Agenda Document Pack - Council - 24/09/2026
Renfrewshire Council · 24 September 2026
Back to Council — 24 September 2026 and its agenda
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17/09/2026 Notice of Meeting and Agenda Council Date Time Venue Thursday, 24 September 2026 09:30 Council Chambers (Renfrewshire), Council Headquarters, Renfrewshire House, Cotton Street, Paisley, PA1 1AN Membership Provost Lorraine Cameron (Convener): Councillor Iain Nicolson (Leader): Councillor Cathy McEwan (Depute Convener): Councillor Jacqueline Cameron (Depute Leader): Councillor Jennifer Adam: Councillor Fiona Airlie-Nicolson: Councillor Alison Ann-Dowling: Councillor Stephen Burns: Councillor Michelle Campbell: Councillor Graeme Clark: Councillor Carolann Davidson: Councillor Eddie Devine: Councillor Andy Doig: Councillor Audrey Doig: Councillor Chris Gilmour: Councillor Edward Grady: Councillor Gillian Graham: Councillor Neill Graham: Councillor John Gray: Councillor Anne Hannigan: Councillor John Hood: Councillor Lisa-Marie Hughes: Councillor Robert Innes: Councillor Alec Leishman: Councillor Bruce MacFarlane: Councillor James MacLaren: Councillor Kenny MacLaren: Councillor Mags MacLaren: Councillor Colin McCulloch: Councillor Janis McDonald: Councillor David McGonigle: Councillor Jamie McGuire: Councillor Marie McGurk: Councillor Iain McMillan: Councillor John McNaughtan: Councillor Kevin Montgomery: Councillor Sam Mullin: Councillor Will Mylet: Councillor Jim Paterson: Councillor Emma Rodden: Councillor John Shaw: Councillor Ben Smith: Councillor Andy Steel: Hybrid Meeting Please note that this meeting is scheduled to be held in the Council Chambers. However, it is a hybrid meeting and arrangements have been made for members to join the meeting remotely should they wish. Members of the Press and Public Members of the press and public wishing to attend the meeting should report to the customer service centre where they will be met and directed to the meeting. MARK CONAGHAN Head of Corporate Governance Page 1 of 392
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17/09/2026 Webcasting of Council Meeting This meeting will be filmed for live or subsequent broadcast via the Council’s internet site – at the start of the meeting the Provost will confirm if all or part of the meeting is being filmed. Generally the public seating areas will not be filmed. The cameras focus on the main participants. If you have any queries regarding this please contact Committee Services on democratic-services@renfrewshire.gov.uk. To find the webcast please navigate to: https://renfrewshire.public-i.tv/core/portal/home and select the meeting from the calendar. Further Information This is a meeting which is open to members of the public. A copy of the agenda and reports for this meeting will be available for inspection prior to the meeting at the Customer Service Centre, Renfrewshire House, Cotton Street, Paisley and online at http://renfrewshire.cmis.uk.com/renfrewshire/CouncilandBoards.aspx For further information, please email democratic-services@renfrewshire.gov.uk Information Bulletin To reduce the reporting of routine operational matters to Policy Boards, to allow Boards to focus on major policy issues and to streamline business for Members’ consideration and determination, a Bulletin, issued in line with the Council meeting timetable, is produced. The Bulletin is intended to provide members with a concise summary of significant decisions and action taken by officers in the exercise of their delegated powers, and details of issues which do not require a decision. A copy of the Bulletin has been published with this agenda. Page 2 of 392
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17/09/2026 Items of business Apologies Apologies from members. Declarations of Interest and Transparency Statements Members are asked to declare an interest or make a transparency statement in any item(s) on the agenda and to provide a brief explanation of the nature of the interest or the transparency statement. 1 Provost's Update Hear from Provost 2 Azets Report to those charged with Governance – Renfrewshire Council Group Annual Accounts 2025/26 Report by Director of Finance & Resources 9 - 126 3 Audited Annual Accounts 2025/26 – Renfrewshire Council Group Report by Director of Finance & Resources 127 - 254 4 Azets Report to those charged with Governance – Coats Observatory Trust Annual Accounts 2025/26 Report by Director of Finance & Resources 255 - 290 5 Audited Financial Statements 2025/26 – Coats Observatory Trust Report by Director of Finance & Resources 291 - 308 6 Financial Outlook and Medium-term Financial Plan Report by Director of Finance & Resources 309 - 326 7 Public Service Reform Report by Chief Executive 327 - 334 8 Governance Arrangements Report by Director of Finance & Resources 335 - 338 Page 3 of 392
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17/09/2026 9 Renfrewshire Community Protection Chief Officers Group – Annual Report 2025/26 Report by Chief Executive 339 - 384 10 Sustainable Future Programme – Renfrewshire Health and Social Care Partnership Report by Chief Social Work Officer 385 - 392 11 Notice of Motion 1 by Councillors Andy Doig and Hood "GDPR “This Council supports the general principles behind the Data Protection Act 2018 but views with continued concern the practice of Health Boards, Housing Associations, Renfrewshire Health and Social Care Partnership, and other public bodies, of requiring MPs, MSPs, and Councillors to obtain a signed mandate form from constituents in order to represent them. Council requests that the Chief Executive write to the Board of NHSGGC, those housing associations operating in Renfrewshire, and Renfrewshire Health and Social Care Partnership, and ask them to remind their staff that, under data protection legislation, no mandate is required where an elected member is acting on behalf of a constituent."" 12 Notice of Motion 2 by Councillors Andy Doig and Devine "COSLA Evaluation of Direct Labour Organisations This council is concerned at the bureaucracy, inefficiency, and negative impact on delivery of services caused as a direct result of the Local Government Act 1988, with its drive towards compulsory competitive tendering. Particularly in terms of housing repairs which inconveniences constituents. Council accordingly calls on COSLA to conduct a national evaluation of the respective costs of continued CCT compared to the re-establishment of Direct Labour Organisations, and to report back to its member local authorities with recommendations as to further action." 13 Notice of Motion 3 by Councillors McDonald and Clark "60th Anniversary of Glasgow Airport Council notes that 2nd May 2026 marked the 60th anniversary of Glasgow Airport. Council recognises the major economic contribution Glasgow Airport makes to Renfrewshire and Scotland, supporting thousands of jobs, tourism, inward investment, logistics, and acting as an essential platform for Scotland’s export economy. Page 4 of 392
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17/09/2026 Council commends Glasgow Airport’s long history of community involvement, including its FlightPath Fund and the service expansions announced this year." 14 Notice of Motion 4 by Councillors G Graham and McMillan "Review of Legislation and Guidance on Domestic EV Charge Point Installations Council notes the growth of domestic electric vehicle charge point installations, including at flats, shared parking areas and homes dependent on on-street parking. Council further notes that responsibility is fragmented across planning, building standards, roads, electrical safety, Distribution Network Operators, smart charger regulations and private property consent. Council believes this disjointed framework leaves councils without the clear powers needed to prevent unsafe, unauthorised or obstructive installations and to protect residents and the public. Council therefore agrees to write to the Department of Energy and Net Zero for urgent national guidance, and robust model enforcement powers for councils." 15 Notice of Motion 5 by Councillors Gilmour and G Graham "100 Years of Hendersons Flowers, Johnstone This Council congratulates Hendersons Flowers, a valued family business in Johnstone, on marking 100 years of service to the town and communities beyond. Council recognises the dedication of generations of the Henderson family and staff, whose hard work has helped the business remain an important part of Johnstone’s local economy and community life. Council extends its thanks and best wishes to Hendersons Flowers as it celebrates this significant milestone and looks forward to its continued success in the years ahead." 16 Notice of Motion 6 by Councillors Andy Doig and Gilmour "The Community Asset Transfer Process in Renfrewshire and Community Consultation This Council recognises that community consultation is a critical, significant, and legally mandated part of the CAT process under the Community Empowerment (Scotland) Act 2015, but notes that there is concern across Renfrewshire about the depth and range of some community consultations in particular cases. Council further agrees, in the light of these concerns, to extend the statutory consultation period from twenty to forty working days." Page 5 of 392
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17/09/2026 17 Notice of Motion 7 by Councillors Audrey Doig and Innes "Our Lady of Peace Primary School and the 2026 Scots Language Awards This Council congratulates the staff, parents, and pupils of Our Lady of Peace Primary School in Linwood for being nominated at the recent prestigious Scots Language Awards for the Schuil o the Year. Council notes with pride that it was the only primary school amongst five nominees for that specific category, the rest being secondary schools. We further celebrate Scots as one of our indigenous languages and recognise the role of Our Lady of Peace Primary in highlighting its value in the cultural life of Scotland." 18 Notice of Motion 8 by Councillors Innes and J Cameron "“Abolition of the House of Lords” Council notes that the House of Lords remains an unelected legislative chamber, with members appointed rather than elected by the public, yet they are able to scrutinise, amend and vote on legislation affecting the people of Scotland. Council further notes that successive UK Governments have promised reform of the House of Lords, yet it remains fundamentally unelected and unaccountable to the electorate. Council believes that, in a modern democracy, those exercising legislative power should be directly accountable to the people they represent, and that an unelected chamber based on appointment and patronage is incompatible with democratic accountability. Council therefore calls for the abolition of the House of Lords and urges the UK Government to replace it with a democratic and directly elected alternative. Council further agrees to write to the Prime Minister and Secretary of State for Scotland urging the UK Government to bring forward legislation to deliver this reform." 19 Notice of Motion 9 by Councillors G Graham and Davidson "Recognising the 50th Anniversary of Scottish Women’s Aid This Council recognises the 50th anniversary of Scottish Women’s Aid and pays tribute to its pioneering role in supporting women, children and young people affected by domestic abuse. Furthermore, Council highlights Women’s Aid’s leading role in national Page 6 of 392
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17/09/2026 advocacy; strengthening specialist services; challenging stigma; and helping shape public understanding and policy in Scotland. Council commends the courage of survivors and the dedication of Scottish Women’s Aid staff and volunteers nationally and here in Renfrewshire. And agrees that the Chief Executive write to Scottish Women’s Aid to mark the anniversary and express appreciation for its work." 20 Notice of Motion 10 by Councillor Audrey Doig and Provost L Cameron "Commemorative Plaque to Honour the Life of Dolly Rebecca Parton This Council recognises the immense cultural and musical contribution of Dolly Parton, singer-songwriter, actress, and businesswoman, and in particular, her ground-breaking Imagination Library initiative which has brought great benefit to the children of Renfrewshire. Council agrees, as a lasting tribute to her promotion of the Imagination Library locally, to erect a plaque within Paisley Central Library in honour of her life and achievements." 21 Notice of Motion 11 by Councillors Hughes and Audrey Doig "Spinal Cord Injury Awareness Month Renfrewshire Council recognises that September is Spinal Cord Injury Awareness Month and supports its key aims of honouring those living with Spinal Cord Injuries (SCIs), supporting the development of new treatments and therapies, and raising awareness of symptoms and early warning signs of SCIs. Renfrewshire Council further notes that whilst several new therapies are in development, there is currently no cure for SCIs, and that therefore awareness of the symptoms of SCIs is critical in early diagnosis and in supporting improved outcomes." 22 Notice of Motion 12 by Councillors J Cameron and Adam "Stacy’s Law Council supports calls for a “Stacy’s Law” in memory of Renfrewshire resident Stacy Hunter who was murdered by her estranged husband in July of this year. The petition supported by Stacy’s family calls for high- risk domestic abuse perpetrators on bail to have their location monitored using GPS equipment. Council notes that domestic abuse charges have increased in Scotland by 14 per cent last year and agrees that challenging these behaviours is an issue for us all. Council welcomes the measures outlined in Scottish Page 7 of 392
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17/09/2026 Government’s Programme for Government to tackle misogyny and male violence against women and girls." Page 8 of 392
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1 PUBLIC ___________________________________________________________________ To: Council On: 24 September 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Azets Report to those charged with governance - Renfrewshire Council Group Annual Accounts 2025/26 ___________________________________________________________________ 1. Summary 1.1 Each year the Council’s appointed external auditors carry out an audit of the Council’s financial statements and provide an opinion as to whether those statements provide a true and fair view of the financial position of the Council, and its income and expenditure for the year; and also whether they have been prepared in accordance with the Local Government (Scotland) Act 1973. 1.2 In accordance with International Auditing Standards (ISA260), the external auditor, Azets, is obliged to report to those charged with the governance of the organisation matters which have arisen in the course of the audit. 1.3 The attached ISA260 report from Azets outlines their findings from the audit of the 2025/26 the Renfrewshire Council Group accounts. 1.4 Under the Local Authority Accounts (Scotland) Regulations 2014, the Council must meet to consider the Annual Accounts and aim to approve those accounts for signature no later than 30 September. 1.5 Azets officers will attend the Council meeting to present their reports. 1.6 There were three material audit adjustments made to the annual accounts over the course of the audit. The figures and details are listed on page 87 of the Annual Audit Report, and can be explained as follows: Item 2 Page 9 of 392
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2 PUBLIC • Property Plant and Equipment – To reverse incorrect reclassification of two assets from Other Land and Buildings to Infrastructure as the assets remain separate to the land; • Property Plant and Equipment – To write down nil book value assets that the Council have not been able to verify; • Common Good Note – Renfrew Common Good understated short term deposits and revaluation reserve of fixed assets; 1.7 Other minor and presentational changes were also agreed, along with the disclosure changes outlined on page 88 of the Annual Audit Report. _________________________________________________________________________________ 2. Recommendations 2.1 Members are requested to consider the attached report from Azets. ___________________________________________________________________ Implications of the Report 1. Financial The 2025/26 Annual Accounts demonstrate that the Council continues to operate services within the resources available, and in line with the relevant legislation. 2. HR & Organisational Development There are no direct implications arising from the recommendations in this report. 3. Community/Council Planning Community Plan Our Renfrewshire is thriving The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy and our future The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Building strong, safe and resilient communities Tackling inequality, ensuring opportunities for all Page 10 of 392
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3 PUBLIC Council Plan Creating a sustainable Renfrewshire for all to enjoy Ongoing revenue and capital budget monitoring is a tool to enable good financial management so that the Council has resources now and in the future for continued service delivery. Working together to improve outcomes 4. Legal An audit opinion free from qualification demonstrates the Council’s compliance with the statutory accounting requirements set out in the Local Government (Scotland) Act 1973 and the Local Government in Scotland Act 2003. 5. Property/Assets There are no direct implications arising from the recommendations in this report. 6. Information Technology There are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights There are no direct implications arising from the recommendations in this report. 8. Health & Safety There are no direct implications arising from the recommendations in this report. 9. Procurement There are no direct implications arising from the recommendations in this report. 10. Risk There are no direct implications arising from the recommendations in this report. 11. Privacy Impact There are no direct implications arising from the recommendations in this report. Page 11 of 392
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4 PUBLIC 12. Cosla Policy Position There are no direct implications arising from the recommendations in this report. 13. Children’s Rights There are no direct implications arising from the recommendations in this report. 14. Climate Change There are no direct implications arising from the recommendations in this report. ___________________________________________________________________ Author: Christine McCourt, Head of Finance and Procurement christine.mccourt@renfrewshire.gov.uk Page 12 of 392
