Agenda Document Pack - Grampian Valuation Joint Board - 26/06/2026
Moray Council · 26 June 2026
Back to Grampian Valuation Joint Board — 26 June 2026 and its agenda
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Grampian Valuation Joint Board Friday, 26 June 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, 26 June 2026 at 09:30. BUSINESS 1. Sederunt 2. Declaration of Financial and Other Interests 3. Minute of the meeting held 30 January 2026 5 - 10 4. Written Questions ** 5. Annual Audit Plan for the Year Ending 31 March 2026 Report by Treasurer to the Board 11 - 50 6. Unaudited Annual Accounts for 2025-26 Report by Treasurer to the Board 51 - 126 7. Revenue Budget Monitoring Statement 1 April to 31 May 2026 Report by Treasurer to the Board 127 - 132 8. Governance Report by Assessor and ERO 133 - 134 9. Risk Management Report by Assessor and ERO 135 - 144 10. Complaints Handling Performance Report by Depute Assessor and ERO (Aberdeenshire) 145 - 148 Page 1
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11. Valuation Roll and Council Tax Valuation List Report by Depute Assessor and ERO (Aberdeenshire) 149 - 156 12. Electoral Registration Report by Principal Admin Officer 157 - 160 13. Staff Vacancies, Recruitment & Upskilling Existing Staff Report by Assessor and ERO 161 - 164 14. Appointment of Depute Electoral Registration Officer Report by Assessor and ERO 165 - 168 15. Question Time 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 Richard Brooks (Member) Councillor Desmond Buchanan (Member) Councillor Mark Findlater (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) 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, 30 January 2026 Council Chambers, Council Office, High Street, Elgin, IV30 1BX PRESENT Councillor Richard Brooks, Councillor Donald Gatt, Councillor Moray Grant, Councillor Dell Henrickson, Councillor Neil MacGregor, Councillor Marc Macrae, Councillor Sam Payne, Councillor Stephen Smith, Councillor Lynn Thomson, Councillor Sonya Warren, Councillor Judy Whyte SUBSTITUTES Councillor Iris Walker (for Councillor Mel Sullivan), Councillor Trevor Mason (for Councillor Iain Taylor) APOLOGIES Councillor Desmond Buchanan, Councillor Ciaran McRae, Councillor Mel Sullivan, Councillor Iain Taylor IN ATTENDANCE Mark Adam, the Assessor and ERO; Jim Barron, Depute Assessor and ERO (Aberdeenshire); Lorraine Paisey, Treasurer to the Board; Dafydd Lewis, Service Manager Internal Risk and Audit; Andrew Wallace, External Auditor, Grant Thornton; and Lindsey Robinson, Committee Services Officer 1. Chair Councillor Donald Gatt, as Convenor of the Board, chaired the meeting. 2. Welcome The Board joined the Convenor in welcoming Councillor Richard Brooks to his first meeting. 3. Declaration of Member's Interests Item 3. Page 5
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In terms of Standing Order 25 and the Councillor's Code of Conduct, 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. Councillors Smith, MacGregor, and Henrickson all made a transparency statement in relation to item 7a "Annual Audit Report 2024-25" and item 8 "Audited Accounts Report for the Year Ending 31 March 2025" as they are all members of the North East Scotland Pension Fund Board. 4. Minute of the meeting held 31 October 2025 The minute of the meeting held 31 October 2025 was submitted and approved by the Board. 5. Written Questions The Board noted that no written questions had been submitted. 6. Internal Audit Plan for 2026-27 The meeting had before it a report by the Service Manager Internal Risk and Audit advising the Board of the planned internal audit of the Assessor's service for the financial year ending 31 March 2026. During consideration, Councillor Whyte sought clarification on whether the Internal Auditor for Aberdeen City and Aberdeenshire had been involved. The Service Manager Internal Risk and Audit advised that he does involve him and his team as it is good governance and provides an opportunity for his officers to take part in the collaborative approach. Councillor Warren joined the meeting at this juncture. Following consideration, the Board unanimously agreed to note the proposed internal audit coverage. 7. Revenue Budget Monitoring Statement for the Period 1 April to 31 December 2025 The meeting had before it a report by the Treasurer to the Board asking the Board to consider the Revenue Budget Monitoring Statement for the period 1 April to 31 December 2025. During consideration, Councillor Grant sought clarification on whether there would still be an underspend if the staffing vacancies were filled. In response, the Treasurer to the Board advised that when the budget is being prepared assumptions are made on the level of vacancies and on the likelihood of those vacancies being filled. Following consideration, the Board unanimously agreed to: Page 6
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i. note the Revenue Budget Monitoring Statement to 31 December 2025; and ii. note the estimated outturn forecast for the year 2025/26. 8. Financial Planning for 2026-27 and Future Years The meeting had before it a report by the Treasurer to the Board asking the Board 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 and Electoral Registration Officer (ERO) in the medium to long term. Following consideration, the Board unanimously agreed to: i. approve the three-year Revenue Budget from 2026/27; ii. approve requisitions to the constituents 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 Rates reform in the draft Local Government settlement received on 13 January 2026; and iii. note the operational issues facing the service. 9. Annual Audit Report 2024-25 The meeting had before it the Annual Audit Report for the financial year ended 31 March 2025 and were provided with a verbal overview by the External Auditor. Councillor Thomson left the meeting at this juncture. Councillor Mason joined the meeting at this juncture. During consideration, Councillor Grant sought clarification on whether data and cyber security were part of the audit or if that was part of the remit of the Internal Auditor. In response, Mr Wallace advised that the IT systems were looked at as part of the audit of Moray Council, and now that some systems are being moved to Aberdeenshire Council, it will form part of the audit there as well. The Service Manager Internal Risk and Audit, advised that cyber security is included in the internal audit plan for next year. 10. Audited Accounts Report for the Year Ending 31 March 2025 The meeting had before it a report by the Treasurer to the Board submitting the audited Annual Accounts for the financial year ending 31 March 2025 to the Board for consideration and approval. Following consideration, the Board unanimously agreed: Page 7
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i. to approve the Annual Accounts for signing, having regard to the Annual Report from the External Auditor considered earlier at this meeting; ii. to note the variance of £730,000 for 2024/25; iii. that £297,000 is returned to constituent authorities, leaving a balance on the General Fund of £237,000; iv. to note the balance on earmarked reserves of £567,000 for Non-Domestic Rates Reform, and £376,000 in the newly create Electoral Integrity Programme; and v. to approve the Letter of Representation. 11. Governance The meeting had before it a report by the Assessor and ERO asking the Board to appoint a Clerk to the Board. When introducing the report, the Assessor asked the Board to note a slight error as the matters delegated to the Clerk are contained in the Scheme of Delegation, not the Standing Orders. Following consideration, the Board unanimously agreed to: i. note the content of the report; and ii. appoint a new Clerk to the Board, namely Mr Alasdair McEachan, Chief Governance Officer, Moray Council. 12. Public Performance The meeting had before it a report by the Assessor and ERO seeking approval from the Board to publish the 2024/25 public performance report. During consideration, Councillor Grant sought clarification on whether the low rates when looking at the thresholds against the actuals were due to staff vacancies. In response, the Assessor and ERO advised that the vacancies were part of the reason but there was also additional work being conducted by the service that was resource intensive. Councillor Whyte sought clarification on the work involved in the self-catering audit and whether there would be additional work involved. The Assessor and ERO advised that the service is required to carry out an annual audit of the self-catering units on the Valuation Roll to check if they have been made available for let for 140 nights or more and have been actually let for 70 nights or more, alongside other factors. If the information is not received within the time limit allowed, the properties are moved from the Valuation Roll to the Council Tax Valuation List. During the 2023/24 audit, approximately 300 properties were deleted from the Valuation Roll. However, when the Scottish Government opened an additional window in which the information could be provided, most were moved back. The Assessor and ERO added that there were between 1200-1500 properties in Page 8
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the Valuation Roll and this is a yearly task. The Scottish Government could also open an additional window for information return in relation to the 2024/25 audit, as they did for the 2023/24 audit. Councillor Thomson left the meeting at this juncture. Councillor Macrae wished to pass on his thanks to the team and stated that their hard work was noted and appreciated. Following consideration, the Board unanimously agreed to: i. note the contents of the report; and ii. publish the Public Performance Report as provided at Appendix 1 to the report. 13. Electoral Registration The meeting had before it a report by the Assessor and ERO updating the Board on current activities and developments in electoral registration. During consideration, Councillor MacGregor sought clarification on the reduction in numbers of people applying for a postal vote. In response, the Assessor and ERO advised that he was unsure on the reasons for the downward trend but that the levels are still above the pre-Covid numbers. Following consideration, the Board unanimously agreed to note the contents of the report. 14. 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 level of staff vacancies, recruitment and the upskilling of existing staff. During consideration, Councillor Whyte offered her thanks to the team for their continuing hard work while there are the vacancies. Thereafter, the Board unanimously agreed to note the contents of the report. 15. Question Time The Board noted that no additional questions were asked. Page 9
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 26 JUNE 2026 SUBJECT: ANNUAL AUDIT PLAN FOR THE YEAR ENDING 31 MARCH 2026 BY: TREASURER TO THE BOARD 1. REASON FOR REPORT 1.1 The purpose of this report is to inform the Board of the External Auditor’s Annual Report. 1.2 The Annual Audit Plan sets out the risks which the External Auditor has identified during the audit planning process and sets out the approach which the External Auditor will take, including Wider Scope and Best Value issues. It highlights non- payroll expenditure, management over-ride of controls (both of which are required by Auditing Standards), valuation of land and buildings, pension scheme and implementation of the new requirement for lease accounting as areas of risk. An Audit Risk Assessment underpins the report. 2. RECOMMENDATIONS 2.1 It is recommended that the Board: (i) scrutinises and notes the Audit Risk Assessment; and (ii) considers and notes the contents of the External Auditor’s Annual Plan for 2025/26. 3. BACKGROUND 3.1 In September 2022, the Accounts Commission confirmed the appointment of Grant Thornton as the external auditor for the Board for financial years 2022/23 to 2026/27 inclusive. Item 5. Page 11
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3.2 In delivering the public audit for Moray, Grant Thornton will provide independent assurance that public money has been spent appropriately and provides value. Audit work is carried out in accordance with International Standards on Auditing, the Code of Audit Practice and any other relevant guidance. 3.3 The audit includes consideration of Best Value as part of the Wider Scope audit. The Wider Scope audit will otherwise be limited to consideration of financial sustainability and the Annual Governance Statement. 3.4 Grant Thornton’s Annual Audit Plan (AAP) for 2025/26 is attached as Appendix 1 to this report. The Plan sets out the scope of the audit work and the auditor’s approach to the audit. The AAP is risk based and details the initial risks identified at the planning stage by Grant Thornton on pages 8 to 12. These will direct the focus of audit testing, and the AAP sets out the planned work to be undertaken for the audit of the financial statements for the year ending 2025/26. 3.5 Page 6 of the AAP shows the baseline audit fee for 2025/26 as £9,920 which is an increase of 4.3% on the previous year. In 2024/25 the base audit fee was £9,510 with an additional £1,500 for journal testing. There are no additional cost for journals this year. In the main this fee is set by Audit Scotland. 3.6 The annual accounts timetable, including key deadlines are shown on page 24 of the AAP. The timetable anticipates that the Board will be asked to consider the Annual Audit Report and approve the Audited Annual Accounts at its meeting on 30 October 2026. 4. CONCLUSION 4.1 The Audit Plan will direct the work of the External Auditor. Any additional work required will be reported on as part of the Annual Audit Report Author of Report: Aaron Cory, Trainee Accountant Background papers: Held within Accountancy Section, Moray Council Page 12
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Financial year ending 31 March 2026 Prepared for those Charged with Governance, the Controller of Audit and the Accounts Commission 30 March 2026 Grampian Valuation Joint Board External Audit Plan Page 13
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|© 2026 Grant Thornton UK LLP Contents Section Page 1. Introduction and Headlines 03 2. Identified risks 3. Other matters 07 13 4. Our approach to materiality 16 5. IT audit strategy 19 6. Wider scope and best value arrangements 21 7. Logistics 8. Fees and related matters 23 26 9. Independence considerations 29 10. Communication of audit matters with those charged with governance 31 11. Appendices 34 Grampian Valuation Joint Board External Audit Plan 2025/26 2 Page 14
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|© 2026 Grant Thornton UK LLP Introduction and Headlines01 Grampian Valuation Joint Board External Audit Plan 2025/26 3 Page 15
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|© 2026 Grant Thornton UK LLP Introduction and headlines (1) Purpose • This document provides an overview of the planned scope and timing of the external audit of the Grampian Valuation Joint Board (VJB) for those charged with governance. Respective responsibilities • The Code of Audit Practice (the Code) summarises where the responsibilities of auditors begin and end and what is expected from the audited body. Our respective responsibilities, and that of the Grampian VJB are summarised in the Appendix of this Audit Plan. We draw your attention to this and the Code. Scope of our Audit • The scope of our audit is set in accordance with the Code and International Standards on Auditing (ISAs) (UK). We are responsible for forming and expressing an opinion on the Grampian VJB’s financial statements that have been prepared by management with the oversight of those charged with governance (Grampian VJB). The audit of the financial statements does not relieve management or the Grampian VJB of your responsibilities. • It is your responsibility to ensure that proper arrangements are in place for the conduct of its business, and that public money is safeguarded and properly accounted for. As part of our wider scope work, we will consider how you are fulfilling these responsibilities. • Our audit approach is based on a thorough understanding of the Grampian VJB and is risk based. Significant risks Those risks requiring special audit consideration and procedures to address the likelihood of a material financial statement error have been identified as: • Management override of controls (ISA (UK) 240); • Valuation of land and buildings; • Valuation of defined benefit pension scheme. We will communicate significant findings on these areas as well as any other significant matters arising from the audit to you in our Annual Audit (ISA 260) Report. Wider Scope and Best Value Audit In accordance with the Code, our planning considers the Wider Scope and Best Value areas of audit. We have concluded that Grampian Valuation Joint Board is a ‘less complex body’ and therefore carry out more limited wider scope work as set out in this Audit Plan. Grampian Valuation Joint Board External Audit Plan 2025/26 4 Page 16
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|© 2026 Grant Thornton UK LLP Introduction and headlines (2) Materiality We have calculated our planning materiality to be £124,500 (PY: £124,500) for the organisation, which equates to 2.5% (PY: 2.5%) of your prior year gross expenditure as per the audited 2024/25 financial statements. Performance materiality has been determined as £93,375 (PY: £93,375) and is based on 75% (PY: 75%) of planning materiality. We are obliged to report uncorrected omissions or misstatements other than those which are ‘clearly trivial’ to those charged with governance. Clearly trivial has been calculated at 5% of materiality being £6,200 (PY: £6,200). A lower materiality threshold will of £25,000 will be used on salary and pension (CETV) tables for senior management and board members. We will revisit our materiality throughout our audit including updating to reflect the draft unaudited financial statements for 2025/26. Grampian Valuation Joint Board External Audit Plan 2025/26 5 Audit logistics Our final visit will take place in October. Our key deliverables are this Audit Plan and the Auditor’s Annual Report. Audit fees were shared by Audit Scotland with Grampian VJB in a letter dated 15 January 2026. Audit fees are paid to Audit Scotland, who in turn pay us. We reserve the right to review our fee during the audit should significant delays be encountered and/or new technical matters arise. Further details with regards to audit fees are included within section 8 of our plan. At the planning stage, we can confirm that there are no planned non-audit services. We have complied with the Financial Reporting Council's Ethical Standard (revised 2024) and we as a firm, and each covered person, confirm that we are independent and are able to express an objective opinion on the financial statements. Page 17
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|© 2026 Grant Thornton UK LLP Introduction and headlines (3) Audit Fees Audit fees were shared by Audit Scotland with Grampian VJB in January 2026. The baseline audit fee set is £9,920. Audit fees are paid to Audit Scotland who in turn pay Grant Thornton UK LLP. The baseline audit fee has been agreed with the audited body. We reserve the right to review our fee during the audit should significant delays be encountered and/or new technical matters arise. We reserve the right to review our fee during the audit should significant delays be encountered and/or new technical matters arise. Grampian Valuation Joint Board External Audit Plan 2025/26 6 Adding Value Through the Audit Our overall approach to adding value through the audit is clear and upfront communication, founded on our public sector credentials. We use our LEAP audit methodology and data analytics to ensure delivery of a quality audit. We aim to add value to Grampian VJB through our external audit work by being constructive and forward looking, by attending meetings of the Grampian Valuation Joint Board. In so doing, we will help Grampian VJB promote improved standards of governance, better management and decision making and more effective use of resources. We will ensure an element of unpredictability in our testing to highlight areas of risk and improvements that can be made through both the financial statement and wider scope and best value audit. We have invited members of your financial reporting team to our annual Local Government Chief Accountants workshop, which is led by our internal financial reporting technical team. We look to bring forward audit testing where possible by performing an interim audit which is ongoing during March 2026. This will help provide a smooth and efficient audit process to support delivery for the year end audit. Page 18
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|© 2026 Grant Thornton UK LLP Identified risks02 Grampian Valuation Joint Board External Audit Plan 2025/26 7 Page 19
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|© 2026 Grant Thornton UK LLP Significant risks identified (1) Significant risks are defined by ISAs (UK) as risks that, in the judgement of the auditor, require special audit consideration. In identifying risks, audit teams consider the nature of the risk, the potential magnitude of misstatement, and its likelihood. Significant risks are those risks that have a higher risk of material misstatement. “In determining significant risks, the auditor may first identify those assessed risks of material misstatement that have been assessed higher on the spectrum of inherent risk to form the basis for considering which risks may be close to the upper end. Being close to the upper end of the spectrum of inherent risk will differ from entity to entity and will not necessarily be the same for an entity period on period. It may depend on the nature and circumstances of the entity for which the risk is being assessed. The determination of which of the assessed risks of material misstatement are close to the upper end of the spectrum of inherent risk, and are therefore significant risks, is a matter of professional judgment, unless the risk is of a type specified to be treated as a significant risk in accordance with the requirements of another ISA (UK).” (ISA (UK) 315). In making the review of unusual significant transactions “the auditor shall treat identified significant related party transactions outside the entity’s normal course of business as giving rise to significant risks.” (ISA (UK) 550). Management should expect engagement teams to challenge management in areas that are complex, significant or highly judgmental which may be the case for accounting estimates, going concern, related parties and similar areas. Management should also expect to provide to engagement teams with sufficient evidence to support their judgments and the approach they have adopted for key accounting policies referenced to accounting standards or changes thereto. Where estimates are used in the preparation of the financial statements management should expect teams to challenge management’s assumptions and request evidence to support those assumptions. Grampian Valuation Joint Board External Audit Plan 2025/26 8 Page 20
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|© 2026 Grant Thornton UK LLP Significant risks identified (2) Significant Risk Description Key aspects of our proposed response to the risk Fraud in Revenue Recognition Under ISA (UK) 240 there is a rebuttable presumed risk that revenue may be misstated due to the improper recognition of revenue. This presumption can be rebutted if the auditor concludes that there is no risk of material misstatement due to fraud relating to revenue recognition. (Rebutted) Having considered the risk factors set out in ISA 240 and the nature of the revenue streams at the Grampian VJB, we have determined that the risk of fraud arising from revenue recognition for all revenue streams can be rebutted, because: • there is little incentive to manipulate revenue recognition; • opportunities to manipulate revenue recognition are very limited; and • the culture and ethical frameworks of local authorities, including the Grampian VJB, mean that all forms of fraud are seen as unacceptable. Therefore, we do not consider this to be a significant risk for the Grampian Valuation Joint Board. Fraud in expenditure recognition Due to the presumption that there are risks of fraud in expenditure recognition, we are required to evaluate which types of expenditure, expenditure transactions or assertions give rise to such risks. Practice Note 10: Audit of Financial Statements of Public Sector Bodies in the United Kingdom (PN10) states: "As most public bodies are net spending bodies, then the risk of material misstatement due to fraud related to expenditure may be greater than the risk of material misstatements due to fraud related to revenue recognition". (rebutted) Having considered the risk factors set out in ISA 240 and the nature of the expenditure streams at the Board, we have determined that the risk of fraud arising from expenditure recognition can be rebutted, because: • there is limited incentive for management to manipulate the outturn position as the Board received requisitions to cover any overspend. • we consider payroll costs to be well forecast and are able to agree these costs to underlying payroll systems. • non-payroll costs are generally high volume / low value transactions which are recognised across a number of expenditure streams. This would require a significant proportion of transactions to be manipulated to result in a material error. As such, we believe there is less opportunity for a material misstatement as a result of fraud to occur in the recognition of expenditure. Therefore, we do not consider this to be a significant risk for the Grampian Valuation Joint Board. Grampian Valuation Joint Board External Audit Plan 2025/26 9 Page 21
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|© 2026 Grant Thornton UK LLP Significant risks identified (3) Significant risk Description Key aspects of our proposed response to the risk Management override of controls Under ISA (UK) 240 there is a non-rebuttable presumed risk that the risk of management override of controls is present in all entities. Our risk focuses on the areas of the financial statements where there is potential for management to use their judgement to influence the financial statements alongside the potential to override the entity’s internal controls, related to individual transactions. We have therefore identified management override of controls, in particular journals, management estimates and of transactions outside the course of business as a significant risk of material misstatement. We will: • Document our understanding of and evaluate the design effectiveness of management’s key controls over journals; • Analyse your full journal listing for the year and use this to determine our criteria for selecting high risk journals; • Test the high-risk journals we have identified; • Gain an understanding of the critical judgements applied by management in the preparation of the financial statements and consider their reasonableness; • Gain an understanding of the key accounting estimates made by management and carry out substantive testing on in scope estimates; • Evaluate the rationale for any changes in accounting policies, estimates or significant unusual transactions. Grampian Valuation Joint Board External Audit Plan 2025/26 10 Page 22
