation of regular financial reports indicating actual expenditure against forecasts that are reported at each board meeting. • Internal Audit Internal Audit is an assurance function that primarily provides an independent and objective opinion to the Board on the control environment comprising risk management, internal control, and governance by evaluating its effectiveness in achieving the organisation’s objectives. It objectively examines, evaluates and reports on the adequacy of the control environment as a contribution to the proper, economic, efficient and effective use of resources. Responsibility for delivering the Internal Audit Service rests with the Service Manager Internal Audit and Risk of Moray Council. The Service Manager Internal Audit and Risk provides the Board with independent assurance on risk management, governance and internal control, in accordance with the Global Internal Audit Standards. Internal Audit contributes to assessing the effectiveness of the financial control environment as part of the Board’s governance arrangements. For 2024/25, Internal Audit reviewed budget setting and monitoring, payroll costs, which represent a significant element of the budget, non- payroll expenditure, including office rentals and ICT costs and the assessment of income received. An Internal Audit Annual Report detailing the work undertaken was presented to the Grampian Valuation Joint Board on 31 October 2025. No issues were noted. In the opinion of the Service Manager Internal Audit and Risk, based on the audit work completed, reasonable assurance can be placed on the adequacy and effectiveness of the system of internal financial control for the year ended 31 March 2025. • External Agencies In addition to the various internal review processes and the financial audit referred to above, there are a number of bodies that the organisation is required to report to/submit governance arrangement for approval. The Scottish Information Commissioner collects data on requests and responses under Freedom of Information and Environmental Information legislation and will intervene where it considers enforcement action is required. The Keeper of Records reviews and approves records management arrangements and has requested that a revised plan is submitted during 2025/26. The way the organisation delivers its valuation and registration services is also subject to scrutiny by external agencies, with the valuation assessment aspect reported to the Scottish Government and subject to a case-by-case scrutiny on appeal and the Electoral Commission reviewing and reporting on the performance of the ERO. Significant governance issues Securing good governance continues to be of prime importance to elected members, senior officials of the Board and members of the management team. It is a significant task, particularly at a time when budgets remain under significant pressure and legislative changes are being considered and implemented. Page 62
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18 ANNUAL GOVERNANCE STATEMENT (continued) In the 2023/24 governance statement, the key challenges facing the organisation for 2024/25 were to: • Continue to upgrade our operational capacity in terms of workforce, processes and IT systems to meet the challenges of the 3-yearly revaluation cycle and the 2 stage proposal and appeal system. • Continue the work to improve our governance arrangements, progress equalities mainstreaming and performance monitoring and complete the work to widen our customer consultation framework. • Continue the work to utilise the full functionality of the electoral management system and online resources to improve registration levels and engagement with electors. • Continue to manage resources to ensure that the organisation meets all statutory commitments. In particular, there is still a requirement to tackle the level of vacancies in the valuation team. All operational demands were met during 2024/25 and we continued with a hybrid home/office approach to working. Recruitment of suitably qualified valuation staff has continued to be challenging although there were some successful appointments in the latter part of the year. We continue to advertise our vacancies and develop a career pathway framework with colleagues at a national level. The shift of our IT systems to Aberdeenshire Council infrastructure has been generally successful although the upgrading and migration of one system is still to be completed, and we are liaising closely with the external contractor and the software supplier to have this work finished. Our IT application to deal with the new 2-stage proposal and appeals process has been successfully used to program the disposal of proposals arising from the 2023 revaluation and we have developed templates to remove some repetitive administrative work. We will continue to monitor and develop our IT applications and processes to assist staff and other stakeholders as the need and opportunity arises. We used e-communications during the 2024 annual canvass in connection with the register of electors and, as in the previous year, this led to financial and resource savings for the Board. We intend to make use of e-communications for the 2025 canvass and in the reserved absent vote reapplication process. The 2025 equalities mainstreaming report has been completed and we are analysing the results of a staff survey that has recently been carried out. A customer feedback survey has also been implemented but it is too early to report on any findings from this. The need to vary and reschedule tasks is challenging but monitoring, management and flexibility means that the appropriate resources can be placed where they are needed to ensure that statutory commitments are met. Despite the challenges noted above, no significant governance issues have been identified. Looking ahead the key challenges for 2025/26 are: • Continue to upgrade our operational capacity in terms of workforce, processes and IT Page 63
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19 ANNUAL GOVERNANCE STATEMENT (continued) systems to meet the challenges of the 3-yearly revaluation cycle, the 2 stage proposal and appeal system, and proposed legislative changes in electoral registration and council tax. • Continue the work to progress equalities mainstreaming objectives and to improve registration levels and engagement with electors and other service users. • Continue to manage resources to ensure that the organisation meets all statutory • commitments. In particular, the continuing requirement to improve the level of vacancies in the valuation team. Concluding Remarks In our respective roles as Convener of the Board and Assessor & ERO, we are committed to good governance and recognise the contribution it makes to securing delivery of service outcomes in an effective and efficient manner. This annual governance statement summarises current governance arrangements, provides evidence of progress and affirms our commitment to ensuring that the Board’s governance framework is responsive to the dynamic and challenging environment in which we serve. During the financial year to 31 March 2025 and to the date of this statement, no significant control weaknesses or issues have arisen and no significant failures have been identified in the expected standards for good governance, risk management and control. Councillor Donald Gatt Convener Mark J Adam MRICS AEA (Cert - Scotland) Assessor & Electoral Registration Officer Page 64
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20 REMUNERATION REPORT This report has been written to provide details of the Grampian Valuation Joint Board’s remuneration arrangements for its senior councillors and senior employees. This is required under the Local Authority Accounts (Scotland) Regulations 2014. All information disclosed in the tables 1 to 6 in this Remuneration Report is audited by the external auditors, Grant Thornton UK LLP. The other sections of the Remuneration Report, including the Tiered Contribution Pay Rates table on page 23 are reviewed by Grant Thornton UK LLP to ensure that they are consistent with the financial statements. Remuneration of Councillors, Senior Councillors, Convener and Depute Convener The remuneration of councillors is regulated by The Local Governance (Scotland) Act 2004 (Remuneration) Amendment Regulations 2024 (SSI No. 2024/24). These regulations set out the amounts a councillor may be paid for being a Convener or Depute Convener of a Joint Board. This is inclusive of any amounts payable to them as either a councillor or senior councillor of their own Local Authority. The Board consists of 15 members comprising 6 from Aberdeen City Council (including 1 current vacancy), 6 from Aberdeenshire Council and 3 from Moray Council. The local authority of which the Convener or Depute Convener is a member pays the remuneration appropriate to the member’s work with the Joint Board. Conveners receive a remuneration which, when added to their existing remuneration as a Councillor/Senior Councillor, equals 75 percent of the Leader of a “Band A” council, i.e. £26,686 per annum. The Depute Convener’s remuneration is calculated on the basis of the basic salary plus 75 percent of the difference between the basic salary and the Convener’s salary, i.e. £25,352 per annum. These rates are effective for the year ending 31 March 2025. The Board has an arrangement with each Council which remunerates the Convener and Depute Convener/s to reimburse the Council for the additional costs of that councillor arising from them being a Convener or Depute Convener of the Board. Councillor Gatt was elected as Convener of the Grampian Valuation Joint Board on 26 August 2022. From this date Councillor Gatt has received a Special Responsibility Allowance for his role as Convener and the Board reimburses Moray Council for the additional cost. Councillor Smith of Aberdeenshire Council was elected Vice Convener at the meeting on 28 June 2024. The Special Responsibility Allowance that Councillor Smith received for his duties will be reimbursed by the Board All other Councillors’ expenses are paid directly by the authority that they serve and will also be included in the individual authority’s remuneration report. Page 65
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21 Remuneration of Senior Councillors, Convener and Depute Convener (Table 1) Councillor Name and Responsibility Total Remuneration 2023/24 Salary, fees and allowances 2024/25 Total Remuneration 2024/25 £ £ £ Councillor Gatt Convener 4,818 5,341 5,341 Councillor Smith Depute Convener (from 28 June 2024) - 3,039 3,039 Total 4,818 8,380 8,380 No taxable expenses were paid in 2024/25 or in 2023/24. Remuneration of Councillors (Table 2) Grampian Valuation Joint Board paid the following salaries, allowances and expenses for all councillors (including senior councillors) during the year. It includes expenses met directly by the Board and expenses reimbursed to Councillors. Type of Remuneration 2023/24 2024/25 £ £ Salaries 4,818 8,380 TOTAL 4,818 8,380 Page 66
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22 Remuneration of Senior Employees The Local Authority Accounts (Scotland) Amendment Regulations 2014 require remuneration information to be disclosed for senior employees as defined below: i. A person who has responsibility for the management of a local authority to the extent that the person has power to direct or control the major activities of the authority whether solely or collectively with other persons. ii. A person who holds a post that is politically restricted by reason of section 2(1) (a), (b) or (c) of the Local Government and Housing Act 1989. iii. A person whose annual remuneration, including any annual remuneration from a local authority subsidiary body is £150,000 or more. These regulations apply equally to Joint Boards and remuneration disclosure is therefore required for the Assessor and Electoral Registration Officer (ERO) and two Depute Assessor and Depute Electoral Registration Officers who are deemed to be senior employees for the Grampian Valuation Joint Board. Details are shown on Table 3 below. The salary of senior employees is set by reference to national arrangements. The Scottish Joint Negotiating Committee (SJNC) sets the terms and conditions and pay bandings for senior employees but remuneration levels and pay scales are set locally and were last agreed by the Board on 23 January 2004. Remuneration of Senior Employees of the Board (Table 3) Name and Post Title Total Remuneration 2023/24 Salary, fees and allowances 2024/25 Taxable Expenses 2024/25 Total Remuneration 2024/25 £ £ £ Mark Adam Assessor & ERO 130,037 133,862 791 134,653 Gavin Oag Depute Assessor & ERO 102,696 105,003 742 105,745 Jim Barron Depute Assessor & ERO 93,254 95,131 776 95,907 TOTAL 325,987 333,996 2,309 336,305 The Treasurer and the Clerk to the Board do not receive remuneration from the Valuation Joint Board. The duties of the posts are covered by the post holders’ substantive posts in Moray Council. Details of their salaries are included in the remuneration report for Moray Council. Page 67