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OFFICIAL-SENSITIVE azets.co.uk 2025/26 Annual Audit Report to the Council and the Controller of Audit September 2026 azets.co.uk Renfrewshire Council Page 13 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 2 of 106 Table of Contents Key messages 3 Introduction 13 Financial statements audit 15 Wider scope of public audit 45 Best Value 73 Appendices 78 This report is for the benefit of the Council and is made available to the Controller of Audit for Scotland and Audit Scotland. This report has not been designed to be of benefit to anyone except for the Council, the Controller of Audit for Scotland and Audit Scotland. It should not be quoted in whole or in part without our prior written consent and should not be relied upon by third parties. No responsibility is assumed by Azets Audit Services to any third parties. We do not accept any responsibility for any loss occasioned to any third party acting, or refraining from acting, on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose. Page 14 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 3 of 106 www.azets.co.uk Key messages This report concludes our audit of Renfrewshire Council (“the Council”) and its Group for the year ended 31 March 2026. This section summarises the key findings and conclusions from our audit. Financial statements audit Audit opinion The annual accounts are to be considered and approved by the full Council on 24 September 2026. We expect to issue an unqualified opinion subject to completion of the work outlined below. Our audit work is ongoing but there are currently no matters which would require modification of our audit report, subject to the outstanding matters detailed below: • Resolution of enquiries with management relating to: - Debtors: Council tax debtor reconciliation - Asset valuation: follow up queries - Movement in reserve statement: follow up queries - Common good funds: sample evidence - Council Tax Account: follow up queries • Resolution of enquiries with third parties relating to: - Defined benefit pension testing: Pending receipt of the pension fund’s assurance letter from Strathclyde Pension Fund’s auditor in relation to Renfrewshire Council and Renfrewshire Leisure Ltd - Group testing: Renfrewshire Leisure Ltd expenditure testing from the component’s auditor - PPE revaluation: receipt of responses made to the internal valuer • Completion of work that is in progress where evidence has been received: - Consolidation and group reporting - Housing Revenue Account - Interest and other finance expenses (relating to service concession arrangement) Page 15 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 4 of 106 www.azets.co.uk - Service concession arrangements - Expenditure and funding analysis - Agency services • At the completion stages of the audit, we are required to undertake the following procedures: - Engagement manager and engagement lead review of the file and evidence therein - Receipt and review of the signed management representation letter - Review of the final amended signed statement of accounts and annual report - Response from management regarding subsequent events up to the date of the opinion Audit approach Our audit approach has been based on gaining an understanding of the Council’s control environment and has been risk based. This included: • An evaluation of the internal control environment, including the IT systems and controls; and • Substantive testing on significant transactions and material account balances, including the procedures outlined in this report in relation to our significant audit risks. On receipt of the unaudited accounts, we have clarified our audit approach as follows: • to apply a medium risk to the pay expenditure as this is the first year payroll reconciliations are undertaken for payroll accounts there is a likelihood that payroll included in the financial statements is either not complete or accurate. Key audit findings The Council has administrative processes in place to prepare the annual accounts and supporting working papers. We received the working papers to support the annual accounts in a timely manner. We obtained adequate evidence in relation to the significant audit risks identified in our audit plan. Page 16 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 5 of 106 www.azets.co.uk Subject to the outstanding matters outlined on page 3-5 of this report: The accounting policies used to prepare the financial statements are considered appropriate. We are satisfied with the appropriateness of the accounting estimates and judgements used in the preparation of the financial statements. All material disclosures required by relevant legislation and applicable accounting standards have been made appropriately. Audit adjustments Three audit adjustments have been identified and made through the course of the audit. No unadjusted misstatements were identified within the financial statements. Details of the adjusted misstatements and disclosure changes are included at Appendix 2. Internal controls The purpose of the audit was for us to express an opinion on the Council’s financial statements. The audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. Our audit is, therefore, not designed to identify all control weaknesses. No material weaknesses or significant deficiencies were noted in the Council’s internal controls during our audit. Page 17 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 6 of 106 www.azets.co.uk Wider scope of public audit Financial Management Financial management is concerned with financial capacity, sound budgetary processes and whether the control environment and internal controls are operating effectively. Auditor judgement Risks exist to the achievement of operational objectives Like all local authorities, financial management continues to remain challenging in the current funding and post-pandemic environment. The Council reported a small General Fund underspend of £0.2m (0.03% of budget) in 2025/26. Financial pressures from waste management, inflation, building repairs, social care and school staffing were largely offset by higher investment income, additional government funding and lower borrowing costs. Financial performance across services was mixed. A number of services recorded underspends and Adult Social Care reported a £5.7m deficit outturn, funded from Renfrewshire Health and Social Care Partnership (HSCP) reserves and therefore not impacting the General Fund. The Council's financial position remains resilient, with General Fund reserves of £159.4m, including £11.5m of unallocated reserves, above the approved minimum level of £10m. Council Tax collection improved slightly to 94.7%, although this remained below the 95% target. HRA reserves also increased from £6.9m to £7.9m. Capital expenditure remained within approved limits but was lower than planned, with spend of £44m (78%) against the housing programme budget and £111m (86%) against the General Fund capital programme. Delays arising from contractor availability, project complexity resulted in projects being reprofiled, although key education projects remained on track. Internal controls, governance and fraud prevention arrangements were assessed as effective, with no significant weaknesses identified. Participation in the National Fraud Y Page 18 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 7 of 106 www.azets.co.uk Initiative also identified notional savings and recoveries exceeding £1.6m. Financial Sustainability Financial sustainability looks forward to the medium and longer term to consider whether the Council is planning effectively to continue to deliver its services and the way in which they should be delivered. Auditor judgement Risks exist to the achievement of operational objectives The Council continues to face a challenging financial environment, with ongoing inflationary pressures, rising service demand and uncertainty over future local government funding. Although government funding increased during 2025/26 and 2026/27, these increases largely support existing commitments and are not sufficient to fully offset growing cost pressures. To improve financial resilience, the Council has maintained a prudent reserves strategy, with unallocated reserves remaining above the minimum approved level and the Financial Sustainability Fund increasing from £21.2m to £35.8m. These reserves provide flexibility to manage budget pressures and support financial stability while longer-term solutions are developed. Despite this, the Council's Medium-Term Financial Plan projects a significant funding gap of around £80m by 2030/31 before council tax decisions. Planned council tax increases and savings programmes will reduce this gap, but substantial service transformation, efficiencies and income generation measures will still be required to maintain a balanced and sustainable budget. On 26 February 2026, the Council approved a 7.5% council tax increase for 2026/27. Although a £6.3 million savings target had been set for 2026/27, only £2.8 million of recurring savings were included in the approved budget, as the remaining savings proposals required more time and certainty before implementation. Y Y Page 19 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 8 of 106 www.azets.co.uk A key risk remains the financial position of the HSCP, which is forecasting a budget gap of £5.1m in 2026/27. Continued reliance on reserves is reducing the Partnership's financial resilience and may create future funding pressures for the Council as a partner organisation. The Council's financial outlook is also sensitive to several uncertainties, including future pay settlements, government funding levels, increasing costs associated with social care, education, transport and net zero commitments, and growing service demand. As staffing costs represent the largest area of expenditure, even small increases in pay awards can have a significant financial impact. Financial sustainability therefore remains a significant strategic risk. While the Council has strengthened its reserves position and achieved a balanced budget for 2026/27, continued focus on long-term financial planning, delivery of savings and transformation programmes, and careful management of both revenue and capital resources will be essential to maintaining sustainable services. Vision, Leadership and Governance Vision, Leadership and Governance is concerned with the effectiveness of scrutiny and governance arrangements, leadership and decision making, and transparent reporting of financial and performance information. Auditor judgement Effective and appropriate arrangements are in place The Council has a clear strategic vision through its updated Council Plan and Community Plan, which support the vision of "Creating a fairer Renfrewshire built on innovation, wellbeing and opportunity". The plans set out clear priorities and outcomes focused on Place, Economy, Fairness, Environment and Organisational Values, providing a framework for service delivery and performance monitoring. The Council has effective governance arrangements in place, supported by a Local Code of Corporate Governance, clearly defined committee structures and strong scrutiny arrangements. G Page 20 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 9 of 106 www.azets.co.uk During 2025/26, the Council strengthened its performance management framework through the introduction of a dedicated officer Performance Board tasked with driving improvements to targeted areas of corporate performance. Risk management arrangements continue to operate effectively. Counter-fraud and whistleblowing arrangements were also updated during the year to reflect legislative changes and support good governance. Internal audit provided a reasonable assurance opinion on the adequacy and effectiveness of the Council's governance, risk management and internal control arrangements. Overall, effective and appropriate arrangements are in place for vision, leadership and governance, supporting the Council's ability to deliver its strategic objectives and manage risks effectively. Use of Resources to Improve Outcomes Audited bodies need to make best use of their resources to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. This includes demonstrating economy, efficiency, and effectiveness through the use of financial and other resources and reporting performance against outcomes. Auditor judgement Risks exist to the achievement of operational objectives The Council has a well-established performance management framework that links strategic priorities in the Council Plan to service-level improvement plans and operational performance monitoring. Performance is regularly reviewed through leadership and management structures, with reporting to Boards and the Corporate Management Team to support oversight and continuous improvement. Performance against the Local Government Benchmarking Framework (LGBF) 2024/25 was generally positive, with 57% of indicators showing improved or maintained performance. Longer-term trends show that improvements in 79% of all measures since the LGBF began, this is a higher proportion than any of the Council’s Family Group comparator councils. The Council performs strongly in areas including educational attainment, road condition, housing performance, delayed Y Y Y Page 21 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 10 of 106 www.azets.co.uk hospital discharges and carbon emissions. However, performance remains comparatively weaker in some areas, including school exclusions, customer satisfaction with street cleaning and refuse collection, council tax collection and crisis grant processing. These present opportunities for further improvement. The Council also demonstrates a consistent commitment to improving outcomes through its focus on fairness, equality and inclusion. Governance arrangements, community engagement, workforce development and targeted programmes are well embedded. We have performed a consideration of the fairness and equality theme during the 2025/26 audit. Overall, we concluded that the Council has appropriate arrangements within this area. Fairness and equality are embedded across the Council’s strategic planning, governance, workforce policies and service delivery, supported by strong leadership and effective oversight arrangements. The Council has also demonstrated continued progress in strengthening its equality framework and improving outcomes for communities and individuals who experience inequality or disadvantage. Best Value Definitions We use the following gradings to provide an overall assessment of the arrangements in place as they relate to the wider scope areas and reporting our findings on Best Value. The text provides a guide to the key criteria we use in the assessment, although not all of the criteria may exist in every case. Page 22 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 11 of 106 www.azets.co.uk Best Value Auditor judgement Effective and appropriate arrangement to secure Best Value are in place. The council have made progress in addressing recommendations raised from our previous work on Best Value thematic reviews. The newest review on assets management identified a number of low risk rating recommendations which are being addressed by the council. Effectiveness of performance reporting The council has appropriate arrangements in place in relation to performance reporting. Thematic review: Asset Management The council has appropriate strategies and capital programmes documents in place supported by strong governance structures. The council is able to deliver major complex capital projects despite the external pressures. The council works effectively with partners and communities to deliver its projects. Some scope for improvement exists in relation to the delivery of non-housing projects and reporting on outcomes. G Page 23 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 12 of 106 www.azets.co.uk There is a fundamental absence or failure of arrangements There is no evidence to support necessary improvement Substantial unmitigated risks affect achievement of corporate objectives. Arrangements are inadequate or ineffective Pace and depth of improvement is slow / needs to extend further Significant unmitigated risks affect the achievement of corporate objectives No major weaknesses in arrangements but scope for improvement exists Pace and depth of improvement are adequate Risks exist to the achievement of operational objectives Effective and appropriate arrangements are in place Pace and depth of improvement are effective Risks to the achievement of objectives are managed R O Y G Page 24 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 13 of 106 www.azets.co.uk Introduction Scope of audit The annual external audit comprises: • the audit of the financial statements and other reports included in the Council’s annual accounts, and • completion of the wider-scope audit and Best Value audit responsibilities set out in Audit Scotland’s Code of Audit Practice. We outlined the scope of our audit in our 2025/26 External Audit Plan, which we presented to the Audit, Risk and Scrutiny Board at the outset of our audit. This Annual Audit Report is designed to summarise the key findings and conclusions from our audit work. It is addressed to both the Council and the Controller of Audit for Scotland and presented to those charged with governance. Responsibilities The Council is responsible for preparing its annual accounts, including financial statements, which show a true and fair view of the results for the year and position at the year end, and for implementing appropriate internal control systems. We are responsible for carrying out the audit of the annual accounts in line with the requirements set out in the Code of Audit Practice issued by Audit Scotland. Our audit is directed towards forming and expressing an opinion on the financial statements that have been prepared by management with the oversight of the Audit, Risk and Scrutiny Board. Under the Code of Audit Practice, we are also required to consider the Council’s wider scope and Best Value arrangements and to report on our findings. However, our audit is not designed to test all internal controls or identify all areas of control weakness. As such, our work cannot be relied upon to disclose all errors or other irregularities, or to include all possible improvements in internal control that a more extensive examination might identify. The weaknesses or risks identified in this report are only those that have come to our attention during our normal audit work. Communication in this report of matters arising from the audit or of risks or weaknesses does not absolve management from its responsibility to address the issues raised and to maintain an adequate system of control. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance, including establishing and maintaining internal controls over the reliability of financial reporting, effectiveness and efficiency of operations and Page 25 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 14 of 106 www.azets.co.uk compliance with applicable laws and regulations. As auditors, we obtain reasonable, but not absolute, assurance that the financial statements, as a whole, are free from material misstatement, whether caused by fraud or error. We would like to thank all management and staff for their co-operation and assistance during our audit. Auditor independence International Standards on Auditing in the UK (ISAs (UK)) require us to communicate on a timely basis all facts and matters that may have a bearing on our independence. We confirm that we complied with the Financial Reporting Council’s (FRC) Ethical Standard. In our professional judgement, we remained independent, and our objectivity has not been compromised in any way. We set out in Appendix 1 our assessment and confirmation of independence. Adding value All of our clients quite rightly demand of us a positive contribution to meeting their ever- changing business needs. We add value by being constructive and forward looking, by identifying areas of improvement and by recommending and encouraging good practice. In this way we aim to promote improved standards of governance, better management and decision making and more effective use of public money. Any comments you may have on the service we provide would be greatly appreciated. Comments can be reported directly to any member of your audit team or to Audit Scotland. Openness and transparency This report will be published on Audit Scotland’s website www.audit-scotland.gov.uk. Page 26 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 15 of 106 www.azets.co.uk Financial statements audit Under International Standards on Auditing (UK) and the Code of Audit Practice on Local Authority Accounting in the United Kingdom 2025/26, we are required to report whether, in our opinion: • The financial statements give a true and fair view of the Council and Group’s financial position and income and expenditure for the period • The financial statements have been properly prepared in accordance with the Code of Practice on Local Authority Accounting in the UK 2025/26 (the 2025/26 Code), the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003 • The audited parts of the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014 • The information given in the Management Commentary is consistent with the financial statements and that report has been prepared in accordance with statutory guidance issued under the Local Government in Scotland Act 2003 • The information given in the Annual Governance Statement is consistent with the financial statements and that report has been prepared in accordance with the Delivering Good Governance in Local Government Framework (2016). We are also required to report on whether the other information included in the annual accounts (including the Management Commentary and Annual Governance Statement) is materially consistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Our audit opinion Opinion Basis for opinion Conclusions Financial statements We conduct our audit in accordance with applicable law and International Standards on Auditing. Our findings / conclusions to inform our opinion are set out in this section of our annual audit report. The Council’s annual accounts are due to be considered by the Council and approved for signature on 24 September 2026. Subject to the outstanding matters outlined on page 3-5 of this report, we anticipate issuing unqualified audit opinions. Pending completion of the work set out earlier in this report there Page 27 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 16 of 106 www.azets.co.uk Opinion Basis for opinion Conclusions are currently no matters which would require modification of our audit report. Going concern basis of accounting When assessing whether the going concern basis of accounting is appropriate, the anticipated provision of services is more relevant to the assessment than the continued existence of a particular public body. We assess whether there are plans to discontinue or privatise the Council’s functions. Our wider scope audit work considers the financial sustainability of the Council. Our understanding of the Council’s legislative framework and activities provides us with sufficient assurance that the Council will have continued provision of service for at least 12 months from the date of signing of our audit opinion. Subject to the outstanding matters outlined on pages 3-5 of this report, we expect that our audit opinion