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|© 2026 Grant Thornton UK LLP Significant risks identified (4) Significant Risk Description Key aspects of our proposed response to the risk Valuation of land and buildings In accordance with the CIPFA/LASAAC Code of Practice, except for initial recognition, the Board is required to hold property and property, plant and equipment (PPE) on a valuation basis. The valuation basis used will depend on the nature and use of the assets. Specialised land, buildings, equipment, installations and fittings are held at depreciated replacement costs, as a proxy for fair value. Non-specialised land and buildings, such as offices, are held at fair value. As at 31 March 2025, the Board held land and buildings of £0.613 million. Given these significant values, and the level of complexity and judgement involved in their estimation process, there is an inherent risk of material misstatement in the year end valuation of some assets. However, the risk is less prevalent in other assets as these are generally held at depreciated historical cost, as a proxy of fair value. We will therefore focus our audit attention on assets that have large and unusual changes in valuations compared to last year and/or unusual approaches to their valuations. The risk will be pinpointed as part of our final accounts work, once review the population of assets revalued. A substantial change has been made to the Code of Audit Practice for 2025/26. Local government bodies are now required to completed a full valuation for all properties once every five years or alternatively on a five-year rolling basis and supported by indexation in intervening years. We have confirmed that Moray Council employ an internal valuer which Grampian VJB utilises to undertake a rolling programme of valuations across their asset base valuing land and buildings at least once every five years. In the intervening periods, Grampian VJB carries out an indexation exercise. We therefore consider this to be a significant risk to our audit and a key audit matter. We will: • Evaluate management’s processes and controls for the calculation of the valuation estimates, the instructions issued to their management experts and the scope of their work. • Evaluate the competence, capabilities and objectivity of the valuation expert. • Write to the valuer to confirm the basis on which the valuations were carried out. • Challenge the information and assumptions used by the valuer to assess completeness and consistency with our understanding. • Evaluate the valuer’s report to identify assets that have large and unusual changes and/or approaches to the valuation – these assets will be substantially tested to ensure the valuations are reasonable. • Test a sample of other asset revaluations made during the year to ensure they have been input accurately into the body’s asset register and associated entries in the financial statements. • For any assets not formally revalued, evaluate the judgement made by management or others in the determination of the current value of these assets. Grampian Valuation Joint Board External Audit Plan 2025/26 11 Page 23
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|© 2026 Grant Thornton UK LLP Significant risks identified (5) Significant Risk Description Key aspects of our proposed response to the risk Valuation of defined benefit pension scheme The Board participates in the North East Scotland Pension Fund (NESPF), a local government pension scheme. There is an established Pension Fund protocol in place with Pension Fund auditors to provide external auditors with relevant assurance. The local government pension scheme is a defined benefit pension scheme and in accordance with IAS 19: Employee Benefits, Grampian VJB is required to recognise its share of the scheme assets and liabilities in its Statement of Financial Position. In 2024/25, the Board applied the asset ceiling test as prescribed by IFRIC 14 which limited the measurement of a 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 was 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 remained as there is no right to offset this. The Board’s actuary will provide an annual IAS 19 actuarial valuation of Grampian VJB’s net liabilities in the pension scheme. There are a number of assumptions contained within the valuation, including: discount rate; future return on scheme assets; mortality rates; and future salary projections. Given the material value of the scheme’s gross assets and gross liabilities and the level of estimation in the valuation, there is an inherent risk that the defined benefit pension scheme net liability could be materially misstated within the financial statements. This risk is focussed on the appropriateness and reasonableness of the underlying assumptions adopted by the actuary and the suitability of these for the Board. We therefore consider this to be a significant risk to our audit and a key audit matter. We will: • Evaluate management's processes and controls for the calculation of the gross asset and gross liability and estimates, the instructions issued to the actuarial expert and the scope of their work. • Evaluate the assumptions made by the actuary in the calculation of the estimate, using work performed by an auditor’s expert commissioned on behalf of Audit Scotland and additional follow up procedures (where required). • Evaluate the data used by management’s experts in the calculation of the estimates. • Perform substantive analytical procedures over the gross assets, gross liabilities and in year pension fund movements, investigating any deviations from audit expectations. • Assess the accuracy and completeness of the IAS 19 estimates and related disclosures made within the Grampian VJB’s financial statements. • Review management’s assessment of the application of IFRIC 14 (if applicable). • Evaluate the response received from the NESPF auditor in line with the Audit Scotland Protocol for Auditor Assurances for Local Government Pension Schemes. Grampian Valuation Joint Board External Audit Plan 2025/26 12 Page 24
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|© 2026 Grant Thornton UK LLP Other matters03 Grampian Valuation Joint Board External Audit Plan 2025/26 13 Page 25
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|© 2026 Grant Thornton UK LLP Other matters (1) Other work In addition to our expected responsibilities under the Code of Practice, we have a number of other audit responsibilities, as follows: • We audit parts of your Remuneration and Staff Report in your Annual Report and check whether these sections of your Annual Report have been properly prepared (opinion). These procedures are performed to a lower materiality. • We read the sections of your Annual Report which are not subject to audit and check that they are consistent with the financial statements on which we give an opinion (opinion). • We carry out work to satisfy ourselves that disclosures made in your Annual Governance Statement are in line with requirements set out in the CIPFA Code 2025/26 (opinion). • We carry out work in order to express an opinion on whether in all material respects, expenditure was incurred and income applied in accordance with applicable enactments and guidance issued by the Scottish Ministers (opinion). • We carry out work as appropriate for the Whole of Government Accounts process in accordance with group audit instructions. • We consider our other duties under the Code and planning guidance (2025/26) issued by Audit Scotland, as and when required, including: – supporting Audit Scotland in Section 22 reporting – review of local government technical guidance prior to issue by Audit Scotland – providing regular updates to Audit Scotland to share awareness of current issues – notifying Audit Scotland of any cases of money laundering or fraud. Grampian Valuation Joint Board External Audit Plan 2025/26 14 Other material balances and transactions Under International Standards on Auditing, "irrespective of the assessed risks of material misstatement, the auditor shall design and perform substantive procedures for each material class of transactions, account balance and disclosure". All other material balances and transaction streams will therefore be audited. However, the procedures will not be as extensive as the procedures adopted for the risks identified in this report. We do not place reliance on the work undertaken by internal audit. Interim testing As part of our interim procedures, we will complete testing on a number of areas when efficient to do so, including: • Payroll - starters, leavers and changes in circumstances (first nine months). • Operating expenditure (first nine months). • Existence and rights & obligations of PPE (opening balances). Progress against prior year audit recommendation As part of our final account's procedures, we will follow up on the implementation of prior year audit recommendation and report on progress against the recommendation in full within our Annual Audit Report. Page 26
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|© 2026 Grant Thornton UK LLP Other matters (2) Going concern assessment As auditors, we are required to obtain sufficient appropriate audit evidence regarding, and conclude on: • whether a material uncertainty related to going concern exists; and • the appropriateness of management’s use of the going concern basis of accounting in the preparation of the financial statements. The Public Audit Forum has been designated by the Financial Reporting Council as a “SORP-making body” for the purposes of maintaining and updating Practice Note 10: Audit of financial statements and regularity of public sector bodies in the United Kingdom (PN 10). It is intended that auditors of public sector bodies read PN 10 in conjunction with (ISAs) (UK). PN 10 was updated in 2020 to take account of revisions to ISAs (UK), including ISA (UK) 570 (Revised September 2019) on going concern. PN 10 allows auditors to apply a ‘continued provision of service approach’ when auditing going concern in the public sector, where appropriate. Audit Scotland’s also issued further guidance in a Going Concern publication in December 2020). Within our wider scope work we will conclude on the Grampian VJB’s arrangements to ensure financial sustainability. Grampian Valuation Joint Board External Audit Plan 2025/26 15 Internal control environment During our initial audit planning we will develop our understanding of your control environment (design and implementation) as it relates to the preparation of your financial statements. In particular we will: • Consider key business processes and related controls • Assess the design of key controls over all significant risks we have identified. This will include key controls over: o Journal entries and other key entity level controls o The completeness of accruals and liabilities recorded within the general ledger. o The completeness and accuracy of information provided to the actuary to perform the valuation of the net pension fund liability. o The review of actuarial outputs including key assumptions made by the actuary and significant movements impacting the net pension liability. o The review of valuation outputs including key assumptions made by the valuer. Our focus is on design and implementation of controls only. We do not intend to assess or place any reliance on the operating effectiveness of your controls during our audit. Page 27
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|© 2026 Grant Thornton UK LLP Our approach to materiality04 16Grampian Valuation Joint Board External Audit Plan 2025/26 Page 28
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|© 2026 Grant Thornton UK LLP Our approach to materiality (1) The concept of materiality is fundamental to the preparation of the financial statements and the audit process and applies not only to the monetary misstatements but also to disclosure requirements and adherence to acceptable accounting practice and applicable law. Matter Description Planned audit procedures 1. Determination We have determined planning materiality (financial statement materiality determined at the planning stage of the audit) based on professional judgement in the context of our knowledge of the business, including consideration of factors such as shareholder expectations, industry developments, financial stability and reporting requirements for the financial statements. We have determined financial statement materiality based on a proportion of the prior year gross expenditure of Grampian Valuation Joint Board. Materiality at the planning stage of our audit is £124,500 (PY: £124,500), which equates to 2.5% of your prior year gross expenditure for the year. Performance materiality for the organisation has been set at £93,375 (PY: £93,375) which is based upon 75% of materiality. • We determine planning materiality in order to: – establish what level of misstatement could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements – assist in establishing the scope of our audit engagement and audit tests – determine sample sizes and – assist in evaluating the effect of known and likely misstatements in the financial statements 2. Other factors An item does not necessarily have to be large to be considered to have a material effect on the financial statements. • An item may be considered to be material by nature when it relates to: – instances where greater precision is required (e.g. the Senior Management and Board Members Remuneration and Pension CETV Tables) 3. Reassessment of materiality Our assessment of materiality is kept under review throughout the audit process. • We reconsider planning materiality on receipt of the draft statement of accounts and if, during the course of our audit engagement, we become aware of facts and circumstances that would have caused us to make a different determination of planning materiality Grampian Valuation Joint Board External Audit Plan 2025/26 17 Misstatements, including omissions, are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements; Judgments about materiality are made in light of surrounding circumstances, and are affected by the size or nature of a misstatement, or a combination of both; and Judgments about matters that are material to users of the financial statements are based on a consideration of the common financial information needs of users as a group. The possible effect of misstatements on specific individual users, whose needs may vary widely, is not considered. (ISA (UK) 320) Page 29
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|© 2026 Grant Thornton UK LLP Our approach to materiality (2) Grampian Valuation Joint Board External Audit Plan 2025/26 18 Materiality area 2025/26 planning materiality Qualitative factors considered Headline materiality for the financial statements £124,500 This is equivalent to approximately 2.5% of the gross expenditure for the period ended 31 March 2025 (2024/25: 2.5%). Performance materiality for the financial statements £93,375 Performance materiality has been set at 75% of financial statements materiality (2024/25: 75%). Performance materiality is used for the purposes of assessing the risks of material misstatement and determining the nature, timing, and extent of further audit procedures. This is the amount we set at less than materiality for the financial statements as a whole, to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole. Reporting threshold £6,200 This balance is set at £6,500 which is 5% of materiality (2024/25: 5%). All misstatements above this threshold will be reported. Auditable elements of the Remuneration and Staff Report: • Remuneration of Board Members • Remuneration of Grampian VJB Senior Leadership Team Payments to past directors • Payments for loss of office • Fair pay disclosures • Number of senior employees by band Specific lower materiality set by the audit team: • Exit packages The total staff costs analysis note will be audited at headline materiality. £25,000 Due to the public interest in the specified remuneration disclosures, we apply specific audit procedures to this work and set a lower materiality level for this area. We design our procedures to detect errors in specific accounts at a lower level of precision which we have determined to be applicable for the specified remuneration disclosures. We evaluate errors in this disclosure for both quantitative and qualitative factors against this lower level of materiality. We will apply heightened auditor focus in the completeness and clarity of disclosures in this area and will request amendments to be made if any errors exceed the threshold we have set or would alter the bandings reported for any individual. Page 30
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|© 2026 Grant Thornton UK LLP IT audit strategy05 Grampian Valuation Joint Board External Audit Plan 2025/26 19 Page 31
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|© 2026 Grant Thornton UK LLP IT audit strategy In accordance with ISA (UK) 315, we are required to obtain an understanding of the IT environment related to all key business processes, identify all risks from the use of IT related to those business process controls judged relevant to our audit and assess the relevant IT general controls (ITGCs) in place to mitigate them. Our audit will include completing an assessment of the design and implementation of ITGCs related to security management; technology acquisition, development and maintenance; and technology infrastructure. The following IT applications are in scope for IT controls assessment based on the planned financial statement audit approach, we will perform the indicated level of assessment: Grampian Valuation Joint Board External Audit Plan 2025/26 20 IT application Audit area Planned level IT audit assessment Advance Business Solutions e5 System Financial reporting • ITGC assessment (design and implementation effectiveness only) iTrent Payroll • ITGC assessment (design and implementation effectiveness only) Page 32
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|© 2026 Grant Thornton UK LLP Wider scope and best value arrangements 06 Grampian Valuation Joint Board External Audit Plan 2025/26 21 Page 33
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|© 2026 Grant Thornton UK LLP Wider scope and best value arrangements Wider Scope Our responsibilities under the Code extend beyond the audit of the financial statements. Under the Code and supporting guidance: “Supplementary guidance - wider scope audit, less complex bodies and Best Value” issued by Audit Scotland, there is an exemption in relation to the normal wider scope audit requirements of the Code for public bodies which are smaller and have limited financial activity (referred to as “Less Complex Bodies”). As required by the Code and this supporting guidance. we have assessed both the quantitative and qualitative risk factors related to Grampian VJB and concluded that Grampian VJB qualifies for this exemption for 2025/26. From a quantitative perspective the gross revenue, gross assets and gross liabilities of Grampian VJB are not expected to exceed the £10.2 million limit set out in Audit Scotland’s guidance, and from a qualitative perspective we have not identified any wider scope risks beyond financial sustainability that would require further consideration during the audit. Our wider scope work at Grampian VJB will be limited to the following areas specified for Less Complex Bodies in the Code: From our initial planning work, no significant risks have been identified in relation to our wider scope responsibilities. Best Value in other local government bodies Auditors’ duty to consider the arrangements to secure Best Value applies to other bodies that fall within section 106 of the Local Government (Scotland) Act 1973 (the 1973 Act). We will consider the arrangements put in place by Grampian VJB to meet their Best Value obligations as part of our wider scope work. The Code also requires that auditors assess and report on audited bodies’ performance in meeting their Best Value and community planning duties, as part of their annual audit. For central government bodies, we are required to consider the arrangements put in place by Accountable Officers and Chief Constable to meet their Best Value obligations as part of our risk-based wider-scope audit work. 22 Financial Sustainability Concluding on the financial sustainability of the body and the services that it delivers over the medium to longer term. Annual Governance Statement A review of the Annual Governance Statement Grampian Valuation Joint Board External Audit Plan 2025/26 Page 34
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|© 2026 Grant Thornton UK LLP Logistics07 23Grampian Valuation Joint Board External Audit Plan 2025/26Page 35
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|© 2026 Grant Thornton UK LLP Logistics Grampian Valuation Joint Board External Audit Plan 2025/26 24 The audit timeline Planning: March 2026 Key Dates Finals / Wider Scope: October 2026 Completion: October 2026 Key elements • Planning meeting with management to set audit scope • Agree timetable and deliverables with management and Grampian VJB • Issue the Audit Plan to management and Grampian VJB • Document design effectiveness of systems and processes Key elements • Audit team to complete fieldwork and detailed testing • Review of key judgements and estimates • Feedback on draft financial statements Key elements • Draft Audit Findings issued to management • Audit Findings meeting with management • Draft Auditor’s Annual Report issued to Grampian VJB • Audit Findings presentation to Grampian VJB • Annual Audit Report • Finalise and sign financial statements and audit report Year End: 31 March 2026 Board meeting 30 October 2026 Audit phases: Board Meeting 26 June 2026 Audit Plan submitted to Audit Scotland: By 31 March 2026 Page 36
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|© 2026 Grant Thornton UK LLP Our team and communications Grampian Valuation Joint Board External Audit Plan 2025/26 25 Grant Thornton core team Service delivery Audit reporting Audit progress Technical support Formal communications Annual client service review The Audit Plan The Auditor’s Annual Report Audit planning meetings Audit clearance meetings Communication of issues log Technical updates Informal communications Open channel for discussion Communication of audit issues as they arise Notification of up-coming issues As part of our overall service delivery, we may utilise colleagues who are based overseas, primarily in India and the Philippines. Those colleagues work on a fully integrated basis with our team members based in the UK and receive the same training and professional development programmes as our UK based team. They work as part of the engagement team, reporting directly to the Audit Senior and Manager and will interact with you in the same was as our UK based team albeit on a remote basis. Our overseas team members use a remote working platform which is based in the UK. The remote working platform (or Virtual Desktop Interface) does not allow the user to move files from the remote platform to their local desktop meaning all audit related data is retained within the UK. Angela Pieri Engagement Leader Andrew Wallace Senior Audit Manager Alexander Chapman Audit Senior • Key contact for senior management and the Board • Overall quality assurance • Audit planning • Resource management • Performance management reporting • On-site audit team management • Day-to-day point of contact • Audit fieldwork Page 37
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|© 2026 Grant Thornton UK LLP Fees and related matters08 26Grampian Valuation Joint Board External Audit Plan 2025/26 Page 38
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|© 2026 Grant Thornton UK LLP Audit Fees (1) Relevant Professional Standards Across all sectors and firms, the Financial Reporting Council (FRC) has set out its expectation of improved financial reporting from organisations and the need for auditors to demonstrate increased scepticism and challenge and to undertake additional and more robust testing. As a firm, we are absolutely committed to meeting the expectations of the FRC on audit quality and public sector financial reporting. This includes, for Audit Scotland contracts, meeting the expectations of the Audit Scotland Quality Team and the Scottish quality framework. We are required to consider all relevant professional standards, including paragraphs 4.1 and 4.2 of the FRC’s Ethical Standard (revised 2024) which stipulate that the Engagement Lead (Key Audit Parter) must set a fee sufficient to enable the resourcing of the audit with partners and staff with appropriate time and skill to deliver an audit to the required professional and Ethical standards. Audit fees were shared by Audit Scotland with the Treasurer in January 2026. Audit fees are paid to Audit Scotland who in turn pay us. We reserve the right to review our fee during the audit should significant delays be encountered and/or new technical matters arise. Audit Scotland set the baseline audit fee. We can increase the fee, from the baseline, for the inclusion of additional risks, new technical matters or where specific client matters are identified, such as prior year misstatements and disclosure amendments re-occurring during the audit. Grampian Valuation Joint Board External Audit Plan 2025/26 27 The baseline fee of £9,920 has been set by Audit Scotland. In accordance with Audit Scotland guidance, we are able to discuss a variation to the audit fee where additional work is required. Further detail on the audit fee is available on the following page. Page 39
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|© 2026 Grant Thornton UK LLP Audit Fees (2) Audit fees for 2025/26 Additional Fees (Non-Audit Services) Fee Assumption In setting the fee for 2025/26 we have assumed that you will: • prepare a good quality set of accounts, supported by comprehensive and well-presented working papers which are ready at the start of the audit • provide appropriate analysis, support and evidence for all critical and significant judgements and estimates made in preparing the financial statements • provide early notice of proposed complex or unusual transactions which could have a material impact on the financial statements • Provide ongoing access to officers and management experts throughout the audit and timely responses to audit queries. Grampian Valuation Joint Board External Audit Plan 2025/26 28 Service Fees (£) External Auditor Remuneration £21,340 Pooled Costs -£740 Contribution to Audit Scotland support costs Nil Contribution to Performance Audit and Best Value Nil Sectoral cap adjustment -£12,160 2025/26 Fee £9,920 Service Fees (£) At planning stage we confirm there are no planned non-audit services Nil Page 40