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23 Pension Benefits Pension benefits for Councillors and Local Government employees are provided through the North East Scotland Pension Fund, a Local Government Pension Scheme (LGPS). Councillors’ pension benefits are based on career average pay. For benefits earned up to 31 March 2025, the councillor’s pay for each year or part year ending 31 March (other than the pay in the final year commencing 1 April) is increased by the increase in the cost of living, as measured by the appropriate index (or indices) between the end of that year and the last day in the month in which their membership of the scheme ends. The total of the revalued pay is then divided by the year of membership to calculate the career average pay. This is the value used to calculate the pension benefits. The Board pay a contribution to the Pension Fund for the Convener and Depute Convener’s pensions if they are members of the scheme and this is based on a percentage of the cost of the Special Responsibility Allowance. Details are shown on Table 4 below. For local government employees, up until 31 March 2015 pension benefits accrued are based on final salary. This means that pension benefits are based on the final year’s pay and the number of years that person has been a member of the scheme. Benefits earned from 1 April 2015 are based on ‘career average’. The scheme’s normal retirement age for both councillors and employees is 65 for benefits up to 31 March 2015 and the State Pension Age for benefits built up after 1 April 2015. From 1 April 2009, a five-tier contribution system was introduced with contributions from scheme members being based on how much pay falls into each tier. This is designed to give more equality between the cost and benefits of scheme membership. Prior to 2009 contributions rates were set at 6% for all non-manual employees. The members’ contribution rates for 2024/25 remain at the 2009/2010 rates although the pay bandings have been adjusted. The tiers and contribution rates are shown below. Tiered Contribution Pay Rates Pensionable pay 2023-24 Rate (%) 2023/24 Pensionable pay 2024-25 Rate (%) 2024/25 On earnings up to and including £23,000 5.50% On earnings up to an including £27,000 5.50% On earnings above £23,001 and up to £28,100 7.25% On earnings above £27,001 and up to £33,000 7.25% On earnings above £28,101 and up to £38,600 8.50% On earnings above £33,001 and up to £45,300 8.50% On earnings above £38,601 and up to £51,400 9.50% On earnings above £45,301 and up to £60,400 9.50% On earnings above £51,401 12.00% On earnings above £60,401 12.00% Page 68
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24 Pension Benefits (continued) If a person works part-time, their contribution rate is worked out on the whole-time pay rate for the job, with actual contributions paid on actual pay earned. There is no automatic entitlement to a lump sum. Members may opt to give up (commute) some pension for a lump sum up to the limit set by the Finance Act 2004. Up until 31 March 2015, the accrual rate guarantees a pension based on 1/60th of the final pensionable salary and years of pensionable service. (Prior to 2009 the accrual rate guaranteed a pension based on 1/80th and a lump sum based on 3/80th of the final pensionable salary and years of pensionable service). From 1 April 2015, the accrual rate guarantees a pension of 1/49th of pensionable pay for each year. At the end of each year the benefits are revalued and increased by inflation. The value of the accrued benefits has been calculated on the basis of the age at which the person will first become entitled to receive a full pension on retirement without reduction on account of its payment at that age; without exercising any option to commute pension entitlement into a lump sum; and without any adjustment for the effects of future inflation. The pension figures shown relate to the benefits that the person has accrued as a consequence of their local government service, and not just their current appointment. Senior Councillors (Table 4) For the year to 31 March 2024 For the year to 31 March 2025 £ £ Councillor Gatt Convener 930 764 Councillor Smith Depute Convener 0 486 Total 930 1,250 In-year pension contributions The above amounts show the in-year contributions relating to the Special Responsibility Allowance shown in Table 1. Senior Employees (Table 5) The pension entitlements of Senior Employees for the year to 31 March are shown in the table below, together with the contribution made by the Board to each Senior Employees’ pension during the year. Page 69
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25 Pension Benefits (continued) For the year to 31 March 2024 For the year to 31 March 2025 As at 31 March 2025 Difference from March 2024 £ £ £ £ Mark Adam 24,911 13,506 Pension 75,603 5,833 Assessor & ERO Lump Sum 117,339 4,077 Gavin Oag 19,537 10,592 Pension 57,923 4,641 Depute Assessor & ERO Lump Sum 75,799 2,633 Jim Barron 17,721 9,594 Pension 47,048 3,876 Depute Assessor & ERO Lump Sum 62,820 2,099 Total 62,169 33,692 436,532 23,159 In-year pension contributions Accrued pension benefits All senior employees shown in the tables above are members of the North East Scotland Pension Fund. The pension figures shown relate to the benefits that the person has accrued as a consequence of their total local government service and not just their current appointment. General Disclosure by Pay Band The Regulations require information to be provided for the number of persons whose remuneration is £50,000 or more. This information is disclosed in bands of £5,000 and is shown below. General Disclosure by Pay Band (Table 6) The Table includes the remuneration of the senior employees detailed in Table 3. Page 70
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26 Pension Benefits (continued) Councillor Donald Gatt Convener Mark J Adam MRICS AEA (Cert - Scotland) Assessor & Electoral Registration Officer Page 71
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27 COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 This Statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices. This differs from the expenditure to be funded from the requisitions raised by the Board from the three constituent Local Authorities in accordance with statute. The effect on the General Fund is shown in the Movement in Reserves Statement and Note 7 Expenditure and Funding Analysis and Adjustments between Accounting Basis and Funding Basis under Regulations. £000 £000 £000 £000 £000 £000 Expenditure Income Net Expenditure Income Net 4,556 (66) 4,490 Rating and Council Tax Valuation and Electoral Registration 4,980 (398) 4,582 4,556 (66) 4,490 Cost Of Services 4,980 (398) 4,582 (6) (76) (82) Financing and Investment Income and Expenditure 10 19 (97) (78) (4,587) Requisitions and Non-Specific Grant Income 21 (4,725) (179) (Surplus)/Deficit on Provision of Services 8 (221) 17 Deficit on revaluation of PPE 11 - 113 Remeasurement of the Net Defined Benefit Liability 24 (141) 130 Other Comprehensive (Income) and Expenditure (141) (49) Total Comprehensive (Income) and Expenditure (362) 2023/24 2024/25 Note Page 72
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28 MOVEMENT IN RESERVES STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 This Statement shows the movement in the year on the different reserves held by the Board, analysed into usable reserves (those that can be applied to fund expenditure) and unusable reserves. The Statement shows how the movements in the year are broken down between gains and losses incurred in accordance with generally accepted accounting practices and the statutory adjustments required to return to the amounts chargeable against requisitions for the year. The Increase or Decrease line shows the statutory General Fund movements in the year. 2024/25 General Fund Total Usable Reserves Unusable Reserves (Note 18) Total Board Reserves £000 £000 £000 £000 Balance at 31 March 2024 747 747 453 1,200 Total Comprehensive Income and Expenditure 220 220 142 362 Adjustments to usable reserves permitted by accounting standards 5 5 (5) - Adjustments between accounting basis & funding basis under regulations (Note 7) 208 208 (208) - Increase / (Decrease) in Year 433 433 (71) 362 Balance at 31 March 2025 1,180 1,180 382 1,562 2023/24 General Fund Total Usable Reserves Unusable Reserves (Note 18) Total Board Reserves £000 £000 £000 £000 Balance at 31 March 2023 696 696 455 1,151 Total Comprehensive Income and Expenditure 179 179 (130) 49 Adjustments to usable reserves permitted by accounting standards 5 5 (5) - Adjustments between accounting basis & funding basis under regulations (Note 7) (133) (133) 133 - Increase / (Decrease) in Year 51 51 (2) 49 Balance at 31 March 2024 747 747 453 1,200 Page 73
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29 BALANCE SHEET AS AT 31 MARCH 2025 The Balance Sheet shows the value as at the Balance Sheet date of assets and liabilities recognised by the Board. The net assets of the Board (assets less liabilities) are matched by the reserves held by the Board. 31 March 2024 31 March 2025 £000 Note £000 680 Property, Plant & Equipment 11 646 - Property, Plant & Equipment - Right of Use 11 226 680 Long Term Assets 872 38 Short Term Debtors 12 70 1,463 Cash and Cash Equivalents 13 1,709 1,501 Current Assets 1,779 (817) Short Term Creditors 14 (682) - Short Term Liabilities - Right of Use 14 (113) (817) Current Liabilities (795) (164) Unfunded Pension Liability 24 (176) - Other Long Term Liabilities - Right of Use 15 (118) (164) Long Term Liabilities (294) 1,200 Net Assets 1,562 Usable reserves 17 238 General Fund 237 509 Earmarked NDR Reform Reserve 567 - Earmarked Electoral Integrity Programme 376 747 Total 1,180 Unusable Reserves 18 220 Revaluation Reserve 215 459 Capital Adjustment Account 426 (164) Pensions Reserve (176) (62) Employee Statutory Adjustment Account (83) 453 Total 382 1,200 Total Reserves 1,562 The notes on Pages 31 to 57 form part of the Financial Statements. Lorraine Paisey CA Treasurer Page 74
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30 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 The Cash Flow statement shows the changes in cash and cash equivalents of the Board during the financial year. The statement shows how the Board generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Board are funded by way of requisition and grant income or from the recipients of services provided by the Board. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Board’s future service delivery, i.e. assets. 31/03/2024 31/03/2025 £000 £000 179 Net surplus/(deficit) on the provision of services 220 79 Adjust net deficit on the provision of services for non cash movements (Note 20) 133 258 Net cash flows from Operating Activities 353 - Financing Activities (107) 258 Net increase/(decrease) in cash and cash equivalents 246 1,205 Cash and cash equivalents at the beginning of the financial year 1,463 1,463 Cash and cash equivalents at the end of the financial year 1,709 Page 75
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31 NOTES TO THE ACCOUNTS Note 1 Accounting Policies 1 General Principles The Annual Accounts summarise the Board’s transactions for the 2024/25 financial year and its position at the year ended 31 March 2025. The Board is required to prepare Annual Accounts under the Local Authority Accounts (Scotland) Regulations 2014, which section 12 of the Local Government in Scotland Act 2003 requires to be prepared in accordance with proper accounting practices. These practices primarily comprise the Code of Practice on Local Authority Accounting in the United Kingdom 2024/25 and the Service Reporting Code of Practice 2024/25, supported by International Financial Reporting Standards (IFRS) and statutory guidance issued under section 12 of the 2003 Act. The principal accounting policies have been applied consistently throughout the year. The accounting convention adopted in the Annual Accounts is principally historical cost, modified by the revaluation of property, plant and equipment. 2 Accruals of Income and Expenditure Income and expenditure are accounted for in the year in which they take place, not simply when cash payments are made or received. Where income and expenditure has been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the balance sheet. Where the debts may not be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected. 3 Charges to Revenue for Non-Current Assets The service is charged with the following amounts to record the cost of holding non-current assets during the year: • Depreciation attributable to the assets used by the relevant service. • Revaluation and impairment losses on assets used by the service where there are no accumulated gains in the Revaluation Reserve against which the losses can be written off. 4 Requisitions and Contributions Requisitions and contributions relating to capital and revenue expenditure are accounted for on an accruals basis and recognised immediately in the Comprehensive Income and Expenditure Statement as income, except to the extent that the grant or contribution has a condition(s) (as opposed to restrictions) that the Board has not satisfied. 5 Cash and Cash Equivalents The Board uses Moray Council’s bank account for financial transactions and the balance is invested in the Council’s Loans Fund. This balance is repayable on demand and therefore treated as a cash equivalent and is included in the Balance Sheet at amortised cost, which equates to the actual cash value at 31 March 2025. Interest is received from Moray Council on the balance held. Page 76