will be unmodified in this respect. Other information: Comprises the Annual Governance Statement and the Management Commentary, excluding the audited parts of the Remuneration Report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except to the extent We are required to consider whether the other information is materially inconsistent with the financial statements or with other knowledge obtained during the audit or otherwise appears materially misstated. Subject to the outstanding matters outlined on pages 3-5 of this report, we currently have nothing to report in this regard. Page 28 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 17 of 106 www.azets.co.uk Opinion Basis for opinion Conclusions explicitly stated in the opinions prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission: • The audited parts of the Remuneration Report • Management Commentary • Annual Governance Statement We plan and perform audit procedures to gain assurance that the audited parts of the Remuneration Report, Management Commentary and Annual Governance Statement and are prepared in accordance with relevant legislation and guidance. Subject to the outstanding matters outlined on pages 3-5 of this report, we expect to conclude that: • the audited parts of the Remuneration Report have been properly prepared; • the information given in the Management Commentary is consistent with the financial statements and has been properly prepared; • the information given in the Annual Governance Statement is consistent with the financial statements, has been prepared in accordance with the Delivering Good Governance in Local Government Framework (2016) and is consistent with our understanding of the Council gained through our audit. Page 29 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 18 of 106 www.azets.co.uk Opinion Basis for opinion Conclusions Matters reported by exception We are required to report on whether: • adequate accounting records have not been kept; or • the financial statements and the audited parts of the Remuneration Report are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have no matters to report. An overview of the scope of our audit The scope of our audit was detailed in our External Audit Plan, which was presented to the Audit, Risk and Scrutiny Board in March 2026. The plan explained that we follow a risk-based approach to audit planning that reflects our overall assessment of the relevant risks that apply to the Council and Group. This ensures that our audit focuses on the areas of highest risk (the significant risk areas). Planning is a continuous process, and our audit plan is subject to review during the course of the audit to take account of developments that arise. We carried out a further review of our risk assessment following receipt of the unaudited annual report and accounts. Our risk assessment was then updated to clarify our audit approach as follows: • to apply a medium risk to the pay expenditure as this is the first year payroll reconciliations are undertaken for payroll accounts there is a likelihood that payroll included in the financial statements is either not complete or accurate. In our audit, we test and examine information using sampling and other audit techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. This includes: Page 30 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 19 of 106 www.azets.co.uk • An evaluation of the Council and Group’s internal control environment, including the IT systems and controls; and • Substantive testing on significant transactions and material account balances, including procedures outlined in this report in relation to our key audit risks. Quality indicators We have applied a suite of quality indicators to assess the reliability of the Council’s financial reporting and response to the audit. We have highlighted any significant difficulties we have encountered during the audit, as required by auditing standards. Metric Grading (Mature / developing / significant improvement required) Commentary Quality and timeliness of draft financial statements Mature We received the unaudited financial statements in line with our agreed audit timetable. The financial statements were of a good standard. Revisions were provided promptly where required. Quality of working papers provided and adherence to timetable Developing We received supporting working papers in line with our audit timetable. The majority of these were of a good standard, and we have observed improvements across many areas compared with the prior year. There are however still some specific areas remaining where further enhancement of working papers is required to support our testing procedures including debtor and creditor listings. Details of the recommendation are included at Appendix 4. Page 31 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 20 of 106 www.azets.co.uk Metric Grading (Mature / developing / significant improvement required) Commentary Timing and quality of key accounting judgements Mature Pending completion of our work as set out on pages 3-5, we did not identify any issues with the timing and quality of key accounting judgements. Access to finance team and other key personnel Mature/ Developing We received full access to the finance team and other key personnel throughout the audit. The Finance team and other key personnel were available as agreed. A meeting with management’s experts (actuary and valuer) were arranged in advance and their engagement was helpful to the audit. However, some key personnel outside of the Finance team were not always able to promptly respond to requests and inquiries. Finance management was cooperative and supportive throughout the audit process, helping to maintain progress against the agreed timetable. Increased engagement during the year, including regular catch-up meetings and follow-up on outstanding matters, contributed to the efficient progression of the audit. Page 32 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 21 of 106 www.azets.co.uk Metric Grading (Mature / developing / significant improvement required) Commentary Quality and timeliness of the: • Remuneration Report • Management Commentary • Annual Governance Statement As well as the quality and timeliness of supporting working papers for those statements. Mature We received the Remuneration Report Management Commentary and Annual Governance Statement in line with agreed timescales. The reports were all produced in line with mandated requirements. Volume and magnitude of identified errors Mature Pending completion of our work as set out on pages 3-5, we identified three adjusted misstatements on audit. We also identified some disclosure changes. Further details are set out in Appendix 2. There were no unadjusted misstatements. Significant risk areas and key audit matters Significant risks are defined by auditing standards as risks that, in the judgement of the auditor, require special audit consideration. In identifying risks, we 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. Audit procedures are designed to mitigate these risks. As required by the Code of Audit Practice and the planning guidance issued by Audit Scotland, we considered the significant risks for the audit that had the greatest effect on our audit strategy, the allocation of resources in the audit and directing the efforts of the audit Page 33 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 22 of 106 www.azets.co.uk team. These were defined as the ‘Key Audit Matters’ for the audit, as detailed in the tables below. Our audit procedures relating to these matters were designed in the context of our audit of the annual accounts as a whole, and not to express an opinion on individual balances, transactions or disclosures. Subject to the outstanding matters outlined on pages 3-5 of this report, we do not expect to modify our opinion on the Council’s annual accounts with respect to any of the risks described below. The table below summarises each significant risk and whether it reflects a fraud risk and/or Key Audit Matter. Detail behind each risk and the work undertaken is set out on the following pages. Risk area Financial statement / Assertion level risk Fraud risk Key Audit Matter Risk of material misstatement Outcome of work Management override of controls Financial statement Yes Yes Very High Subject to the outstanding matters outlined on pages 3-5 of this report, we found no evidence of fraud or error through management override of controls. Fraud in revenue recognition (Rebutted) Assertion level No No Low Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Fraud in expenditure recognition (Rebutted) Assertion level No No Low Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Valuation of other land and buildings Assertion Level No Yes High Subject to the outstanding matters outlined on pages 3-5 of this report, we have Page 34 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 23 of 106 www.azets.co.uk Risk area Financial statement / Assertion level risk Fraud risk Key Audit Matter Risk of material misstatement Outcome of work not identified any material issues in the valuation of council dwellings or other land and buildings. Valuation of council dwellings Assertion Level No Yes High Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material errors in the valuation of council dwellings or other land and buildings. Valuation of defined benefit pension fund asset/liability Assertion Level No Yes High Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material errors in the pension liability. Significant risks at the financial statement level These risks are considered to have a pervasive impact on the financial statements as a whole and potentially affect many assertions for classes of transaction, account balances and disclosures. Risk area Management override of controls (Council and Group) Significant risk description Auditing Standards require auditors to treat management override of controls as a significant risk on all audits. This is because management is in a unique position to perpetrate fraud by manipulating accounting records and overriding controls that otherwise appear to be operating effectively. Page 35 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 24 of 106 www.azets.co.uk Risk area Management override of controls (Council and Group) Although the level of risk will vary from entity to entity, this risk is nevertheless present in all entities. Specific areas of potential risk include manual journals, management estimates and judgements and one-off transactions outside the ordinary course of the business. This was considered to be a significant risk and Key Audit Matter for the audit. Risk of material misstatement: Very High How the scope of our audit responded to the significant risk Key judgement There is the potential for management to use their judgement to influence the financial statements as well as the potential to override controls for specific transactions. Audit procedures • Documented our understanding of the journals posting process at the Council and evaluated the design effectiveness of management controls over journals; • Analysed the journals listing for the year and determined the criteria for selecting high risk and/or unusual journals; • Tested high risk and/or unusual journals posted during the year and after the draft accounts stage back to supporting documentation for appropriateness and corroboration and to ensure approval had been undertaken in line with the Council’s journals policy; • Gained an understanding of the key accounting estimates and critical judgements made by management. We challenged key assumptions and considered for reasonableness and evaluated any indicators of bias which could result in material misstatement due to fraud; and • Evaluated the rationale for any changes made to accounting policies, estimates or significant unusual transactions. Key observations Subject to the outstanding matters outlined on pages 3-5 of this report we have not identified any indication of management override of controls in the year. Page 36 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 25 of 106 www.azets.co.uk Risk area Management override of controls (Council and Group) In line with the prior year, we identified from our journals testing undertaken that large batch journals with over 50 lines require no system approval. We have therefore carried forward a control recommendation in relation to the authorisation and review process of large journals. Details of the recommendation are outlined at Appendix 4. Page 37 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 26 of 106 www.azets.co.uk Significant risks at the assertion level for classes of transaction, account balances and disclosures Key risk area Fraud in revenue recognition – Rebutted (Council and Group) Risk description Material misstatement due to fraudulent financial reporting relating to revenue recognition is a presumed risk in ISA (UK) 240. The presumption is that the Council could adopt accounting policies or recognise income in such a way as to lead to a material misstatement in the reported financial position. Having considered the nature of the revenue streams at the Council, we consider that the risk of fraud in revenue recognition can be rebutted due to the following: • There is little incentive to manipulate revenue recognition; • Opportunities to manipulate revenue recognition are very limited; • The culture and ethical frameworks of local authorities mean that all forms of fraud are seen as unacceptable. Therefore, we do not consider this to be a significant risk for the Council and group. Inherent risk of material misstatement: Revenue (occurrence): Low How the scope of our audit responded to the risk Key judgements We have rebutted this risk as we have assessed there is low incentive or opportunity to manipulate revenue streams of the Council and Group. Audit procedures • We have performed standard audit procedures on these material transactions and balances. Key observations Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Page 38 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 27 of 106 www.azets.co.uk Key risk area Fraud in non-pay expenditure recognition – Rebutted (Council and Group) Risk description Practice Note 10 The Audit of Public Sector Financial Statements notes that for certain public bodies, the risk of manipulating expenditure could exceed the risk of the manipulation of revenue. We have therefore also considered the risk of fraud in expenditure at the Council. We have considered the risk of fraud in expenditure at the Council for all expenditure streams and concluded that there is not a significant risk. This is due to the low fraud risk in the underlying nature of the transactions, the high predictability of certain expenditure streams, such as payroll or interest, or the immaterial nature of the expenditure streams both individually and collectively. Our consideration of expenditure streams also included capital expenditure and similarly we concluded that there is not a significant risk. Capital expenditure transactions are likely to be larger and subject to more scrutiny, reducing the risk of improper recognition. Inherent risk of material misstatement: Expenditure (completeness): Low Accruals (completeness): Low How the scope of our audit responded to the risk Key judgements We have rebutted this risk as we have assessed there is low fraud risk in the underlying nature of the transactions, the high predictability of certain expenditure streams, such as payroll or interest, or the immaterial nature of the expenditure streams both individually and collectively. Audit procedures • We have performed standard audit procedures on these material transactions and balances. Key observations Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Page 39 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 28 of 106 www.azets.co.uk Key risk area Fraud in non-pay expenditure recognition – Rebutted (Council and Group) Key risk area Valuation of other land and buildings (key accounting estimate) (Council and Group) Significant risk description Revaluation of the Council’s operational land and buildings should be performed in line with the revised revaluation requirements for 2025/26 onwards set out in the Code of Practice on Local Authority Accounting in the UK (the CIPFA Code). The Council has adopted the following approach to its land and buildings valuations for 2025/26 onwards: rolling five-year programme with use of indexation in intervening years, to ensure compliance with the revised requirements set out in the CIPFA Code. Management has an internal team of qualified valuers and engage the services of an external qualified valuer, who are Regulated Members of the Royal Institute of Chartered Surveyors (RICS) to undertake these valuations as of 31 March 2026. The Council have also engaged further experts to support on the provision of appropriate indices for land and buildings, to ensure compliance with the CIPFA Code requirements. The valuations and index uplifts involve a wide range of assumptions and source data and are therefore sensitive to changes in market conditions. ISAs (UK) 500 and 540 require us to undertake audit procedures on the use of management’s valuation experts and the methods, assumptions and source data underlying the fair value estimates. This represents a key accounting estimate made by management within the financial statements due to the size of the values involved, the subjectivity of the measurements and the sensitive nature of the estimate to changes in key assumptions. We have therefore identified the valuation of other land and buildings as a significant risk. We further pinpoint this risk to specific assets, or asset types, on receipt of the draft financial statements and the year-end updated Page 40 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 29 of 106 www.azets.co.uk Key risk area Fraud in non-pay expenditure recognition – Rebutted (Council and Group) asset valuations to those assets where the in-year valuation movements falls outside of our expectations, there are significant changes to any of the key assumptions or the year-end valuation is considered material. This was considered to be a significant risk and Key Audit Matter for the audit. Inherent risk of material misstatement: Other land and buildings (valuation): High How the scope of our audit responded to the significant risk Key judgements Councils are required to revalue property, plant and equipment with sufficient regularity to ensure that the carrying amount does not differ materially from the current value at 31 March. Audit procedures • Evaluated management processes, controls and assumptions for the calculation of the estimates, the instructions issued to the valuation experts and the scope of their work; • Evaluated the competence, capabilities and objectivity of the valuation expert; • Considered the basis on which the valuations and indexation uplifts were carried out and challenged the key assumptions applied; • Evaluated the reasonableness of the valuation movements for any assets revalued during the year, with reference to market data; • For any unusual or unexpected valuation movements, tested the information used by the valuer to ensure it is complete and consistent with our understanding; • Ensured revaluations made during the year have been input correctly to the fixed asset register and the accounting treatment within the financial statements is correct; Page 41 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 30 of 106 www.azets.co.uk Key risk area Fraud in non-pay expenditure recognition – Rebutted (Council and Group) • Evaluated the assumptions made by management for any assets not revalued during the year and how management are satisfied that these are not materially misstated; • Engaged our own valuations expert, where necessary, to assess any judgmental assumptions used that underpinned the final valuations. Key observations Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Key risk area Valuation of council dwellings (key accounting estimate) (Council and Group) Significant risk description Revaluation of the Council’s council dwellings should be performed in line with the revised revaluation requirements for 2025/26 onwards set out in the Code of Practice on Local Authority Accounting in the UK (the CIPFA Code). Revaluation of council dwellings should be performed with sufficient regularity so that carrying amounts are not materially misstated. The Council values the full portfolio of council dwellings every 5 years with an annual review completed in intervening years to advise whether there has been a change in the value of housing stock since the last full revaluation. A full revaluation of council dwellings was undertaken during the 2025/26 financial year. Management engage the services of a qualified valuer, who is a Regulated Member of the Royal Institute of Chartered Surveyors (RICS) to undertake these valuations as of 31 March 2026. The valuations involve a wide range of assumptions and source data and are therefore sensitive to changes in market conditions. ISAs (UK) 500 and 540 require us to