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|© 2026 Grant Thornton UK LLP Independence considerations09 29Grampian Valuation Joint Board External Audit Plan 2025/26 Page 41
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|© 2026 Grant Thornton UK LLP Independence considerations Ethical Standards and ISA (UK) 260 require us to give you timely disclosure of all significant matters that may bear upon the integrity, objectivity and independence of the firm or covered persons (including its partners, senior managers, managers and network firms). In this context, there are no matters that we are required to report. As part of our assessment of our independence at planning we note the following matters: We confirm that we have implemented policies and procedures to meet the requirement of the Financial Reporting Council’s Ethical Standard. We confirm that there are no significant facts or matters that impact on our independence at planning as auditors that we are required or wish to draw to your attention and consider that an objective reasonable and informed third party would take the same view. The firm and each covered person have complied with the Financial Reporting Council’s Ethical Standard and confirm that we are independent and are able to express an objective opinion on the financial statements. No non-audit services provided by Grant Thornton UK LLP have been identified. Any changes and full details of all fees charged for audit related and non-audit related services by Grant Thornton UK LLP and by Grant Thornton International Limited network member Firms will be included in our Annual Audit Report at the conclusion of the audit. Matter Conclusions Relationships with Grant Thornton We are not aware of any relationships between Grant Thornton and the Board that may reasonably be thought to bear on our integrity, independence and objectivity. Relationships and Investments held by individuals We have not identified any potential issues in respect of personal relationships with the Board or investments in the Board held by individuals. Employment of Grant Thornton staff We are not aware of any former Grant Thornton partners or staff being employed, or holding discussions in respect of employment, by the Board as a director or in a senior management role covering financial, accounting or control related areas. Business relationships We have not identified any business relationships between Grant Thornton and the Board. Contingent fees in relation to non-audit services No contingent fee arrangements are in place for non-audit services provided. Gifts and hospitality We have not identified any gifts or hospitality provided to, or received from, a member of the Board’s board, senior management or staff (that would exceed the threshold set in the Ethical Standard). 30Grampian Valuation Joint Board External Audit Plan 2025/26 Page 42
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|© 2026 Grant Thornton UK LLP Communication of audit matters with those charged with governance 10 31Grampian Valuation Joint Board External Audit Plan 2025/26 Page 43
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|© 2026 Grant Thornton UK LLP Communication of audit matters with those charged with governance (1) Grampian Valuation Joint Board External Audit Plan 2025/26 32 Our communication plan Audit Plan Annual Audit Report Respective responsibilities of auditor and management/those charged with governance Overview of the planned scope and timing of the audit, form, timing and expected general content of communications including significant risks and Key Audit Matters Planned use of internal audit Confirmation of independence and objectivity A statement that we have complied with relevant ethical requirements regarding independence. Relationships and other matters which might be thought to bear on independence. Details of non-audit work performed by Grant Thornton UK LLP and network firms, together with fees charged. Details of safeguards applied to threats to independence Significant matters in relation to going concern Views about the qualitative aspects of Grampian VJB’s accounting and financial reporting practices including accounting policies, accounting estimates and financial statement disclosures ISA (UK) 260, as well as other ISAs (UK), prescribe matters which we are required to communicate with those charged with governance, and which we set out in the table here. This document, the Audit Plan, outlines our audit strategy and plan to deliver the audit, while the Annual Audit Report will be issued prior to approval of the financial statements and will present key issues, findings and other matters arising from the audit, together with an explanation as to how these have been resolved. We will communicate any adverse or unexpected findings affecting the audit on a timely basis, either informally or via an audit progress memorandum. Page 44
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|© 2026 Grant Thornton UK LLP Communication of audit matters with those charged with governance (2) Our communication plan Audit Plan Annual Audit Report Significant findings from the audit Significant matters and issue arising during the audit and written representations that have been sought Significant difficulties encountered during the audit Significant deficiencies in internal control identified during the audit Significant matters arising in connection with related parties Identification or suspicion of fraud involving management and/or which results in material misstatement of the financial statements Non-compliance with laws and regulations Unadjusted misstatements and material disclosure omissions Grampian Valuation Joint Board External Audit Plan 2025/26 33 Respective responsibilities As auditor we are responsible for performing the audit in accordance with ISAs (UK), which is directed towards forming and expressing an opinion on the financial statements that have been prepared by management with the oversight of those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities. Page 45
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|© 2026 Grant Thornton UK LLP Appendices11 34Grampian Valuation Joint Board External Audit Plan 2025/26 Page 46
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|© 2026 Grant Thornton UK LLP 3535 Respective responsibilities The Code sets out auditor responsibilities and responsibilities of the audited body. Key responsibilities are summarised below. Please refer to the Code for further detail. Grampian Valuation Joint Board Your responsibilities include: • Maintaining adequate accounting records and working papers • Preparing accounts for audit, comprising financial statements, which give a true and fair view, and related reports • Establishing and maintaining a sound system of internal control • Establishing sound arrangements for proper conduct of affairs, including the regularity of transactions • Maintaining standards of conduct for the prevention and detection of fraud and other irregularities • Maintaining strong corporate governance arrangements and a financial position that is soundly based • Establishing and maintaining an effective internal audit function. External Audit Our responsibilities include: • Compliance with the FRC Ethical Standard • Compliance with the Code and UK Auditing Standards (ISA’s UK) in the conduct and reporting of our financial statements audit • Compliance with the Code and guidance issued by Audit Scotland in the conduct and reporting of our wider scope work • Providing assurance on specified returns and other outputs (where required), as specified in guidance issued by Audit Scotland • Liaison with and notifying Audit Scotland when circumstances indicate a statutory report may be required. • Contributing to relevant performance studies (as set out in Audit Scotland’s Planning Guidance for 2025/26). Grampian Valuation Joint Board External Audit Plan 2025/26 Page 47
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|© 2026 Grant Thornton UK LLP New or revised IFRS New or revised accounting standards that are in effect for reporting periods beginning on or after 1 January 2025. Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity The International Accounting Standards Board (IASB) issued amendments to IFRS 9 and IFRS 7 to improve the reporting of nature-dependent electricity contracts, such as power purchase agreements (PPAs). These contracts, which secure electricity from sources like wind and solar power, can vary due to uncontrollable factors like weather. The amendments clarify the 'own-use' requirements, permit hedge accounting for these contracts, and introduce new disclosure requirements to help investors understand their impact on a company's financial performance and cash flows. The amendments are effective from 1 January 2026. Amendments to IFRS 9 and IFRS 7 – Classification and measurement of financial instruments These amendments clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, adds guidance on the solely payment of principal and interest (SPPI) criteria, and includes updated disclosures for certain instruments (e.g. instruments with features linked to environmental social and governance (ESG) targets). The amendments are effective from 1 January 2026. IFRS 18 Presentation and Disclosure in the Financial Statements IFRS 18 will replace IAS 1 Presentation of Financial Statements. All entities reporting under IFRS Accounting Standards will be impacted. The new standard will impact the structure and presentation of the statement of profit or loss as well as introduce specific disclosure requirements. Some of the key changes are: • Introducing new defined categories for the presentation of income and expenses in the income statement • Introducing specified totals and subtotals, for example the mandatory inclusion of ‘Operating profit or loss’ subtotal. • Disclosure of management defined performance measures • Enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes. IFRS 18 will be effective in the UK from 1 January 2027. IFRS 19 Subsidiaries without Public Accountability: Disclosures IFRS 19 provides reduced disclosure requirements for eligible subsidiaries. A subsidiary is eligible if it does not have public accountability and has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. IFRS 19 is a voluntary standard for eligible subsidiaries and is effective in the UK from 1 January 2027. 36Grampian Valuation Joint Board External Audit Plan 2025/26 Page 48
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© 2026 Grant Thornton. All rights reserved. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton International Ltd (GTIL) and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. 37 Back page Page 49
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 26 JUNE 2026 SUBJECT: UNAUDITED ANNUAL ACCOUNTS FOR 2025/26 BY: TREASURER TO THE BOARD 1. REASON FOR REPORT 1.1 To consider the unaudited Annual Accounts for the Grampian Valuation Joint Board for the year ended 31 March 2026. 2 RECOMMENDATION 2.1 It is recommended that the Board considers the unaudited Annual Accounts of the Grampian Valuation Joint Board for the year ending 31 March 2026. 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 unaudited Annual Accounts are presented to the Board’s appointed Auditor by the 30 June in the next financial year. 3.3 The unaudited Annual Accounts for 2025/26 have been prepared in accordance with the Code of Practice on Local Authority Accounting, supported by International Financial Reporting Standards. 4. 2025/26 Actual Outturn 4.1 Copies of the unaudited Annual Accounts for the year ended 31 March 2026 have been distributed with this report at APPENDIX 2. Item 6. Page 51
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4.2 At the meeting on 31 January 2025, the Board agreed the Revenue Budget for 2025/26 (paragraph 6 of the Minute refers) of £5,699,000. The requisitions to constituent authorities were set at £5,399,000 with £300,000 planned to be funded from the earmarked EIP reserve. 4.3 The net expenditure for the year, as shown in APPENDIX 1, was £5,038,000 compared to a budget of £5,574,000, resulting in an underspend of £536,000. The budget included planned use of £300,000 from the Electoral Integrity Programme (EIP) earmarked reserve. However, only £143,000 of this reserve was required in year. 4.4 The above position is prior to accounting adjustments required for lease accounting adjustments (IFRS 16) totalling £125,000, which are reflected in the adjusted position below. 4.5 After including the £143,000 draw down from the EIP earmarked reserve to support expenditure, compared to the £300,000 originally budgeted, the adjusted underspend for the year is £379,000. However, this position is affected by a number of reserve movements during the year. These include: • £49,600 transferred into the EIP earmarked reserve relating to funding received during the year to support election changes; • £16,000 transferred into the General Reserve in line with the Board’s reserves policy; 4.6 After taking account of these movements, the resultant surplus available for return to constituent authorities is £313,000. 4.7 The Q3 monitoring report to the Board on 31 January 2025 was for an estimated underspend of £283,000. The final outturn therefore represents an improvement on the forecast position at Quarter 3. Reserves 4.8 The Board at its meeting on 28 January 2011 (paragraph 4 of the Minute refers) agreed to create a General Reserve from the surplus generated in that year and that transfers to the General Fund would be restricted to 3% of the total budget in any one year and that the cumulative balance of the fund would not exceed 5% of the total budget. 4.9 In setting the 2023/24 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 Page 52
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separate funding stream e.g. NDR earmarked reserve for implementation of the Barclay Review. 4.10 The General Fund balance was adjusted to reflect the maximum amount that can be held per the policy and is now £254,000. 4.11 It was agreed at the meeting of the Board on 7 February 2020 that an earmarked reserve could be created to allocate any unspent budget on NDR Reform to cover the implementation of the reform in future years. 4.12 The total of the Usable Reserves £1,103,000 as shown in Note 17 to the Accounts is the balance of the General Reserve (£254,000), the earmarked NDR portion (£567,000), and the earmarked Electoral Integrity Programme (EIP) portion (£282,000). Refund to Authorities 4.13 Following the reserve movements outlined above, an anticipated £313,000 falls due to be returned to the constituent authorities and will be confirmed on completion of the audit. The refund split between authorities is shown below: 2025/26 Proposed Surplus Refund to Authorities % £ Aberdeen City Council 38.78 121,370 Aberdeenshire Council 44.79 140,180 Moray Council 16.44 51,450 Total 100.00 313,000 Unaudited Accounts 2025/26 4.14 The Comprehensive Income and Expenditure Statement shows the accounting position for the year. After accounting adjustments required under IFRS, including lease and pension entries, the net movement in reserves reflects transfers to and from earmarked reserves as outlined above. 4.15 The Movement in Reserves Statement in the Annual Accounts shows the movement in the year on the various reserves held by the Board, analysed into Usable Reserves, i.e. those that can be used to fund expenditure, and Unusable Reserves, i.e. those that have been created for specific accounting entries and do not represent distributable funds. 4.16 IFRS 16 Leases continues to apply in 2025/26 and affects how lease costs are presented in the accounts. Lease payments are no longer included in service expenditure. Instead, they are split between interest (shown below the net cost of services) and principal repayments (treated as financing activity). While this changes the presentation of costs, it does not affect the overall cost of the lease Page 53
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or the underlying financial position. The adjusted position reported above reflects this treatment. 4.17 For transparency, lease costs, and budget, have been removed from property expenditure in APPENDIX 1 and reflected as interest and principal, resulting in the adjusted underspend of £236,000. 4.18 The Usable Reserves show the reserves which members of the Board have control over: the General Reserve of £254,000, the earmarked NDR Reserve of £567,000, and the earmarked Electoral Integrity Programme portion of £282,000. 4.19 The Unusable Reserves record accounting entries which the Board is required to disclose and do not represent funds available for use. These include balances for the Revaluation Reserve, Capital Adjustment Account, Pensions Reserve and the Employee Statutory Adjustment Account. More detail on the purpose of these reserves and the movements during the year in them are described in Note 18 of the Accounts. 5. VARIANCES Significant Variances between Budget and Actual for 2025/26 5.1 The actual result for the year, set out in the unaudited annual accounts, forms APPENDIX 1 to this report. 5.2 The main reason for the underspend in 2025/26 is the ongoing challenges in recruiting staff. Employee costs were £253,000 under budget, including £117,000 related to budgeted posted within the NDR provision. Although the Local Government pay award exceeded the 3% budget provision, 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. 5.3 Property costs were under budget by £13,000 overall, once the £125,000 IFRS 16 lease adjustment is taken into account for presentation purposes. The underlying position represents a modest underspend, including £18,000 on Repairs and Maintenance, reflecting lower than anticipated expenditure during the year. 5.4 Within Supplies and Services, the main variance was an underspend of £156,000 on Postages and Electoral Registration printing. This largely reflects lower levels of activity than anticipated during the year, particularly in relation to electoral mailings, contributing to the lower level of earmarked reserve being utilised. There was also an underspend of £15,000 on Valuation Appeals, reflecting lower levels of appeal activity. 5.5 These favourable variances were partly offset by an overspend of £31,000 on Other Supplies and Services. This includes expenditure on SAA portal data, for which there is corresponding income recoveries, and therefore does not represent Page 54
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a net pressure on the year-end position. There were also a number of smaller variances across other areas within this category. 5.6 Income received during the year was above budget by £133,000 in total. This includes additional government grant funding of £49,600 received to support the Electoral Integrity Programme. In line with funding conditions, this has been transferred to the EIP earmarked reserve and is not available to support the year- end position. A further £64,000 relates to higher than budgeted interest earned on balances held during the year, reflecting favourable interest rates, as anticipated at Q3. Significant Variances between Forecast and Actual Variances for 2025/26 5.7 As outlined in paragraph 4.5, the adjusted underspend for 2025/26 was £379,000 compared to the estimated underspend of £283,000 reported to the Board in January. 5.8 The difference between the forecast and the final outturn reflects a combination of small movements in expenditure and changes in the utilisation of earmarked reserves. Staffing costs remained broadly in line with forecast, while property and supplies costs were more favourable than anticipated, particularly within postages and printing. In addition, the requirement to draw on the EIP reserve was lower than assumed at Q3. 5.9 Further details of these and other variances can be found in APPENDIX 1 6 CONCLUSION 6.1 The Board met the statutory deadline for the submission of the annual accounts to the External Auditor by 26 June 2026. 6.2 The Board recorded an adjusted underspend of £379,000 for the year to 31 March 2026. After transfers into reserves, it is anticipated that a total of £313,000 will be returned to constituent authorities following the annual audit. Author of Report: Aaron Cory, Trainee Accountant Background papers: Held within Accountancy Section, Moray Council Date: 04/06/2026 Page 55
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APPENDIX 1 Line Total Budget Actual Variance Estimated Outturn Estimated Variance No. 2025/26 31-Mar-26 31-Mar-26 2025/26 2025/26 £'000 £'000 £'000 £'000 £'000 Employee Costs 1 Salaries 3,240 3,058 182 3,044 196 2 National Insurance 428 400 28 402 26 3 Superannuation 324 307 17 305 19 4 Additional Pensions 26 24 2 23 3 5 Other Employee Costs 7 7 0 10 (3) 6 Training 34 10 24 10 24 Total Employee Costs 4,059 3,806 253 3,794 265 Property Costs 7 Accommodation Charges 225 228 (3) 342 (117) 8 Repairs and Maintenance 20 2 18 20 - 9 Energy Costs 16 17 (1) 16 - 10 Cleaning 5 6 (1) 6 (1) Total Property Costs 266 253 13 384 (118) Transport Costs 11 Staff Travel and Subsistence 50 57 (7) 60 (10) Total Transport Costs 50 57 (7) 60 (10) Supplies & Services 12 Equipment, Furniture & Materials 10 2 8 6 4 13 PPE 1 - 1 1 - 14 Reference Books 16 15 1 16 - 15 Printing & Stationery 10 12 (2) 11 (1) 16 Postages & ER Printing 781 625 156 781 - Page 57
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17 Telephones 2 2 - 6 (4) 18 Advertising 1 1 - 1 - 19 IT Maintenance & Support 254 246 8 279 (25) 20 Valuation Appeals 30 15 15 30 - 21 Members' Allowances 4 4 - 10 (6) 22 Fees, Charges & Subs 9 6 3 9 - 23 Specialist Services 30 36 (6) 30 - 24 Conference Fees & Subsistence 3 3 - 2 1 25 Other Supplies & Services 4 35 (31) 7 (3) Total Supplies & Services 1,155 1,002 153 1,189 (34) Support Services 25 Lead Authority Charge 65 74 (9) 74 (9) Total Support Services 65 74 (9) 74 (9) Gross Expenditure 5,595 5,192 403 5,501 94 Income 26 Sales and Other Income (17) (36) 19 (17) - 27 Government Grant - (50) 50 - - 28 Interest on Revenue balances (4) (68) 64 (68) 64 Total Income (21) (154) 133 (85) 64 29 Net Expenditure 5,574 5,038 536 5,416 158 30 Requisitions (5,399) (5,399) - (5,399) - 31 Approved Use of Reserves (300) (143) (157) (300) - 32 (Surplus)/Deficit for Year (as reported) (125) (504) 379 (283) 158 33 Add: Lease Interest (IFRS 16) 18 18 - 0 18 34 Add: Lease Principal (IFRS 16) 107 107 - 0 107 35 Adjusted (Surplus)/Deficit for Year - (379) 379 (283) 283 Page 58
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36 Transferred to EIP Reserve - 50 - - - 37 Transferred to General Reserve - 16 - - - 38 Surplus Refund to Authorities - (313) 379 (283) 283 Page 59
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Appendix 2 UNAUDITED ACCOUNTS ANNUAL ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2026 GRAMPIAN VALUATION JOINT BOARD Page 61
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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: ةغلب نوكتو ياروم سلجم لبق نم تامولعم لىإ ةجاح ي ف متنك اذإ نوكت نأ وأ ويدوأ ةناوطسأ ،يا ربلا لثم فلتخم لكش لىعوأ ةفلتخم ب لاصّتلإا ءاجّرلاف ةظيلغ فورح لامعتساب ةعوبطم 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: راکرد تامولعم ںیم تروص ای نابز رگید یسک ےس لسنوک ےروم وک پآرگا ہطبار رک امرف ینابرہم وت ،فورح ےڑب ای پیٹ ویڈآ ،ےلیرب ˝لاثم ںوہ :ںیئامرف : Treasurer to the Board, Financial Services, High Street, Elgin, IV30 1BX 01343 563125 accountancy.support@moray.gov.uk Page 62
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Contents MANAGEMENT COMMENTARY .......................................................................................................... 1 STATEMENT OF RESPONSIBILITIES FOR THE ANNUAL ACCOUNTS ................................................... 9 ANNUAL GOVERNANCE STATEMENT .............................................................................................. 11 REMUNERATION REPORT ............................................................................................................... 21 COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 MARCH 2026 ........................................................................................................................................................ 28 MOVEMENT IN RESERVES STATEMENT FOR THE YEAR ENDED 31 MARCH 2026 ............................. 29 BALANCE SHEET AS AT 31 MARCH 2026 ......................................................................................... 30 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2026 .................................................. 31 NOTES TO THE ACCOUNTS ............................................................................................................. 32 Note 1 Accounting Policies .......................................................................................................... 32 Note 2 Accounting Standards That Have Been Issued But Have Not Yet Been Adopted ............... 34 Note 3 Critical Judgements in Applying Accounting Policies ......................................................... 34 Note 4 Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty34 Note 5 Material Items of Income and Expenditure ....................................................................... 36 Note 6 Events After The Reporting Period ..................................................................................... 36 Note 7 Expenditure and Funding Analysis and Adjustments between Accounting Basis and Funding Basis under Regulations ................................................................................................. 37 Note 8 Expenditure and Income Analysed by Nature ................................................................... 39 Note 9 Earmarked Portions of the General Fund .......................................................................... 40 Note 10 Financing and Investment Income and Expenditure ........................................................ 40 Note 11 Property, Plant and Equipment ....................................................................................... 40 Note 12 Short Term Debtors ........................................................................................................ 43 Note 13 Cash and Cash Equivalents ............................................................................................ 44 Note 14 Short Term Creditors ...................................................................................................... 44 Note 15 Other Long Term Liabilities ............................................................................................. 44 Note 16 Financial Instruments .................................................................................................... 44 Note 17 Usable Reserves............................................................................................................. 46 Note 18 Unusable Reserves ........................................................................................................ 46 Note 19 External Audit Costs ....................................................................................................... 49 Note 20 Cashflow – Analysis of Net Deficit on the provision of services for non cash movements 50 Note 21 Requisition and Grant Income ........................................................................................ 50 Note 22 Leases ............................................................................................................................ 51 Note 23 Related Parties ................................................................................................................ 52 Note 24 Defined Benefit Pension Scheme ................................................................................... 52 GLOSSARY OF TERMS ..................................................................................................................... 61 Page 63