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32 Note 1 (continued) 6 Benefits Payable During Employment Short-term employee benefits are those due to be settled within 12 months of the year-end. They include such benefits as wages and salaries, paid annual leave and paid sick leave for current employees and are recognised as an expense for services in the year in which employees render service to the Board. An accrual is made for the cost of holiday entitlements earned by employees but not taken before the year-end which employees can carry forward into the next financial year. 7 Termination Benefits Termination benefits are amounts payable as a result of a decision by the Board to terminate an officer’s employment before the normal retirement date or an officer’s decision to accept voluntary redundancy in exchange for those benefits and are charged on an accruals basis in the Comprehensive Income and Expenditure Statement at the earlier of when the Board can no longer withdraw the offer of those benefits or when the Board recognises costs for a restructuring. 8 Going Concern The Annual Accounts have been prepared on a going concern basis. As at 31 March 2025, the Balance Sheet of the Board shows a net asset position of £1.562m. 9 Overheads and Support Services The costs of overheads and support services are charged to those that benefit from the supply or service in accordance with the costing principles of the CIPFA Service Reporting Code of Practice (SeRCOP). The total absorption costing principle is used – the full cost of overheads and support services are shared between users in proportion to the benefits received. 10 Value Added Tax VAT is included in the Comprehensive Income and Expenditure Statement only to the extent that it is irrecoverable. The net amount due to or from HM Revenue and Customs in respect of VAT is included as part of debtors or creditors. 11 Reserves The Board sets aside specific amounts as reserves for future policy purposes. Reserves are created by appropriating amounts out of the General Fund Balance in the Movement in Reserves Statement. When expenditure to be financed from a reserve is incurred, it is charged to the appropriate service in that year to score against the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement. The reserve is then appropriated back into the General Fund Balance in the Movement in Reserves Statement so that there is no net charge against requisitions for the expenditure. Certain reserves are kept to manage the accounting processes for non-current assets, retirement and employee benefits and do not represent usable resources for the Board. 12 Leases In 2024/25, the Board adopted IFRS 16 Leases, as incorporated into the 2024/25 Code of Practice on Local Authority Accounting. The primary impact of the new standard is that arrangements previously treated as operating leases—where leased vehicles, plant, equipment, property, and land were not recognised on the balance sheet—must now be accounted for by recognising a right-of-use asset and a corresponding lease liability as of 1 April 2024. Leases for low-value items (under £6,000) and those expiring on or before 31 Page 77
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33 March 2025 are excluded from these requirements. IFRS 16 has been applied retrospectively, with the cumulative effect recognised on 1 April 2024. This means that right-of-use assets and lease liabilities have been calculated as if IFRS 16 had always been in effect but are recognised in 2024/25 without restating prior year figures. The incremental borrowing rate applied to lease liabilities recognised at the date of initial application was 5.34%. Note 2 Accounting Standards That Have Been Issued But Have Not Yet Been Adopted The Code requires the Council to identify any accounting standards that have been issued but have yet to be adopted and could have a material impact on the accounts. At the balance sheet date, the following new standards and amendments to existing standards have been published but not yet adopted by The Code: • IAS 21 The Effects of Changes in Foreign Exchange Rate (Lack of Exchangeability) • IFRS17 Insurance Contracts The above amendments are not anticipated to have a material impact on the information provided in the financial statements. Note 3 Critical Judgements in Applying Accounting Policies In applying the accounting policies set out in Note 1, the Treasurer has had to make certain judgements about complex transactions or those involving uncertainty about future events. The critical judgements made in the Annual Accounts are: • Assets held at current value are revalued on a five-year basis as set out in the accounting policy for Property, Plant and Equipment. Moray Council’s Asset Manager (Commercial Property), who undertakes valuations on behalf on the Board and is a qualified RICS valuer, asserts that the carrying amount does not materially differ from that which would be determined using current value. In between valuations, a review is conducted to ensure carrying value does not differ from current value. Note 4 Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty The Annual Accounts contains estimated figures that are based on assumptions made by the Board about the future or that are otherwise uncertain. Estimates are made taking into account historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates. The following items in the Board’s Balance Sheet at 31 March 2025 may be subject to estimation uncertainty and, as such, could be revised in future periods as more information becomes available or as circumstances change: Page 78
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34 Note 4 (continued) Item Uncertainties Effect if Actual Results Differ From Assumptions Property, Plant and Equipment (£0.627m) Assets are depreciated over useful lives that are dependent on assumptions about the level of repairs and maintenance that will be incurred in relation to individual buildings. The current economic climate makes it uncertain that the Council will be able to sustain its current spending on repairs and maintenance, bringing into doubt the useful lives assigned to assets Assets held at fair value are revalued on a five year rolling basis by a professionally qualified Royal Institution of Chartered Surveyors (RICS) valuer, Additional valuations are carried out on an ad hoc basis outwith the rolling programme arrangements where it is deemed necessary. The valuer also assess assets not formally revalued for material movements and indexation is applied where applicable. If the useful life of assets is reduced, depreciation increases and the carrying amount of the asset falls. It is estimated that the annual depreciation charge for buildings would increase by £0.004m for every year that useful lives had to be reduced. The estimated effect of a 1% change in the rate used for valuations would be a change up or down of £0.006m. Pension Liability (£0.176m) Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. The effects on the net pension liability of changes in individual assumptions can be measured and are detailed in Note 24. Page 79
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35 Note 5 Material Items of Income and Expenditure Where material items of income and expenditure are not disclosed on the face of the Comprehensive Income and Expenditure Statement, the Code requires that the nature and amount of these items are disclosed in a note to the accounts. The following items are regarded as material: 2023/24 2024/25 Nature £000 £000 Grant income from the Scottish Government 53 376 Barclay Implementation Funding (included in requisitions) 268 268 Grant income from the Scottish Government was received to provide for the introduction of the Electoral Integrity Programme (EIP) from May 2023 across the UK. The EIP falls under the new Elections Act 2022 which contains measures such as introducing the requirement to show ID at polling stations, improving the accessibility of elections to make it easier for people with disabilities to vote, and bringing in changes to postal and proxy voting. Unspent funding in 2024/25 will be put to the earmarked reserve and used in 2025/26. The Barclay Implementation Funding was paid to the three local authorities, Aberdeen City Council, Aberdeenshire Council, and Moray Council and requisitioned in full by the Board, to implement the recommendations from the Barclay review of Non Domestic Rates. Unspent Barclay Funding in 2024/25 will be put to the earmarked reserve and used in future years. Note 6 Events After The Reporting Period The unaudited Annual Accounts were issued on 27 June 2025 and the audited Annual Accounts were authorised for issue on 30 January 2026 by Lorraine Paisey, Treasurer. Events taking place after this date are not reflected in the financial statements or notes. Where events taking place before this date provided information about conditions existing at 31 March 2025, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. Page 80
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36 Note 7 Expenditure and Funding Analysis and Adjustments between Accounting Basis and Funding Basis under Regulations The Expenditure and Funding Analysis shows how annual expenditure is used and funded from resources (requisitions and government grants) by the Board in comparison with those resources consumed by the Board in accordance with generally accepted accounting practices. It also shows how this expenditure is allocated for decision making. Income and Expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement. Net Expenditure chargeable to General Fund £000 Adjustments between Funding and Accounting Basis £000 Adjustments to usable reserves permitted by accounting standards Net Expenditure in the Comprehensive Income and Expenditure Statement £000 Net Expenditure chargeable to General Fund £000 Adjustments between Funding and Accounting Basis £000 Adjustments to usable reserves permitted by accounting standards Net Expenditure in the Comprehensive Income and Expenditure Statement £000 4,612 (127) 5 4,490 Rating and CT valuation & Electoral Registration 4,264 313 5 4,582 4,612 (127) 5 4,490 Net Cost of Services 4,264 313 5 4,582 (4,663) (6) - (4,669) Other Income and Expenditure (4,697) (106) - (4,803) (51) (133) 5 (179) (Surplus) or Deficit (433) 207 5 (221) (696) Opening Balance (747) (51) (Surplus) or Deficit (433) (747) Closing Balance (1,180) 31 March 2025 31 March 2024 RESTATED Page 81
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37 Note 7 (continued) Comparative figures for 2023/24 in Note 7 (Expenditure and Funding Analysis) have been restated to correct a presentation inconsistency identified in the published 2023/24 annual accounts, aligning the EFA with the Comprehensive Income and Expenditure Statement (CIES). Adjustments between the Funding and Accounting Basis 2024/25 Adjustment for Capital Purposes £000 Net Change for pensions adjustments £000 Other Differences £000 Total £000 Rating and CT valuation & Electoral Registration 141 152 20 313 Net Cost of Services 141 152 20 313 Other Income and Expenditure - 1 (107) (106) Difference between the General Fund Deficit and the Comprehensive Income and Expenditure Statement Deficit 141 153 (87) 207 2023/24 Adjustment for Capital Purposes £000 Net Change for pensions adjustments £000 Other Differences £000 Total £000 Rating and CT valuation & Electoral Registration (5) (73) (49) (127) Net Cost of Services (5) (73) (49) (127) Other Income and Expenditure - (6) - (6) Difference between the General Fund Deficit and the Comprehensive Income and Expenditure Statement Deficit (5) (79) (49) (133) Page 82
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38 Note 7 (continued) a) Adjustments for Capital Purposes This column adds in depreciation and impairment and revaluation gains and losses in the services line. b) Net Change for the Pensions Adjustments This column reflects the removal of pension contributions and the addition of IAS 19 Employee Benefits pension related income and expenditure. For the service this reflects the removal of the employer pension contributions made by the Board as allowed by statute and the replacement with current service costs and past service costs. c) Other Differences This column adjusts for differences between the amounts debited/credited to the Comprehensive Income and Expenditure Statement and amounts payable/receivable recognised under statute. For the service this reconciles the impact of accruals for accumulating compensated absences e.g. holiday pay as required by IAS19 Employee Benefits, to the salaries actually payable in the financial year in accordance with statute. Note 8 Expenditure and Income Analysed by Nature The Board’s expenditure and income is analysed as follows: Expenditure and Income 2023/24 2024/25 £000 £000 Rating, Council Tax Valuation and Electoral Registration Rating, Council Tax Valuation and Electoral Registration Employee benefit expenses 3,370 3,702 Other service expenses 1,118 1,061 Support service recharges 69 71 Depreciation, amortisation and impairment (1) 146 Interest payments (6) 19 Total Expenditure 4,550 4,999 Requisitions (4,588) (4,725) Government grants and other service income (66) (398) Interest and investment income (76) (97) Total Income (4,729) (5,220) (Surplus)/Deficit on the provision of services (179) (221) Page 83
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39 Note 9 Earmarked Portions of the General Fund Portions of the General Fund are earmarked for specific purposes as described below. Underspends or overspends against budget for these activities are transferred in or out of the earmarked funds at the year end. General Services NDR Reform Electoral Integrity Programme Total £000 £000 £000 £000 Balance at 31 March 2024 238 509 - 747 Increase/(Decrease) 2024/25 (1) 58 376 433 Balance at 31 March 2025 237 567 376 1,180 NDR Reform The purpose of this fund is to ring-fence funding received from constituent authorities to implement reforms from the Barclay Report which followed a review into the non-domestic rates system in Scotland. The Non-Domestic Rates (Scotland) Bill took effect from 1 April 2020. Electoral Integrity Programme The reserves earmarked for the Electoral Integrity programme are intended to support the implementation of changes introduced by the Elections Act 2022, including improvements to voter registration processes, boundary updates, and measures to enhance the security and accuracy of the electoral register. Note 10 Financing and Investment Income and Expenditure 2023/24 2024/25 £000 £000 Pensions interest cost/(gain) and expected return on pensions assets (6) 1 Interest receivable and similar income (76) (97) Interest on Right of Use Asset lease liability - 18 (82) (78) Note 11 Property, Plant and Equipment Recognition All expenditure on the acquisition, creation, enhancement or replacement of an asset or part of an asset is capitalised, providing the asset yields benefit for more than one year to the Board and the services it provides and the cost can be reliably measured. Where a component is replaced or restored, the carrying amount of the old component is derecognised and the new component reflected in the carrying amount. Page 84