undertake audit procedures on the use of management’s valuation experts and the methods, assumptions and source data underlying the fair value estimates. This represents a key accounting estimate made by management within the financial statements due to the size of the values Page 42 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 31 of 106 www.azets.co.uk Key risk area Valuation of council dwellings (key accounting estimate) (Council and Group) involved, the subjectivity of the measurements and the sensitive nature of the estimate to changes in key assumptions. We have therefore identified the valuation of council dwellings as a significant risk. This was considered to be a significant risk and Key Audit Matter for the audit. Inherent risk of material misstatement: Council dwellings (valuation): High How the scope of our audit responded to the significant risk Key judgements Councils are required to revalue property, plant and equipment with sufficient regularity to ensure that the carrying amount does not differ materially from the current value at 31 March. Audit procedures • Evaluated management processes, controls and assumptions for the calculation of the estimates, the instructions issued to the valuation experts and the scope of their work; • Evaluated the competence, capabilities and objectivity of the valuation expert; • Considered the basis on which the valuations were carried out and challenged the key assumptions applied; • Evaluated the reasonableness of the valuation movements for any assets revalued during the year, with reference to market data; • For any unusual or unexpected valuation movements, tested the information used by the valuer to ensure it is complete and consistent with our understanding; • Ensured revaluations made during the year have been input correctly to the fixed asset register and the accounting treatment within the financial statements is correct; • Evaluated the assumptions made by management for any assets not revalued during the year and how management are satisfied that these are not materially misstated; Page 43 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 32 of 106 www.azets.co.uk Key risk area Valuation of council dwellings (key accounting estimate) (Council and Group) • Engaged our own valuations expert, where necessary, to assess any judgmental assumptions used that underpinned the final valuations. Key observations Subject to the outstanding matters outlined on page 3-5 of this report, we have not identified any material issues in relation to this risk. Key risk area Pension asset/liability (key accounting estimate) (Council and Group) Significant risk description An actuarial estimate of the net defined pension liability/asset is calculated on an annual basis under IAS 19 ‘Employee Benefits’, and on a triennial funding basis, by an independent firm of actuaries with specialist knowledge and experience. The triennial estimates are based on the most up to date membership data held by the pension fund and a roll forward approach is used in intervening years, as permitted by the Code of Practice on Local Authority Accounting in the UK. The calculations involve a number of key assumptions, such as discount rates and inflation and local factors such as mortality rates and expected pay rises. The estimates are highly sensitive to changes in these assumptions and the calculation of any asset ceiling when determining the value of a pension asset. ISAs (UK) 500 and 540 require us to undertake audit procedures on the use of external experts (the actuary) and the methods, assumptions and source data underlying the estimates. This represents a key accounting estimate made by management within the financial statements due to the size of the values involved, the subjectivity of the measurement and the sensitive nature of the estimate to changes in key assumptions. We have therefore identified the valuation of the net pension liability/asset as a significant risk. This was considered to be a significant risk and Key Audit Matter for the audit. Page 44 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 33 of 106 www.azets.co.uk Key risk area Pension asset/liability (key accounting estimate) (Council and Group) Inherent risk of material misstatement: Pension (valuation): High How the scope of our audit responded to the significant risk Key judgements Pension valuations are highly subjective and based upon actuarial estimation. Given the scale of these assets and liabilities, these can be sensitive to small changes in the assumptions informing the calculations, which increases risk of potential material error. Audit procedures • Evaluated management’s process for the calculation of the estimate, the instructions issued to management’s expert (the actuary) and the scope of their work; • Evaluated the competence, capabilities and objectivity of the actuary; • Assessed the controls in place to ensure that data provided to the actuary by the Council and their pension fund was accurate and complete; • Evaluated the methods, assumptions and source data used by the actuary in their valuations, with the support of an auditors’ expert • Tested the consistency of the pension fund asset and liability and disclosures in the notes to the core financial statements with the actuarial report from the actuary; • Evaluated whether any asset ceiling was appropriately considered when determining the value of any pension asset included in the financial statements; and • Obtaining assurances from the pension fund auditor as to the controls surrounding the validity and accuracy of membership data; contributions data and benefits data sent to the actuary by the pension fund and the fund assets valuation in the pension fund financial statements; and ensured pension valuation movement in the year and related disclosure have been correctly reflected in the financial statements. Page 45 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 34 of 106 www.azets.co.uk Key risk area Pension asset/liability (key accounting estimate) (Council and Group) Key observations Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any material issues in relation to this risk. Other risks This section summarises conclusions in relation to other identified risks which, although not considered to be significant, required specific consideration during the audit, or were risks otherwise identified during the course of the audit Other risk area Pay expenditure (Council and Group) Risk description This is the first year full payroll reconciliations were undertaken for payroll accounts, therefore there is a risk that payroll included in the financial statements is either not complete or accurate. Inherent risk of material misstatement: Pay expenditure (Completeness & Accuracy): Medium How the scope of our audit responded to the risk Audit procedures • Tested a sample of starters, leavers and amendments to ensure new starters exist, leavers have left and changes in circumstances have been processed correctly; • Carried out a substantive analytical procedure to assess the completeness and accuracy of pay expenditure; • Performed a proof in total for employer social security and employer pension contribution costs; • Performed substantive testing of pay expenditure transaction outside the normal payroll transaction from the payrun using tests of detail by ensuring they can be traced to appropriate supporting evidence. Key observations We have not identified any material issues in relation to this risk. Materiality Materiality is an expression of the relative significance of a matter in the context of the financial statements as a whole. A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditor’s report. The assessment of Page 46 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 35 of 106 www.azets.co.uk what is material is a matter of professional judgement and is affected by our assessment of the risk profile of the Council and the needs of users. We review our assessment of materiality throughout the audit. Whilst our audit procedures are designed to identify misstatements which are material to our audit opinion, we also report any uncorrected misstatements of lower value errors to the extent that our audit identifies these. Our initial assessment of materiality for the group financial statements was £18.1 million and the Council’s financial statements was £18 million. On receipt of the 2025/26 unaudited financial statements, we reassessed materiality and the initial assessment is still appropriate. We consider that our assessment has remained appropriate throughout our audit. Group £million Council £million Overall materiality for the financial statements 18.100 18.000 Performance materiality (75% of materiality) 13.575 13.500 Trivial threshold 0.905 0.900 Materiality Our assessment is made with reference to the Group and Council’s gross expenditure. We consider this to be the principal consideration for users of the financial statements when assessing financial performance. Our assessment of materiality equates to approximately 2% of gross expenditure as disclosed in the 2024/25 audited financial statements. The financial statements are considered to be materially misstated where total errors exceed this value. Performance materiality Performance materiality has been set at 75% of overall materiality (adjusted to take into account the Council’s component materiality allocation for the group accounts). This is based on the internal control environment of the Council and reflects our risk assessed knowledge of the potential for errors occurring. It is intended to reduce, to an acceptably low level, the probability that cumulative undetected and uncorrected misstatements exceed materiality for the financial statements as a whole. Page 47 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 36 of 106 www.azets.co.uk Trivial misstatements Trivial misstatements are matters that are clearly inconsequential, whether taken individually or in aggregate and whether judged by any quantitative or qualitative criteria. Individual errors above this threshold are communicated to those charged with governance. In addition to the above, we consider any areas for specific lower materiality. We have determined that no specific materiality levels needed to be set for this audit. Common Good Funds Materiality Our initial assessment of materiality for the common good funds was £197,000 for Common Good Fund (CGF) Paisley, £1,500 for CGF Johnstone, and £1,104,000 for CGF Renfrew. On receipt of the 2025/26 unaudited financial statements, we reassessed materiality levels and updated as below, with the CGF Johnstone remaining unchanged from the planning. We consider that our assessment has remained appropriate throughout our audit. Overall Materiality £ Performance Materiality £ Trivial Threshold £ CGF Paisley 242,000 181,500 12,100 CGF Johnstone 1,500 1,125 100 CGF Renfrew 1,174,000 880,500 58,700 Page 48 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 37 of 106 www.azets.co.uk Group audit The Council is also required to prepare group accounts. The Group Accounts consolidate the results of the Council with five subsidiaries: • Renfrewshire Leisure Limited, trading as OneRen; • the Common Good Funds; • the Coats Observatory Trust; • Park Lane Developments (Renfrewshire) LLP; and • Paisley Museum Reimagined Limited. The Group Accounts also consolidate the Council’s share of five other entities treated as associates or joint ventures: • Strathclyde Partnership for Transport; • Strathclyde Concessionary Travel Scheme Joint Committee; • Renfrewshire Valuation Joint Board; • Renfrewshire Health and Social Care Integration Joint Board; and • AMIDS Renfrewshire LLP. The Council has non-material interests in a number of other entities namely Scotland Excel; and Glasgow City Region – City Deal Cabinet. These entities have not been consolidated on the grounds of materiality. We have reviewed managements consideration of this decision and confirm that it is appropriate. As group auditors under ISA (UK) 600 we are required to obtain sufficient appropriate audit evidence regarding the financial information of the components and regarding the consolidation process to express an opinion on whether the group financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework. The significant risks identified at the Council are set out in this report. There are no additional significant risks identified in any of the other components above in respect of the Group audit. Note that a component may require a statutory audit under UK or overseas company law irrespective of whether an audit is required for group reporting purposes. Management should therefore satisfy themselves that all UK and overseas company law requirements are adhered to on a component-by-component basis. The table below sets out our approach to the components within the group and our audit findings in respect of each component. Page 49 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 38 of 106 www.azets.co.uk We revisited our planning group assessment, following receipt of the unaudited accounts and our assessment was updated as follows; Component Scope Planned audit approach Audit findings Renfrewshire council Full Scope Full scope statutory audit As set out in this annual audit report. Subject to the outstanding matters outlined on pages 3-5 of this report, we expect to issue an unqualified audit opinion. Renfrewshire Leisure Ltd Specific Scope Specific procedures performed – 1. Pension asset/liability 2. Expenditure Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any findings in relation to the planned audit approach. (*) Common Good Funds Specific Scope Specific procedures performed – 1.Long-term investments 2.Property, plant and equipment Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any findings in relation to the planned audit approach. Paisley Museum Reimagined Ltd None No procedures planned. N/A (*) Park Lane Developments (Renfrewshire) LLP None No procedures planned. N/A (*) Coats Observatory Trust None No procedures planned. N/A (*) Strathclyde Partnership for Transport Specific Scope Specific procedures performed – Subject to the outstanding matters outlined on pages 3-5 of this report, we have Page 50 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 39 of 106 www.azets.co.uk Investments in associates and joint ventures not identified any findings in relation to the planned audit approach. Strathclyde Concessionary Travel Scheme Joint Committee None No procedures planned. N/A Renfrewshire Valuation Joint Board None No procedures planned. N/A (*) Renfrewshire Health and Social Care Integration Joint Board Specific Scope Specific procedures performed – Investments in associates and joint ventures Subject to the outstanding matters outlined on pages 3-5 of this report, we have not identified any findings in relation to the planned audit approach. AMIDS Renfrewshire LLP None No procedures planned. N/A (*) Azets Audit Services perform separate statutory audits of these accounts which are not related to the group accounts audit. Definitions: Full Scope: Design and perform further audit procedures on the entire financial information of the component. Specific Scope: Design and perform further audit procedures on one or more classes of transactions, account balances or disclosures. None: No further audit procedures required. Page 51 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 40 of 106 www.azets.co.uk Audit differences Audit differences identified during the audit, identified during the audit are detailed in Appendix 2. We also identified disclosure and presentational adjustments during the audit, which have been reflected in the final set of financial statements and are disclosed in Appendix 2. Internal controls As part of our work we considered internal controls relevant to the preparation of the financial statements such that we were able to design appropriate audit procedures. Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify any control weaknesses, we report these at Appendix 3. These matters are limited to those which we have concluded are of sufficient importance to merit being reported. Follow up of prior year recommendations We followed up on progress in implementing actions raised in the prior year as they relate to the audit of the financial statements. Full details of our findings are included in Appendix 4. Other communications We set out below details of other matters which we, as auditors, are required by auditing standards and the Code to communicate to those charged with governance. Matter Audit commentary and findings Significant matters on which there was disagreement with management There were no significant matters on which there was disagreement with management. Significant management judgements which required additional audit work and / or where there was disagreement over the judgement and / or where the judgement is significant enough that we are required to report it to those charged with governance before they consider their approval of the accounts At the time of writing this report, there were no major transactions that required special accounting consideration. Page 52 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 41 of 106 www.azets.co.uk Matter Audit commentary and findings Prior year adjustments identified At the time of writing this report, there were no prior year adjustments found by the audit team. However, there were restatements to the account identified by the Council’s finance team, which were all disclosed in the unaudited accounts, including the following; • Restatement of PPE note: Following a review of the Council's asset componentisation policy under the CIPFA Code of Practice, certain assets previously recorded within Vehicles, Plant, Furniture and Equipment have been reclassified to Council Dwellings or Other Land and Buildings. This change reflects the assessment that these assets are building components forming part of the properties, rather than separate plant or equipment assets. • Restatement of Common Good Funds Paisley and Renfrew Income and expenditure statement: During 2024/25, following a review of historical title and legal advice, the Council reclassified £1.090m of property from Council assets. This was reflected in the reserves balance directly in the prior year. However, it should have been recorded as income in the prior year. • Restatement of Group accounts: Upon receiving the audited accounts of the Group's components, the Page 53 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 42 of 106 www.azets.co.uk Matter Audit commentary and findings consolidation was revised to incorporate the final audited figures. Concerns identified in the following: • Consultation by management with other accountants on accounting or auditing matters • Matters significant to the oversight of the financial reporting process • Adjustments / transactions identified as having been made to meet an agreed system position / target No concerns were identified. Accounting policies The accounting policies used in preparing the financial statements are unchanged from the previous year with the exception of property, plant, and equipment valuation. Our work included a review of the adequacy of disclosures in the financial statements and the appropriateness of the accounting policies adopted by the Council. Subject to the outstanding matters outlined on pages 3-5 of this report, the accounting policies, which are disclosed in the financial statements, are in line with the CIPFA LASAAC Code Practice on Local Authority Accounting in the UK 2025/26 (the ‘CIPFA Code’) and are considered appropriate. Key judgements and estimates As part of the planning stages of the audit, we identified the accounting estimates made by management and determined which of those are key to the overall financial statements. Consideration was given to non-current asset valuations, valuation of pension assets and liabilities. Other than council dwelling and other land and building valuations and the valuation of pension assets/liabilities we have not determined the accounting estimates to be significant. See the section above on “Significant risks at the assertion level for classes of transaction, account balances and disclosures” for detailed findings in relation to key accounting estimates. Page 54 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 43 of 106 www.azets.co.uk We reviewed the key estimates and judgements that management made in respect to the identified key accounting estimates for indication of bias and assessed whether the judgements used by management are reasonable. Subject to the outstanding matters listed on pages 3-5 of this report, we have concluded that those key accounting estimates were balanced and appropriate. Presentation and disclosures Subject to the outstanding matters outlined on page 3-5 of this report; on the basis of the work carried out as at the date of writing this report, there are no significant financial statements disclosures that we consider should be brought to your attention. All the disclosures required by relevant legislation and applicable accounting standards have been made appropriately. Fraud