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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 services, which are strictly defined and regulated by statute, are delivered by the Assessor & Electoral Registration Officer, as an independent statutory official, in partnership with the Grampian Valuation Joint Board. The Board is an independent local government body established by The Valuation Joint Boards (Scotland) Order 1995 and comprises members from each of the three 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 mutual agreement, the Board fulfills this obligation on behalf of the local authorities. The Board’s costs are apportioned between the councils based on the respective population of each council area. The objectives for 2025/26 were to: • 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 • Implement a revaluation of all non-domestic properties • Maintain a complete and accurate Council Tax Valuation List in terms of the Local Government Finance Act 1992 Monitoring regimes The Electoral Commission maintains a UK‑wide performance standards framework applicable to all Electoral Registration Officers (EROs). Statistical returns are submitted annually to the Commission following completion of the annual canvass and the subsequent publication of revised electoral registers. Non-domestic proposal and appeal resolution returns are submitted quarterly to the Scottish Government, which subsequently publishes both local and national datasets. Key performance indicators to monitor performance in relation to the updating of the Council Tax Valuation List and the Valuation Roll are set triennially by the Board and are reported quarterly to the Board and annually to the Scottish Government. Business model The organisation fulfils its statutory obligations through a dual‑strand operating model where the Board provides the financial resources and oversight and the Assessor & ERO provides the specialised and independent professional services of valuation assessment and electoral registration. The organisation operates a hybrid working model comprising both home-based and office-based working arrangements and maintains staffed office facilities in Aberdeen, Banff and Elgin. The Assessor & ERO and his staff work in close collaboration with fellow Scottish Assessors and EROs through the Scottish Assessors’ Association (SAA). This partnership working aims to Page 64
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2 deliver a service across the Aberdeen City, Aberdeenshire and Moray council areas that is consistent with that being delivered across all other local authority areas in Scotland. The SAA provides a well-stablished platform for shared expertise, collective representation and coordinated service delivery. Through the SAA web Portal it supports a wide range of stakeholders including citizens, businesses, third sector organisations, public bodies, government agencies and research bodies and represents a strong example of effective shared service provision across Scotland. Appeal outcome data and associated performance indicators are used to assess the effectiveness of the organisation’s valuation assessment functions, while registration performance is monitored in accordance with the Electoral Commission’s established performance standards framework. The organisation met the demands placed upon it in terms of its valuation assessment and electoral registration duties during the 2025/26 financial year. Key performance indicators (KPI) The organisation’s code of corporate governance establishes a structured framework for the reporting of key performance indicators and a triennial review cycle. These KPIs are designed to quantify the effectiveness of the organisation’s core activities in relation to the Valuation Roll for non-domestic property assessments and the Valuation List for domestic property council tax band allocations. The Assessor & ERO provides quarterly performance reports to the Board and an annual public performance report is published online at the end of every calendar year, following the publishing of the annual accounts. KPI targets for the three-year period from 2024/25 onwards were agreed by the Board at its January 2024 meeting. The KPI outcomes for 2025/26 are shown in the “Maintain a complete and accurate Valuation Roll in terms of the Local Government (Scotland) Act 1975” and the “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 Full household canvass The 2025 canvass commenced in July 2025, extending through to November 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 annual canvass process incorporated a data matching exercise, comparing the electoral registration database with government records. The outcomes of this exercise were returned to the Electoral Registration Officer (ERO) and used to determine the appropriate canvass approach for each household. Where the data indicated no change in household composition, a canvass communication was issued providing a summary of the existing registration details. Households were advised to respond only where changes were required, thereby streamlining the process and reducing unnecessary contact. In cases where the data suggested that changes to household composition may have occurred, a more detailed canvass process was applied. This required a response from the household and, where necessary, follow‑up action by the ERO to ensure the accuracy and completeness of the electoral register. Properties requiring personal contact were visited by Page 65
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3 members of the canvass team to maximise response rates and support compliance with statutory requirements. For the 2025 canvass, the organisation made increased use of electronic communications, contacting over 117,000 households through digital channels, a significant increase from the 90,000 in 2024. This approach contributed to efficiencies in both staffing and financial resources, while also reducing the volume of printed materials issued and improving the timeliness and accessibility of communications with electors. During the course of the 2025 canvass, a total of 305,332 canvass communications were issued by post, a decrease compared to the 332,005 issued in 2024, and well below the numbers issued prior to the introduction of the reformed canvass model. Canvass staff made over 45,000 personal visits to households during the canvass period and over 7,600 personal contacts were made by telephone. Publication of revised registers of electors Revised registers were published on 1 December 2025 following the completion of the annual canvass, and revised registers were also published on 1 February 2026 following the implementation of boundary changes for Scottish Parliamentary constituencies. The table below provides a summary of the revised registers for local government and Scottish Parliament elections published following the previous three annual canvasses. The revised registers showed a slight increase in the number of registered electors and a decrease in the number of electors with postal votes. Revised registers Number of electors Number of postal voters 1 December 2023 452,084 117,065 1 February 2025 454,284 113,064 1 December 2025 457,282 107,900 During the period from 1 February 2025 to 31 December 2025, 38,690 additions and 35,664 deletions were made to the registers. During the same period, 35,975 initial invitations to register (ITRs) were issued along with 27,610 first and second reminders, and staff carried out ITR visits to 18,545 properties. Revaluation of all non-domestic properties with effect from 1 April 2026 A nationwide revaluation of all non‑domestic properties in Scotland came into effect on 1 April 2026. This statutory exercise required the reassessment of approximately 260,000 non‑domestic properties across Scotland, with each property assigned a new rateable value based on estimated rental values as at 1 April 2025 (the “tone date”). In advance of the revaluation, Scottish Assessors published a draft valuation roll on 30 November and issued draft valuation notices. This provided ratepayers and stakeholders with an early indication of proposed valuations and an opportunity to engage with the process in advance of the final valuation roll. Within the Grampian area, over 30,000 subjects were revalued as part of this exercise. In total, more than 44,000 valuation notices were issued to proprietors, tenants, and occupiers at both the draft and final stages. This reflects the scale and complexity of the revaluation process and the significant operational effort required to ensure its successful delivery. Page 66
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4 The process presented a particular challenge due to the relatively short period between the tone date and the publication of the draft valuation roll. This compressed timetable placed considerable demands on available resources, requiring careful prioritisation, effective project management, and the adoption of flexible working practices to ensure statutory deadlines were met. The organisation responded by deploying resources strategically, enhancing internal coordination, and engaging collaboratively through the Scottish Assessors’ Association to develop practice notes to share best practice and maintain consistency of approach. Despite these challenges, the revaluation was successfully implemented within the required timescales. Processes were applied throughout to support the accuracy and consistency of valuations, and appropriate arrangements were in place to manage enquiries at both the draft and final stages. 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 are measured using quantitative, target-based performance indicators rather than qualitative measures. Meeting these targets depends partly on the timely receipt of information from external parties, including owners and occupiers of both domestic and non- domestic properties. As a result, the figures may not always provide an accurate reflection of the organisation’s actual performance. During the past year, factors including the number of valuer vacancies, the demanding proposal disposal timetable, the audit of self-catering properties and it being a year of revaluation, significantly impacted the organisation’s capacity to meet the timescales set out in the key performance indicators. The figures for the past three years 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 % 2023/24 915 36.0 424 16.7 1,206 47.4 2,545 2024/25 542 27.8 303 15.5 1,105 56.7 1,950 2025/26 606 30.7 356 18.0 1,015 51.3 1,977 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 % 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 Page 67
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5 2025/26 1,341 71.4 363 19.3 175 9.3 1,879 Target 94 3 3 Despite the challenges faced during the year, particularly the level of valuer vacancies, the organisation has continued to meet its statutory obligations to maintain both the Valuation Roll and the Valuation List. The figures in the tables above indicate a slight positive trend in performance, but the specific circumstances and pressures of each year provide important additional context. 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 2026-27 budget announcement saw the Scottish Government commit to introducing two new council tax bands for properties with a value over £1 million. This change will apply up-to- date values only to those properties valued at over £1 million, while the wider Council Tax framework will remain unchanged. The new bands will take effect from 1 April 2028. This is a major piece of work for Assessors and the Scottish Government has already provided funding to allow the preparatory work to commence. Through the work of the Scottish Assessors’ Association Domestic Properties Committee, Assessors continue to collaborate in identifying and sharing best practice for this task. This includes ongoing consideration of how resources can be most effectively deployed to support the delivery of this new workstream. In relation to valuation for rating, work will soon commence to program the disposal of proposals lodged following the 2026 revaluation. The continuing level of vacancies in the valuation team will make this task acutely challenging. The recruitment of suitably qualified professional staff has continued to be a particular difficulty for the Grampian Assessor but work to promote career opportunities in Assessors’ offices is well underway at a national level. In the meantime, we are still actively trying to recruit, and vacancies remain advertised on our website. The year ahead is another demanding one in relation to electoral registration. Following on from the Scottish Parliament election, a number of by-elections will take place during 2026, In addition, legislative changes to allow electors at devolved elections to apply online for absent votes has now been passed and this change will be implemented before the end of the calendar year. With the planned local council elections in May 2027, 2026/27 will be another busy and challenging 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 subject to continuous monitoring and regular review by the management team. The principal risks and uncertainties arise from the evolving nature of valuation assessment and electoral registration statutory frameworks, as well as ongoing challenges relating to financial resources and, in particular, the recruitment and retention of suitably qualified valuation professionals necessary to sustain service delivery. Cyber security remains a persistent and high-profile risk; accordingly, the provision of IT services by Aberdeenshire Council, together with the support of its IT team, constitutes a key component in mitigating risks to the organisation. Page 68
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6 In addition to standard control measures relating to financial and operational planning, the Assessor & ERO and the management team continue to mitigate risk and uncertainty through collaborative working with the Scottish Assessors’ Association (SAA) and other external bodies. The Assessor & ERO holds key roles within the SAA, including Chair of the Basic Principles Committee, and Vice-Chair of the Electoral Registration Committee. The Assessor & ERO also serves as a member of the Electoral Management Board for Scotland and the UK Government’s Nations Review Group. Supported by the management team’s representation across all SAA committees, the organisation is well positioned to monitor developments and effectively respond to challenges arising from changes to its valuation assessment and electoral registration functions. Financial Performance Revenue Expenditure The Grampian Valuation Joint Board, at its meeting on 31 January 2025, approved the 2025/26 Revenue Budget of £5.699m (2024/25 £5.178m), an increase of 10%. The requisitions to constituent authorities were set at £5.399m (2024/25 £5.022m) with approved use of reserves of £0.300m. 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 2025/26 was £5.038m (2024/25 £4.167m) resulting in an underspend of £0.536m for the year. Of this total, £0.050m was transferred to the NDR Reserve and £0.016m was transferred to the General Fund Reserve, while £0.143m was transferred from the earmarked reserve for Electoral Integrity Programme (EIP) and used in the year. The Board continues to apply IFRS 16 Leases, with the office accommodation at Woodhill House recognised on the Balance Sheet as a right-of-use asset with a corresponding lease liability. As in the previous year, the lease payment is no longer included within service expenditure. Instead, this is reflected as lease interest and principal repayments below the service line in accordance with accounting standards. This means that while there is an apparent underspend within the service budget, this relates to a change in the accounting treatment rather than a reduction in underlying costs. After taking account of IFRS 16 lease payments for Woodhill House of £0.125m, the remaining balance of £0.313m is available to return to constituent authorities. The Comprehensive Income and Expenditure Statement shows a deficit of £0.172m 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 (£0.068m), depreciation totalling (£0.146m) and IFRS 16 Leases principal £0.119m this leaves the net £0.077m to be transferred in from reserves: £0.050m to the NDR Reserve, £0.143m from the EIP Reserve and £0.016m to 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 2026. These figures are monitored and reported to the Board throughout the year, and exclude accounting adjustments related to pensions, short-term Page 69
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7 accumulating absences and depreciation. Actual under/overspends are explained in the detailed variance analysis below. 2024/25 2025/26 2025/26 2025/26 Actual Budget Actual Variance £000 £000 £000 £000 3,530 Employee Costs 4,059 3,806 (253) 233 Property Costs 266 253 (13) 53 Transport Costs 50 57 7 775 Supplies and Services 1,155 1,002 (153) 71 Support Service Recharges 65 74 9 (97) Interest and Investment Income (4) (68) (64) (398) Government Grants and other Service Income (17) (86) (69) 4,167 Net (Under)/Overspend Against Budget 5,574 5,038 (536) Funded by: (5,022) Requisitions (5,399) (5,399) - - Approved use of Reserves (300) (143) 157 (855) Outturn for the year (125) (504) (379) 125 Add: IFRS 16 Lease Interest and Principal 125 125 - (730) Adjusted Outturn for the year - (379) (379) The main variances from budget during the year were: • Employee Costs - Employee costs were underspent by £0.253m. This was mainly 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 - Property costs were under budget by £13,000 overall, after the £125,000 IFRS 16 lease adjustment is taken into account. - Repairs and Maintenance costs are £0.018m under budget reflecting lower than anticipated expenditure during the year. • Supplies and Services - Postages and ER Printing costs are £0.156m under budget. - Valuation Appeals had an underspend of £0.015m. - There was an overspend of £0.031 in Other Supplies & Services, primarily due to SAA Portal Contributions for 2025/26. • Interest and Investment Income - The £0.064m variance in interest income is mainly due to favourable interest rates during the year. - • Government Grants - £0.050m of the variance in Government Grants is for the Electoral Integrity Programme funding received as a redetermination for the Council in 2025/26. Page 70
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8 • Approved use of reserves - Due to the above variances, the approved use of reserves was not required. General Reserve The General Reserve balance at 31 March 2026 is £0.254m, with an additional £0.567m and £0.282m earmarked for the NDR reform Implementation and the Electoral Integrity Programme respectively. Going Concern The Balance Sheet at 31 March 2026 shows an excess of assets over liabilities of £1.525m (net asset of £1.562m at 31 March 2025). 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 Jamie Fraser ACCA Treasurer Page 71
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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 72
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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 2026. Jamie Fraser ACCA Treasurer Page 73
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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. 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 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 Board has approved and adopted a local code of corporate governance that is reviewed regularly and available for viewing 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 Page 74
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12 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. 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 (SPOC). 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 voting information pages 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. These Page 75
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13 pages were updated throughout 2025/26, particularly to provide electors with pertinent information in relation to the Scottish Parliament election. 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 and 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, some progress has been made towards capturing employee and service user feedback via our website 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 reform of local taxation and electoral registration continues, with a view to improving sustainability and increasing economic and social benefits. As noted above, the implementation of local taxation reform continues, particularly due to the introduction of two new high-value council tax bands with effect from 1 April 2028 for properties with an up-to-date value of over £1 million. 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 the Scottish Elections (Representation and Reform) Act 2025. Scottish EROs are also represented in the Nations Review Group which provides feedback and views on the UK Government’s ongoing 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 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, Page 76
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14 through established reporting arrangements, ensure that Board members have full detail of resource inputs and performance outputs. Regular and detailed financial reports 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 remains focused on these outcomes and works collaboratively with both internal and external stakeholders to drive innovation and maximise efficiency. Innovation and adaptability are essential to sustaining service delivery, particularly in response to legislative changes, staffing vacancies, and the increasing prevalence of hybrid working arrangements across home and office environments. 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 fostering a culture of personal development, the organisation operates an internal recruitment process designed to support career progression, retain staff, and enhance leadership capacity. New employees receive induction training upon commencement and, in most cases, have the opportunity to participate in a career grade development scheme designed to support both personal and professional growth. Surveyors who are members of the Royal Institution of Chartered Surveyors (RICS) are also required to undertake mandatory continuing professional development, compliance with which is monitored by the RICS. The organisation’s Training Officer is responsible for overseeing training provision and monitoring individual progress. This role also includes identifying and facilitating access to appropriate training opportunities. All colleagues now benefit from access to Aberdeenshire Council’s online training platform, which has significantly expanded the range of learning and personal development resources available. A further two colleagues successfully completed the Association of Electoral Administrators Certificate in Electoral Administration during 2025/26, strengthening the organisation’s expertise and knowledge within this highly specialised field. Further opportunities to undertake this qualification will be offered to colleagues later in the year. The functions and responsibilities of statutory posts, including the Clerk, Treasurer, and Assessor & ERO, are clearly defined, and the postholders work closely together to deliver the organisation’s objectives. 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 Page 77
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15 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. Decisions made by the Assessor & ERO are subject to public scrutiny, including through formal appeal and complaints processes to the relevant judicial bodies, as well as oversight from external stakeholders such as the Electoral Commission. The Scottish Assessors’ website (saa.gov.uk) provides access to practice notes outlining the basis upon which rateable values are determined. It also enables taxpayers to view the assessments of all non-domestic and domestic properties in Scotland, together with valuations across an expanding range of property types. The Assessor & ERO reported on performance to the Electoral Commission, the Scottish Government and the Scottish Information Commissioner during 2025/26. Risk management is a fundamental part of the organisation’s decision-making process and as such is reviewed regularly by the Assessor & ERO’s management team, with the Board reviewing the risk register on an annual basis. To control and mitigate risk, the Board’s system of internal control is founded on a framework of financial regulations, which are subject to periodic review and update. This framework is supported by regular management information, established administrative procedures, management oversight, and a code of corporate governance. The responsibility for establishing and maintaining an effective system of internal control rests with management. The Board, through its consideration of reports from internal and external auditors, monitors the effectiveness of these control arrangements. Policies are in place to prevent and address fraud, theft, bribery and corruption, both to safeguard public funds and to ensure the integrity of the statutory rolls, lists and registers for which the Assessor & ERO is responsible. The Assessor & ERO maintains direct liaison with Police Scotland at both local and national levels through an assigned Single Point of Contact, as well as through the Scottish Assessors Association and the Electoral Management Board for Scotland. IT resilience and effectiveness continued to improve during 2025/26. This has been achieved through close collaboration with Aberdeenshire Council’s IT service, which now has full responsibility for the management of the Board’s IT infrastructure and the provision of IT support to users. A performance management system is in place to ensure that established performance measures are reported to the Board on a quarterly basis. An annual Public Performance Report is also produced and published. The Board’s governance arrangements have been established, and are regularly reviewed, to ensure alignment with recognised standards of good governance. These arrangements are designed to support the effective discharge of the organisation’s functions and comply with relevant best practice frameworks. This includes adherence to the Code of Practice on Managing the Risk of Fraud and Corruption, the Global Internal Audit Standards (including principles relating to the Chief Audit Executive), and Audit Committees: Practical Guidance for Local Authorities and Police, along with other applicable guidance. Page 78