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40 Note 11 (continued) Measurement New assets are measured at cost. Cost includes the original purchase of the asset and the costs attributable to bringing the assets to its working condition for its intended use. Assets are measured at current value which is Existing Use Value for Land and Buildings and Depreciated Historic Cost for Equipment and Furniture which is used as a proxy for current value. Derecognition The carrying amount of an item of property, plant and equipment is derecognised when an asset is disposed of or when no future economic benefits or service potential are expected from its use. The value of the asset in the Balance Sheet and any receipt is written to the Comprehensive Income and Expenditure Statement as part of the gain or loss on disposal. The gain or loss on disposal is not a charge against Requisitions, as the cost of non current assets is fully provided for under separate arrangements for Capital Financing. The carrying amount of the non current asset disposal is transferred to the Capital Adjustment Account and the disposal proceeds transferred to the Capital Fund and reported in the Movement in Reserves Statement. Depreciation Depreciation is provided for on all items of property, plant and equipment with a finite useful life by the systematic allocation of their depreciable amount over their useful lives. An exception is made for land where it can be demonstrated that it has an unlimited useful life. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. Depreciation is calculated using the straight-line method. In the year of acquisition, a full year’s depreciation is provided for on all assets. In the year of disposal, no depreciation is charged. The following useful lives and depreciation rates have been used in the calculation of depreciation:- Other Land & Buildings - 35-60 years, land is not depreciated Vehicles, Plant, Furniture & Equipment – 5-10 years Impairment Assets are assessed at each year end as to whether there is any indication that an asset may be impaired. Where indications exist and any possible differences are estimated to be material, the recoverable amount of the asset is estimated and, where this is less than the carrying amount of the asset, an impairment loss is recognised. Where an impairment loss is reversed subsequently, the reversal is credited to the Comprehensive Income and Expenditure Statement, up to the amount of the original loss, adjusted for depreciation that would have been charged if the loss had not been recognised. Revaluations The Board carries out a rolling programme that ensures that all Property, Plant and Equipment required to be measured at current or fair value is revalued at least every five years, with an annual assessment to ensure the carrying value within the financial statements is materially accurate. The last revaluation of Land and Buildings was done with effect from 31 March Page 85
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41 Note 11 (continued) 2024 and the next revaluation is scheduled during 2028/29. All valuations were carried out by Moray Council’s Asset Manager (Commercial Property) in accordance with the methodologies and bases for estimation set out in the professional standards of the Royal Institution of Chartered Surveyors. Valuations of vehicles, plant, furniture and equipment are based on depreciated historic cost as a proxy for current values. 2024/25 Other Land and Buildings Vehicles, Plant, Furniture & Equipment Right of Use Assets Total Property, Plant and Equipment £000 £000 £000 £000 Cost or valuation At 1 April 2024 627 355 - 982 Additions - - - - Recognition of Right of Use Asset - - 338 338 Revaluation decreases recognised in the Revaluation Reserve - - - - Revaluation increases recognised in the Provision of Services - - - - At 31 March 2025 627 355 338 1,320 Accumulated Depreciation and Impairment At 1 April 2024 - 302 - 302 Depreciation charge 14 20 112 146 Depreciation written out to the Revaluation Reserve - - - - Depreciation written out to the Provision of Services - - - - at 31 March 2025 14 322 112 448 Net Book Value at 31 March 2024 627 53 - 680 at 31 March 2025 613 33 226 872 Page 86
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42 Note 11 (continued) 2023/24 Other Land and Buildings Vehicles, Plant, Furniture & Equipment Right of Use Assets Total Property, Plant and Equipment £000 £000 £000 £000 Cost or valuation At 1 April 2023 696 355 - 1,051 Additions - - - - Revaluation decreases recognised in the Revaluation Reserve (77) - - (77) Revaluation increases recognised in the Provision of Services 8 - - 8 At 31 March 2024 627 355 - 982 Accumulated Depreciation and Impairment At 1 April 2023 72 283 - 355 Depreciation charge 14 19 - 33 Depreciation written out to the Revaluation Reserve (60) - - (60) Depreciation written out to the Provision of Services (26) - - (26) at 31 March 2024 - 302 - 302 Net Book Value at 31 March 2023 624 72 - 696 at 31 March 2024 627 53 - 680 Note 12 Short Term Debtors 2023/24 2024/25 £000 £000 Prepayments 38 70 38 70 Note 13 Cash and Cash Equivalents 2023/24 2024/25 £000 £000 Temporary Investment in the Moray Council Loans Fund 1,463 1,709 Page 87
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43 Note 14 Short Term Creditors 2023/24 2024/25 £000 £000 Trade Payables 164 156 Other Payables ^ 653 526 Total 817 682 ^ Other Payables Central Government Bodies 68 74 Short Term Employee Absences 82 112 Other Local Authorities 503 340 Other Payables 653 526 Right of Use Asset - 113 Note 15 Other Long Term Liabilities 2023/24 2024/25 £000 £000 Right of Use Asset - 118 Total - 118 Note 16 Financial Instruments Classifications A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another. Non-exchange transactions, such as those relating to taxes and government grants, do not give rise to financial instruments. Financial Liabilities A financial liability is an obligation to transfer economic benefits controlled by the Board and can be represented by a contractual obligation to deliver cash or financial assets or an obligation to exchange financial assets and liabilities with another entity that is potentially unfavourable to the Board. The majority of the Board's financial liabilities held during the year are measured at amortised cost and comprised: • Creditors for requisitions due to be returned to constituent authorities • Trade payables for goods and services received Financial Assets A financial asset is a right to future economic benefits controlled by the Board that is represented by cash, equity instruments or a contractual right to receive cash or other financial assets or a right to exchange financial assets and liabilities with another entity that is potentially favourable to the Board. The financial assets held by the Board during the year are accounted for under the following classification: Page 88
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44 • Amortised cost (where cash flows are solely payments of principal and interest and the business model is to collect those cash flows) comprising: • temporary investment in the Moray Council Loans Fund • trade receivables for goods and services provided Financial assets held at amortised cost are shown net of a loss allowance reflecting the statistical likelihood that the borrower or debtor will be unable to meet their contractual commitments to the Board. Fair Value For all categories of financial assets and liabilities held by the Board, there was no difference between the carrying value and the fair value at the Balance Sheet date and all are in Level 2 of the fair value hierarchy. Financial Instruments – Balances The financial liabilities disclosed in the Balance Sheet are analysed across the following categories: 2023/24 2024/25 £000 £000 Current (Short Term) Liabilities: Trade Payables 164 156 Other Payables 653 526 Lease Liabilities - Right of Use - 113 Total 817 795 Other Payables: Tax Creditors included above (124) (117) Requisition Creditors included above (447) (297) Short Term Employee Absences included above (82) (112) Total Other Payables (653) (526) Total Financial Liabilities - Current 164 269 Non-Current (Long Term) Liabilities: Other Long Term Liabilities - Right of Use - 118 Total Financial Liabilities - Non - Current - 118 The financial assets disclosed in the Balance Sheet are analysed across the following categories: 2023/24 2024/25 £000 £000 Temporary Investment in the Moray Council Loans Fund 1,463 1,709 Note 17 Usable Reserves General Fund The creation of a General Fund was introduced to provide the Assessor with some flexibility to investigate any spend-to-save projects which would require one-off expenditure in order to deliver future budget savings. The reserve also acts as a contingency for any unexpected costs in future years. Details of the earmarked reserve can be found in Note 9. Page 89
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45 Note 17 (continued) 2023/24 2024/25 Usable Reserves £000 £000 General Fund 238 237 Earmarked NDR Reform Reserve 509 567 Earmarked Electoral Integrity Programme - 376 747 1,180 Note 18 Unusable Reserves 2023/24 2024/25 £000 £000 Revaluation Reserve 220 215 Capital Adjustment Account 459 426 Pension Reserve (164) (176) Employee Statutory Adjustment Account (62) (83) 453 382 Revaluation Reserve The Revaluation Reserve contains gains made by the Board arising from increases in the value of its Property, Plant and Equipment. The reserve contains only revaluation gains accumulated since 1 April 2007, the date that the Reserve was created. Accumulated gains arising before that date are consolidated into the balance on the Capital Adjustment Account. 2023/24 2024/25 £000 £000 Balance at 1 April 242 220 Revaluations (17) - Difference between fair value depreciation and historical cost depreciation (5) (5) Balance at 31 March 220 215 Page 90
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46 Note 18 (continued) Employee Statutory Adjustment Account The Employee Statutory Adjustment Account absorbs the differences that would otherwise arise on the General Fund Balance from accruing for compensated absences earned but not taken in the year, e.g. annual leave entitlement carried forward at 31 March. Statutory arrangements require that the impact on the General Fund Balance is neutralised by transfers to or from the Account. 2023/24 2024/25 £000 £000 Balance at 1 April (110) (62) Settlement or cancellation of accrual made at the end of the preceding year 110 62 Amounts accrued at the end of the current year (62) (83) Balance at 31 March (62) (83) Capital Adjustment Account The Capital Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets under statutory provisions. The Account also contains revaluation gains accumulated on Property, Plant and Equipment before 1 April 2007, the date that the Revaluation Reserve was created to hold such gains. Page 91
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47 2023/24 2024/25 £000 £000 Balance at 1 April 453 459 Reversal of items relating to capital expenditure debited or credited to the Comprehensive Income and Expenditure Statement Charges for depreciation and impairment of non- current assets 6 (29) Adjustment for depreciation of Right of Use asset - (112) Adjustment for Principal Repayment of the IFRS16 Lease Liability - 108 Balance 31 March 459 426 Note 18 (continued) Pensions Reserve The Pensions Reserve absorbs the timing differences arising from the different arrangements for accounting for post-employment benefits and for funding benefits in accordance with statutory provisions. The Board accounts for post-employment benefits in the Comprehensive Income and Expenditure Statement as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and investment returns on any resources set aside to meet the costs. However, statutory arrangements require benefits earned to be financed as the Board makes employer's contributions to pension funds or eventually pays any pensions for which it is directly responsible. The debit balance on the Pensions Reserve therefore shows a shortfall in the benefits earned by past and current employees and the resources the Board has set aside to meet them. The statutory arrangements will ensure that funding will have been set aside by the time the benefits come to be paid. Page 92
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48 2023/24 2024/25 £000 £000 Balance at 1 April (130) (164) Remeasurements of the net defined benefit (liability)/asset (113) 142 Reversal of items relating to retirement benefits debited or credited to the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement (458) (462) Employer's pensions contributions and direct payments to pensioners payable in the year 537 308 Balance at 31 March (164) (176) Note 19 External Audit Costs The agreed external audit fee for 2024/25 was £0.011m for work undertaken in accordance with the Code of Audit Practice (2023/24 £0.013m). Note 20 Cashflow – Analysis of Net Deficit on the provision of services for non cash movements 2023/24 2024/25 £000 £000 Depreciation/Impairment charges 1 (146) Pension Liability 79 (154) Increase/(Decrease) in Debtors (47) 32 Decrease in Revenue Creditors (112) 135 (79) (133) Note 21 Requisition and Grant Income The Board credited the following requisitions to the Comprehensive Income and Expenditure Statement. The requisitions are based on population. Page 93