and suspected fraud We have previously discussed the risk of fraud with management and the Audit, Risk and Scrutiny Board. We have not been made aware of any material incidents in the period. No issues have been identified during the course of our audit. Our work as auditor is not intended to identify any instances of fraud of a non-material nature and should not be relied upon for this purpose. Non-compliance with laws and regulations As part of our standard audit testing, we have reviewed the laws and regulations impacting the Council. There are no indications from this work of any significant incidences of non- compliance or material breaches of laws and regulations. You have not made us aware of any significant incidences of non-compliance with relevant laws and regulations The Local Authority Accounts (Scotland) Regulations 2014 As part of our audit we reviewed the Council’s compliance with the Local Authority Accounts (Scotland) Regulations 2014, in particular with respect to regulations 8 to 10 as they relate to the annual accounts. Overall, we concluded that appropriate arrangements were in place to comply with these Regulations. Written representations A letter of management representations has been requested from the Council. These are to be approved at the same time as the financial statements are approved by the Audit, Risk and Scrutiny Board, signed by the director of finance and resources, and will be provided to us before we complete our audit and issue our auditor’s report. Page 55 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 44 of 106 www.azets.co.uk Related parties We are not aware of any related parties or related party transactions which have not been disclosed. Confirmations from third parties We are awaiting receipt of the pension fund assurance letter in relation to OneRen and the Council from the auditor of the Strathclyde Pension Fund. Page 56 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 45 of 106 www.azets.co.uk Wider scope of public audit Reflecting the fact that public money is involved, public audit is planned and undertaken from a wider perspective than in the private sector. The wider-scope audit specified by the Code of Audit Practice broadens the audit of the accounts to include consideration of additional aspects or risks in areas of financial management; financial sustainability; vision, leadership and governance; and use of resources to improve outcomes. Financial management Financial management is concerned with financial capacity, sound budgetary processes and whether the control environment and internal controls are operating effectively. Auditor judgement Risks exist to the achievement of operational objectives Financial performance and revenue performance against budget 2025/26 Revised Budget £m Actual £m Variance £m Chief Executive's Service 30.217 30.195 0.022 Children's Services 273.812 275.837 (2.025) Environment, Housing and Infrastructure 78.346 78.047 0.299 Finance and Resources 51.124 50.893 0.231 Miscellaneous Services 19.907 18.243 1.664 Adult Services* 112.122 112.122 0.000 Net Expenditure 565.528 565.337 0.191 Revenue Support Grant (368.933) (368.933) 0.000 Council Tax Income (108.199) (108.204) 0.005 Y Page 57 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 46 of 106 www.azets.co.uk 2025/26 Revised Budget £m Actual £m Variance £m Non-Domestic Rates Income (108.844) (108.844) 0.000 Funding (585.976) (585.981) 0.005 Contribution to General Fund Balances (20.448) (20.644) 0.196 Source: Renfrewshire Council Unaudited Annual Accounts 2025-26 * For Adult Services, there was a planned drawdown from HSCP reserves of £5.710m. This does not impact on the Council's General Fund balance, so is omitted from this presentation. The Council reported a small General Fund underspend of £0.2m as at 31 March 2026. While actual funding was in line with the revised budget, the underspend was mainly due to lower- than-budgeted net expenditure across services. Although the General Fund for 2025/26 faced budget pressures from rising waste management costs, inflation affecting vehicle parts and specialist contractors, increased public building repair expenses, higher children's social care costs, and staffing pressures in schools, these additional costs were largely offset by higher investment income, additional funding for packaging waste disposal, and lower-than- budgeted loan charges for the learning estate. This resulted in an underspend equivalent to 0.03% of the budget. The Council's largest category of expenditure is staffing. In 2025/26, a two-year national pay settlement was agreed for local government workers, providing pay increases of 4.0% for 2025/26 and 3.5% for 2026/27. In recognition of the challenging financial environment, the Scottish Government provided councils with additional funding to support this pay settlement in 2025/26. For Renfrewshire, this amounted to £2.6m, covering an additional 1% for 2025/26 only. Adult social care experienced a year-end overspend of £5.7m, which reduced the reserves of the Renfrewshire Health and Social Care Partnership (HSCP), which operates these services. As this overspend was funded through the use of HSCP reserves, it did not impact the Council's General Fund balance. The Council fell just short of its target in-year Council Tax collection rate of 95% in 2025/26, achieving a creditable 94.7%. This represented an improvement on the 2024/25 collection rate of 94.5%. Page 58 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 47 of 106 www.azets.co.uk The Council's General Fund balance as at 31 March 2026 was £159.4m, of which £147.9m had been earmarked for specific purposes, leaving unallocated reserves of £11.5m. The level of unallocated reserves is consistent with the recommended minimum balance of £10m agreed by the Council in September 2020 and subsequently reconfirmed as a core financial planning principle. The Council considers this level of reserves to be appropriate given the financial risks it currently faces. While the table above shows the service position, the Council also monitors revenue budget performance by Policy Board, as set out below. Policy Board Revised Annual Budget £000 Actual Annual Outturn £000 Budget Variance (Adverse) or Favourable £000 Budget Variance (Adverse) or Favourable % Communities and Housing Services 14,924 13,712 1,212 8% Education and Children's Services 268,553 271,384 -2,831 -1% Infrastructure, Land and Environment 40,647 41,099 -452 -1% Finance, Resources and Customer Services 100,376 98,155 2,221 2% Adult Services 112,122 117,832 -5,710 -5% Planning and Climate Change 625 606 19 3% Economy and Regeneration 3,621 3,562 59 2% Leadership (Chief Executive's Service) 24,660 24,697 -37 0% GENERAL SERVICES NET EXPENDITURE 565,528 571,047 -5,519 -1% Page 59 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 48 of 106 www.azets.co.uk Policy Board Revised Annual Budget £000 Actual Annual Outturn £000 Budget Variance (Adverse) or Favourable £000 Budget Variance (Adverse) or Favourable % Housing Revenue Account (HRA) - - - 0% NET EXPENDITURE 565,528 571,047 -5,519 -1% Source: Council meeting 22 June 2026: Renfrewshire Council revenue budget monitoring statement 2025/26 1 April 2025 to 31 March 2026 The key variances movements were due to the following factors: - Communities & Housing: £1.2m underspend, mainly due to staff vacancies within Housing and Justice Social Work, together with savings arising from a review of overhead costs. - Education & Children's Services: £2.8m overspend, driven largely by higher-than- anticipated school staffing and operating costs. - Finance, Resources & Customer Services: £2.2m underspend, reflecting lower property repair costs, higher-than-budgeted school meal income, and savings on energy costs, rates relief, and loan charges. - Adult Service: £5.7m overspend, driven largely by primarily by rising costs of external care-at-home packages due to increasingly complex needs of patients discharged from hospital, alongside additional overspends in supported living and carers' respite services caused by growing demand and client needs. Housing revenue account (HRA) The Housing Revenue Account (HRA) balance as at 31 March 2026 was £7.9m, an increase from £6.9m in the previous year. The Council considers this to be a prudent level of unallocated reserves for the HRA, helping to mitigate the impact of unforeseen risks and providing a degree of resilience against forecast financial pressures arising from the prevailing economic climate. Although property repairs and maintenance costs, including voids management, significantly exceeded budget, this was offset by lower capital financing charges and higher interest receivable as a result of increased interest rates during the year. Consequently, a contribution of £1.0m was made to reserves. Page 60 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 49 of 106 www.azets.co.uk Statutory reserves Opening balance £m Contribution to Reserves £m Use of Reserves £m Closing balance £m Insurance Fund 3.029 0.137 - 3.166 DHN Repair and Renewal Fund 0.186 0.372 - 0.558 Reservoir Repair Fund 0.358 0.015 - 0.373 Education Capital Items 1.407 0.285 -0.275 1.417 Investment Capital Fund 79.028 2.993 -21.63 60.391 Total 84.008 3.802 -21.905 65.905 Source: Renfrewshire Group Unaudited Annual Accounts 2025/26 Statutory reserves totalled £65.905m as at 31 March 2026, representing a net decrease of £18.103m during the year. This reduction primarily reflects resources committed to supporting the Council's capital investment programme. Capital expenditure On 27 February 2025, the Council approved a Housing Capital Investment Programme of £56m and a General Fund Capital Investment Programme of £129m for 2025/26. Capital expenditure during the year was affected by contractor availability, project complexity, and inflationary pressures on construction and professional service costs. As a result, both programmes were reprofiled during the year. Actual expenditure totalled £44m on housing projects, representing approximately 78% of the approved budget, and £111m on General Fund projects, representing approximately 86% of the approved budget. Capital expenditure remained within the overall spending limits approved by the Council. The Non-Housing Capital Programme was reprofiled on 1 May 2025 and approved by the Council at that time. To support the 2025/26 capital programme, the Council undertook £64m of new long-term PWLB external borrowing. The level of cash balances held by the Council remained consistent with its daily cash flow requirements, treasury management activities, and capital investment plans. The increase in cash balances compared with 31 March 2025 was partly attributable to the receipt of grant funding for the AMIDS South project towards the end of the financial year. Page 61 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 50 of 106 www.azets.co.uk The actual Capital Financing Requirement (CFR) as at 31 March 2026 was £650.9m, which was within the approved Authorised Limit of £702.0m. The Council's external borrowing has been used solely to finance capital investment. Net external debt stood at £417.2m as at 31 March 2026, compared with the approved Operational Boundary of £674.0m. The actual ratio of financing costs to net revenue stream (General Fund) for 2025/26 is 2.8%. The Council's borrowing costs remain among the lowest of Scottish local authorities, are considered affordable, and are aligned with the Council's medium- to long-term financial strategy. Capital projects The purpose of the narrative below is to update on the progress of the council’s significant capital projects. School projects School Progress An update on the above schools development progress was presented to the Education and Children’s Services Policy Board meeting in May 2026: • The project to deliver a new Paisley Grammar School Community Campus was completed on 20 August 2026. It was delivered on time and on budget. • Advance works on Park Mains High School Extension & Internal Interventions has begun in March 2026 to prepare the site and complete groundworks ahead of the main construction phase. The project is on track for completion by August 2027. • Thistle Primary School remains on track to complete in the summer of 2027. School capital and revenue costs The gross capital cost of building a new primary school and the Park Mains High School extension has remained as last reported and expected to be c.£82m, with c.£18m of contribution expected from the developer, reducing to net capital cost of £64m. The gross cost is allocated as follows: • £45m for new primary school in Dargavel (named as Thistle Primary School) • £37m for the Park Mains High School extension (to be reduced by the developer contribution). The Council plans to borrow for the Park Mains High School extension, and to fund the build of the new Thistle Primary School from the investment capital fund (reserves). This fund has had reserves at £60.4m and is held by the Council to support the Council’s capital investment programme and to support the Council manage its long-term debt position. Page 62 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 51 of 106 www.azets.co.uk Clyde Waterfront & Renfrew Riverside (CWRR) project The Clyde Waterfront & Renfrew Riverside (CWRR) project, which the Renfrew Bridge was a significant component of, was a long-term large-scale infrastructure project for the Council as part of the City Deal programme. Originally approved as part of City Deal in late 2014, there were a few adjustments to the timelines and budget, for which approval was obtained in accordance with both the Council’s and the Glasgow City Region governance. The City Deal programme was within the remit of the Leadership board and reported into the City Deal & Infrastructure programme board, chaired by the Chief Executive and consisting of senior officers. The original project timeline was site start 2018 and completion by end 2020. However, due to delays in planning the timeline was ultimately extended out and coupled with extended tender process during COVID which included a negotiated tender stage contractor stated on site in November 2021 and completed in May 2025. The CWRR project commenced in 2024/25 with an initial budget of £78.3m. The budget has been extended due to a budget transfer from another City Deal project, increased costs resulting from the delay in statutory processes as mentioned above, and inflationary pressures experienced including impact on steel pricing resulting in the new budget of £117.7m. The actual spend is £117m against the £117.7m revised budget. Treasury management The Council actively manages treasury risks to minimise its exposure to financial market volatility and protect funding for services. It follows CIPFA’s Code of Treasury Management and has policies covering credit, liquidity, and market risks. The strategy aims to balance risk with returns or costs. The Treasury Management Strategy Statement (TMSS) was approved by the Council on 27 February 2025 with a mid-year update on 11 December 2025. The Council’s borrowing strategy is prudent and to firstly use internal cash balances to finance the Capital Investment Programme, as borrowing rates have continued to remain persistently high throughout the financial year. Given the changing climate and the risks inherent in economic forecasts, a cautious approach was taken during the year regarding treasury operations, with market conditions regularly monitored and borrowing plans adjusted accordingly. Overall, the Council’s total net external long-term borrowing increased by £57.4m, all from PWLB borrowing. This additional borrowing was undertaken to maintain appropriate cash Page 63 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 52 of 106 www.azets.co.uk balances in support of the Capital Investment Programme. Borrowings from Common Good funds increased by £0.5m and other partner bodies increased by £6.3m. Temporary investments held by the Council increased by £42.4m. The increase in investments is due to the new PWLB borrowing, together with grant income received (Levelling Up Fund) at the end of the financial year. No debt rescheduling was undertaken during the year. The Council’s policy is to ensure that no more than 15% of loans are due to mature within any financial year and 50% within any rolling five-year period through a combination of prudent planning of new loans taken out and, where it is economic to do so, making early repayments. The Council complies with this policy. Systems of internal control We have evaluated the Council’s key financial systems and internal financial controls to ensure internal controls are operating effectively to safeguard public assets. We did not identify any significant weaknesses in the Council’s accounting and internal control systems during our audit. Prevention and detection of fraud and irregularity The Council is responsible for establishing arrangements for the prevention and detection of fraud, error and irregularities, bribery and corruption. We have reviewed the arrangements and concluded that there are appropriate arrangements for the prevention and detection of fraud, error and irregularities. National fraud initiative The National Fraud Initiative (NFI) is a counter-fraud exercise co-ordinated by Audit Scotland working together with a range of Scottish public bodies to identify fraud and error. The most recent NFI exercise commenced in 2024, the resulting matches were received from December 2024 onwards. The investigation of those matches is undertaken by the Counter Fraud Officers or service staff and is nearing completion. The Council engages well with the NFI exercise and the chief internal auditor has concluded that the Council’s arrangements with respect to NFI are satisfactory. The Council uploaded all relevant data for the 2024 NFI exercise by the timescale of 31 October 2024. The Council risk assessed the matches and is progressing with investigations. Page 64 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 53 of 106 www.azets.co.uk To date £272,309 of corrections and overpayments and a further £225,786 in relation to single person discounts of have been identified from the 2024/25 National Fraud Initiative and these overpayments are in the process of being recovered from claimants. In addition, £1.1m of notional savings have been identified with the majority relating to housing tenancies, housing applications and blue badges. During the year, we have completed a brief information return assessing the participation of the Council. With an overall assessment of green (entirely satisfactory). The return was submitted to Audit Scotland according to the deadline of February 2026. The Audit Scotland’s NFI report 2026 was published in August 2026. Page 65 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 54 of 106 www.azets.co.uk Financial sustainability Financial sustainability looks forward to the medium and longer term to consider whether the Council is planning effectively to continue to deliver its services and the way in which they should be delivered. Auditor judgement Risks exist to the achievement of operational objectives Significant audit risk Our audit plan identified a significant risk in relation to financial sustainability under our wider scope responsibilities: Financial sustainability (extract from 2025/26 External Audit Plan) The Council continues to consider its medium-term financial planning through its financial outlook and medium-term financial plan, which are regularly presented to the full Council. The most recent medium-term financial plan update was presented to the full Council in February 2026. The latest cumulative forecast indicates a budget gap of £c.80million over the period 2026/27 to 2030/31 prior to council tax decisions. Assuming a 5.0-6.5% council tax increase in over this period, this would reduce the funding gap to c£40m. The scale of the projected funding shortfall demonstrates the continuing structural financial challenge facing the Council over the medium term. At the time of drafting this report the Council is still to approve its 2026/27 revenue budget at its February 2026 meeting. The budget estimates total expenditure of £622.794million with a deficit of £2.121million, prior to any council tax decisions. The deficit could be temporarily addressed through the use of the financial sustainability fund. The financial sustainability fund estimated balance as of 31 March 2026 is £34.199 million. The fund was established for this primary reason, to support the financial position of the Council in circumstances where, in the short term, savings have not been generated at the scale or pace required to ensure financial balance. In 2025/26, the Financial Sustainability Fund benefited from the second (and final) year of low employer pension contributions. The overall council General Fund balance is forecast to be £146.285million at 31 March 2026 (£138.769million in prior year). The majority of the reserves and funds are ring Y Page 66 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 55 of 106 www.azets.co.uk Financial sustainability (extract from 2025/26 External Audit Plan) fenced for specific