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16 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, providing a structured framework for oversight and decision-making. During 2025/26, meetings continued to be held in a hybrid format, enabling a combination of in-person and remote attendance via video conferencing to support accessibility and member participation. Meeting dates are scheduled and published in advance to ensure transparency and effective planning. Reports presented to the Board adhere to a consistent corporate style, clearly setting out the purpose of the report, relevant background and supporting information, conclusions, and recommendations to inform decision-making. Minutes of meetings are prepared by Moray Council’s Committee Services team on behalf of the Clerk to the Board and are published on Moray Council’s website. Links to these records are also made available via the Board’s website, ensuring public accessibility and accountability. Information is disseminated through a range of channels and formats, tailored to meet the needs of different audiences and purposes. This includes statutory returns prepared in accordance with prescribed requirements, as well as media releases and presentations targeted at specific stakeholder and service user groups. These arrangements support transparency, accountability, and effective stakeholder engagement. The organisation’s website is regularly updated with news items and key information to ensure that the Grampian community remains informed of relevant developments and service-related matters. This ongoing communication activity promotes openness and accessibility, enabling the public to access timely and accurate information. These processes support transparency, accessibility, and informed public engagement, and no significant issues were identified during the year in relation to the provision or accessibility of information. Assurance and accountability are recognised as core responsibilities of the Board, which comprises elected members from a range of political backgrounds, ensuring balanced and independent scrutiny. The Board maintains oversight through the regular consideration of reports from both internal and external audit, providing an important source of assurance on the adequacy and effectiveness of governance, risk management, and internal control arrangements. Particular emphasis is placed on reviewing audit findings and recommendations, as well as scrutinising the timeliness and effectiveness of management’s responses and corrective actions. This supports a culture of continuous improvement and reinforces accountability across the organisation. 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: Page 79
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17 • 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. • 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 responsible for the overall leadership and effective management of the organisation’s operations. This includes a broad range of responsibilities covering financial management, personnel, governance, and statutory reporting. The Assessor plays a key role in ensuring that appropriate governance frameworks are in place and operating effectively, supporting compliance with legislative requirements and recognised standards of good practice. This includes responsibility for ensuring that resources are used efficiently, that robust internal controls are maintained, and that accurate and timely reporting is provided to the Board to support informed decision-making. • 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, he 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. 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 Page 80
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18 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 the delivery of the Internal Audit Service rests with the Service Manager, Internal Audit and Risk at Moray Council. The service is provided in accordance with recognised professional standards and operates independently of operational management to ensure objectivity and impartiality. The Service Manager, Internal Audit and Risk provides the Board with independent and objective assurance on the adequacy and effectiveness of the organisation’s risk management, governance, and internal control arrangements. This work is carried out in line with the Global Internal Audit Standards and is informed by a risk-based audit plan approved by the Board. Audit findings and recommendations are reported to the Board, with particular focus on the implementation of agreed actions and the timely resolution of identified risks and control weaknesses. This supports effective oversight, accountability, and continuous improvement across the organisation. At the date of writing this statement, the internal audit process has still to be completed. The Service Manager, Internal Audit and Risk is therefore unable to make any definitive statement on the Board’s internal financial control systems. Management are, however, unaware of any fundamental weaknesses at this time. • External Agencies In addition to internal review processes and the external financial audit arrangements outlined above, the organisation is subject to oversight and reporting requirements from a number of external regulatory and scrutiny bodies. These provide an important source of independent assurance in relation to governance, compliance, and information management practices. The Scottish Information Commissioner monitors compliance with Freedom of Information and Environmental Information Regulations through the collection and assessment of performance data relating to information requests and responses. The Commissioner has the authority to intervene and take enforcement action where non-compliance is identified, thereby supporting transparency and accountability. The Keeper of the Records of Scotland provides oversight of the organisation’s records management arrangements and is responsible for reviewing and approving the Records Management Plan. The Keeper has requested that a revised plan be submitted in 2026, and this will is being progressed as part of the organisation’s ongoing commitment to continuous improvement in information governance. The organisation’s arrangements for the delivery of valuation and electoral registration services are also subject to external scrutiny and oversight by relevant regulatory and statutory bodies. Performance and proposal and appeal statistics are reported to the Scottish Government and valuation assessments are subject to independent scrutiny through formal appeal processes, providing an additional mechanism to ensure accuracy, consistency, and fairness. In relation to electoral registration, the performance of the Electoral Registration Officer (ERO) is monitored and reported on by the Electoral Commission. Page 81
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19 Significant governance issues Securing and maintaining good governance remains a key priority for elected members, senior officials of the Board, and the Management Team. The organisation recognises that effective governance is fundamental to the successful delivery of its statutory functions and to maintaining public confidence and that this is an ongoing and significant responsibility, particularly in the context of sustained financial pressures and a changing legislative environment. These factors require continued vigilance, adaptability, and a commitment to continuous improvement in governance arrangements. In the 2024/25 governance statement, the key challenges facing the organisation for 2025/26 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, 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. All operational demands were met during 2025/26 and we continued with a hybrid home/office approach to working. As in previous years, recruitment of suitably qualified valuation staff has continued to be challenging. We continue to advertise our vacancies and develop a career pathway framework with colleagues at a national level. The transition of the organisation’s IT systems to Aberdeenshire Council infrastructure has been successfully implemented, with the upgrade and migration of the final system nearing completion. This programme of work has strengthened the resilience, security, and efficiency of the organisation’s IT environment. We will continue to monitor the performance and effectiveness of these arrangements and remain committed to the ongoing development and enhancement of IT applications and processes to support continuous improvement, enabling staff to operate effectively and ensuring that the needs of stakeholders continue to be met. The use of e-communications during the 2025 annual canvass in connection with the register of electors and in the reserved absent vote reapplication process was successful and led to financial and resource savings for the Board. We intend to make use of e-communications for the upcoming 2026 canvass. The need to vary and reschedule tasks presents ongoing challenges; however, through effective monitoring, proactive management, and a flexible approach to resource allocation, the organisation is able to respond to changing demands. This ensures that resources are deployed appropriately to priority areas and that statutory responsibilities continue to be delivered. Despite the challenges noted above, no significant governance issues have been identified. Page 82
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20 Looking ahead the key challenges for 2026/27 are: • Continue to strengthen operational capacity across workforce, processes, and IT systems to ensure the organisation is well positioned to meet the demands of the three‑yearly revaluation cycle, the two‑stage proposal and appeal system, and the upcoming legislative changes in relation to council tax and electoral registration, particularly the changes to introduce the ability to make absent voting applications online for devolved elections. • Continue to progress equalities mainstreaming objectives and enhance engagement with electors and service users, with a focus on improving registration levels and promoting inclusive access to services. • Continue to manage resources effectively to ensure that all statutory commitments are met, with particular focus on addressing and reducing vacancy levels within 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 2026 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 83
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21 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 24 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 2025 (SSI No. 2025/8). 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, 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 B” council, i.e. £28,207 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. £26,797 per annum. These rates are effective for the year ending 31 March 2026. 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 84
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22 Remuneration of Senior Councillors, Convener and Depute Convener (Table 1) Councillor Name and Responsibility Total Remuneration 2024/25 Salary, fees and allowances 2025/26 Total Remuneration 2025/26 £ £ £ Councillor Gatt Convener 5,341 2,225 2,225 Councillor Smith Depute Convener 3,039 815 815 Total 8,380 3,040 3,040 No taxable expenses were paid in 2025/26 or in 2024/25. 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 2024/25 2025/26 £ £ Salaries 8,380 3,040 TOTAL 8,380 3,040 Page 85
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23 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 2024/25 Salary, fees and allowances 2025/26 Taxable Expenses 2025/26 Total Remuneration 2025/26 £ £ £ Mark Adam Assessor & ERO 134,653 139,211 778 139,989 Gavin Oag Depute Assessor & ERO 105,745 109,198 755 109,953 Jim Barron Depute Assessor & ERO 95,907 98,945 710 99,655 TOTAL 336,305 347,354 2,243 349,597 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 86
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24 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 2026, 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 2025/26 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 2024-25 Rate (%) 2024/25 Pensionable pay 2025-26 Rate (%) 2025/26 On earnings up to an including £27,000 5.50% On earnings up to an including £28,500 5.50% On earnings above £27,001 and up to £33,000 7.25% On earnings above £28,501 and up to £34,900 7.25% On earnings above £33,001 and up to £45,300 8.50% On earnings above £34,901 and up to £47,800 8.50% On earnings above £45,301 and up to £60,400 9.50% On earnings above £47,801 and up to £63,800 9.50% On earnings above £60,401 12.00% On earnings above £63,801 12.00% Page 87
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25 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 2025 For the year to 31 March 2026 £ £ Councillor Gatt Convener 764 318 Councillor Smith Depute Convener 486 122 Total 1,250 440 In-year pension contributions The above amounts show the in-year contributions relating to the Special Responsibility Allowance shown in Table 1. Page 88
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26 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. For the year to 31 March 2025 For the year to 31 March 2026 As at 31 March 2026 Difference from March 2025 £ £ £ £ Mark Adam 13,506 14,046 Pension 80,934 5,331 Assessor & ERO Lump Sum 122,033 4,694 Gavin Oag 10,592 11,016 Pension 61,955 4,033 Depute Assessor & ERO Lump Sum 78,832 3,032 Jim Barron 9,594 9,978 Pension 50,564 3,516 Depute Assessor & ERO Lump Sum 65,333 2,513 Total 33,692 35,040 459,651 23,119 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. Page 89
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27 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. Councillor Donald Gatt Convener Mark J Adam MRICS AEA (Cert - Scotland) Assessor & Electoral Registration Officer Renumeration Band 2024-25 2025-26 £50,000 - £54,999 1 4 £55,000 - £59,999 1 1 £60,000 - £64,999 3 2 £65,000 - £69,999 3 1 £70,000 - £74,999 1 3 £95,000 - £99,999 1 1 £105,000 - £109,999 1 1 £130,000 - £134,999 1 1 12 14 Number of Employees Page 90
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28 COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 MARCH 2026 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 4,980 (398) 4,582 Rating and Council Tax Valuation and Electoral Registration 5,394 (85) 5,309 4,980 (398) 4,582 Cost Of Services 5,394 (85) 5,309 19 (97) (78) Financing and Investment Income and Expenditure 10 17 (68) (51) (4,725) Requisitions and Non-Specific Grant Income 21 (5,086) (221) (Surplus)/Deficit on Provision of Services 8 172 - Deficit on revaluation of PPE 11 (28) (141) Remeasurement of the Net Defined Benefit Liability 24 (108) (141) Other Comprehensive (Income) and Expenditure (136) (362) Total Comprehensive (Income) and Expenditure 36 2024/25 2025/26 Note Page 91
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29 MOVEMENT IN RESERVES STATEMENT FOR THE YEAR ENDED 31 MARCH 2026 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. 2025/26 General Fund Total Usable Reserves Unusable Reserves (Note 18) Total Board Reserves £000 £000 £000 £000 Balance at 31 March 2025 1,180 1,180 382 1,562 Total Comprehensive Income and Expenditure (172) (172) 136 (36) Adjustments to usable reserves permitted by accounting standards 5 5 (5) - Adjustments between accounting basis & funding basis under regulations (Note 7) 89 89 (89) - Increase / (Decrease) in Year (77) (77) 40 (36) Balance at 31 March 2026 1,103 1,103 422 1,525 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 Page 92
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30 BALANCE SHEET AS AT 31 MARCH 2026 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 2025 31 March 2026 £000 Note £000 646 Property, Plant & Equipment 11 648 226 Property, Plant & Equipment - Right of Use 11 119 872 Long Term Assets 767 70 Short Term Debtors 12 115 1,709 Cash and Cash Equivalents 13 1,650 1,779 Current Assets 1,765 (682) Short Term Creditors 14 (742) (113) Short Term Liabilities - Right of Use 14 (125) (795) Current Liabilities (867) (176) Unfunded Pension Liability 24 (140) (118) Other Long Term Liabilities - Right of Use 15 - (294) Long Term Liabilities (140) 1,562 Net Assets 1,525 Usable reserves 17 237 General Fund 254 567 Earmarked NDR Reform Reserve 567 376 Earmarked Electoral Integrity Programme 282 1,180 Total 1,103 Unusable Reserves 18 215 Revaluation Reserve 238 426 Capital Adjustment Account 403 (176) Pensions Reserve (140) (83) Employee Statutory Adjustment Account (79) 382 Total 422 1,562 Total Reserves 1,525 The notes on Pages 32 to 62 form part of the Financial Statements. Jamie Fraser ACCA Treasurer Page 93
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31 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2026 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. 31/03/2025 31/03/2026 £000 £000 220 Net surplus/(deficit) on the provision of services (172) 133 Adjust net deficit on the provision of services for non cash movements (Note 20) 238 353 Net cash flows from Operating Activities 66 (107) Financing Activities (125) 246 Net increase/(decrease) in cash and cash equivalents (59) 1,463 Cash and cash equivalents at the beginning of the financial year 1,709 1,709 Cash and cash equivalents at the end of the financial year 1,650 Page 94
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32 NOTES TO THE ACCOUNTS Note 1 Accounting Policies 1 General Principles The Annual Accounts summarise the Board’s transactions for the 2025/26 financial year and its position at the year ended 31 March 2026. 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 2025/26 and the Service Reporting Code of Practice 2025/26, 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 2026. Interest is received from Moray Council on the balance held. Page 95
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33 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 2026, the Balance Sheet of the Board shows a net asset position of £1.525m. 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 Page 96
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34 April 2024. Leases for low-value items (under £6,000) and those expiring on or before 31 March 2026 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 2025/26 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 Board 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 2026 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 97
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35 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 Board 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 (£0.140m) 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 98
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36 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: 2024/25 2025/26 Nature £000 £000 Government Grant Income 376 50 Barclay Implementation Funding (included in requisitions) 268 - Grant income from the UK 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 2025/26 will be put to the earmarked reserve and used in 2026/27. 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 2025/26 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 26 June 2026. 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 2026, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. Page 99
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37 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 4,264 313 5 4,582 Rating and CT valuation & Electoral Registration 5,106 197 5 5,308 4,264 313 5 4,582 Net Cost of Services 5,106 197 5 5,308 (4,697) (106) - (4,803) Other Income and Expenditure (5,029) (108) - (5,137) (433) 207 5 (221) (Surplus) or Deficit 77 89 5 172 (747) Opening Balance (1,180) (433) (Surplus) or Deficit 77 (1,180) Closing Balance (1,103) 31 March 202631 March 2025 Page 100
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38 Note 7 (continued) Adjustments between the Funding and Accounting Basis 2025/26 Adjustment for Capital Purposes £000 Net Change for pensions adjustments £000 Other Differences £000 Total £000 Rating and CT valuation & Electoral Registration 141 61 (5) 197 Net Cost of Services 141 61 (5) 197 Other Income and Expenditure - 11 (119) (108) Difference between the General Fund Deficit and the Comprehensive Income and Expenditure Statement Deficit 141 72 (124) 89 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 Page 101
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39 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 2024/25 2025/26 £000 £000 Rating, Council Tax Valuation and Electoral Registration Rating, Council Tax Valuation and Electoral Registration Employee benefit expenses 3,702 3,862 Other service expenses 1,061 1,312 Support service recharges 71 74 Depreciation, amortisation and impairment 146 146 Interest payments 19 17 Total Expenditure 4,999 5,411 Requisitions (4,725) (5,086) Government grants and other service income (398) (85) Interest and investment income (97) (68) Total Income (5,220) (5,239) (Surplus)/Deficit on the provision of services (221) 172 Page 102
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40 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 2025 238 567 376 1,181 Increase/(Decrease) 2025/26 16 - (94) (78) Balance at 31 March 2026 254 567 282 1,103 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) Act 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 2024/25 2025/26 £000 £000 Pensions interest cost/(gain) and expected return on pensions assets 1 11 Interest receivable and similar income (97) (68) Interest on Right of Use Asset lease liability 18 6 (78) (51) 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 103
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41 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 2024 Page 104
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42 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. 2025/26 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 2025 627 355 338 1,320 Additions - - - - IFRS16 Measurement Adjustment - - 18 18 Revaluation decreases recognised in the Revaluation Reserve - - - - Revaluation increases recognised in the Provision of Services - - - - At 31 March 2026 627 355 356 1,338 Accumulated Depreciation and Impairment At 1 April 2025 14 322 112 448 Depreciation charge 14 12 125 151 Depreciation written out to the Revaluation Reserve (28) - - (28) Depreciation written out to the Provision of Services - - - - at 31 March 2026 - 334 237 571 Net Book Value at 31 March 2025 613 33 226 872 at 31 March 2026 627 21 119 767 Page 105
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43 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 Note 12 Short Term Debtors 2024/25 2025/26 £000 £000 Prepayments 70 115 70 115 Page 106
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44 Note 13 Cash and Cash Equivalents 2024/25 2025/26 £000 £000 Temporary Investment in the Moray Council Loans Fund 1,709 1,650 Note 14 Short Term Creditors 2024/25 2025/26 £000 £000 Trade Payables 156 205 Other Payables ^ 526 537 Total 682 742 ^ Other Payables Central Government Bodies 74 75 Short Term Employee Absences 112 106 Other Local Authorities 340 356 Other Payables 526 537 Right of Use Asset 113 125 Note 15 Other Long Term Liabilities 2024/25 2025/26 £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: Page 107
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45 • 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: • 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: 2024/25 2025/26 £000 £000 Current (Short Term) Liabilities: Trade Payables 156 205 Other Payables 526 537 Lease Liabilities - Right of Use 113 125 Total 795 867 Other Payables: Tax Creditors included above (117) (118) Requisition Creditors included above (297) (313) Short Term Employee Absences included above (112) (106) Total Other Payables (526) (537) Total Financial Liabilities - Current 269 330 Non-Current (Long Term) Liabilities: Other Long Term Liabilities - Right of Use 118 0 Total Financial Liabilities - Non - Current 118 0 The financial assets disclosed in the Balance Sheet are analysed across the following categories: Page 108
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46 2024/25 2025/26 £000 £000 Temporary Investment in the Moray Council Loans Fund 1,709 1,650 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. 2024/25 2025/26 Usable Reserves £000 £000 General Fund 237 254 Earmarked NDR Reform Reserve 567 567 Earmarked Electoral Integrity Programme 376 282 1,180 1,103 Note 18 Unusable Reserves 2024/25 2025/26 £000 £000 Revaluation Reserve 215 238 Capital Adjustment Account 426 403 Pension Reserve (176) (140) Employee Statutory Adjustment Account (83) (79) 382 422 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. Page 109
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47 2024/25 2025/26 £000 £000 Balance at 1 April 220 215 Revaluations/Indexation - 28 Difference between fair value depreciation and historical cost depreciation (5) (5) Balance at 31 March 215 238 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. 2024/25 2025/26 £000 £000 Balance at 1 April (62) (84) Settlement or cancellation of accrual made at the end of the preceding year 62 84 Amounts accrued at the end of the current year (84) (79) Balance at 31 March (84) (79) Page 110