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49 2023/24 2024/25 £000 £000 Credited to Requisitions and Non Specific Grant Income: Requisition from Aberdeen City Council (1,952) (1,947) Requisition from Aberdeenshire Council (2,255) (2,249) Requisition from Moray Council (827) (826) Total (5,034) (5,022) Returned to constituent authorities: Aberdeen City Council 173 114 Aberdeenshire Council 200 134 Moray Council 74 49 Total 447 297 Total Requisition and Grant Income (4,587) (4,725) Page 94
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50 Note 22 Leases Board as Lessee Right of Use Assets The Board implemented IFRS 16 Leases from 1 April 2024, in line with the Code of Practice on Local Authority Accounting in the United Kingdom 2024/25. This standard removes the former distinction between operating and finance leases for lessees. The Board leases office accommodation within Woodhill House from Aberdeenshire Council, which was previously treated as an operating lease. Under IFRS 16, the Board now recognises a right-of-use asset and a corresponding lease liability from the lease commencement date. Lease payments made in 2024/25 totalled £0.125m (£0.125m in 2023/24). Where a lease conveys the right to use an identified asset, IFRS 16 requires that it be recognised on the Balance Sheet as a right-of-use asset with an associated lease liability. Lease payments comprise both principal and interest elements: the principal reduces the outstanding liability, while the interest is charged to revenue on a straight-line basis over the lease term. The table below shows the change in the value of right-of-use assets held under leases by the Board and their liabilities. Land and Buildings Total Cost of Valuation £000 £000 At 1 April 2024 Recognition of Right of Use Assets 338 338 Depreciation charge (112) (112) Value at 31 March 2025 226 226 2023/24 2024/25 Finance Lease Liabilities £000 £000 Not later than one year - 113 Later than one year and not later than five years - 118 Later than five years - - Total Liabilities - 231 Analysed by:- £000 £000 Current - 113 Non-Current - 118 - 231 Page 95
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51 Note 22 (continued) The lease liability recognised at 1 April 2024 was measured as the present value of future lease payments, discounted using the Board’s incremental borrowing rate. The difference between the operating lease commitment disclosed at 31 March 2024 and the opening lease liability recognised on transition relates solely to the effect of discounting. The table below shows the reconciliation of the movement. £000 Operating lease commitments at 31 March 2024 375 Total undiscounted lease payments 375 Effect of discounting using the incremental borrowing rate (5.34%) (37) Lease payment on 1 April 2024 (125) Opening lease liability recognised at 1 April 2024 213 Note 23 Related Parties The Board is required to disclose material transactions with related parties - bodies or individuals that have the potential to control or influence the Board or to be controlled or influenced by the Board. Disclosure of these transactions allows readers to assess the extent to which the Board might have been constrained in its ability to operate independently or might have secured the ability to limit another party's ability to bargain freely with the Board. Constituent Authorities The constituent authorities have the potential to control or influence the Board as they provide the majority of the Board's funding. Details are shown in Note 21. The Board also made payments to the constituent authorities in the normal course of business. The amounts are detailed below. 2023/24 2024/25 £000 £000 Aberdeen City Council 61 65 Aberdeenshire Council 192 342 Moray Council 115 124 The amounts owed to the constituent authorities for requisitions and normal business activities at 31 March were: Aberdeen City Council 173 114 Aberdeenshire Council 207 138 Moray Council 160 139 Members Members of the Board have direct control over the Board's financial and operating policies. The total of members' allowances paid is shown in the Remuneration Report. There were no Page 96
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52 other material transactions with members other than the allowances shown in the Remuneration Report. Note 24 Defined Benefit Pension Scheme Participation in Pension Scheme As part of the terms and conditions of employment of its officers, the Board makes contributions towards the cost of post-employment benefits. Although these benefits will not actually be payable until the employees retire, the Board has a commitment to make the payments for those benefits and must disclose them at the time that employees earn their future entitlement. The Board participates in the North East Scotland Pension Fund (NESPF), a Local Government Pension Scheme, which is administered by Aberdeen City Council. Up until 31 March 2015 pension benefits accrued are based on final salary. This means that pension benefits are based on the final year's pay and the number of years that person has been a member of the scheme. Benefits earned from 1 April 2015 are based on career average salary. The Scheme is a funded defined benefit scheme, meaning that the Board and employees pay contributions into a fund, calculated at a level intended to balance the pension liabilities with investment assets over a period of time. There are also arrangements in place for the award of discretionary post-retirement benefits upon early retirement. This is an unfunded defined benefit arrangement under which liabilities are recognised when awards are made. However, there are no investment assets built up to meet these pension liabilities and cash has to be generated to meet actual pension payments as they eventually fall due. Page 97
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53 Note 24 (continued) The North East Scotland Pension Fund is operated under the regulatory framework for the Local Government Pension Scheme and the governance of the scheme is the responsibility of the Pensions Committee. The Committee is comprised of nine elected members of Aberdeen City Council. Policy is determined in accordance with the Pensions Fund Regulations. Following the introduction of The Local Government Pension Scheme (Governance) (Scotland) Regulations 2015, the Pension Fund took the opportunity to review its governance arrangements. To comply with these regulations, the Pension Fund implemented a Pension Board with representation from Unions and Employers from the 1 April 2015. With the introduction of the Pension Board, the Joint Investment Advisory Committee was disbanded. The principal risks to the scheme are the longevity assumptions, statutory changes to the scheme, changes to inflation, bond yields and the performance of the investments held by the scheme. These are mitigated to a certain extent by the statutory requirements to charge the General Fund the amounts required by statute as described in the accounting policy note. Transactions relating to Post-employment Benefits In relation to the North East Scotland Pension Fund, the Board recognises the cost of retirement benefits in the reported cost of services when they are earned by employees, rather than when the benefits are eventually paid as pensions. However, the charge required to be made against requisitions is based on the cash payable in the year, so the real cost of post- employment/retirement benefits is reversed out in the Movement in Reserves Statement. The following transactions have been made in the Comprehensive Income and Expenditure Statement and Movement in Reserves Statement during the year: Page 98
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54 Note 24 (continued) COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT 2023/24 2024/25 £000 £000 Cost of Services: Past Service Cost 0 0 Current Service Cost and administration expenses 464 460 Financing and Investment Income and Expenditure: Net Interest Expense (6) 1 Total Post Employment Benefit Charged to the Surplus or Deficit on the Provision of Services 458 461 Other Post Employment Benefit Charged to the Comprehensive Income and Expenditure Statement. Remeasurement of the Net Defined Benefit Liability comprising: Expected return on pension fund assets (412) 690 Actuarial (gain)/loss on financial assumptions 665 (3,624) Effect of Asset Ceiling (140) 2,793 Total Post Employment Benefit Charged to the Comprehensive Income and Expenditure Statement. 113 (141) MOVEMENT IN RESERVES STATEMENT Reversal of net charges made to the Surplus or Deficit for the Provision of Services for post employment benefits in accordance with the Code 458 461 Actual amount charged against requisitions for pensions in the year 537 308 Page 99
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55 Note 24 (continued) Pensions Assets and Liabilities Recognised in the Balance Sheet The change in the net pensions asset is analysed into the following components: Current Service Cost: The increase in liabilities as a result of years of service earned this year. Net Interest on the Net Defined Benefit Liability: The change during the year in the net defined benefit liability that arises from the passage of time – charged to the Financing and Investment Income and Expenditure line of the Comprehensive Income and Expenditure Statement. It is the difference between the interest (increase) in the value of the liabilities as the benefits are one year closer to being paid and the interest on pension assets based on assets held at the start of the year. The calculation is based on the discount rate in force at the beginning of the year. Remeasurements: This comprises the Return on Plan Assets (excluding amounts included in the Net Interest on the Net Defined Benefit Liability) and Actuarial Gains and Losses which are changes in the net pensions liability that arise because events have not coincided with assumptions made at the last actuarial valuation or because the actuaries have updated their assumptions – charged to the Pensions Reserve as Other Comprehensive Income and Expenditure. Contributions Paid to the Pension Fund: Cash paid as employer’s contributions to the pension fund in settlement of liabilities; not accounted for as an expense. The amount included in the Balance Sheet arising from the Board’s obligation in respect of its defined benefit plan is as follows: 31 March 2024 31 March 2025 £000 £000 Present value of the funded defined benefit obligation (29,337) (26,535) Present value of the unfunded defined benefit obligation (164) (176) Total present value of the defined benefit obligation (29,501) (26,711) Fair value of plan assets 40,081 40,598 IFRIC 14 Asset Ceiling Adjustment (10,744) (14,063) Net liability arising from defined benefit obligation (164) (176) The Board has applied the asset ceiling test as prescribed by IFRIC 14 which limits the measurement of the defined benefit asset to the ‘present value of economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.’ The pension asset can be recognised as the lower of the net pension asset or the present value of any economic benefits available. The Board’s actuaries undertook this assessment and the asset value in the accounts has reduced as the present value of the benefits available were lower than the pension asset. The net liability arising from the unfunded defined benefit obligation remains as there is no right to offset this. Page 100
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56 Note 24 (continued) The reconciliation of the Board’s share of the present value of the North East Scotland Pension Fund’s defined benefit liability is as follows: 31 March 2024 31 March 2025 £000 £000 1 April (28,165) (29,501) Current Service Cost (453) (460) Interest on pension liabilities (1,353) (1,420) Remeasurements: Experience loss (1,016) 391 Gain on financial assumptions 0 3,580 Gain on demographic assumptions 351 (347) Contributions by scheme participants (174) (186) Benefits Paid 1,309 1,232 Past Service Cost 0 0 31 March (29,501) (26,711) The reconciliation of the movements in the Board’s share of the fair value of the North East Pension Fund’s assets is as follows: 31 March 2024 31 March 2025 £000 £000 1 April 38,411 40,081 Interest on plan assets 1,867 1,945 Remeasurements (assets) 412 (690) Administration expenses (11) 0 Employer Contributions 537 308 Contributions by scheme participants 174 186 Benefits Paid (1,309) (1,232) 31 March 40,081 40,598 Page 101
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57 Note 24 (continued) Asset Ceiling The asset ceiling is the present value of any economic benefit available to the Employer in the form of refunds or reduced future employer contributions. The closing position at 31 March 2025 is a net asset of £14.063 million (net asset of £10.744 million at 31 March 2024) before any adjustment for the asset ceiling. The Board’s chosen methodology assumes that it has no unconditional right to a refund from the Fund and therefore there is no economic benefit available as a refund. The methodology assumes that economic benefit is available to the Board as a reduction in future contributions; the asset ceiling therefore reflects the economic benefit that may be achieved through future contributions and has been calculated on this basis. The economic benefit available as a reduction in future contributions cannot be negative and is therefore restricted to the size of the net asset. The impact of the asset ceiling is shown in the table below: 2023/24 2024/25 £000 £000 Opening impact of asset ceiling 10,376 10,744 Interest on impact of asset ceiling 508 526 Actuarial losses/(gains) (140) 2,793 Closing impact of asset ceiling 10,744 14,063 Page 102