purposes, with the unallocated reserves standing at £10.280million, equivalent to 1.9% of the Council budgeted net expenditure. Council agreed in September 2025 a £6.3m savings target for 2026/27 to maintain recurring financial balance over the medium term. Directors and their management teams have been developing options to deliver savings at this scale; however, the implementation of proposals is now expected to be phased towards future years. Based on work undertaken by services to date, and that for which specific plans are being developed over the next two years, the Council estimates that £2.8m of savings can be confidently incorporated into the 2026/27 base budget. The Scottish Government’s draft budget announced in January 2026 allocated £493million to the Council, representing a 5% increase (£23.6million) on the prior year allocation. After adjusting for new responsibilities, areas of growing responsibility and other conditional aspects of the settlement, this provides a like-for like comparison to 2025/26 where the Council’s underlying core grant has increased by £11.9m (2.5%). Pay inflation remains a significant financial risk. The Scottish Government’s medium-term public sector pay policy indicates a 9% increase over the period 2025/26 to 2027/28, with flexibility for employers to configure three-year proposals within this range. The current agreed pay deal leaves only 2.5% of this envelope for 2027/28. The Council has highlighted a timing disconnect between its ability to develop recurring savings and the pace at which the cost pressures are emerging. The medium-term financial plan projects increasing annual funding gaps over the planning period before mitigating actions are implemented. The Council recognises that future financial balance will require a combination of recurring savings, service redesign, income generation, and potentially further council tax increases. There remains uncertainly regarding future Scottish Government settlements, ongoing cost pressures, and the financial sustainability of Renfrewshire Integration Joint Board. The Council acknowledges that while short-term reserve utilisation can assist in managing in- year pressures, underlying structure deficits must be addressed on a recurring basis to ensure long-term financial sustainability. Our detailed findings on the Council’s financial framework for achieving long term financial sustainability are set out below. Page 67 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 56 of 106 www.azets.co.uk Financial landscape Throughout 2025/26, the Council's financial monitoring reports continued to highlight the uncertain outlook for local government finances. Whilst inflation fell from a peak of 3.8% (CPI) in summer 2025 to 3.3% in March 2026, wider economic and political uncertainty continued to impact the operating environment. Cost pressures, particularly those relating to pay, energy and the delivery of frontline services, remained significant throughout the year. To strengthen its financial resilience, the Council has continued to maintain a prudent reserves strategy. In 2020, Council approved a target to restore unallocated reserves to a minimum balance of £10 million to help manage unforeseen financial pressures. During 2025/26, a further £1 million was added to reserves in recognition of continued volatility in energy and food costs. The Scottish Government's Medium Term Financial Strategy, published in June 2025, highlighted a projected overall funding, not specifically for Local Government shortfall of £4.7 billion by 2029/30, reflecting the expectation that future spending commitments will exceed available resources. This presents a challenging funding outlook for local government, with the potential for real-terms reductions in future settlements. For 2025/26, Renfrewshire Council received an underlying increase in core grant funding of £9.9m (2.3%) compared with the previous year. The Council also received £4.8m of additional funding from the Scottish Government to support the increased cost of employer National Insurance contributions from April 2025. Looking ahead, the 2026/27 local government settlement allocated £493m to the Council, representing an increase of £23.6m (5.0%) on the previous year. After adjusting for additional responsibilities and other conditional funding requirements, the underlying increase was £11.9m (2.5%). Despite these funding increases, the Council continues to face substantial medium-term financial pressures. The Medium-Term Financial Plan presented to Council in February 2026 estimated a cumulative funding gap of approximately £80m between 2026/27 and 2030/31 before any decisions on council tax. Forecast council tax increases of between 5.0% and 6.5% over this period would reduce the gap to around £40m; however, significant savings and service transformation will still be required to maintain a sustainable financial position. On 26 February 2026, the Council approved a 7.5% increase in council tax for 2026/27 and reaffirmed its commitment to delivering approximately £20 million of savings over the medium term. A savings target of £6.3 million had previously been agreed for 2026/27; however, due to the complexity and lead-in time required to implement savings proposals, only £2.8 million of recurring savings were considered sufficiently certain to be reflected in the approved budget. Page 68 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 57 of 106 www.azets.co.uk The Council's Financial Sustainability Fund increased from £21.2m at 31 March 2025 to £35.8m at 31 March 2026. The purpose of the fund is to provide flexibility and support financial stability where savings are not delivered at the pace or scale necessary to maintain budget balance. Key medium-term pressures A significant risk to the Council's future financial sustainability remains the financial position of the Renfrewshire Health and Social Care Partnership (HSCP). The Integration Joint Board is forecasting a budget gap of £5.1 million in 2026/27. While reserves are expected to be used to address this shortfall in the short term, balances are projected to fall to approximately £6m by year end, reducing the Partnership's ability to manage future financial pressures. Under the Integration Scheme, any future inability to set a balanced budget could require additional financial support from partner organisations, including Renfrewshire Council. The newest HSCP report forecasts a significant cumulative recurring budget gap of c£14m for 2027/28. Pay inflation remains a further area of financial risk. The Scottish Government's medium-term public sector pay policy provides for increases of up to 9% over the period 2025/26 to 2027/28. However, following the current pay agreement, only 2.5% of this provision remains available for 2027/28, creating uncertainty over future pay settlements and associated budget pressures. Following approval of the Scottish Government's final Budget in February 2026, the Council approved revisions to its 2026/27 Revenue and Capital Budgets in May 2026. The update included additional recurring expenditure of £0.225m and one-off expenditure of £7.8m. Additional funding was also received to support the Real Living Wage, with £0.507 million subsequently passed to the HSCP. As a result of the council tax increase, additional government funding and the planned use of £1.2 million from reserves, the projected revenue budget deficit of £2.1m was eliminated, resulting in a balanced budget for 2026/27. The Council also revised its 2026/27 Capital Plan, increasing planned investment from £495 million to £499 million to reflect a number of changes following the budget meeting. Financial sustainability remains a significant risk for the Council due to the increasing service demand and the financial challenges facing the HSCP, the scale of the projected medium- term funding gap, continued inflationary and pay pressures and uncertainty surrounding future government funding. Page 69 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 58 of 106 www.azets.co.uk Medium term financial outlook The medium-term financial challenge and financial gap has been considered by the Council numerous times as the budget gap poses an increasing risk to the Council’s delivery of services over the medium-term. The Council will potentially move into a position of using its reserves in the medium term to cover budget gaps but recognises this is not sustainable. In the short term the 9.5% increase in council tax for 2025/26 and 7.5% in 2026/27 helps to close the budget gap, but further years will require either continuing increases, savings or other income generation. The medium-term forecast was presented to the Council during September 2025. Medium term financial plan Item 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m 2029/30 £m 2030/31 £m Opening budget gap 9.3 (2.6) 7.7 16.8 26.0 34.4 New pressures 58.3 26.5 32.6 38.6 47.5 54.7 Savings (8.3) (1.4) (1.4) (1.5) (1.6) (1.7) Increase in SG revenue grant (41.9) (9.3) (5.8) (4.0) (4.0) (4.0) Budget gap prior to council tax decisions 8.0 15.8 25.4 33.1 41.9 49.0 CT increase (10.6) (8.0) (8.6) (7.1) (7.5) (8.0) Remaining budget gap (2.6) 7.7 16.8 26.0 34.4 41.0 Source: Financial Outlook and Medium-Term Financial Plan at September 2025 It is clear from the above forecast that the Council will have to face difficult choices to address this gap including: reduce planned spend ; generate savings to offset the forecast increase in cost; or increase income. For context, to close the gap completely by increasing council tax would have required a 13.5% increase in 2026/27 (each 1% increase in council tax generates c£1.1m). The most likely solution will be a combination of each of these. The Council is aware that there would also be a short-term option of utilising reserve balances to temporarily close the gap, however the underlying financial gap would remain to be addressed on a recurring basis. Page 70 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 59 of 106 www.azets.co.uk Key assumptions The medium-term plan from September 2025, updated in February 2026 contains a good level of detail and is based on a number of assumptions and uncertainties, including: • The Scottish Government revenue support grant is likely to incorporate only very moderate increases over the next few years, giving no assurance that the local government settlement in future years will reflect a sufficient degree of increase to address core budget pressures. • The current and forecast challenging financial position of Renfrewshire IJB, and consequent potential impact on the Council financial position is an increasing concern. • Assumed moderate growth in revenue settlement over the medium term, with additional slight improvement anticipated based on the relative population growth of Renfrewshire. For context, when the Medium-Term Financial Plan at September 2025 was prepared, the 2024 mid-year estimate for population in Renfrewshire was published in late August and shows Renfrewshire’s population has increased and stands at 189,170, an increase of 2,020 (1.1%) on 2023 and above the national rate of 0.7%. The 2025 mid-year estimate for population in Renfrewshire was published in late July and shows Renfrewshire’s population has increased again and now stands at 189,270, an increase of 660 (0.3%) on 2024 and above the national rate of just under 0.1%. This is seen as a positive factor by the Council as the area attracts new people, supporting economy, but on the other hand can create other challenges for the ageing population, schools and local services. • The most recent local government pay settlement for non-teaching staff agreed was 4% in 2025/26 and 3.5% in 2026/27. When the Medium-Term Financial Plan at September 2025 was prepared, the pay settlement for teachers was yet to be agreed for 2025/26 and while assumed at 3% there was consideration of the 4% already agreed for non- teaching staff. The pay is the largest element of Council cost, so small movements will impact the total cost (1% increase in total pay equals to almost c£3.8m increase in cost). Pay settlement for teachers was later agreed of 4.0% for 2025/26 and 3.25% for 2026/27. • The Council is facing further uncertainty and pressures on a few areas which will depend on future funding confirmation: reduced class contact time for teachers (potential cost of £3-4m per year), lifecycle maintenance and net zero will likely increase the cost, and school transport cost has increased significantly in the recent years indicating further increases possible. • The IJB reported a 2025/26 forecast year-end overspend position of £6.2m, expected to be funded from IJB reserve balances. Ongoing utilisation of reserves to fund future overspends creates a risk that IJB reserves may be depleted in the short to medium term. This creates the risk that Renfrewshire IJB will seek additional funds in the coming years from NHS Greater Glasgow & Clyde and Renfrewshire Council. Page 71 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 60 of 106 www.azets.co.uk The detail of the assumptions used in preparation of the medium term financial plan is presented below: Core medium term plan assumptions Assumption 2026/27 % 2027/28 % 2028/29 % 2029/30 % 2030/31 % Pay award 3.5 3 2.5 2.5 2.5 Non-pay inflation 0 0 0 0 0 Contract inflation 3 2 2 2 2 Revenue grant 1.2 1.2 1 1 0 Council tax (rate) 6.5 6.5 5 5 5 Council tax (base) 1.2 0.9 0.9 0.8 0.8 Source: Financial Outlook and Medium-Term Financial Plan at September 2025 The medium-term Financial Outlook was updated on 26 February 2026. The Council’s medium-term financial outlook remains challenging despite a modest increase in funding from the Scottish Government. While the 2026/27 local government settlement was reported as increasing nationally by £592m, most of this funding is tied to existing and new obligations such as pay awards, leaving only around £235m of additional flexible funding. Renfrewshire Council’s revenue grant has increased to £493m, representing a like- for-like rise of £11.9m (2.5%) compared with 2025/26 after adjusting for new responsibilities. However, rising costs, particularly pay and service demand pressures, continue to outpace funding growth. The Scottish Government revenue support grant is likely to incorporate only very moderate increases over the next few years. Additional concerns include the financial position of Renfrewshire Health and Social Care Partnership and the impact this could have on Council finances. Looking further ahead, the Council estimates a funding gap of approximately £80m by 2030/31 before any Council Tax decisions are made. Assuming Council Tax increases of 5.0% to 6.5% over the period, this gap could reduce to around £40m, but substantial savings will still be required. The Council has continued its strategy of planning on a medium-term basis, implementing transformation and savings measures to address budget pressures, and it is Page 72 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 61 of 106 www.azets.co.uk recommended that any new recurring spending commitments are matched by sustainable savings or additional income to maintain long-term financial sustainability. Cost improvement plans Renfrewshire Council has previously been advised that since 2010, transformation, efficiency and corporate financing savings in the region of £190m (up to 2025/26), have been achieved, meaning that the Council’s ability to generate further recurring transformation and efficiency savings at this scale without impacting on service delivery or quality will be increasingly challenging. Additionally, over the last decade, nationally set directives as part of grant settlements as well as local priorities, have protected spend in key areas such as Education and Social Care, which constitute around two thirds of the Council’s budget. While transformation and the opportunity for increased efficiency will continue to be key priorities, it is likely that material service reductions and spending cuts across all services could be necessary if the Council is to remain financially sustainable and also create the financial circumstances to allow longer term strategic investment in the Council’s property estate and infrastructure. Council agreed in September 2025 a £6.3m savings target for 2026/27 as a route to maintaining recurring financial balance over the medium term. Directors and their management teams have been developing options to deliver savings at this scale; however, the implementation of proposals is now expected to be phased towards future years. Based on work undertaken by services to date, and that for which specific plans are being developed over the next two years, £2.8m of savings were incorporated into the 2026/27 base budget. Savings targeted from early intervention, the strategic review of culture and leisure services and income growth will not be achieved within the original planned timeline. Departmental savings targets are also proving very challenging to achieve after more than a decade of year on year savings being taken. Capital programme Non-Housing Capital Investment Programme Capital Investment Programme for projects across all service areas of the Council, except Council Housing, is now presented as a 10-year rolling programme. The Council approved the programme on 26 February 2026 and the programme was updated on 14 May 2026. The Scottish Government’s draft 2026/27 budget provides Renfrewshire Council with a General Capital Grant of £11.7m, a reduction of £0.4m from the core funding in previous year. Across Scotland, recurring capital funding for local government has fallen by 14% on a Page 73 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 62 of 106 www.azets.co.uk like-for-like basis, limiting the ability of councils to invest in new assets and maintain existing infrastructure. Given the limited prospects for generating capital receipts through asset sales, the Council is expected to rely more heavily on borrowing to fund capital investment. However, increased borrowing will result in revenue pressures. As capital grant allocations beyond 2026/27 have not yet been confirmed, the Council has assumed an annual grant of £12m in future years, in line with the Scottish Government’s Spending Review, which projects flat cash capital funding over the next five years. The revised Capital Plan 2026/27 to 2035/36 budget is presented below. Capital Plan 2026/27 to 2035/36 Draft Budget £000s Revised Budget £000s Change £000s Major Programmes Schools Estate Programme 263,159 261,759 -1,400 Schools Transformation & ICT 8,300 8,300 - Lagoon Internal Play Centre 500 500 - Leisure Facilities Upgrade Programme - 2,000 2,000 Active Sports Pavilions Upgrades - 200 200 Skoobmobile replacement - 300 300 Community Halls Refurbishment 680 680 - City Deal Projects 2,140 2,140 - AMIDS South 42,683 42,683 - Paisley Museum 4,359 4,359 - Town Centre Regeneration 2,300 2,300 - Place Based Fund 723 723 - Asset Lifecycle Maintenance Programmes Page 74 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 63 of 106 www.azets.co.uk Capital Plan 2026/27 to 2035/36 Draft Budget £000s Revised Budget £000s Change £000s General ICT Replacement 8,150 8,150 - Buildings Capital Lifecycle 34,633 34,633 - Traffic Management 226 226 - Private Sector Housing Grant 7,500 7,500 - Vehicle Replacement 22,320 22,320 - Roads & Footpaths 86,627 86,627 - Other projects 10,508 14,008 3,500 Total Planned Spend 494,808 499,408 4,600 Funded by: 000s 000s 000s Prudential Borrowing 243,707 243,707 - Total Borrowing 243,707 243,707 - General Capital Grant 119,706 119,706 - BAE contribution (Park Mains) 18,000 18,000 - Usable Capital Receipts 26,842 26,842 - Capital Funded from Current Revenue (CFCR) 86,553 91,153 4,600 Total Resource Availability 494,808 499,408 4,600 Source: Council meeting 14 May 2026 Revenue and Capital Budget Update 2026/27 Capital Plan 2026/27 to 2035/36 Page 75 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 64 of 106 www.azets.co.uk Housing Capital Investment Plan The HRA operates a rolling 30-year Business Plan model which is the standard operating practice amongst local authorities and Registered Social Landlords. The 30-year basis of the model reflects the need for a long term planned approach to the replacement of major items such as rewiring and central heating aligned to the lifecycle of the element. The Council plans to deliver a total investment of £337.3m in the Council’s housing stock over the 5-year period. It is anticipated that this level of investment will attract £51.2m of government grant for new builds and this results in a net capital programme amounting to £286.1m. The programme includes allowances for new build homes, related Scottish Government grants, regeneration and renewal, and the planned investment programmes required to ensure council house stock is maintained at the appropriate standards. Page 76 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 65 of 106 www.azets.co.uk Vision, leadership and governance Vision, Leadership and Governance is concerned with the effectiveness of scrutiny and governance arrangements, leadership and decision making, and transparent reporting of financial