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48 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. 2024/25 2025/26 £000 £000 Balance at 1 April 459 426 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 (29) (22) Adjustment for depreciation of Right of Use asset (112) (119) Adjustment for Principal Repayment of the IFRS16 Lease Liability 108 118 Balance 31 March 426 403 Page 111
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49 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. 2024/25 2025/26 £000 £000 Balance at 1 April (164) (176) Remeasurements of the net defined benefit (liability)/asset 142 108 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 (462) (399) Employer's pensions contributions and direct payments to pensioners payable in the year 308 327 Balance at 31 March (176) (140) Note 19 External Audit Costs The agreed external audit fee for 2025/26 was £0.010m for work undertaken in accordance with the Code of Audit Practice (2024/25 £0.011m). Page 112
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50 Note 20 Cashflow – Analysis of Net Deficit on the provision of services for non cash movements 2024/25 2025/26 £000 £000 Depreciation/Impairment charges (146) (146) Pension Liability (154) (72) Increase/(Decrease) in Debtors 32 46 Decrease in Revenue Creditors 135 (72) Movement in IFRS16 lease liability - 12 IFRS16 lease interest - (6) (133) (238) 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. 2024/25 2025/26 £000 £000 Credited to Requisitions and Non Specific Grant Income: Requisition from Aberdeen City Council (1,947) (2,093) Requisition from Aberdeenshire Council (2,249) (2,418) Requisition from Moray Council (826) (888) Total (5,022) (5,399) Returned to constituent authorities: Aberdeen City Council 114 121 Aberdeenshire Council 134 140 Moray Council 49 52 Total 297 313 Total Requisition and Grant Income (4,725) (5,086) Page 113
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51 Note 22 Leases Board as Lessee Right-of-Use Assets The Board accounts for leases in accordance with IFRS16 Leases, as adopted by the Code of Practice on Local Authority Accounting in the United Kingdom. This standard removes the former distinction between operating and finance leases for lessees. The Board leases office accommodation within Woodhill House from Aberdeenshire Council. Prior to the adoption of IFRS 16 this arrangement was 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 2025/26 totalled £0.125m (£0.125m in 2024/25). 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 using the effective interest method. 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 2025 Opening GBV 338 338 IFRS16 measurement adjustment 18 18 Opening Accumulated Depreciation (112) (112) Depreciation charge in year (125) (125) Value at 31 March 2026 119 119 2024/25 2025/26 Finance Lease Liabilities £000 £000 Not later than one year 113 125 Later than one year and not later than five years 118 - Later than five years - - Total Liabilities 231 125 Analysed by:- £000 £000 Current 113 125 Non-Current 118 - 231 125 During 2025/26 the Board reassessed its IFRS 16 lease calculations relating to land and buildings. This resulted in an adjustment of £18k to the opening gross book value of right-of-use assets at 1 April 2025, reflecting a recalculation of the lease measurement. In line with auditor agreement, the revised figures have been reflected in the 2025/26 financial statements only and comparative figures for 2024/25 have not been restated. Page 114
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52 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. 2024/25 2025/26 £000 £000 Aberdeen City Council 65 66 Aberdeenshire Council 342 225 Moray Council 124 116 The amounts owed to the constituent authorities for requisitions and normal business activities at 31 March were: Aberdeen City Council 114 116 Aberdeenshire Council 138 146 Moray Council 139 137 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 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 Page 115
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53 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. 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. Page 116
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54 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: COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT 2024/25 2025/26 £000 £000 Cost of Services: Past Service Cost 0 0 Current Service Cost and administration expenses 460 388 Financing and Investment Income and Expenditure: Net Interest Expense 1 11 Total Post Employment Benefit Charged to the Surplus or Deficit on the Provision of Services 461 399 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 690 (342) Actuarial (gain)/loss on financial assumptions (3,624) (410) Effect of Asset Ceiling 2,793 644 Total Post Employment Benefit Charged to the Comprehensive Income and Expenditure Statement. (141) (108) 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 461 399 Actual amount charged against requisitions for pensions in the year 308 327 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 Page 117
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55 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 2025 31 March 2026 £000 £000 Present value of the funded defined benefit obligation (26,535) (26,873) Present value of the unfunded defined benefit obligation (176) (140) Total present value of the defined benefit obligation (26,711) (27,013) Fair value of plan assets 40,598 42,395 IFRIC 14 Asset Ceiling Adjustment (14,063) (15,522) Net liability arising from defined benefit obligation (176) (140) 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 118
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56 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 2025 31 March 2026 £000 £000 1 April (29,501) (26,711) Current Service Cost (460) (388) Interest on pension liabilities (1,420) (1,526) Remeasurements: Experience loss 391 (153) Gain on financial assumptions 3,580 704 Gain on demographic assumptions (347) (141) Contributions by scheme participants (186) (201) Benefits Paid 1,232 1,403 Past Service Cost 0 0 31 March (26,711) (27,013) 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 2025 31 March 2026 £000 £000 1 April 40,081 40,598 Interest on plan assets 1,945 2,330 Remeasurements (assets) (690) 342 Administration expenses 0 0 Employer Contributions 308 327 Contributions by scheme participants 186 201 Benefits Paid (1,232) (1,403) 31 March 40,598 42,395 Page 119
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57 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 2026 is a net asset of £15.522 million (net asset of £14.063 million at 31 March 2025) 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: 2024/25 2025/26 £000 £000 Opening impact of asset ceiling 10,744 14,063 Interest on impact of asset ceiling 526 815 Actuarial losses/(gains) 2,793 644 Closing impact of asset ceiling 14,063 15,522 Page 120
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58 The Board’s share of the Pension Fund’s assets is: Fair Value of Plan Assets % Fair Value of Plan Assets % 2024/25 2025/26 £000 £000 Equity Securities: Consumer - - Manufacturing - - Energy and Utilities - - Financial Institutions - - Health and Care - - Information Technology - - Other 20,152.8 50% 22,324.2 53% Debt Securities: Corporate Bonds (investment) - - Corporate Bonds (non-investment) - - UK Government 2,597.5 6% 2,566.9 6% Other 553.4 1% 577.7 1% Private Equity: All 2,929.8 7% 2,866.7 7% Real Estate: UK Property 2,775.9 7% 2,709.4 6% Overseas Property 164.5 0% 135.6 1% Investment Funds and Unit Trusts: Equities - - Bonds 4,481.9 11% 4,813.2 11% Hedge Funds - - Commodities - - Infrastructure 3,359.6 8% 3,238.2 8% Other - - Derivatives: Inflation - - Interest Rate - - Foreign Exchange - - Other 797.8 2% 749.4 2% Cash and Cash Equivalents: All 2,784.8 7% 2,413.7 6% Total Assets 40,598.0 42,395.0 Page 121
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59 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 2026. 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 2025 31 March 2026 Financial assumptions: Discount rate 5.80% 6.20% Rate of increase in salaries 4.30% 4.50% Rate of increase in pensions 2.80% 2.80% Rate of CPI inflation 2.80% 2.80% Mortality assumptions: Longevity at 65 for current pensioners: Men 20.9 21.3 Women 23.3 23.5 Longevity at 65 for future pensioners: Men 22.2 22.6 Women 25.1 25.2 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 2026: Approximate % increase to Employer Approximate Monetary Amount (£000) 0.1% decrease in Real Discount Rate 1% 371 1 year increase in member life expectancy 4% 1,081 0.1% increase in the Salary Increase Rate 0% 50 0.1% increase in the Pension Increase Rate 1% 320 Page 122
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60 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 2026, with March 2025 in brackets were: equity securities 53% (55%), debt securities 6% (7%), private equity 7% (7%), real estate 7% (8%), investment funds and unit trusts 19% (19%), derivatives 2% (2%) and cash/cash equivalents 6% (2%). 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 2027 is £0.309m. The weighted average duration of the liabilities for scheme members at the 31 March 2023 valuation is 15 years. Page 123
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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 124
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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 125
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 26 JUNE 2026 SUBJECT: REVENUE BUDGET MONITORING STATEMENT FOR THE PERIOD 1 APRIL TO 31 MAY 2026 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 May 2026. 2 RECOMMENDATION 2.1 It is recommended that the Board considers the Revenue Monitoring Statement to 31 May 2026. 3. CURRENT POSITION 3.1 At its meeting on 30 January 2026, the Board agreed the Revenue Budget and requisitions to the constituent authorities for 2026/27 (paragraph x of the Minute refers) be set at £5,653,000. 3.2 APPENDIX 1 shows the monitoring position to 31 May 2026 against the budget. It gives details of the 2026/27 Revenue Budget, actual expenditure to date and the variance of expenditure against budget to date. 3.3 Total net expenditure at 31 May 2026 is £825,000 which is an underspend against budget to date of £195,000. 3.4 There are currently 14 vacant posts and recruitment is actively being carried out. Year to Date Variances 3.5 Employee costs are currently underspent by £92,000 compared to the budget. This variance is primarily due to unfilled vacancies within the staffing establishment, as previously noted in paragraph 3.4. Item 7. Page 127
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3.6 There is an underspend in property costs of £23,000, this is largely attributable to the timing of the service charge budget. 3.7 A small underspend of £3,000 to date has been recorded for Transport Costs. 3.8 Budgets within Supplies and Services are underspent in total by £64,000. The biggest contributor to this is Postages which shows an underspend of £81,000, while IT Maintenance and Support is overspent by £24,000, due mainly to licence fees spanning 2025/26 and 2026/27 being charged within expenditure to date. 3.9 Support charges are processed at 31 March as part of the year end closedown. 3.10 There are no other significant variances to report at this early stage in the year 4. COUNCIL TAX REVALUATION – HIGH VALUE PROPERTIES 4.1 In 2026/27, Moray Council has received additional funding of £606,000 on behalf of the Board to support preparatory work associated with a targeted revaluation of higher value residential properties. This forms part of a nationally coordinated exercise to identify and revalue dwellings above £1 million in order to support the introduction of new Council Tax Bands I and J from 1 April 2028. The current valuation framework does not allow these properties to be readily identified without applying up-to-date valuations, and the additional funding has been provided to enable Assessors to undertake the necessary work including property identification, evidence gathering, inspections and banding of relevant dwellings. 4.2 Plans are currently being considered to utilise earmarked reserves to support further development of the valuation system and to digitise valuation records, with the aim of improving efficiency and achieving cost savings. 5. EARMARKED RESERVES 5.1 The opening balance on reserves at 1 April 2026 reflects the outturn position for 2025/26 as reported in the Annual Accounts. These balances represent unspent resources carried forward to support planned, unplanned, or unexpected future expenditure, and includes earmarked funding held for specific purposes. Reserves are held to ensure that funding received in advance of expenditure can be applied in line with agreed plans and to support the ongoing financial management of the Board. The current balances of the reserves are: • General Reserve - £254,000 • NDR Reform reserve - £567,000 • Electoral Integrity Programme (EIP) reserve - £282,000 Page 128
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6. CONCLUSION 6.1 The total net expenditure as at 31 May 2025 is £825,000 giving an underspend against budget to date of £195,000. 6.2 The Assessor and his Senior Management Team closely monitor and control budgets in order to keep within agreed levels and generate savings wherever possible throughout the year. 6.3 A detailed revenue monitoring and estimated outturn statement will be reported at the Board meeting in October 2026. Author of Report: Aaron Cory, Trainee Accountant Background papers: Held within Accountancy Section, Moray Council Date: 5 June 2026 Page 129
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APPENDIX 1 GRAMPIAN VALUATION JOINT BOARD REVENUE MONITORING STATEMENT FOR PERIOD 1 APRIL TO 31 MAY 2026 Line 2026-27 2026-27 Actual Variance No. Total Budget Budget to Date 31-May-26 31-May-26 £'000 £'000 £'000 £'000 Employee Costs 1 Salaries 3,401 567 495 72 2 National Insurance 450 75 66 9 3 Superannuation 341 57 50 7 4 Additional Pensions 24 4 - 4 5 Other Employee Costs 4 - - - 6 Training 20 - - - Total Employee Costs 4,240 703 611 92 Property Costs 7 Accommodation Charges 346 151 132 19 8 Repairs and Maintenance 10 1 - 1 9 Energy Costs 14 2 - 2 10 Cleaning 5 1 - 1 Total Property Costs 375 155 132 23 Transport Costs 11 Staff Travel and Subsistence 60 10 7 3 Total Transport Costs 60 10 7 3 Supplies & Services 12 Equipment, Furniture & Materials 6 1 3 (2) 13 PPE 1 - - - Page 131
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14 Reference Books 15 3 1 2 15 Printing & Stationery 10 1 1 - 16 Postages & ER Printing 501 83 2 81 17 Telephones 2 1 1 - 18 Advertising 1 - - - 19 IT Maintenance & Support 319 53 77 (24) 20 Valuation Appeals 15 2 2 - 21 Members' Allowances 10 - - - 22 Fees, Charges & Subs 8 - - - 23 Specialist Services 40 7 1 6 24 Conference Fees & Subsistence 3 - - - 25 Other Supplies & Services 7 1 - 1 Total Supplies & Services 938 152 88 64 Support Services 25 Lead Authority Charge 77 - - - Total Support Services 77 - - - Gross Expenditure 5,690 1,020 838 182 Income 26 Sales and Other Income (17) - (13) 13 27 Interest on Revenue balances (20) - - - 28 Government Grant Income - - - - Total Income (37) - (13) 13 29 Net Expenditure 5,653 1,020 825 195 30 Requisitions (5,653) - (943) 943 31 (Surplus)/Deficit for Year - 1,020 (118) 1,138 Page 132
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REPORT TO: Grampian Valuation Joint Board on 26 June 2026 SUBJECT: Governance BY: The Assessor & ERO 1. Reason for Report 1.1 To ask the Board to appoint a Treasurer to the Board. 2. Recommendation 2.1 It is recommended that the Board note the content of the report and appoint Mr Jamie Fraser as Treasurer 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 Treasurer: “(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.” 3.2 The previous Treasurer, Mrs Lorraine Paisey, has now retired from her position as Chief Financial Officer (CFO) with the Moray Council. In accordance with 4.12 of the Board’s Scheme of Delegation, the Assessor, Convener and Depute Convener met on 13 May 2026 to consider the position of Treasurer and agreed that Mrs Paisey’s successor as Moray Council CFO, Mr Jamie Fraser, should fill the role of Treasurer, pending a decision by the full Board on 26 June. 3.3 Mr Fraser subsequently agreed to fulfil the role of Treasurer to the Board. Item 8. Page 133
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4. Current position 4.1 The Board’s finances are inextricably linked with those of Moray Council, the council providing accountancy, payments and payroll services to the Board. The role of Treasurer to the Grampian Valuation Joint Board has historically been discharged by the CFO (or equivalent position) of Moray Council with the position of Treasurer automatically transferring to a new Moray Council CFO on their appointment, without any Board approval. The Treasurer is the “proper officer” for the Board’s financial affairs in terms of Section 95 of the Local Government (Scotland) Act 1973. 4.2 The following matters are delegated to the Treasurer under the Board’s Scheme of Delegation: • Providing financial advice and support to the Clerk, the Assessor & ERO and members. • Discharging the obligations outlined in the Board's Financial Regulations, including the exercise of delegated powers. • Effecting suitable insurance cover. 4.3 In light of the matters set out above, it is considered that the Chief Financial Officer of the council providing accountancy support to the Board is best placed to undertake the role of Treasurer. 5. Conclusion 5.1 It is recommended that the Board appoint Moray Council’s Chief Financial Officer as Treasurer to the Board on an ongoing basis. 5.2 The current Chief Financial Officer, Jamie Fraser, is a qualified accountant and Fellow of the Association of Chartered Certified Accountants. Prior to becoming Moray Council’s CFO, Mr Fraser held the Service Manager Strategic Finance position with Moray Council and was the line manager of the team that provides day-to-day accountancy support to the Board. In that capacity, Mr Fraser also undertook responsibility for coordinating and maintaining effective communication with the Board’s external auditors. 5.3 Given his current role with the Moray Council and previous experience with the Board’s finances, Mr Fraser is well equipped to undertake the responsibilities of Treasurer 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 Fraser. 5.5 Should the Board decide not to accept the recommendation in 5.1, they are free to adopt an alternative approach, bearing in mind that any alternative appointment may come with an additional cost to the Board. Author of Report: Mark Adam, Assessor & ERO Page 134
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REPORT TO: Grampian Valuation Joint Board on 26 June 2026 SUBJECT: Risk Management BY: Assessor & ERO 1. Reason for Report 1.1 To report to the Board on risk management. 2. Recommendation 2.1 The Board note the risk register and the plans for future reviews. 3. Background 3.1 The Board’s Code of Corporate Governance requires the identification and prioritisation of risks to the organisation’s aims and objectives; the evaluation of the risks being realised and the resultant impact and finally the management of risks. 3.2 The Risk Register is subject to ongoing review with reports submitted to the Board on an annual basis. 3.3 Apart from ongoing reviews by individual risk owners, the Management Team has an overall role in reviewing the register. 4. Current Position 4.1 The strategic risk register that is provided as an appendix was formally reviewed by the Management Team on 1 June 2026 and reflects the position as at that date. No new risks were identified at that meeting. 4.2 A summary of the risk status is provided in the table below. Risk Rating 2019 2020 2021 2022 2023 2024 2025 2026 High 3 4 2 2 2 2 0 1 Moderate 3 3 2 1 0 1 2 2 Low 5 5 7 7 8 8 8 7 Tolerable 12 12 13 14 14 14 15 15 Obsolete 9 9 9 9 9 9 9 9 Total number of live risks 23 24 24 24 24 25 25 25 Item 9. Page 135
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4.3 “High” level risks 4.3.1 The number of “High” level risks has increased since the last report to the Board. 4.3.2 Risk 5d (We may be required to carry out a Council Tax revaluation) has increased from a “Moderate” risk rating to “High” as a result of the likelihood being reassessed from a score of 4 (Likely) to a score of 5 (Almost certain) following an announcement from the Scottish Government that 2 new “high value” council tax bands are to be introduced in 2028. This will involve a targeted revaluation of dwellings with an April 2026 value of over £1 million. Dwellings valued over £1 million will be placed in the new band “I” and dwellings valued over £2 million will be placed in the new band “J”. All other dwellings will remain based on 1991 levels of value and existing band thresholds. Although it is unlikely that legislation will be introduced until later in 2026, work has already commenced to prepare for this valuation exercise, and funding has been received to support the work required. 4.4 “Moderate” level risks 4.4.1 Risk 5i (Introduction of Registration policy changes) has increased from a “Low” risk rating to “Moderate” following a reassessment of the quality and effectiveness of the controls in place to mitigate the risks involved. This reassessment does not suggest that the organisation’s controls are inadequate but reflects concerns that reliance on partners undertaking work at a national level ahead of the changes, combined with the timing of those changes, and the limited ability to influence them, presents an increased level of risk for the organisation and for electoral administrators nationally. 4.5 “Tolerable” level risks 4.5.1 There have been no changes to the number of risks with a “Tolerable” rating. 4.6 “Low” level risks 4.6.1 See 4.4.1 above 5. Conclusion 5.1 The identification, assessment, and management of risk are continuous processes that remain a core focus for both the Management Team and the organisation as a whole. The evolving risk profile reflects the complex challenges typically faced by public sector bodies, as well as the organisation’s approach to addressing them. The risk register serves as an important tool, providing stakeholders with a clear view of the organisation’s ability to maintain operational effectiveness. 5.2 Risk owners and members of the Management Team regularly review existing risks and controls, while actively identifying and assessing any new risks that may affect the organisation. Future risk review meetings have also been scheduled Author of Report: Mark Adam, Assessor & ERO Page 136
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GRAMPIAN ASSESSOR ERO RISK REGISTER APPENDIX Risk Description Worst Case Outcome Scenario Likelihood of actual occurrence Impact if exposure occurs Gross Score Initial Risk Rating Current Controls Quality & Effectiveness of Controls Net Score Revised Risk Rating Risk Owner Action Proposed Review Date Review Cycle (score 1 - 5) (score 1- 5) (L x I) Good x 0.5 OK x 0.8 Poor x 1.5 Current Risks 1. SAFEGUARDING PEOPLE & PROPERTY 1a Workforce Health & Safety exposure in a varied, sometimes hazardous environment; lone working, seasonal climate, violence & aggression Staff injury, assault; low morale, stress; sickness absence; litigation and insurance claim; backlogs and overtime cost; bad publicity; criminal prosecution 4 3 12 MOD Risk Assessment Programme - Technical + Office + Field activities; Recognised reporting protocols; Issue of Personal Protective Equipment, where appropriate; External advice on control measures; Employee induction. Call in/out procedures documented. Lone working devices in use. Regular contact with staff working remotely and escalation to counselling services via Moray Council. good 6 TOL MJA Regular audit of PPE . Risk assessments to be reviewed. Lone working policy to be drafted. 01/12/2026 6 monthly 1b Fraudulent activity by employee (Valuation Roll, Council Tax and Electoral Registration) Adverse publicity; Elected Member concern; senior staff reprimand; systems replacement; internal inquiry uses valuable resource. Removal of IER Accreditation. 3 3 9 LOW Audit staff records; Staff training/awareness e.g. conflict of interest; Stringent checks on Valuation Roll and Valuation List amendments. ER postal vote number threshold check in place. ER duplicate name check procedure in place. Disclosure Scotland checks carried out on existing staff and new employees. Data Protection training forms part of mandatory training for all staff and is reviewed regularly.Register of interests for all staff maintained. good 4.5 TOL MJA Access to ER/VR/CT is based on operational requirements and reviewed as required. Review Disclosure status of existing staff 01/12/2026 6 monthly 1c Fraudulent activity by employee (Financial) Misappropriation of funds; adverse publicity; Elected Member concern; senior staff reprimand; systems replacement; internal inquiry uses valuable resource 2 2 4 TOL Financial procedures reviewed; Staff training/awareness; External check by Finance staff + internal and external audit reconciliations. Purchase card transaction logging and approval system good 2 TOL MJA MJA to continue close liaison with Treasurer and Accountancy team. 01/09/2026 3 monthly 1f Elgin office accommodation may be unfit for current demands of service. Concern regarding DDA. Health & Safety of staff compromised; poor security; inadequate storage; failure to comply with legislation e.g. DDA; poor image, operational inefficiency; morale damage 4 2 8 LOW Service responsiveness to assessed risks. ok 6.4 TOL MJA Alternative options currently being considered as part of a wider review of estate requirements by Moray Council. Current method of file storage to be reviewed. Monthly Monthly 1g Environmental controls for IT Server accommodation inadequate IT outages due to inadequate environmental controls 3 2 6 TOL Mechanical ventilation installed, remote monitoring and alerts. Very little data now held on these servers and therefore little load which causes heat. ok 4.8 TOL MJA Continue to monitor conditions. Server equipment in Banff will not be required once migration to Aberdeenshire IT is complete. Only Oracle & related data remaining. 01/09/2026 3 monthly Risk-20260626-Appendix Page 137