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58 Note 24 (continued) The Board’s share of the Pension Fund’s assets is: Fair Value of Plan Assets % Fair Value of Plan Assets % 2023/24 2024/25 £000 £000 Equity Securities: Consumer - - Manufacturing - - Energy and Utilities - - Financial Institutions - - Health and Care - - Information Technology - - Other 23,188.0 58% 20,152.8 50% Debt Securities: Corporate Bonds (investment) - - Corporate Bonds (non-investment) - - UK Government 2,236.0 6% 2,597.5 6% Other - 553.4 1% Private Equity: All - 2,929.8 7% Real Estate: UK Property 2,483.0 6% 2,775.9 7% Overseas Property - 164.5 1% Investment Funds and Unit Trusts: Equities - - Bonds - 4,481.9 11% Hedge Funds - - Commodities - - Infrastructure 621.0 1% 3,359.6 8% Other 10,468.0 26% - Derivatives: Inflation - - Interest Rate - - Foreign Exchange - - Other - 797.8 2% Cash and Cash Equivalents: All 1,085.0 3% 2,784.8 7% Total Assets 40,081.0 40,598.0 The presentation of the Defined Benefit Pension Scheme note has been amended due to a change in actuary from Mercer to Hymans Robertson LLP. This change has affected the format and categorisation of some of the pension figures. The comparative figures for 2023/24 Page 103
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59 Note 24 (continued) have been restated accordingly to ensure consistency and transparency, but the overall totals remain unchanged. Basis for Estimating Assets and Liabilities The most recent valuation was carried out as at 31 March 2024 and has been updated by Hymans Robertson LLP, independent actuaries to the North East Scotland Pension Fund, in order to assess the liabilities of the Fund as at 31 March 2025. Liabilities have been assessed on an actuarial basis using the projected unit credit method, an estimate of the pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels etc. The principal assumptions used by the actuary have been: 31 March 2024 31 March 2025 Financial assumptions: Discount rate 4.90% 5.80% Rate of increase in salaries 4.20% 4.30% Rate of increase in pensions 2.80% 2.80% Rate of CPI inflation 2.70% 2.80% Mortality assumptions: Longevity at 65 for current pensioners: Men 20.7 20.9 Women 23.0 23.3 Longevity at 65 for future pensioners: Men 22.0 22.2 Women 24.8 25.1 Sensitivity Analysis The estimation of the defined benefit obligations is sensitive to the actuarial assumptions set out in the table above. The sensitivity analysis below has been determined based on reasonable possible changes of the assumptions occurring at the end of the reporting period and assumes for each change that the assumption analysed changes while all the other assumptions remain constant. The sensitivities regarding the principal assumptions used to measure the scheme obligations are set out below. Change in assumptions at 31 March 2025: Approximate % increase to Employer Approximate Monetary Amount (£000) 0.1% decrease in Real Discount Rate 2% 425 1 year increase in member life expectancy 4% 1,068 0.1% increase in the Salary Increase Rate 0% 50 0.1% increase in the Pension Increase Rate 1% 386 Page 104
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60 Note 24 (continued) Funding Strategy Statement (FSS) The FSS sets out how the administering authority balances the potentially conflicting aims of affordability of contributions, transparency of process, stability of employers’ contributions, and prudence in the funding basis. The Pension Committee’s long-term funding objective is to achieve and maintain assets equal to 100% of projected accrued liabilities, assessed on an ongoing basis. The current actuarial valuation of the Fund is effective as at 31 March 2023 and the results indicate that overall the assets represented 128% of projected accrued liabilities at the valuation date. Investments that would most closely match the pension liabilities would be gilts, predominantly index- linked, reflecting the nature of the Fund’s liabilities. However, the Fund invests in other assets, in the expectation that these will provide higher returns albeit without any guarantee that higher returns will be achieved over any particular year. The benefit of higher investment return is that, over the long term, a higher level of funding should achieve lower employer contribution rates. However the additional investment returns from growth assets come with a price: greater volatility relative to the liabilities thus introducing risk. There is a trade-off between the benefits of additional investment return from greater exposure to growth assets and the greater predictability from having greater exposure to liability matching assets. The asset proportions of the Fund at 31 March 2025, with March 2024 in brackets were: equity securities 50% (58%), debt securities 7% (6%), private equity 7% (0%), real estate 8% (6%), investment funds and unit trusts 19% (27%), derivatives 2% (0%) and cash/cash equivalents 7% (3%). This is based on the Board’s proportion of assets held as supplied by the actuary, rather than the proportions held by the fund as a whole. Impact on the Board’s Cash Flows While the Fund’s main objective is to ensure solvency of the NESPF they also aim to keep employers' contributions at as constant a rate as possible. Following the 2023 valuation the Pensions Committee has agreed a strategy with the scheme's actuary to achieve a funding level of 100% over an average surplus spread period of 15 years and have maintained an employer contribution rate requirement of 10.1% for local authorities across the scheme. During the valuation process employer rates are set for a period of three years with the next triennial valuation due as at 31 March 2026 to determine a funding level and set the rates for 2027/28 onwards. The projected employer contributions expected to be made to the Local Government Pension Scheme in the year to 31 March 2026 is £0.285m. The weighted average duration of the liabilities for scheme members at the 31 March 2023 valuation is 15 years. Page 105
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61 GLOSSARY OF TERMS EXPENDITURE Employee Benefit Expenses Includes direct and indirect employee expenses. Direct expenses include salaries and overtime, employer’s national insurance and superannuation contributions. Indirect employee expenses include relocation cost, interview expenses, training and staff advertising. Other Service Expenses Includes • rent, rates, repairs and maintenance and premises-related expenditure at the area offices in Banff, Elgin and Woodhill House headquarters. • all costs associated with the hire or use of transport, including staff travel allowances and public transport and • the cost of purchasing equipment, furniture and materials used in the operation or administration of the service, including printing and stationery, canvass expenses and valuation appeal panel costs. Support Services This is a charge from Moray Council for services that support the Board in its provision of services to the public. These include Legal Services, Financial Services, Internal Audit and Human Resources. Depreciation Depreciation is a charge to the Comprehensive Income and Expenditure Statement, reflecting the decline in value of assets as a result of their usage or ageing. Impairment Impairment is a charge to the Comprehensive Income and Expenditure Statement, reflecting that the recoverable amount of an asset is less than its carrying amount. INCOME Requisitions Funding received from the constituent authorities for which the Board provides a service. Page 106
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62 GLOSSARY OF TERMS (continued) OTHER TERMS CIPFA The Chartered Institute of Public Finance and Accountancy LASAAC Local Authority (Scotland) Accounts Advisory Committee IFRS International Financial Reporting Standard The Code The Code of Practice on Local Authority Accounting in the United Kingdom SeRCOP Service Reporting Code of Practice Fair Value IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). When measuring fair value, an entity uses the assumptions that market participants would use when pricing the asset or liability under current market conditions, including assumptions about risk. Current Value For operational land and buildings, current value is the amount that would be paid for the asset in its existing use. Economic Cost The total cost of performing an activity or following a decision or course of action. Page 107
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63 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRAMPIAN VALUATION JOINT BOARD AND THE ACCOUNTS COMMISSION REPORTING ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion on financial statements We certify that we have audited the financial statements in the annual accounts of Grampian Valuation Joint Board for the year ended 31 March 2025 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the Comprehensive Income and Expenditure Statement, Movement in Reserves Statement, Balance Sheet, Cash Flow Statement, 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 2024/25 (the 2024/25 Code). In our opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the body as at 31 March 2025 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2024/25 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 body 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 body. 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. 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 body’s ability 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. Page 108
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64 These conclusions are not intended to, nor do they, provide assurance on the body’s current or future financial sustainability. However, we report on the body’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 Treasurer and Grampian Valuation Joint Board for the financial statements As explained more fully in the Statement of Responsibilities for the Annual Accounts, the Treasurer 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 Treasurer 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 Treasurer is responsible for assessing the body’s ability 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 body’s operations. The Grampian Valuation Joint Board 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 body; • inquiring of the Treasurer as to other laws or regulations that may be expected to have a fundamental effect on the operations of the body; • inquiring of the Treasurer concerning the body’s policies and procedures regarding compliance with the applicable legal and regulatory framework; Page 109
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65 • 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 body’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 Treasurer is responsible for the other information in the annual accounts. The other information comprises the Management Commentary, Annual Governance Statement, Statement of Responsibilities for the Annual Accounts 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. Page 110
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66 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. Joanne Brown, (for and on behalf of Grant Thornton UK LLP), 120 Bothwell Street, Glasgow, G2 7JS Date: Page 111
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Appendix 2
Grant Thornton UK LLP
120 Bothwell Street
Glasgow
G2 7JS
Dear Grant Thornton UK LLP
Grampian Valuation Joint Board
Financial Statements for the year ended 31 March 2025
This representation letter is provided in connection with the audit of the financial statements of Grampian
Valuation Joint Board for the year ended 31 March 2025 for the purpose of expressing an opinion as to whether
financial statements give a true and fair view in accordance with International Financial Reporting Standards
and the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2024/25 and
applicable law.
We confirm that to the best of our knowledge and belief having made such inquiries as we considered
necessary for the purpose of appropriately informing ourselves:
Financial Statements
i. We have fulfilled our responsibilities for the preparation of the financial statements in accordance with
International Financial Reporting Standards and the CIPFA/LASAAC Code of Practice on Local Authority
Accounting in the United Kingdom 2024/25 ("the Code"); in particular the financial statements are fairly
presented in accordance therewith.
ii. We have complied with the requirements of all statutory directions affecting the body and these
matters have been appropriately reflected and disclosed in the financial statements.
iii. The body has complied with all aspects of contractual agreements that could have a material effect on
the financial statements in the event of non-compliance. There has been no non-compliance with
requirements of any regulatory authorities that could have a material effect on the financial statements
in the event of non-compliance.
iv. We acknowledge our responsibility for the design, implementation and maintenance of internal control
to prevent and detect fraud.
v. Significant assumptions used by us in making accounting estimates, including those measured at fair
value, are reasonable. We are satisfied that the material judgements used in the preparation of the
financial statements are soundly based, in accordance with the Code and adequately disclosed in the
financial statements. We understand our responsibilities includes identifying and considering
alternative, methods, assumptions or source data that would be equally valid under the financial
reporting framework, and why these alternatives were rejected in favour of the estimate used. We are
satisfied that the methods, the data and the significant assumptions used by us in making accounting
estimates and their related disclosures are appropriate to achieve recognition, measurement or
disclosure that is reasonable in accordance with the Code and adequately disclosed in the financial
statements.
vi. We confirm that we are satisfied that the actuarial assumptions underlying the valuation of pension
scheme assets and liabilities for IAS19 Employee Benefits disclosures are consistent with our
Item 8.