and performance information. Auditor judgement Effective and appropriate arrangements are in place Vision The Council Plan articulates the Council’s vision, priorities and strategic outcome. The Council’s vision to 2027, as described in the Council Plan is: ‘Creating a fairer Renfrewshire built on innovation, wellbeing, and opportunity’. The Council Plan strategic outcomes are used to underpin the Council’s internal and external communication and engagement and these align to their organisational values. The Plan has five main strategic outcomes: Place, Economy, Fair, Green and Living our values. The Council Plan covers the period 2022 to 2027 and was revised during 2024. The Community Plan covers the period 2017 to 2027 and serves as Renfrewshire’s Local Outcomes Improvement Plan. The Council works with local partners to achieve a Renfrewshire that is Thriving, Well, Fair and Safe. Corporate leadership team The Council senior team consists of the Chief Executive, three Directors of departments, Chief Executive of partner organisation OneRen, and Chief Officer of the HSCP. Governance arrangements The Council’s governance framework comprises the systems and processes, and culture and values, by which the Council is directed and controlled and through which it accounts to, engages with and leads the community. The Council has approved and adopted a Local Code of Corporate Governance and publishes information on how it complies with that Code. The Audit, Scrutiny and Risk Board (ARSB) is an independent-chaired committee made up of nine councillors from across all political parties. It oversees audit, scrutiny, risk management and governance arrangements, monitors progress against audit recommendations, reviews service performance, and makes recommendations to the Council. Changes being made regarding governance arrangement in the year are as follows: Page 77 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 66 of 106 www.azets.co.uk Service Delivery, Performance and Governance To strengthen its performance management the Council established an officer-led Performance Board in 2025/26, chaired by the Director of Environment, Housing and Infrastructure. The new Board oversees service performance and improvement activity. It reviews the Council Plan scorecard and other performance information quarterly, escalating issues to the Corporate Management Team where additional scrutiny is required, and driving an improvement agenda across Council services. Elected Members and Employees The employee Code of Conduct was updated as part of the People Strategy, with a revised version approved by the Members’ in June 2026. Risk Management During 2025/26, the Council continued to strengthen its risk management arrangements by implementing recommendations from an independent Willis Towers Watson review, which found the Council’s approach to be well established with strong governance and a positive risk culture. Key developments included approval of an updated Risk Matters policy and strategy in May 2026 and the transfer of the risk and insurance function to the Head of Business Services, Risk and Safety. Counter fraud The whistleblowing policy which was revised in April 2026 and approved by the Finance, Resources and Customer Services Policy Board to reflect the disclosure protections being brought in as part of the Employment Rights Act 2025 reforms. Internal audit The internal audit service operates in accordance with the Public Sector Internal Audit Standards and reports to the Audit, Risk and Scrutiny Board. Internal audit undertakes an annual programme of work, approved by the Board, based on a strategic risk assessment. Regular reviews of the Council’s governance arrangements are undertaken by internal audit. The programme of work undertaken by internal audit during 2025/26 identified three occasions where a limited assurance level was given in relation to the internal control, risk management and governance objectives for the specific areas of each audit review. All were specific to individual service areas and although these areas require to be addressed there is no significant impact on the Council’s overall system of internal control and action plans are in place to address the risk identified. 85% of all internal audit recommendations followed up during the year have been implemented by the due date which is an improved position from last year. Page 78 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 67 of 106 www.azets.co.uk The internal audit opinion for 2025/26 was, “subject to management addressing the critical and important recommendations made and the limited assurance report findings, it is considered that reasonable assurance can be placed upon the adequacy and effectiveness of the Council’s internal control, risk management and governance arrangements”. This opinion is consistent with prior years. Internal audit presented results of their activity for 2025/26; 90.1% of the internal audit plan was completed against a target of 90%. We consider internal audit work during our risk assessment and on an ongoing basis. Leadership programme Following completion of the SOLACE Leadership Development Programme and evaluation of all three cohorts, the Council undertook a review of its approach to leadership development. The review drew on a range of internal and external evidence sources, including programme evaluation, employee feedback, Best Value activity, organisational insight from the Council's Cultural Assurance Model (CAM) and Risk Assurance Model (RAM), engagement with Scottish local authority Organisational Development networks, and participation in the Improvement Service's Local Government Leadership Success Profile pilot. The review identified the key leadership themes and development priorities required to support delivery of the Council's future objectives and has informed the design of the Council's new Leadership Development Framework. Alongside this review, the Council has continued to invest in leadership capability through a range of corporate and service-based activities. Chief Officer Team Away Days are held regularly throughout the year and focus on strategic leadership priorities including public service reform, financial sustainability, resilience, organisational change, community planning and place-based service delivery. The Council's Our Leaders Forum also brings together approximately 125 senior managers several times each year to support leadership learning, organisational awareness and cross-Council collaboration. During 2025/26, forum topics included consultation and engagement, supportive leadership conversations, workforce wellbeing, Connected Communities, Council planning, Artificial Intelligence, and organisational change. Flexible management development opportunities also continue to be available through programmes such as Lead to Succeed, service-based initiatives, topic- specific development activity, and a broad range of instructor-led and digital learning opportunities, with almost 7,000 leadership and management e-learning completions recorded during 2025/26. Drawing on the findings of the review, wider organisational learning and external benchmarking, the Council has designed a new Leadership Development Framework to provide a clear and consistent approach to building capability across the organisation. The framework introduces a four-tier model covering development from frontline supervisors to Page 79 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 68 of 106 www.azets.co.uk Chief Officers and provides flexible, personalised learning pathways aligned to individual development needs and Council priorities. It covers areas including governance, people management, organisational culture, wellbeing, strategic leadership, organisational change, workforce planning, partnership working, digital capability and continuous improvement, supported through a blend of workshops, e-learning, webinars, self-directed learning and Chartered Management Institute (CMI) accredited modules. The framework is designed to strengthen management and leadership capability across the organisation and support future succession planning. Subject to approval by the Corporate Management Team, implementation of the new framework will commence during 2026/27, introducing a flexible, predominantly on-demand development offer complemented by targeted workshops and accredited learning. For the first time, this will provide a single leadership development offer covering all management levels across the Council, c1200 staff, with a clear development pathway from frontline supervisors through to Chief Officers. Page 80 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 69 of 106 www.azets.co.uk Use of resources to improve outcomes Audited bodies need to make best use of their resources to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. This includes demonstrating economy, efficiency, and effectiveness through the use of financial and other resources and reporting performance against outcomes. Auditor judgement Risks exist to the achievement of operational objectives Performance Management Arrangements The Council has a performance framework to measure against its 2022-27 Council Plan objectives. A high level summary of the Framework is presented below: Source: The Council’s internal documentation The framework assumes 6 monthly reporting to Leadership Board with performance indicators against action progress grouped by Council Plan strategic outcomes. These outcomes have also one cross-cutting theme - Improving outcomes for children and families. Service Improvement Plans (SIP) at each service level were also given a new format to make them aligned with the above. The reporting is done on a 6 monthly basis to relevant Boards Y Page 81 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 70 of 106 www.azets.co.uk including an annual outturn report. All performance indicators and actions in the Council Plan Framework are included in SIPs. The next stage of performance reporting is at operational level with a range of service- specific performance reporting across Council to the appropriate Policy Board, together with statutory performance reports. Local Government Benchmark Framework (LGBF) is scrutinised by the Performance Board. Reports on the LGBF are reported to the Audit Risk and Scrutiny Board at least twice a year, with the last report provided in May 2026. These documents are then used to create public performance reporting in user friendly formats, and by using interactive presentations, case studies and dashboards. Statutory performance information The Accounts Commission’s 2024 Statutory Performance Information Direction, effective from 1 April 2025, requires councils to publish performance information in a way that allows comparisons over time and between councils. This supports councils’ Best Value responsibilities and enables stakeholders to assess and benchmark performance. The Council has made proper arrangements for preparing and publishing its statutory performance information in accordance with the Direction. The information reported on the Council’s website is the Council’s response to meeting the requirements. Local Government Benchmarking Framework The Local Government Benchmarking Framework (LGBF) is a high-level benchmarking tool which allows local authorities to compare their performance across a wide range of key service areas such as education, housing, and adult social care. Renfrewshire Council has participated in the development of the LGBF since its inception in 2010 and the framework has expanded to comprise 108 indicators. The most recent period available through LGBF is 2024/25 and demonstrates that the overall performance improved in the majority of the areas as presented in the exhibit below. Page 82 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 71 of 106 www.azets.co.uk Source: Local Government Benchmarking Framework website The council’s overall performance is generally positive, with good progress being made and sustained across the Council Plan priority areas. The council is demonstrating improved or sustained performance across 57% of the 108 indicators published to date. Renfrewshire Council ranks in the top 8 councils for 32 indicators, and in the bottom 8 for 16 indicators. Areas where the Council have strong relative performance include pupil attainment at levels 5 and 6 and in numeracy at primary school level, hospital readmissions and delayed discharges, the condition of Class A and B roads, rent arrears, the time taken for non-emergency housing repairs, some financial sustainability measures, and CO2 emissions from electricity, gas and transport. Areas where Renfrewshire ranks in the bottom quarter include school exclusions, satisfaction rates on street cleaning and refuse collection, council tax collection, and crisis grant processing. Fairness and Equality Audit Scotland has requested that we carry out audit work on the Council’s arrangements relating to the best value theme of fairness and equality at least once during the audit appointment. Under the statutory Best Value framework, councils are required to Page 83 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 72 of 106 www.azets.co.uk demonstrate continuous improvement across a set of national themes, including fairness and equality. Overall, we concluded that Renfrewshire Council demonstrates achievement of the Best Value theme of Fairness and Equality. Fairness, equality, diversity and inclusion are embedded throughout the Council's strategic planning, governance arrangements, workforce policies, service delivery and continuous improvement activities. There is clear evidence of leadership commitment, structured oversight, engagement with communities and employees, and a strong focus on improving outcomes for people who experience inequality or disadvantage. The Council has continued to strengthen its commitment to equality, diversity and inclusion through its values, governance arrangements and the Fairer Renfrewshire Programme, which coordinates activity to reduce poverty, tackle inequalities and improve opportunities for local people. Oversight is provided through the Fairer Renfrewshire Sub-Committee, Leadership Board and dedicated officer groups, ensuring equality remains a key strategic priority. During 2025/26, significant progress included the appointment of an Equalities Development Officer, development and approval of the Equality Outcomes 2025-29 Action Plan, and further improvements to Equality and Human Rights Impact Assessment processes. The Council also continued to review and strengthen workforce policies, promote equal pay, and invest in equality, diversity and inclusion training, with high levels of staff participation. The Council has maintained a consistent focus on community engagement, working with a range of representative groups to ensure services reflect the needs of diverse communities. It also progressed targeted initiatives supporting care experienced people, children and young people, BSL users, carers and employees, while expanding trauma-informed practice across the organisation, including through the recently launched Your Voice Matters programme. Performance and progress are monitored through established governance and reporting arrangements, supported by the Corporate Improvement Plan and Council Plan. Together, these demonstrate the Council’s ongoing commitment to embedding equality, fairness and inclusion across services, decision-making and organisational culture. Page 84 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 73 of 106 www.azets.co.uk Best Value We are required to evaluate and report on the performance of the Council in meeting its Best Value duties. Our work in 2025/26 included the following: • Follow up: our work followed up on Accounts Commission findings, Controller of Audit recommendations and any outstanding improvement actions reported in Best Value Assurance Reports, Best Value thematic reports and Annual Audit Reports. Our work reflects the Council’s self-assessment against outstanding improvement actions and findings will be based on the Council’s current arrangements for delivering best value. • Risk based approach to Best Value themes: we pay due regard to the Council’s arrangements in respect of the seven Best Value themes in identifying any significant risks. • Assessed the effectiveness of performance reporting: the best value theme, effective use of resources, includes an expectation that councils report effectively on their performance. Councils should be able to demonstrate a trend of improvement over time in delivering their strategic priorities. • Thematic review of asset management: we are required to report on Best Value or related themes prescribed by the Accounts Commission. The thematic work for 2025/26 focused on how well the councils are managing their assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change. We also contributed to Controller of Audit reports, as and when required. As set out in the Code of Audit Practice 2021, Best Value audit is integrated with other wider- scope annual audit work. Therefore, in addition to the work set out in the remainder of this section, Best Value work has informed the content and conclusions set out in respect of our wider scope responsibilities. Page 85 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 74 of 106 www.azets.co.uk The Council’s response to the Best Value Controller of Audit (CoA) Report and Accounts Commission findings Risks to the achievement of objectives are managed The Controller of Audit reports to the Accounts Commission on each council’s performance in meeting its Best Value duties at least once over the five-year audit appointment. Auditors are required to include judgments on the pace and depth of continuous improvement in the council as part of their wider scope work to contribute to these reports. A Controller of Audit Best Value report for Renfrewshire Council has been prepared by Audit Scotland and was considered by the Accounts Commission on 15 May 2025. Following this, the Accounts Commission published their findings on 5 June 2025 and the report was presented to the Council on 26 June 2025. During 2024/25 we were working with the Controller of Audit to allow preparation and finalisation of the Best Value report for the Council. This report is based on previous reporting on the Council as prepared by Azets and the Controller of Audit. The report was largely positive and stated that Renfrewshire Council has a strong commitment to improving, including creating a positive culture, supporting its staff to develop as leaders, and focusing on engaging with residents. The report noted that the Council must now talk to them about tough spending decisions that lie ahead. It highlighted the Council’s commitment to leadership and creating a positive working culture across services, welcomed positive response to the issues associated with the Dargavel school, expressed interest in the Cultural Assurance Model, outlined good examples of activities enabling and supporting community engagement. The report also commented on prudent financials and financial sustainability, commented on existence of the complex capital programme and member development in place, it referred to the areas of strong performance (education). There was no suggestions or further recommendations being made. G Page 86 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 75 of 106 www.azets.co.uk Thematic review: Asset Management The thematic work for 2025/26 was on asset management. Auditors were required to consider how councils are managing their assets to ensure high-quality services whilst also responding to challenges around financial sustainability and climate change. We reported our conclusions in a separate report. Key findings are detailed below. To what extent does the council have a clear asset management strategy and plans that align with its corporate objectives, new ways of working, the changing needs of its population, and net zero commitments? Auditor judgement Effective and appropriate arrangements are in place, with small improvements possible The council’s recent, fully integrated Corporate Asset Management Strategy provides a clear corporate framework for asset management. There is a strong link between assets, service delivery, financial sustainability and Net Zero, consistent with CIPFA guidance on integrated capital and asset planning. The Strategy supports the Council’s Net Zero by 2030 commitment by embedding decarbonisation, energy efficiency and low-carbon investment across buildings, fleet and service transformation, reinforced through robust governance and regional collaboration. The Council demonstrates a clear understanding of both short-term budget pressures and long-term financial sustainability and explicitly links these to its ability to invest in, maintain and rationalise assets. Reporting on affordability could be further strengthened by including sensitivity analysis. To what extent do the council’s governance and accountability Auditor judgement No major weaknesses in arrangements but scope for improvement exists Y G Page 87 