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GRAMPIAN ASSESSOR ERO RISK REGISTER APPENDIX Risk Description Worst Case Outcome Scenario Likelihood of actual occurrence Impact if exposure occurs Gross Score Initial Risk Rating Current Controls Quality & Effectiveness of Controls Net Score Revised Risk Rating Risk Owner Action Proposed Review Date Review Cycle (score 1 - 5) (score 1- 5) (L x I) Good x 0.5 OK x 0.8 Poor x 1.5 2. QUALITY, SECURITY, INTEGRITY & COMMUNICATION OF INFORMATION 2a Inadequate engagement with the Board on Governance matters in general and risk management in particular Adverse audit report; failure to achieve service improvements; No overall organisational recognition of strategic direction 2 3 6 TOL Financial and operational performance information reported to the Board at all meetings. The Board review the operational performance thresholds periodically. Risk analysis is presented to the Board annually. good 3 TOL MJA Monitor risk. 01/12/2026 Annually 2b The service is heavily reliant upon ICT systems; loss or serious interruption of data or service e.g. fire, hacking, virus, patching, employee misuse - intentional or accidental Loss of data and essential records; disclosure of confidential records; cost of recovering systems and data reinstatement; loss of data integrity; Elected Member concern; Partner councils' concern; adverse publicity. Increased issue of ransomware. 3 4 12 MOD Rigid protocols for data back-up; Disaster Recovery Server; Data share with councils; IT Systems managed or monitored by Aberdeenshire IT Team. good 6 TOL MJA Staff training and testing required to raise awareness and reduce risk from ransomware - regular Aldo training set up and monitored. MoU with Aberdeenshire Council for management of all GVJB IT systems in place. Only Oracle servers and SAN to be migrated. Migration of systems to hosted cloud being considered. 01/09/2026 3 monthly 2c Inadequate corporate policy documents Errors and omissions; avoidable accidents and loss; employee dispute and claims; adverse audit report; fraud; low morale; breach of legislation; inability to change or improve; failure to meet Corporate Governance obligations 4 2 8 LOW HR and governance policies review programme in place. IT policy documents were revised to comply with PSN requirements and are being reviewed as part of the Records Management Plan submission and the move to Aberdeenshire infrastructure. MT to monitor policies and discuss progress review programme with HR. ok 6.4 TOL MT Policy review programme to continue, to include Lone Working. Work on revised record management plan underway. 01/09/2026 3 monthly 2d Inadequate procedure documents Errors and omissions; avoidable accidents and loss; employee dispute and claims; adverse audit report; fraud; low morale; breach of legislation; inability to change or improve; failure to meet Corporate Governance obligations 4 2 8 LOW IT, CT and VR manuals and procedures constantly reviewed. ok 6.4 TOL MJA JAB Work practices under constant review. CT & VR Manuals reviewed and updated as required. 01/12/2026 6 monthly 3.SPECIFIC BUSINESS RISKS 3a Referencing & Records Management of our Valuation Roll, Council Tax and Electoral Registration data may be inefficient Regular duplication of work; confusion in use of multiple references for same property 4 2 8 LOW Staff training & advice ok 6.4 TOL JAB File naming convention being reviewed as part of othe review of records management plan. Digitisation of some property records has been undertaken. Migration of files to SharePoint implemented, only Oracle related files remaining. 01/09/2026 3 monthly Risk-20260626-Appendix Page 138
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GRAMPIAN ASSESSOR ERO RISK REGISTER APPENDIX Risk Description Worst Case Outcome Scenario Likelihood of actual occurrence Impact if exposure occurs Gross Score Initial Risk Rating Current Controls Quality & Effectiveness of Controls Net Score Revised Risk Rating Risk Owner Action Proposed Review Date Review Cycle (score 1 - 5) (score 1- 5) (L x I) Good x 0.5 OK x 0.8 Poor x 1.5 4.SPECIFIC GOVERNANCE RISKS 4a Data protection There is an unauthorised release of information. 4 3 12 MOD Working with colleagues on SAA Governance Committee. FoI group formed at SAA. GDPR training forms part of Mandatory training for all staff. Privacy notices have been updated. DPO has been appointed. Suppliers contracts include data processing agreements. Data breach procedure and log in place. ok 9.6 LOW MJA JAB Working with SAA Governance Committee and stakeholders on data agreements. 01/12/2026 6 monthly 5. BUSINESS PLANNING & MANAGEMENT 5d We may be required to carry out a Council Tax revaluation Inadequate staff resource - competencies and number - inability to recruit; media management; member agendas; quality or deadline slip in ongoing service; public resistance and volume of appeals; increased staff costs. 5 4 20 HIGH Records are not up to date other than in cases of properties sold with outstanding alterations or with no outstanding alterations. Funding agreed by SG. Regular meetings with SAA project team. ok 16 HIGH MT Regular reviews of current situation based on advice from SAA project team 01/09/2026 3 monthly 5e A strategic shift in the taxation ethos GVJB may cease to exist; function may be contracted, regionalised; staff redundancies; low morale, staff required to run down existing systems whilst preparing for replacement procedures; Errors, loss of data 3 4 12 MOD Largely a political issue outwith specific control of the organisation. The organisation is represented in the relevant devolved taxation bodies through the SAA and contributes to the overall SAA Project Plan. Non-domestic taxation position is now settled with NDR reforms implemented but see also Risk 5d where likelihood has recently increased. ok 9.6 LOW MJA Monitor situation which might be subject to policy changes. 01/09/2026 3 monthly 5f Inadequate funding Essential equipment and systems upgrade/replacement placed on hold; inability to recruit, retrain or develop staff; poor morale; service improvement opportunities lost; staff leakage 3 4 12 MOD Board can requisition at their required level. We currently have cross discipline working practices in place. Reserves available for unanticipated spend. good 6 TOL MJA Monitor performance closely for early detection of service degradation. Keep staff informed and involved, encourage innovation and flexible working. Monthly Monthly 5g Board fails to make adequate requistions 100% service failure due to lack of funds resulting in default on property and equipment rentals, insurances, software licencing and salaries. 3 4 12 MOD Budget scenarios presented to Board prior to budget setting meeting. Ongoing advice of Board Officers. ok 9.6 LOW MJA Board Officers to liaise with constituent authorities to seek to ensure that Board requisitions are made timeously. 01/09/2026 3 monthly 5h Inadequate business continuity planning Inability to maintain or restore essential business functions within required timescale. Failure to meet statutory deadline; audit censure, intervention; dispute with partner councils; Member concern, adverse publicity; loss of records; financial penalties; waste of time and essential resource through inability to control crisis situation 3 5 15 MOD Business Continuity/Contingencies Plan approved and implemented. Breach notification procedure in place. good 7.5 LOW MJA Contingencies plan under review as part of migration to Aberdeenshire IT. 01/09/2026 3 monthly 5i Introduction of Registration policy changes Degradation of Register completeness and accuracy. Failure of election processes. 5 3 15 MOD Risk and issues register in place. Active voter engagement strategy in place. Active monitoring of legislative progress. Policy changes e.g. OAVA. require input from variety of agencies.SAA ERC, Scottish Government and MHCLG working with EMS supplier to specify and test required system amendments but concerns remain given timing of changes. ok 12 MOD MJA Risk and issues register reviewed by Senior Admin & Management Team. Continue to engage with MHCLG, DS, EC, AEA, EMB and Scottish Government. Monthly Monthly Risk-20260626-Appendix Page 139
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GRAMPIAN ASSESSOR ERO RISK REGISTER APPENDIX Risk Description Worst Case Outcome Scenario Likelihood of actual occurrence Impact if exposure occurs Gross Score Initial Risk Rating Current Controls Quality & Effectiveness of Controls Net Score Revised Risk Rating Risk Owner Action Proposed Review Date Review Cycle (score 1 - 5) (score 1- 5) (L x I) Good x 0.5 OK x 0.8 Poor x 1.5 6. SERVICE, PROCESS & DELIVERY 6a Inadequate numbers of trained / skilled staff to fulfil statutory functions Failure to meet statutory deadline; errors, omissions; stress, sickness absence; resignation; audit censure; public, media concern 3 5 15 MOD Our internal recruitment policy and RICS training scheme assists retention/recruitment of trained staff. Individual training plans for graduates/trainee valuers prepared and maintained. Absence Management Policy applied across all offices and staff groups. Regular monitoring of staff welfare by supervisors.Graduate apprenticeships offered to existing staff. AEA Foundation Course manual now available. ok 12 MOD JAB Arrange external opportunities for experience. Widen training across disciplines. Training plan for all new members of staff. School leaver apprenticeships being considered - job evaluation of post requires to be carried out by HR. 01/09/2026 3 monthly 6b Inadequate staff development Inability to retain staff 3 3 9 LOW Staff survey issued and results analysed for more focussed follow-up ok 7.2 LOW JAB Review SRDS provisions in place in comparable organisations and Councils 01/09/2026 6 monthly 6c Over-reliance upon a small number of key Information Technology & Systems specialists. Backlogs, error and omission; stress; inability to recruit, unattractive prospect; staff leakage, insurance claims; quality deficit, deadlines missed; low morale; inability to plan and schedule 3 5 15 MOD Advance planning - with the exception of snap elections, demands are programmed. Outsourcing of services with Service Level Agreements in place. Electoral registration system outsourced to increase long-term resilience. Arrangement in place with Aberdeenshire IT to manage/host IT systems. good 7.5 LOW MJA Consider additional third party supported packages. 01/09/2026 3 monthly 6d Inconsistency of approach to tasks due to geographical spread of offices and different councils involved Imbalance in standards and levels of performance arising out of the differing "capabilities" of our constituent councils; friction with partner councils; audit censure; loss of flexibility 5 2 10 LOW Operational manuals provide guidance on procudures. good 5 TOL MJA JAB Review of current procedures to be carried out. At a national level the SAA Action Plan includes an issues log. Local issues log maintained & influenced by changes in legislation and practice. 01/12/2026 6 monthly 6e Failure of external contractor at crucial point in service cycle. (ER) Missed deadline; contractual dispute; GVJB blamed for contractor failure; additional expense; re-tendering exercise; audit censure; media comment; friction with partner councils; 3 4 12 MOD Revised procurement procedures implemented and supported by Moray Council Procurement team with appropriate SLA/contracts in place. Canvass Risk Register maintained. good 6 TOL MJA Regular monitoring. EMS contract extended for 5 year period in 2025.Joint working with partner councils with Moray Council onboarding in May 2026, Aberdeenshire Council still considering position. 01/12/2026 6 monthly 6f Failure of external contractor at crucial point in service cycle. (IT) Missed deadline; contractual dispute; GVJB blamed for contractor failure; additional expense; re-tendering exercise; audit censure; media comment; friction with partner councils; 3 4 12 MOD Revised procurement procedures implemented and supported by dedicated members of Moray Council Procurement team. Requirement for contingency planning by contractors. Backup network in place in divisional offices. GVJB systems now managed by Aberdeenshire IT. good 6 TOL MJA Regular monitoring and quarterly meeting with Aberdeenshire IT. Move of GVJB IT systems to Aberdeenshire's environment almost complete with only Oracle servers and SAN remaining within GVJB environment. Final Oracle upgrade testing underway. 01/09/2026 3 monthly 6h Out of hours working for statutory events Staff not available to process last minute registration or absent vote applications or to carry out valuation related tasks for revaluation. 3 3 9 LOW Overtime payments or time off in lieu is granted for authorised out of hours working. Employment contracts reflect requirement for out-of-hours availability. good 4.5 TOL MJA Sufficient advance notice to staff if out of hours working required. 01/12/2026 6 monthly 6i Industrial action by Employees Reduced capability 3 3 9 LOW Liaison with branch union reps. National level - negotiations & dialogue via Moray Council HR colleagues. ok 7.2 LOW MJA Active monitoring 01/12/2026 6 monthly Risk-20260626-Appendix Page 140
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GRAMPIAN ASSESSOR ERO RISK REGISTER APPENDIX Risk Description Worst Case Outcome Scenario Likelihood of actual occurrence Impact if exposure occurs Gross Score Initial Risk Rating Current Controls Quality & Effectiveness of Controls Net Score Revised Risk Rating Risk Owner Action Proposed Review Date Review Cycle (score 1 - 5) (score 1- 5) (L x I) Good x 0.5 OK x 0.8 Poor x 1.5 Notes Key MT Management Team Likelihood & Impact of each incident are first multiplied to provide an initial score. CT Council Tax BR Brian Rogan Both Likelihood & Impact are measured on a scale of 1 = Low, 5 = High. ER Electoral Registration KPI Key Performance Indicator JAB Jim Barron The initial assessment is a consideration of the risks without regard to any controls IT Information Technology JDS Jemma Smith or procedures that may be in place. This provides a gross score which is an indication of the SAA Scottish Assessors Association KJF Keith Fordyce potential scale of any problems. IT IS ESSENTIAL THAT GROSS SCORE IS NOT BENEFICIALLY VR Valuation Roll MJA Mark Adam INFLUENCED BY CONSIDERATION OF EXISTING OR INTENDED CONTROLS. MEM Moira Morrison RS Rob Strang The manager or group then review the CONTROLS that are or should be in place to reduce the various exposures (with reality testing as appropriate) and adjust the gross score by weighting factors (good = 0.5, OK = 0.8, poor = 1.5) to provide a net risk score. Net risk scores are graded - TOLERABLE = < 6.5; LOW = 6.5 up to 10; MODERATE = > 10 up to 15; HIGH = > 15 Any risks still assessed as HIGH or MODERATE should be programmed for corrective action. This should be agreed with the risk owner who should assign responsibility for taking action and the appropriate timescales. e.g. High = commence within 4 weeks; Moderate = commence within 4 months; Low = commence if resource available; Tolerable = No action Risk-20260626-Appendix Page 141
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GRAMPIAN ASSESSOR ERO RISK REGISTER APPENDIX Risk Description Worst Case Outcome Scenario Likelihood of actual occurrence Impact if exposure occurs Gross Score Initial Risk Rating Current Controls Quality & Effectiveness of Controls Net Score Revised Risk Rating Risk Owner Action Proposed Review Date Review Cycle (score 1 - 5) (score 1- 5) (L x I) Good x 0.5 OK x 0.8 Poor x 1.5 Risk Matrix - Likelihood Risk Matrix - Impact Likelihood Description 5 Almost certain Will undoubtedly happen, possibly frequently Over 90% Annual Imminent/near miss 4 Likely Will probably happen, but not a persistent issue Up to 90% 3 year Has happened in the past 3 Possible May happen occasionally Up to 65% 10 year Has happened elsewhere 2 Unlikely Not expected to happen, but is possible Up to 20% 25 year Not known in this activity 1 Remote Very unlikely this will ever happen Less than 5% 100 year Force majeure Impact Score Description Impact on Service Objectives Financial Impact Impact on People Duration of Impact Impact on Reputation 5 Catastrophic Unable to function, inability to fulfil obligations Severe financial loss (> £) Death In excess of 2 years (days) to recover pre event position Highly damaging, severe loss of public confidence 4 Major Significant impact on sevice provision Major financial loss Extensive injury, major permanent harm Between 1 year - 2 years (days) to recover pre event position Major adverse publicity, major loss of confidence 3 Moderate Service objectives partially achievable Significant financial loss Medical treatment required, semi permanent harm up to 1 year Between 6 months to 1 year (½ to 1 day) to recover pre event position Some adverse publicity, legal implications 2 Minor Minor impact on service objectives Moderate financial loss First aid treatment, non permanent harm up to 1 month 2 to 6 months (hours) to recover Some public embarrassment, no damage to reputation 1 Negligible Minimal impact, no service disruption Minimal financial loss (< £) No obvious harm/injury Minimal - up to 2 months (hours) to recover No interest to the press, internal only Risk-20260626-Appendix Page 142
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GRAMPIAN ASSESSOR ERO RISK REGISTER APPENDIX Risk Description Worst Case Outcome Scenario Likelihood of actual occurrence Impact if exposure occurs Gross Score Initial Risk Rating Current Controls Quality & Effectiveness of Controls Net Score Revised Risk Rating Risk Owner Action Proposed Review Date Review Cycle (score 1 - 5) (score 1- 5) (L x I) Good x 0.5 OK x 0.8 Poor x 1.5 Risk-20260626-Appendix Page 143
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GRAMPIAN ASSESSOR ERO RISK REGISTER APPENDIX Risk Description Worst Case Outcome Scenario Likelihood of actual occurrence Impact if exposure occurs Gross Score Initial Risk Rating Current Controls Quality & Effectiveness of Controls Net Score Revised Risk Rating Risk Owner Action Proposed Review Date Review Cycle (score 1 - 5) (score 1- 5) (L x I) Good x 0.5 OK x 0.8 Poor x 1.5 Obsolete Risks 1d Storage accommodation (on and off site) may be unfit for current demands of service. Concerns regarding amount of storage space. Inadequate storage; operational inefficiency 0 0 0 TOL Service responsiveness to assessed risks. good 0 TOL MT No longer a current risk. 1e Banff office accommodation may be unfit for current demands of service Health & Safety of staff compromised; cost of running repairs; poor security; inadequate storage; failure to comply with legislation e.g. DDA; poor image, operational inefficiency; morale damage 0 0 0 TOL Regular building surveys; Patch & mend repairs as necessary; Fire and security protections and direct alarm links; Ongoing premises replacement/relocation negotiations; Service responsiveness to assessed risks. good 0 TOL MJA Building now vacated and staff have moved to new purpose built office. No longer a current risk. 4a Lack of certainty regarding duty of disclosure under Freedom of Information No longer considered to be an issue and likelihood minimal. 1 1 1 TOL Scottish Assessors Association - pooled expertise; Register created on types of information request received to provide guidance; Controls untested, but increasing level of staff understanding obtained from practical experience good 0.5 TOL IHM Revised publication scheme implemented. 5a Relocation of Banff office Loss of records; interruption to service and missed deadline; contractor failure; inadequacies in facilities at new site; staff injury, complaint, claim; dispute with contractor; additional, unbudgeted costs 0 0 0 TOL Tight project plan; Close monitoring of plan. Selective timing; Appointment + monitoring of reputable contractors good 0 TOL GMO Move completed successfully. No longer a current risk. 5b Relocation of main HQ at future date. Uncertainty over final location; partner timeframe does not recognise essential GVJB service or Statutory deadlines; damage to staff morale; disruption to service; systems failure and related "snagging" problems at new site; staff injury, complaint; loss or damage to equipment; failure by removal contractor; unforeseen costs. 0 0 0 GOOD Move completed successfully good 0 TOL AWH DGY Move completed in June 2007, new 10 year lease. 5c Outstanding matters in connection with new lease of HQ accommodation Uncertainty over final location; partner timeframe does not recognise essential GVJB service or Statutory deadlines; damage to staff morale; disruption to service; systems failure and related "snagging" problems at new site; staff injury, complaint; loss or damage to equipment; unforeseen costs. 5 3 15 MOD good 12 MOD IHM Lease finalised. 5g We may have difficulty managing the outcome of the staffing review; (equal pay legislation). Staffing review completed and Career Grade Scheme approved but not yet fully implemented. Industrial action; poor staff morale; staff leakage; inability to replace, recruit; increased financial cost. 0 0 0 TOL Career grade scheme to be implemented. good 0 TOL IHM Review successfully completed and Career Grade Scheme implemented. 6g Risk of Solar Flare There is a heightened risk of increased solar flare activity peaking in 2013. Any magnetic media (disk or tape) could be wiped by such an occurrence. 1 5 5 TOL Data in Woodhill House is located in basement, this may offer some protection. Banff and Elgin data vulnerable. Elgin archived data stored at Woodhill House. ok 4 TOL DGY Industry standard precautions taken Risk-20260626-Appendix Page 144
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REPORT TO: Grampian Valuation Joint Board on 26 June 2026 SUBJECT: Complaints handling performance BY: The Assessor & ERO 1. Reason for Report 1.1 To report on complaints handling performance. 2. Recommendation 2.1 It is recommended that the Board consider the complaints handling performance. 3. Background 3.1 As an organisation, we endeavour to provide a professional and customer facing service at all times. However, it is inevitable, due to the nature of our work, that not everyone we deal with will be satisfied and that complaints will be received from time to time. These complaints should be viewed as an important source of feedback and, when well handled, lead to service improvement within the organisation. This in turn should reinforce and restore a positive relationship with service users who may feel that they have received a poor standard of service. 3.2 It is now ten years since the revised Complaints Handling Procedure was implemented. The procedure follows the Scottish Public Services Ombudsman’s (SPSO) model complaints handling procedure and comprises three stages: - • Stage 1 - frontline resolution • Stage 2 - investigation where stage 1 is not capable of resolving the issue • Stage 3 - referral to the SPSO where service failure or maladministration has not been identified at Stage 2 and the issue remains unresolved 3.3 Local authorities are required to assess complaints handling performance to provide assurance in relation to their performance, to facilitate continuous improvement and to assist in benchmarking between local authorities. 4. Current position 4.1 The SPSO’s Complaints Standards Authority (CSA) developed a series of performance indicators. The format for reporting these indicators was amended from 2022/23 onwards by the CSA and this year’s report is the fourth to reflect the revised style and amended indicators. Item 10. Page 145
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4.2 Complaints performance 4.2.1 Revised complaints performance statistics format 2025/26 Indicator 2023/24 2024/25 2025/26 Total Number of Complaints 5 9 4 Indicator 1: Complaints Received per 1000 of population 0.009 0.015 0.006 Indicator 2: Closed complaints The number of complaints closed at Stage 1 as a percentage of all complaints 40.00% 44.00% 75.00% The number of complaints closed at Stage 2 as a percentage of all complaints 60.00% 56.00% 0.00% The number of complaints closed at Stage 2 after escalation as a percentage of all complaints 20.00% 22.00% 25.00% Indicator 3: Complaints upheld, partially upheld and not upheld The number of complaints upheld at Stage 1 as % of all complaints closed at Stage 1 0.00% 75.00% 0.00% The number of complaints not upheld at Stage 1 as a percentage of all complaints closed at Stage 1 0.00% 0.00% 75.00% The number of complaints partially upheld at Stage 1 as a percentage of all complaints closed at Stage 1 100.00% 25.00% 0.00% The number of complaints upheld at Stage 2 as % of all complaints closed at Stage 2 0.00% 0.00% 0.00% The number of complaints not upheld at Stage 2 as a percentage of all complaints closed at Stage 2 33.33% 40.00% 0.00% The number of complaints partially upheld at Stage 2 as a percentage of all complaints closed at Stage 2 0.00% 60.00% 0.00% The number of escalated complaints upheld at Stage 2 as % of all escalated complaints closed at Stage 2 66.66% 0.00% 0.00% The number of escalated complaints not upheld at Stage 2 as a percentage of all escalated complaints closed at Stage 2 100.00% 0.00% 25.00% The number of escalated complaints partially upheld at Stage 2 as a percentage of all escalated complaints closed at Stage 2 0.00% 100.00% 0.00% Indicator 4: Average time in working days for a full response to complaints at each stage Average time in working days to respond to complaints at Stage 1 1 2 7 Average time in working days to respond to complaints at Stage 2 19 4 N/A Average time in working days to respond to complaints after escalation 9 2 19 Indicator 5: Percentage of complaints at each stage which were closed in full within the set timescales of 5 and 20 working days The number of complaints closed at Stage 1 within 5 working days as % of total number of Stage 1 complaints 66.67% 100.00% 66.67% The number of complaints closed at Stage 2 within 20 working days as % of total number of Stage 2 complaints 100.00% 100.00% 0.00% Page 146