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knowledge. We confirm that all settlements and curtailments have been identified and properly accounted for. We also confirm that all significant post-employment benefits have been identified and properly accounted for. vii. Except as disclosed in the financial statements: a. there are no unrecorded liabilities, actual or contingent b. none of the assets has been assigned, pledged or mortgaged c. there are no material prior year charges or credits, nor exceptional or non-recurring items requiring separate disclosure. viii. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of International Financial Reporting Standards and the Code. ix. All events subsequent to the date of the financial statements and for which International Financial Reporting Standards and the Code require adjustment or disclosure have been adjusted or disclosed. x. We have considered where relevant any adjusted misstatements, and misclassification and disclosures changes schedules included in your Auditor’s Annual Report. The financial statements have been amended for these misstatements, misclassifications and disclosure changes and are free of material misstatements, including omissions. xi. We have considered the unadjusted misstatement schedule included in your Auditor’s Annual Report and attached to this Letter of Representation at Appendix A. We have not adjusted the financial statements for these misstatements brought to our attention as it is immaterial to the results of Grampian Valuation Joint Board and its financial position at the year-end. The financial statements are free of material misstatements, including omissions. xii. Actual or possible litigation and claims have been accounted for and disclosed in accordance with the requirements of International Financial Reporting Standards. xiii. We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements. xiv. We have updated our going concern assessment. We continue to believe that the financial statements should be prepared on a going concern basis and have not identified any material uncertainties related to going concern on the grounds that : a. the nature of the body means that, notwithstanding any intention to cease body in their current form, it will continue to be appropriate to adopt the going concern basis of accounting because, in such an event, services it performs can be expected to continue to be delivered by related public authorities and preparing the financial statements on a going concern basis will still provide a faithful representation of the items in the financial statements b. the financial reporting framework permits the entry to prepare its financial statements on the basis of the presumption set out under a) above; and c. the system of internal control has not identified any events or conditions relevant to going concern. We believe that no further disclosures relating to the body’s ability to continue as a going concern need to be made in the financial statements xv. The body has complied with all aspects of ring-fenced grants that could have a material effect on the financial statements in the event of non-compliance. Information Provided xvi. We have provided you with: a. access to all information of which we are aware that is relevant to the preparation of the financial statements such as records, documentation and other matters; b. additional information that you have requested from us for the purpose of your audit; and Page 114
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c. access to persons within the body via remote arrangements, from whom you determined it necessary to obtain audit evidence. xvii. We have communicated to you all deficiencies in internal control of which management is aware. xviii. All transactions have been recorded in the accounting records and are reflected in the financial statements. xix. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. xx. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the body, and involves: a. management; b. employees who have significant roles in internal control; or c. others where the fraud could have a material effect on the financial statements. xxi. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the financial statements communicated by employees, former employees, analysts, regulators or others. xxii. We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing financial statements. xxiii. We have disclosed to you the identity of the related parties and all the related party relationships and transactions of which we are aware. xxiv. We have disclosed to you all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. Annual Governance Statement xxv. We are satisfied that the Annual Governance Statement (AGS) fairly reflects the body's risk assurance and governance framework and we confirm that we are not aware of any significant risks that are not disclosed within the AGS. Management Commentary xxvi. The disclosures within the Management commentary fairly reflect our understanding of the financial and operating performance over the period covered by the financial statements. Approval The approval of this letter of representation was minuted by the Grampian Valuation Joint Board at its meeting on 30 January 2026. Yours faithfully Signature ………………………………………………. Name: Lorraine Paisey Position: Treasurer Date………………………………………………………… Signed on behalf of Grampian Valuation Joint Board Page 115
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Appendix A Page 116
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REPORT TO: Grampian Valuation Joint Board on 30 January 2026 SUBJECT: Governance BY: The Assessor & ERO 1. Reason for Report 1.1 To ask the Board to appoint a Clerk to the Board. 2. Recommendation 2.1 It is recommended that the Board note the content of the report and appoint a new Clerk to the Board. 3. Background 3.1 Paragraph 4 of Schedule 2 of the Valuation Joint Boards (Scotland) Order 1995 requires that Valuation Joint Boards appoint a Clerk: “(1) Each board shall appoint a clerk and a treasurer, but a board may appoint the same person to act as both clerk and treasurer. (2) A board may appoint an officer of one of its constituent authorities to hold a post referred to in sub-paragraph (1) above. (3) A board may appoint such other staff as may be required for the discharge of its functions. (4) Where, under an agreement with a board, a constituent authority place any of their own staff at the disposal of the board, the board shall pay to that authority such amounts as may be agreed for such services.” 4. Current position 4.1 The position of Clerk to the Grampian Valuation Joint Board has historically been discharged by the Chief Executive of Moray Council with the position automatically transferring to a new Chief Executive on their appointment without any Board approval. Recent investigations have concluded that this approach was not procedurally correct and this report therefore seeks to formalise the appointment of a Clerk by asking the Board to make the decision. 4.2 The following matters are delegated to the Clerk under the Board’s Standing Orders: Item 9. Page 117
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• Arranging meetings and proceedings of the Board (s.43 Local Government (Scotland) Act 1973) • Circulating reports and agendas, supplying papers to the press and, where necessary, providing summaries of minutes (s.50B(2); 50B(7)(c) and 50C(2) Local Government (Scotland) Act 1973) • Complying with the Local Government (Access to Information) Act 1985 (s. 50A Local Government (Scotland) Act 1973) • Deciding on members’ rights of access to Board documents which disclose ‘exempt information’ in terms of the Local Government (Access to Information) Act 1985 (s.50(F)(2) Local Government (Scotland) Act 1973) • Acting as ‘proper officer’ to prepare and maintain a list of politically restricted posts (s.2 of the Local Government and Housing Act 1989) • Accepting tenders in accordance with the Board’s financial regulations • On the recommendation of the Assessor and in consultation with the Convener and Depute Convener, approving early retirements on the grounds of ill-health, • Approving attendance of Members at conferences/seminars in Great Britain where there is insufficient time for the invitation to be considered by the Board prior to the conference/seminar being held, subject to availability of funds and a report for information being submitted to the next available meeting of the Board. • Signing documents on behalf of the Board, including binding missives. • Advising the Assessor on matters related to governance, legal action and procedure in relation to the Board. 4.3 Given the matters delegated to the Clerk, it seems appropriate that someone with a legal qualification or governance experience in a similar role would be best suited for the position. 5. Conclusion 5.1 It is recommended that the Board appoint Moray Council’s Chief Governance Officer as Clerk to the Board on an ongoing basis. 5.2 The current Chief Governance Officer, Alasdair McEachan is a qualified solicitor and currently provides the Treasurer and Assessor with Board related governance advice. 5.3 Given his current role with the Moray Council, and role as adviser to previous Clerks, the Treasurer and the Assessor, Mr McEachan is well placed to fulfil the duties of Clerk as described above. 5.4 The current support agreement with Moray Council would mean that no extra payment would be required by the Board should it agree to appoint Mr McEachan. 5.5 Should the Board decide not to accept the recommendation in 5.1, they can of course adopt an alternative approach, bearing in mind that any alternative appointment may come with an additional cost to the Board. Page 118
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5.6 The current Chief Executive of Moray Council, the Treasurer to the Board and Mr McEachan have all been consulted in the preparation of this report. Author of Report: Mark Adam, Assessor & ERO Page 119
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REPORT TO: Grampian Valuation Joint Board on 30 January 2026 SUBJECT: Public Performance Report BY: The Assessor & ERO 1. Reason for Report 1.1 To seek approval for the publication of the 2024/25 public performance report. 2. Recommendation 2.1 It is recommended that the Board note the content and agree to the publication of the Public Performance Report provided as an appendix to this report. 3. Background 3.1 The Board’s Code of Corporate Governance requires publication of an annual report incorporating financial and performance information. 4. Current position 4.1 The public performance report provides financial, staffing and sickness absence data along with statistical data relative to the organisation’s three service strands - Council Tax, Valuation Roll and Electoral Registration. The report does not provide the same level of detail provided in the routine performance reports to the Board. It does however seek to provide an overview of the organisation’s performance. 4.2 The report focusses on the priorities identified in the management commentary to the audited accounts and provides statistical information that shows how the organisation has performed over recent years. The report also illustrates the reactive nature of services that an Assessor and ERO must be prepared to deliver against extremely tight statutory timelines and changing circumstances. 5. Conclusion Item 10. Page 121
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5.1 Although performance against the key indicators for the Valuation Roll and Council Tax fell below target, reflecting the impact of valuation vacancies and a challenging audit of self-catering properties, the organisation nonetheless achieved all of its statutory obligations. Achieving this in such circumstances underscores the exceptional commitment, professionalism, and resilience of our staff. Author of Report: Mark J Adam, Assessor & ERO Page 122
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1 Appendix 1 Grampian Assessor & Electoral Registration Officer Public performance report for 2024/25 Introduction The Grampian Assessor & Electoral Registration Officer (ERO) is an independent statutory official appointed by the Grampian Valuation Joint Board to value non-domestic properties for rating purposes, allocate dwellings to council tax bands and provide an electoral registration service for the Aberdeen, Aberdeenshire and Moray Council areas. General Information The Grampian Valuation Joint Board is a public body that funds the Assessor & ERO by means of requisitions from Aberdeen, Aberdeenshire and Moray councils and the net expenditure for 2024/25 was £4.167M resulting in an underspend of £1.011M against the budgeted figure for the financial year. The Board has a full-time equivalent of 81 posts distributed between offices in Aberdeen, Banff and Elgin. On 31 March 2025 there were 70 full-time equivalent staff in post. Staff absence due to ill health was 1.8% in 2024/25, a 0.6% decrease from 2023/24. A review of our 2024/25 priorities The following operational priorities were specifically identified in the management commentary for the year. They should not be considered in isolation as the organisation has a wide range of on-going priorities that relate not only to operational activities but also to our duty to eliminate discrimination and mainstream equalities, manage our records to the satisfaction of the Keeper of Records, protect data and provide information on request and in line with current legal requirements. Implement a full household canvass. The 2024 canvass was delayed slightly due to the snap general election and commenced in August 2024, extending through to January 2025. It used the established method of firstly using a data matching exercise to determine the appropriate approach to be taken on a household-by-household basis. The data matching exercise compared the registration database to information held by the Department for Work and Pensions (DWP) and the results returned to the registration officer. Where the results suggested that there was no change in the household composition, a canvass communication letter summarising the registration information for the household was issued and the household was invited to only respond if there were changes at the property (Route 1). Where the results indicated that changes in a household composition may have taken place, a different canvass procedure was followed that required a response from the household and follow-up actions by the ERO (Route 2). All properties which required a personal visit were canvassed by a member of the canvass team. For the 2024 canvass we used e-communications to contact over 90,000 households, representing a saving in staff and financial resources, and a reduction in the amount of printed material issued. Around 150 properties, including residential homes, saw information about the occupants being sought from a “responsible person” rather than the occupants themselves (Route 3). Item 10. Page 123