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Indicator 7: Customer satisfaction The organisation continues to have a significant level of contact with stakeholders in the Grampian area and beyond, with more than 300,000 canvass communications issued for around 457,000 electors. In addition, around 1,900 new dwellings were added to the Council Tax Valuation List and just under 2,000 updates being made to the non-domestic Valuation Roll. More than 2,500 proposals to alter the Valuation Roll were received following the 2023 Revaluation of Non-Domestic subjects and just under 700 running-roll proposals were received. These proposals represented the first stage in the new two-stage appeal process that was introduced on 1 April 2023. This is one of a number of different appeal mechanisms relating to the statutory functions undertaken by the Assessor and Electoral Registration Officer. In line with guidance from the Scottish Public Services Ombudsman, representations under these mechanisms are not recorded as complaints. The number of complaints received relative to previous years has decreased, and the volume of complaints remains very low with only four formal complaints having been received. This suggests a high level of customer satisfaction from stakeholders. The time taken to resolve complaints is low, with most complaints concluded well within the timescales set by the Ombudsman. Indicator 8: Learning from complaints A review of the four complaints recorded for 2025/26 show all were in relation to Valuation Roll related duties, with none of the complaints being upheld. Consequently, the review has not identified any maladministration or failure in service delivery. With the overall number of complaints continuing to be so low, any further meaningful analysis of these figures is not possible. As always, feedback from all complaints over time, including those that have not been upheld, is used by the Management Team to improve communications and processes. 5. Conclusion 5.1 In its tenth year of implementation, the revised complaints handling procedure has continued to enable stakeholders and frontline staff to resolve issues within acceptably short timeframes. 5.2 Due to the low number of complaints in 2025/26 a definitive comparison of resolution times with previous years is not really possible. Author of Report: James A Barron Depute Assessor & ERO The number of escalated complaints within 20 working days as % of total number of Stage 1 complaints 100.00% 100.00% 100.00% Indicator 6: Number of cases where an extension was authorised The number of complaints closed at Stage 1 one where extension was authorised, as % all complaints at Stage 1 N/A N/A N/A The number of complaints closed at Stage 2 where extension was authorised, as % all complaints at Stage 2 N/A N/A N/A Page 147
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REPORT TO: Grampian Valuation Joint Board on 26 June 2026 SUBJECT: Valuation Roll & Council Tax Valuation List BY: Depute Assessor & ERO (Aberdeenshire) 1. Reason for Report 1.1 To provide an operational update on the valuation services provided by the Assessor including the performance levels achieved during 2025/26. 2. Recommendation 2.1 It is recommended that the Board note the contents of the report. 3. Background 3.1 The Board’s Code of Corporate Governance sets out a framework of performance measurement and evaluation. This framework identifies a number of quantitative service-related performance indicators. 3.2 The current thresholds for the performance indicators were reviewed by the Board in January 2024. 4. Valuation Roll 4.1 Appeals 4.1.1 Revaluation 2017 appeals Only two revaluation appeals remain outstanding with the Upper Tribunal for Scotland. 4.1.2 Revaluation 2017 Running Roll appeals All the outstanding running roll appeals that had been referred to the Upper Tribunal for Scotland have now been dealt with. 4.1.3 Revaluation 2023 proposals All of the 2,456 proposals that were received against Revaluation 2023 assessments were dealt with before the statutory deadline of 30 September 2025. A relatively low number, 161, of these proposal decisions were appealed to the First-tier Tribunal (Local Taxation Chamber) in the new two stage process. Item 11. Page 149
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4.1.4 Revaluation 2023 appeals The First-tier Tribunal commenced the citation of Revaluation 2023 appeals at the start of 2025, and hearings will continue until all outstanding appeals have been dealt with. At this stage, 111 of the 161 appeals received to date have been resolved. 4.2 Running Roll updates 4.2.1 Appendix 1 provides performance information for running roll updates to the Valuation Roll during the period from 1 April 2025 to 31 March 2026 and the previous two years. 4.2.2 In previous reports to the Board, a number of reasons were provided to explain the level of performance for the 2024/25 financial year, and these reasons remain valid for 2025/26. The annual self-catering unit review continues to be resource intensive. Assessors are required to delete self- catering units (SCUs) from the Valuation Roll and enter them in the Council Tax Valuation List where no response to the audit is received within 56 days. However, due to the failure of a significant number of self-catering operators throughout Scotland to respond within these timescales, the Scottish Government legislated to allow a second “window” in which information could be supplied to the Assessor. 4.2.3 Whilst there has been a modest improvement in the performance figures compared to the previous year, the figures remain below our target levels. A number of factors contributed to this level of performance, including the unavoidable impact of the annual SCU audit, the need for staff to deal with proposals and appeals resulting from the 2023 Revaluation, and ongoing maintenance of the Valuation Roll. In particular, for the 2025/26 year, there has been the additional work required to prepare for and execute the 2026 Revaluation. The fact that the figures have improved at all, given these pressures, is testament to the hard work of our staff. 4.3 Revaluation 2026 4.3.1 This was the first Revaluation conducted fully within the new three-year cycle. Draft valuations were published on 30 November 2025 and draft Notices were issued. There was a substantial number of representations made in response to these draft values, the majority in respect of Self- Catering Units. 4.3.2 Final Values for the 2026 Revaluation were completed by 15 March 2026, with these values published on 1 April 2026 and Revaluation Notices issued immediately thereafter to every proprietor, tenant and occupier shown in the Valuation Roll. Around 30,500 entries were revalued, representing a Total Rateable Value of over £930,000,000. 4.3.3 As in every year preceding Revaluation, resources need to be directed to ensure the Revaluation is accurate and delivered on time. This is a particular challenge in the new three-year revaluation cycle but with the recruitment difficulties it is inevitable that meeting the KPI targets would prove difficult. Page 150
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4.3.4 Proposals in respect of the Revaluation 2026 assessments have already been received and the deadline for submission of such proposals is 31 July 2026. The deadline for disposal of the 2026 Revaluation proposals is 30 September 2028. 5. Council Tax Valuation List 5.1 Updates to the List 5.1.1 Appendix 2 provides performance information for updates to the Council Tax Valuation List. Again, SCUs deleted from the Valuation Roll as a result of failing the annual audit required to be entered in the Council Tax Valuation List from the same effective date that they were deleted from the Valuation Roll, thus impacting the KPI percentages. 5.2 Proposals and Appeals 5.2.1 There are currently around 80 live Council Tax proposals. Proposals received following the significant number of deletions of SCUs from the Valuation Roll and the entry of those properties in the Council Tax Valuation List were largely resolved by the Scottish Government legislating for a further evidence submission window, as reported above. However, as a result, this group of proposals has inflated the number of Council Tax proposals shown as accepted in Appendix 2 of this report. 5.2.2 Over the 2025/26 period a number of Council Tax appeals against proposal decisions were made to the First-tier Tribunal for Scotland. The preparation required for submission of these cases before hearing is significant, however the effort in doing so has paid off with all such appeals having been successfully defended. 6. Conclusion 6.1 The KPIs in both taxation systems continue to be affected by the SCU audit process and the SCU audit remains an active topic of discussion at a national level amongst Assessors and the Scottish Government. Depending on the result of these discussions, KPI thresholds may require to be reconsidered when next reviewed for the performance statistics to remain relevant and useful. Author of Report: James A Barron Depute Assessor & ERO Page 151
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Appendix 1 Valuation Roll Performance Indicators as at 31 March 2026 Time period 2025/2026 2024/2025 2023/2024 Amendments within time periods The number of amendments made to the valuation roll during the year as a result of material change of circumstances, error corrections and new subjects. The time period is the period between the effective date of the amendment and the date the corresponding Valuation Notice is issued. 0 - 3 Months % Threshold % 3 - 6 Months % Threshold % Over 6 Months % Threshold % 606 30.65% 65.00% 356 18.01% 20.00% 1,015 51.34% 15.00% 542 27.79% 65.00% 303 15.54% 20.00% 1,105 56.67% 15.00% 915 35.92% 65.00% 426 16.73% 20.00% 1,206 47.35% 15.00% Number of amendments 1,977 1,950 2,547 Total number of entries At 1 April 30,096 30,167 30,296 Total Rateable Value At 1 April £923M £937M £934M Page 153
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Appendix 2 Council Tax Valuation List Performance Indicators as at 31 March 2026 Time Period 2025/2026 2024/2025 2023/2024 New Entries within Time Periods The time period is the period between the effective date of the amendment and the date the corresponding Banding Notice is issued. 0 - 3 Months % Threshold % 3 - 6 Months % Threshold % Over 6 Months % Threshold % 1,341 71.37% 94.00% 363 19.32% 3.00% 175 9.31% 3.00% 2,109 67.79% 94.00% 497 15.98% 3.00% 505 16.23% 3.00% 1,961 64.70% 94.00% 507 16.73% 3.00% 563 18.57% 3.00% Number of New Entries Added The actual number of new dwellings added to the Valuation List during the year. 1,879 3,111 3,031 Total Number of Entries The actual number of properties shown in the Valuation List as at 1 April annually. 307,620 305,005 302,364 Adjusted to Band “D” Equivalent Original ratios 307,399 304,325 301,317 2017 ratios 323,936 320,614 317,377 Number of proposals accepted 146 32 72 Page 155
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REPORT TO: Grampian Valuation Joint Board on 26 June 2026 SUBJECT: Electoral Registration BY: The Principal Admin Officer 1. Reason for Report 1.1 To update the Board on current 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 write-out exercise to reserved postal voters has concluded. 3.2 Successful delivery of the Scottish Parliament election on 7 May 2026. 3.3 Work is well underway for the UK Parliamentary and two local government by elections in our area. 3.4 Preparations for the 2026 canvass are in progress. 3.5 The convergence of the application process for absent votes at reserved and devolved elections is heading towards conclusion with convergence taking place on 3 November 2026. 3.6 Overseas Renewal process and the launch of the new online overseas elector renewal service. 4. Reserved postal vote reapplication write-out 4.1 As reported in January 2026, electors who hold a reserved postal vote were required to reapply for a postal vote before it expired on 31 January 2026. 4.2 The reapplication response rate was just under 69%, with cancellation notices issued in February 2026 to the remaining 31% who did not reapply. This response Item 12. Page 157
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rate was consistent with those reported by other Electoral Registration Officers across Scotland. 4.3 The cancellation of a reserved postal vote had no impact on any postal vote that an elector may have for devolved elections – those remained in place for the Scottish Parliament election in May 2026. 5 Scottish Parliament Election 7 May 2026 5.1 The period leading up to the election on 7 May 2026 was busy but slightly quieter than expected and this was echoed by all electoral registration officers across Scotland. The core admin team managed the workload exceptionally well, demonstrating flexibility through extended hours while maintaining full operational capacity without the need to engage additional support staff. We were able to safely deliver all the necessary processes in support of the election to a high standard, and on time. 5.2 Elector confusion regarding reserved and devolved absent vote arrangements was apparent, with some electors unaware that separate postal vote applications require to be made for reserved and devolved elections. Applications submitted through the online portal were processed daily, and electors were contacted and provided with the appropriate form to complete for devolved elections. 5.3 There were well publicised issues around the receipt of postal vote ballot packs to electors in the Peterhead area. Although this did not result from any failing on the part of the ERO, we were adversely impacted by additional contacts from the public by email and telephone. While callers were politely directed to the relevant council election team, ERO staff were dealing with additional calls from electors who were understandably anxious about being able to cast their vote. 6 UK Parliamentary and local government by elections 6.1 A UK Parliamentary by-election is scheduled for 18 June in the Aberdeen South constituency, following the election of the sitting MP to the Scottish Parliament on 7 May. This presents particular challenges as there is a local government by- election taking place in the George Street/Harbour ward just one week later on 25 June. This ward forms part of the Aberdeen South constituency and has led to some voter confusion due to the differing franchises for each election. 6.2 The divergence in absent voting arrangements complicates matters further. A reserved absent vote is required for the Aberdeen South by-election, while a devolved absent vote is needed for the Ward 8 George Street/Harbour election. However, our core staff are available to advise electors and ensure they are fully informed of the requirements for each election. 6.4 A by-election is also scheduled for 2 July in the Peterhead South and Cruden ward of the Aberdeenshire Council area, following the sad passing of Councillor George Hall. Page 158
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6.5 With three elections occurring in quick succession, our admin team is working diligently to manage overlapping deadlines, increased workloads, and the timely provision of required data to Returning Officers, alongside our day-to-day responsibilities. 7 Annual Canvass 2026 7.1 Planning and preparation for the 2026 canvass is in progress. Our timetable follows the usual schedule with the issue of initial canvass communications in early August and all canvass activities concluding by 30 November prior to publication of revised registers on 1 December 2026. 7.2 The upload of our registers for the compulsory national data match will take place on 30 June with results expected within a few days. We will then conduct local data matching with the aim of reducing the number of properties which require follow up action. 7.3 E-communications will be issued in early to mid-July to matched properties which meet the relevant criteria. Where a response is received confirming that there are no changes in the household, this will remove the requirement to issue a paper communication. 7.4 Initial letters to unmatched properties will then be issued in the first week of August, with letters to matched properties following in the second and third weeks of August. 7.5 Follow up action with further letters issued by post and personal contact by door- to-door canvassers, and telephone canvass where the canvass rules permit, will then take place from early September until it is concluded on or before 30 November. We will also send e-communication reminders to further reduce the need for paper communications and the associated high costs. 8 Absent vote convergence 8.1 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 and Welsh Governments, agreed a “go- live” date of 3 November 2026 8.2 Recent upgrades to our Electoral Management System (EMS) include new functionality to support this. A further update is expected at the end of June, when the remaining features will go live. Our EMS provider is delivering training over the coming weeks and, following this, we will then begin contacting electors where there are differences in their voting arrangements for reserved and devolved elections. 9 Overseas Renewal process 9.1 Overseas electors’ declarations expire on the third 1 November after their electoral register entry first takes effect. Any overseas elector added to the Page 159
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Author of Report: Moira E Morrison, Principal Administrative Officer register on or prior to 31 October 2024 is required to renew by 1 November 2026. Overseas electors must renew their declaration during a six-month renewal window, which runs from 2 May to 1 November. 9.2 From 1 July, EROs are required to send a renewal communication by email or post to every overseas elector whose registration is due to end on 1 November of that year. A second communication must be sent if there is no response to the initial contact. 9.3 A new online overseas elector renewal service was launched on 2 May allowing overseas electors to renew their registration digitally. 9.4 An overseas elector’s absent vote (AV) arrangement is linked to their registration and will also end on the third 1 November. When an overseas elector with an existing AV renews their registration online, they will be prompted to renew their AV arrangement at the same time. They will either have to reapply for their postal vote or provide a fresh signature if they have a proxy arrangement in place. 9.5 There are 1,285 overseas electors due to renew their registration this year. 10.0 Conclusion 10.1 Staff demonstrated great commitment and resilience in delivering a successful Scottish Parliament election. Our workload remains high, with three by-elections taking place alongside preparations for the annual canvass, renewals for overseas electors, and absent vote convergence. 10.2 We remain committed to putting the voter first in a challenging and constantly changing environment, where rules had diverged and are now converging again. However, absent vote convergence and the online absent voting provision offer clear benefits for both voters and administrators, and we welcome these changes. Page 160
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REPORT TO: Grampian Valuation Joint Board on 26 June 2026 SUBJECT: Staff Vacancies, Recruitment & Upskilling Existing Staff BY: The Assessor & ERO 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 fourteen vacant posts: Section Establishment (FTE) Vacancies (FTE) Previously Currently Clerical 29 2 1 IT 3 1 1 Management 3 0 1 Secretarial 3 0 1 Technical 13 2 2 Valuation 30 7 8 Total 81 12 14 4.2 Although the figures shown in the preceding table appear relatively static, there has been some internal movement of colleagues between posts over this Item 13. Page 161
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period. In addition, the Board should note that Gavin Oag retired from his post of Depute Assessor & ERO on 31 May 2026. 5. Recruitment 5.1 Productive meetings have been held with Moray Council colleagues on methods and strategies to promote the organisation as an employer of choice and further discussions will take place before the next round of recruitment advertising. 5.2 The Assistant Assessor post reported as being vacant at the last meeting has been filled by means of our Internal Recruitment Policy by an existing Principal Valuer and has resulted in a vacancy for that post. 5.3 Following external advertising and interview, the Principal Administration Officer vacancy was filled by our existing Admin Officer. 5.4 Following internal advertisement in accordance with our Internal Recruitment policy, the Admin Officer post was filled by the holder of an Admin Assistant post, and the resulting Admin Assistant vacancy was then filled by the holder of a Secretary post. 6. Action Being Taken 6.1 Applications have been received for a Technical Assistant vacancy, and the selection process is now underway. 6.2 One of the two employees enrolled on the Graduate Apprenticeship course at Napier University has now completed their final year and is awaiting the results of their final assessments. If successful, they will then embark on the Royal Institution of Chartered Surveyors’ Assessment of Professional Competence, in turn leading to chartered status. 6.3 The other member of staff currently undertaking the course is now entering year three of four. In addition, one further member of the technical staff has enrolled on the Graduate Apprenticeship course and will commence studies in August. 6.4 We continue to work with other Assessors in developing a training framework for 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 A new structured training framework for newly appointed technical staff has been implemented. This framework can also be used to assist existing staff in identifying any gaps in their skills and to determine where additional or refresher training may be needed. Page 162
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6.7 Following our successful attendance at the University of Aberdeen’s jobs fair last year, a student on the university’s MSc Real Estate course has been employed on a temporary basis. This will provide the student with valuable work experience and may provide a pathway for recruitment to one of our valuation vacancies in due course. 6.8 To raise the profile of the organisation to students and graduates, and bolster recruitment in the future, we will attend the University of Aberdeen Business and Finance Fair again this year. 6.9 The IT vacancy remains under review pending the completion of the work to move IT resources to Aberdeenshire IT infrastructure. 6.10 We continue to advertise the valuation vacancies through our own website and, with the assistance of Moray HR colleagues, intend to carry out a review of our external advertising options. 7. Conclusion 7.1 Although the number of vacancies is largely unchanged, there have been successful internal appointments and a positive step forward with the recruitment of an Aberdeen University student, albeit on a temporary basis initially, and another existing member of the technical staff undertaking the graduate apprenticeship course at Napier University. We are committed to filling vacant posts, although recruitment depends on the availability of suitably qualified candidates. We remain confident that our ongoing efforts will improve our ability to fill these roles and support the long-term resilience of the organisation. Author of Report: Mark Adam, Assessor & ERO Page 163
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REPORT TO: Grampian Valuation Joint Board on 26 June 2026 SUBJECT: Appointment of Depute Electoral Registration Officer BY: Assessor & ERO 1. Reason for Report 1.1 To provide additional resilience to the work of the Electoral Registration service, and additional support to the Electoral Registration Officer, the Board are asked to consider the appointment of an additional Depute Electoral Registration Officer (ERO) with full powers. 2. Recommendation 2.1 The Board appoint the Principal Admin Officer, Moira Morrison, as a Depute Electoral Registration Officer with full powers. 3. Background 3.1 Electoral Commission guidance recommends the appointment of Depute EROs to carry out the functions of the ERO and be available to act in their absence. The Elections Act 2022 places further obligations on the ERO, which it would be more practical for a depute to undertake. 3.2 The guidance further recommends that, “Any deputes appointed should have the skills and knowledge required to carry out the functions that they have been assigned.” 4. Current Position 4.1 Under Section 8(3) of the Representation of the People Act 1983, every local authority in Scotland is required to appoint an electoral registration officer. Aberdeen City, Aberdeenshire and Moray councils have delegated this responsibility to the Board. 4.2 Electoral Registration Officers are responsible for maintaining and publishing the registers of electors in the areas for which they act. 4.3 The Board have previously appointed the Assessor as the Electoral Registration Officer and Depute Assessors as Depute Electoral Registration Officers. Item 14. Page 165
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4.4 Under Section 52(2) of the Representation of the People Act 1983, the councils which appointed the ERO may approve the appointment of Depute EROs to perform and exercise any of the duties and powers of the ERO. 4.5 As noted at 4.1, Aberdeen City, Aberdeenshire and Moray councils have delegated this responsibility to the Board. 4.6 Examples of the statutory functions currently placed on the ERO that may, in practice, be better undertaken by a Depute are: • Conducting a registration hearing, following a registration review and an objection to the removal of an elector from the register of electors, • Signing a temporary voter authority certificate, issued to an elector within six days of an election. • Determination of registration applications by overseas electors 4.7 In accordance with Electoral Commission guidance, and to ensure that there is an officer available to discharge these functions, it is considered prudent for the ERO to be able to delegate their powers and duties. This would ensure that if it became necessary to hold a hearing or sign a temporary voter authority certificate, it could be dealt with efficiently and effectively without unreasonable delay. 4.8 The Principal Admin Officer is responsible for the day-to-day management of the admin staff involved in the provision of the electoral registration service. 4.9 The current Principal Admin Officer, Moira Morrison, was appointed to the position in March 2026 and is an experienced practitioner, having worked in electoral registration for around 30 years. Moira gained the Association of Electoral Administrators’ Certificate in Electoral Administration in 2023 and is a member of the Scottish Assessors’ Association Electoral Registration Committee. Moira has demonstrated a high level of expertise in electoral procedures and practices and has my full confidence. 4.10 The previous Principal Admin Officer, Linda Smith, was appointed by the Board as a Depute Electoral Registration Officer in 2024. 4.11 Other Boards who have appointed their equivalent of the Principal Admin Officer to a post of Depute ERO include Orkney & Shetland, Central Scotland, Highland & Western Isles and Lothian. 5. Implications 5.1 There are no financial implications. The Depute ERO would not receive any additional payment. 5.2 There are no staffing implications. The appointment of a Depute ERO would be associated with an already designated post and would not require further recruitment. 6. Conclusion Page 166
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6.1 The appointment will provide additional resilience and support to the Electoral Registration Officer, particularly during the period of an election and when any Depute Assessor & ERO is involved with valuation related matters subject to tight legislative deadlines and timescales. Author of Report: Mark Adam, Assessor & ERO Page 167
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