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2 During the course of the 2024 canvass, a total of 332,005 canvass communications were issued by post, a slight increase compared to the 323,691 issued in 2023, and well below the numbers issued prior to the introduction of the reformed canvass model. Canvass staff made over 50,000 personal visits to households during the canvass period and over 7,000 personal contacts were made by telephone. Annual Canvass of households 2021 2022 2023 2024 DWP Match Rate 83.09% 83.21% 82.91% 83.25% Number of Properties in Route 1 198,279 192,288 197,946 201,495 Number of Properties in Route 2 91,452 99,818 97,074 96,672 Route 2 overall response rate (%) 60.30% 62.20% 61.50% 59.81% Number of Properties in Route 3 227 156 220 156 Publish revised registers of electors. As a result of the snap general election and the delayed start of the annual canvass, revised registers were published on 1 February 2025 rather than in December 2024. The table below provides a summary of the last five revised registers for local government and Scottish Parliament elections. The revised registers showed a slight increase in the number of registered electors and small decrease in the number of electors with postal votes. Register publication date Local Government Electorate Number of postal voters 1 February 2025 454,284 113,064 1 December 2023 452,084 117,065 1 December 2022 448,915 119,611 1 December 2021 448,607 119,213 1 December 2020 448,331 88,494 Disposal of proposals and appeals following the 2023 Revaluation under the new two- stage non-domestic proposal and appeal system The two-stage process involves the ratepayer setting out the details of their challenge to the valuation roll entry made by the Assessor, including an alternative valuation. The Assessor is then required to review the challenge, the “proposal”, and either accept or reject the proposal or implement a different outcome, either by agreement or at his own discretion. Depending on the particular circumstances, the proposer may be able to appeal the decision to the Local Taxation Chamber of the First-tier Tribunal for Scotland. This new system has resulted in a reduction in the number of “appeals” received by the Assessor following a revaluation, but it is still a demanding workstream for ratepayers, their representatives, and the Assessor’s staff. The disposal of proposal and appeals has been a challenging task for the valuation staff. The rigorous proposal disposal programme is currently on target although a national challenge to the methodology used in contractor’s basis valuations is ongoing and it is possible that this may only be resolved following a Tribunal hearing. Our new IT system to manage proposals and appeals has been successfully implemented and used to record and manage proposal and appeal outcomes. The administrative requirements of the new 2-stage system have proven to be particularly burdensome and time-consuming, but various templates have been created to help reduce this. Dealing with proposals and appeals has clearly impacted other workstreams during the year. Page 124
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3 Maintain a complete and accurate Valuation Roll in terms of the Local Government (Scotland) Act 1975 & Maintain a complete and accurate Council Tax Valuation List in terms of the Local Government Finance Act 1992 These two priorities use quantitative target-based performance indicators rather than qualitative measures. Achieving these targets relies partly on the timeous receipt of information from external parties, including the owners and occupiers of dwellings and non- domestic properties. The figures can therefore be misleading as an indicator of how the organisation has performed. Valuer vacancies during the year, along with a rigorous proposal disposal timetable and the second audit of self-catering properties have significantly affected the organisation’s ability to meet the timescales suggested by the key performance indicators. Table 1 shows the number of new dwellings added to the Council Tax Valuation Lists in Grampian over the last 5 years and also the percentage that received notification within the 3 and 6 month performance windows. Table 1 also shows the performance thresholds that have been set. Table 1 The time taken to add new dwellings to the Council Tax Valuation List Within 3 months Within 6 months Year Number Threshold Actual Threshold Actual 2024/25 3,111 94% 68% 97% 84% 2023/24 3,031 94% 65% 97% 82% 2022/23 2,725 94% 71% 97% 94% 2021/22 2,964 94% 83% 97% 95% 2020/21 2,212 94% 61% 97% 80% Table 2 shows the number of alterations made to the Valuation Roll over the last 5 years along with the percentage of alterations that were made within the 3 and 6 month performance windows. The performance thresholds are also provided. Alterations include new entries to the Valuation Roll for newly constructed or converted buildings as well as alterations to existing buildings and the correction of errors. Table 2 The time taken to alter the Valuation Roll Within 3 months Within 6 months Year Number Threshold Actual Threshold Actual 2024/25 1,950 65% 28% 85% 43% 2023/24 2,545 65% 36% 85% 53% 2022/23 1,732 65% 30% 85% 50% 2021/22 1,683 65% 39% 85% 72% 2020/21 1,430 70% 30% 85% 49% Conclusion Given the nature of the services delivered by the organisation, it is essential that we plan ahead and ensure we have the required resources to allow us to respond efficiently and promptly to new priorities and demands, while consistently fulfilling the statutory duties of the Assessor and Electoral Registration Officer. Despite carrying a significant number of vacancies in the valuation section, the organisation delivered its statutory obligations to maintain the Register of Electors, the Valuation Roll and the Valuation List. The 2024 self- catering audit was particularly resource intensive and led to significant retrospective alterations to the council tax valuation list and the non-domestic valuation roll. Across every Page 125
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4 workstream, colleagues once again demonstrated exceptional effort, professionalism and commitment. Their performance throughout a demanding year reflects their dedication, and the Management Team is sincerely grateful for their continued hard work. Mark J Adam Grampian Assessor & Electoral Registration Officer Woodhill House, Westburn Road, Aberdeen AB16 5GE assessor@grampian-vjb.gov.uk Page 126
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REPORT TO: Grampian Valuation Joint Board on 30 January 2026 SUBJECT: Electoral Registration BY: Assessor & ERO 1. Reason for Report 1.1 To update the Board on current activities and developments in electoral registration. 2. Recommendation 2.1 It is recommended that the Board consider and note the content of this report. 3. Background 3.1 The Annual canvass concluded in November 2025 and revised registers were published on 1 December 2025. 3.2 The write-out exercise to reserved postal voters whose postal vote will expire on 31 January 2026 is coming to a conclusion. 3.3 The convergence of the application process for absent votes at reserved and devolved elections is also heading towards a conclusion. 3.4 Work in connection with the Scottish Parliament elections in May is underway. 4. Annual canvass and revised registers 4.1 The annual canvass completed in November 2025 and following post-canvass administration steps, revised registers were published on 1 December 2025. 4.2 Revised registers were distributed to those individuals and organisations entitled to receive them “on publication” and to those who were entitled to receive copies “on request”. Copies of registers were also distributed to organisations such as credit reference agencies who are entitled to purchase the full register for specific regulated purposes. Item 11. Page 127
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4.3 There was a slight increase in the number of registered electors and a slight decrease in the number of postal voters and a summary of these figures compared to previous years is shown below. Revised registers publication date Number of electors Number of postal voters 1 December 2025 457,282 108,451 1 February 2025 454,284 113,064 1 December 2023 452,084 117,258 5. Reserved postal vote reapplication write-out 5.1 The maximum duration of a reserved postal vote is 3 years and electors are required to reapply before their postal vote expires if they wish to continue to vote by post. 5.2 EROs were required to communicate with electors to remind them of the requirement to make a new application and we made at least one contact with each of the c100,000 electors where their reserved postal votes are due to expire on 31 January 2026. 5.4 As of 20 January, around 30,000 postal voters had still not renewed their reserved postal vote. Those electors who have not renewed by 31 January will be sent a notice advising that their reserved postal vote will be cancelled. 5.5 The cancellation of a reserved postal vote will have no impact on any postal vote that an elector may have for devolved elections – these will remain in place for the Scottish Parliament elections in May 2026. 5.6 It was reported at the October Board meeting that in a change from previous years, the funding for 2025/26 to cover new burdens arising from the implementation of the Elections Act 2022 was not paid direct to EROs in Scotland and Wales but was rolled into the Block Grant for the devolved governments and that the Scottish Government were making arrangements to provide individual EROs with their share of the funding. This has not yet materialised although EROs have been advised that a payment will be made before the end of the current financial year. Our share of the funding is estimated to be around £49k. 6. Online absent vote applications at devolved elections and convergence of absent voting rules 6.1 Most of the provisions of the Absent Voting (Elections in Scotland and Wales) Act 2025 came into force on 28 October 2025. It will enable the Scottish Parliament to make further regulations to allow voters to apply online for absent votes for Scottish Parliament and local government elections. 6.2 The Online Absent Voting Application (OAVA) Delivery Working Group, which includes representation from the Scottish Assessors Association Electoral Registration Committee, the Association of Electoral Administrators, the Electoral Commission and the Scottish Government and Welsh Government, is Page 128
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currently considering the “go-live” date, which the Scottish Government expect to be able to announce to stakeholders soon. The current proposal under discussion is early November 2025. 6.3 Secondary legislation (The Absent Voting at Scottish Parliament and Local Government Elections (Signature Refresh) (Miscellaneous Amendment) (Scotland) Order 2025 and The Representation of the People (Absent Voting at Local Government Elections) (Scotland) Amendment Regulations 2025) has been made to delay the need for EROs to request a signature refresh for any continuing devolved absent vote due to expire (if the signature sample is not refreshed) before 7 May 2026. The extension means refreshed signatures will now be sought by 31 January 2027 instead of 31 January 2026. It is however anticipated that the OAVA “go-live” will align many postal votes with the reapplication date for UK Parliament elections. 7. Scottish Parliament Elections 7.1 As reported at the Board meeting in October, The Scottish Parliament (Constituencies and Regions) Order 2025 (Scottish Statutory Instrument 2025/285), which gave effect to the final recommendations made in the Boundaries Scotland report on the Second Review of Scottish Parliament boundaries, was approved on 15 October 2025. 7.2 The new boundaries take effect at the Scottish Parliament election scheduled for 7 May 2026 and revised registers to reflect these boundary changes are being published on 2 February 2026. 7.3 Planning is underway for the Scottish Parliament election and meetings have been arranged with local council election teams. The first meeting is scheduled for 23 January. 7.4 We will be liaising with local and national partners in awareness campaigns ahead of the elections and advertising is already booked with a local publisher for a campaign across Moray and Aberdeenshire households in March. 7.5 The Electoral Commission have scheduled the distribution of a booklet to all households for the week commencing 23 March and this will be supplemented by a multi-channel approach covering radio, mixed media, social platforms, and local/national print campaigns, targeting broad demographics, including underrepresented and under-registered groups. 7.6 Security, particularly cyber security, during an election period is a major concern to all involved in elections. EROs are represented at monthly meetings, held as part of Operation Portmound, along with representatives from Police Scotland, the other emergency services, the Scottish Government, Returning Officers and the Electoral Commission. 8. Conclusion Page 129
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Author of Report: Mark Adam, Assessor & ERO 8.1 The electoral registration workstream is a year-round activity but is particularly intensive around the time of the annual canvass and preceding major electoral events. 2025 was another challenging year for the team and 2026 will be no different as we focus on the Scottish Parliamentary election and the convergence of online absent voting applications, both while maintaining the business-as- usual tasks throughout the year. Page 130
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REPORT TO: Grampian Valuation Joint Board on 30 January 2026 SUBJECT: Staff Vacancies, Recruitment & Upskilling Existing Staff BY: The Depute Assessor & ERO (Aberdeenshire) 1. Reason for Report 1.1 To update the Board on the current level of staff vacancies, recruitment and the upskilling of existing staff. 2. Recommendation 2.1 It is recommended that the Board consider and note the contents of this report. 3. Background 3.1 This has been a standing report for Board meetings since January 2023. 4. Current Vacancies 4.1 There are currently twelve vacant posts: Section Establishment (FTE) Vacancies (FTE) Previously Currently Clerical 29 2 2 IT 3 1 1 Management 3 0 0 Secretarial 3 0 0 Technical 13 2 2 Valuation 30 4 7 Total 81 9 12 Item 12. Page 131
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5. Recruitment 5.1 The figures shown in the preceding table show an increase in the number of vacancies from those presented at the last meeting of the Board. Two members of the valuation staff retired earlier this month, and another member of the Valuation staff moved away from the area and resigned from their post at the end of November. 5.2 We were able to fill one of the previously reported vacancies in our Technical section and the new member of staff started with us on 3 November last year. 6. Action Being Taken 6.1 The closing date for applications for the Principal Administration Officer post is 30 January. 6.2 One of the recently vacated posts is at Assistant Assessor level and, in line with our Internal Recruitment Policy, we advertised this post internally. Two applications were received and these candidates are due to be interviewed on 29 January. 6.3 As previously reported, the two employees enrolled on the Graduate Apprenticeship course at Napier University are continuing their studies and are receiving positive feedback regarding their marks and coursework. 6.4 We are continuing to work with other Assessors in developing a training framework for our Graduate Trainee Valuers and our internal programme of formal training and development sessions for our trainee valuers continues. 6.5 The work within the Scottish Assessor’s Association to collate information to allow Assessors to highlight career paths and development opportunities in Assessors’ offices is ongoing. 6.6 Following on from our attendance at the University of Aberdeen Business and Finance Fair in the autumn we are now looking to see if we can accommodate students from the MSc Real Estate course on summer placements. There is also the possibility of the University incorporating an extended placement of 150 hours into year 4 of their undergraduate course. If they do so, they will be seeking employer hosts for the students between September 2026 and March 2027. Again, we are considering whether this is something that we can accommodate as it may form an avenue for us to recruit graduates from the course. 6.7 There is no change with regards to the previously reported position for the IT vacancy. This will be reviewed following the completion of the work to move to Aberdeenshire IT infrastructure. Page 132
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6.8 We are continuing to advertise the valuation vacancies through our own website and will carry out external advertising once the Assistant Assessor post is filled. 7. Conclusion 7.1 Several valued colleagues have retired recently, and we are committed to filing these roles and the other vacant posts within the organisation. We are actively working to attract the right candidates but, as previously reported to the Board, recruitment remains dependent on the availability of suitable candidates. While we may not see an immediate reduction in the number of vacancies we have, we are confident that our continued efforts will strengthen our ability to fill these posts over time and support the long-term resilience of our structure. Author of Report: James A Barron Depute Assessor & ERO Page 133
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