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 76 of 106 www.azets.co.uk arrangements support effective asset management? The council has strong governance arrangements for asset management, with clear corporate oversight, integration with financial planning, and structures to allow effective member and officer scrutiny. Reporting is regular and transparent, and improving in quality, supported by robust risk management. The council has demonstrated the ability to deliver major strategic projects in the challenging post-COVID environment amid widespread cost, inflation and supply chain pressures. Performance has been especially strong in the delivery of housing projects. However, these pressures have continued to affect elements of the wider capital programme, contributing to recurring underspends and rephasing. This suggests further opportunities to strengthen delivery planning, capacity and project readiness, particularly in non-housing projects. Over the past year, the council has improved reporting to members by providing greater detail on project variances in monitoring reports and making wider use of options and recommendations. While asset performance is generally strong for operational buildings and with housing indicators available showing an improvement trend. To what extent does the council have a robust approach to working with partners and Auditor judgement Effective and appropriate arrangements are in place, with small improvements possible G Page 88 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 77 of 106 www.azets.co.uk communities in managing its assets? The council demonstrates strong and well- established partnership working across regional, local and organisational levels, with clear alignment to strategic priorities such as net zero, infrastructure and economic growth. Collaboration with other councils and partners has enabled large-scale delivery, access to funding and shared risk, while internal joint working supports services sharing buildings and more efficient use of assets. Community engagement is extensive and embedded across major programmes, with structured processes and good transparency, including robust arrangements for community asset transfer. The council made use of co- design and co-delivery approaches for some of its projects. The council has effective cross-service collaboration structures in place with senior management team as members of the key capital projects boards. All areas for improvement and associated recommendations are included in Appendix 3. Page 89 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 78 of 106 www.azets.co.uk Appendices Appendix 1: Responsibilities of the Council and the Auditor 79 Appendix 2: Audit differences identified during the audit 87 Appendix 3: Action plan 90 Appendix 4: Follow up of prior year recommendations 96 Page 90 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 79 of 106 www.azets.co.uk Appendix 1: Responsibilities of the Council and the Auditor Responsibilities of the Council The Council is required to make arrangements for the proper administration of its financial affairs and to secure that one of its officers has responsibility for the administration of those affairs. The Director of Finance and Resources has been designated as that officer. The Director of Finance and Resources is responsible for the preparation of the Council’s annual accounts in accordance with proper practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (the Code). Area Council responsibilities Corporate governance The Council is responsible for establishing arrangements to ensure the proper conduct of its affairs including the legality of activities and transactions, and for monitoring the adequacy and effectiveness of these arrangements. Those charged with governance should be involved in monitoring these arrangements. Financial statements and related reports The Council has responsibility for: • preparing financial statements which give a true and fair view of the financial position of the Council and its group and its expenditure and income, in accordance with the applicable financial reporting framework and relevant legislation • maintaining accounting records and working papers that have been prepared to an acceptable professional standard and support the balances and transactions in its financial statements and related disclosures • preparing and publishing, along with the financial statements, an annual governance statement, management commentary (or equivalent) and a remuneration report that is consistent with the disclosures made in the financial statements and prepared in accordance with prescribed requirements. Management commentaries should be fair, balanced and understandable. Page 91 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 80 of 106 www.azets.co.uk Area Council responsibilities Management is responsible, with the oversight of those charged with governance, for communicating relevant information to users about the Council and its financial performance, including providing adequate disclosures in accordance with the applicable financial reporting framework. The relevant information should be communicated clearly and concisely. The Council is responsible for developing and implementing effective systems of internal control as well as financial, operational and compliance controls. These systems should support the achievement of its objectives and safeguard and secure value for money from the public funds at its disposal. The Council is also responsible for establishing effective and appropriate internal audit and risk-management functions. Standards of conduct for prevention and detection of fraud and error The Council is responsible for establishing arrangements to prevent and detect fraud, error and irregularities, bribery and corruption and also to ensure that its affairs are managed in accordance with proper standards of conduct. Financial position The Council is responsible for putting in place proper arrangements to ensure its financial position is soundly based having regard to: • Such financial monitoring and reporting arrangements as may be specified; • Compliance with statutory financial requirements and achievement of financial targets; • Balances and reserves, including strategies about levels and their future use; • Plans to deal with uncertainty in the medium and long term; and • The impact of planned future policies and foreseeable developments on the financial position. Best value The Council has a specific responsibility to make arrangements to secure Best Value. Best Value is defined as continuous improvement in the Page 92 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 81 of 106 www.azets.co.uk Area Council responsibilities performance of the body’s functions. In securing Best Value, the Council is required to maintain an appropriate balance among: • The quality of its performance of its functions • The cost to the body of that performance • The cost to persons of any service provided by it for them on a wholly or partly rechargeable basis. In maintaining that balance, the Council shall have regard to: • Efficiency • Effectiveness • Economy • The need to meet the equal opportunity requirements. The Council should discharge its duties in a way which contributes to the achievement of sustainable development. In measuring the improvement of the performance of a local government body’s functions for the purposes of this section, regard shall be had to the extent to which the outcomes of that performance have improved. The Scottish Government’s Statutory Guidance on Best Value (2020) requires bodies to demonstrate that they are delivering Best Value in respect of seven themes: 1. Vision and leadership 2. Governance and accountability 3. Effective use of resources 4. Partnerships and collaborative working 5. Working with communities 6. Sustainability 7. Fairness and equality. The Community Empowerment (Scotland) Act 2015 is designed to help empower community bodies through the ownership or control of land and buildings, and by strengthening their voices in decisions about public services. Page 93 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 82 of 106 www.azets.co.uk Auditor responsibilities Code of Audit Practice The Code of Audit Practice (the Code) describes the high-level, principles-based purpose and scope of public audit in Scotland. The Code outlines the responsibilities of external auditors and it is a condition of our appointment that we follow it. Our responsibilities Auditor responsibilities are derived from the Code, statute, International Standards on Auditing (UK) and the Ethical Standard for auditors, other professional requirements and best practice, and guidance from Audit Scotland. We are responsible for the audit of the financial statements and the wider-scope and Best Value responsibilities explained below. We act independently in carrying out our role and in exercising professional judgement. We report to the Council and others, including Audit Scotland, on the results of our audit work. Weaknesses or risks, including fraud and other irregularities, identified by auditors, are only those which come to our attention during our normal audit work in accordance with the Code and may not be all that exist. Wider scope audit work Reflecting the fact that public money is involved, public audit is planned and undertaken from a wider perspective than in the private sector. The wider scope audit specified by the Code broadens the audit of the accounts to include additional aspects or risks in areas of financial management; financial sustainability; vision, leadership and governance; and use of resources to improve outcomes. Page 94 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 83 of 106 www.azets.co.uk Financial management Financial management means having sound budgetary processes. Audited bodies require to understand the financial environment and whether their internal controls are operating effectively. Auditor considerations Auditors consider whether the body has effective arrangements to secure sound financial management. This includes the strength of the financial management culture, accountability, and arrangements to prevent and detect fraud, error and other irregularities. Financial sustainability Financial sustainability means being able to meet the needs of the present without compromising the ability of future generations to meet their own needs. Auditor considerations Auditors consider the extent to which audited bodies show regard to financial sustainability. They look ahead to the medium term (two to five years) and longer term (over five years) to consider whether the body is planning effectively so it can continue to deliver services. Vision, leadership and governance Audited bodies must have a clear vision and strategy and set priorities for improvement within this vision and strategy. They work together with partners and communities to improve outcomes and foster a culture of innovation. Auditor considerations Auditors consider the clarity of plans to implement the vision, strategy and priorities adopted by the leaders of the audited body. Auditors also consider the effectiveness of governance arrangements for delivery, including openness and transparency of decision-making; robustness of scrutiny and shared working arrangements; and reporting of decisions and outcomes, and financial and performance information. Page 95 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 84 of 106 www.azets.co.uk Use of resources to improve outcomes Audited bodies need to make best use of their resources to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. This includes demonstrating economy, efficiency and effectiveness through the use of financial and other resources, and reporting performance against outcomes. Auditor considerations Auditors consider the clarity of arrangements in place to ensure that resources are deployed to improve strategic outcomes, meet the needs of service users taking account of inequalities, and deliver continuous improvement in priority services. Best Value Appointed auditors have a duty to be satisfied that local government bodies have made proper arrangements to secure best value. Our work in respect of the Council’s best value arrangements is integrated into our audit approach, including our work on the wider scope areas as set out in this report. Audit quality The Auditor General and the Accounts Commission require assurance on the quality of public audit in Scotland through comprehensive audit quality arrangements that apply to all audit work and providers. These arrangements recognise the importance of audit quality to the Auditor General and the Accounts Commission and provide regular reporting on audit quality and performance. Audit Scotland maintains and delivers an Audit Quality Framework. The most recent audit quality report can be found at Quality of public audit in Scotland: Annual report 2025/26 Independence and ethics The Ethical Standards and ISA (UK) 260 require us to report full and fair disclosure of matters relating to our independence. In accordance with our profession’s ethical requirements and further to our audit plan issued confirming audit arrangements we confirm that there are no Page 96 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 85 of 106 www.azets.co.uk further facts or matters that impact on our integrity, objectivity and independence as auditors that we are required or wish to draw to your attention. We consider an objective, reasonable and informed third party would take the same view. We confirm that Azets Audit Services and the engagement team complied with the FRC’s Ethical Standard. We confirm that all threats to our independence have been properly addressed through appropriate safeguards and that we are independent and able to express an objective opinion on the financial statements. In particular: Non-audit services: Separate teams within Azets provides the following services to two of the Council subsidiaries (Paisley Museum Reimagined Ltd, Renfrewshire Leisure Ltd): tax returns/compliance and preparation of the accounts. The fees for these services add up to c.£3,710. We have considered the following threats to independence could be present as a result of non-audit services: self-review, self-interest, management. Accounts preparation services is a straightforward process of the client trial balances being imported and statutory accounts being produced. Any adjustments will be put forward to the clients management for approval before they are made. Accounts are prepared using clients trial balances, any adjustments are agreed with management before posting and second manager review of accounts will be undertaken. We assess the risk of management, self-interest and self-review is mitigated due to the fact that the: audit of subsidiaries is performed by separate audit teams led by a different responsible individuals; preparation of the accounts is an admin task with no judgement applied and adjustment approved by management; impact on group audit of Paisley Museums Reimagined is not significant and normally the Council group audit team would perform specific procedures as required on pension asset of Renfrewshire Leisure Ltd; the fees for preparation of the accounts are significantly lower than audit fees. We assess the risk of management, self-interest and self-review mitigated due to the fact that the separate team members work on the tax computation and audit which is reviewed by separate manager/partner/director. Tax fees are substantially lower than the audit fees. Contingent fees: No contingent fee arrangements are in place for any services provided. Gifts and hospitality: We have not identified any gifts or hospitality provided to, or received from, any member of the Council, senior management or staff and members of the audit team. Page 97 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 86 of 106 www.azets.co.uk Relationships: We have no other relationships with the Council, its directors, senior managers and affiliates, and we are not aware of any former partners or staff being employed, or holding discussions in anticipation of employment, as a director, or in a senior management role covering financial, accounting or control related areas. Our period of total uninterrupted appointment as at the end of 31 March 2026 was four years. Audit fees The total fees charged to the Council for the provision of services in 2025/26 were as follows. Prior year fees are also shown for comparative purposes: 2025/26 2024/25 Auditor remuneration (expected fee level) £311,220 £299,830 Auditor remuneration (above expected fee level) £31,120 £38,464 Pooled costs £10,730 £7,530 Contribution to Performance Audit and Best Value work (PABV) costs £81,090 £79,800 Sectoral cap adjustment £65,430 £61,830 Total audit fee £499,590 £487,454 The audit fees charged reconcile to the fees disclosed in the financial statements. Page 98 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 87 of 106 www.azets.co.uk Appendix 2: Audit differences identified during the audit We are required to inform the Council of any significant misstatements within the financial statements presented for audit that have been discovered during the course of our audit whether or not the financial statements have been adjusted by management. Adjusted misstatements Details of items corrected following discussions with management are as below. Current year audit adjustments (Council and Group Accounts) No Detail Comprehensive Income and Expenditure Statement Balance Sheet Dr / (Cr) £million Dr / (Cr) £million 1. To reverse incorrect reclassification of one asset from Other Land and Buildings to Infrastructure as the asset remains separate to the land. 11.900 (11.900) 2. To write down nil net book value asset that cannot be verified by the Council. 4.439 (4.439) Net impact on reserves – increase / (decrease) - - Total reserves per the unaudited financial statements (Group) 1,887.779 1,887.779 Revised reserves per the audited financial statements (Group) 1,887.779 1,887.779 Page 99 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 88 of 106 www.azets.co.uk Common Good No Detail Comprehensive Income and Expenditure Statement Balance Sheet Dr / (Cr) £’000 Dr / (Cr) £’000 1. Common Good – Renfrew Understated short-term deposits and revaluation reserve fixed assets 434 (434) Net impact on reserves – increase / (decrease) - - Unadjusted misstatements We have not identified any unadjusted misstatements to report. Misclassification and disclosure changes Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the Council. We identified a number of reclassification adjustments and some minor presentational issues in the financial statements, and these have all been amended by management. Details of all disclosure changes amended by management following discussions are as below. Adjusted No Detail 1. Minor presentational, formatting and disclosure issues. We proposed a number of minor changes and narrative amendments to improve the presentation of the accounts including a change to comparative figures. 2. Updated Note 4: Expenditure and income analysed by nature to match with supporting evidence. 3. Updated Note 25: Related parties to provide further clarity on the classification of the remaining balance and updated figure to match with supporting evidence. Page 100 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 89 of 106 www.azets.co.uk No Detail 4. Updated Note 6: Adjustment between accounting basis and funding basis under regulations and Note 8: Capital Adjustment Account movement due to incorrect treatment of a reserve drawdown in the year. 5. Updated Note 22: Nature and extent of risks arising from Financial Instruments - Credit risk - Sundry Income Debt Past Due, to match with the supporting evidence 6. Updated exit package cost disclosure- one employee moved from the £300,001 to £350,000 band to the £350,001 to £400,000 band. Unadjusted We have not identified any unadjusted misclassification and disclosure changes to report. Prior year unadjusted misstatements There were no unadjusted misstatements reported in the prior period. Page 101 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 90 of 106 www.azets.co.uk Appendix 3: Action plan Our action plan details the weaknesses and opportunities for improvement that we have identified during our 2025/26 audit. The recommendations are categorised into three risk ratings: • Significant deficiency • Other deficiency • Other observation Financial statements 1. Going concern assessment Other observation Observation The Council has considered the going concern assumption for the Group however this has not been formally documented.. As the Group comprises several component entities, the Council should undertake a documented assessment to determine whether each component is expected to continue providing services for at least 12 months from the date of signing the financial statements. The assessment should also consider any potential impact on the Group's going concern status and financial position. Implication In the absence of a formal documented Group going concern assessment, the Council may be unable to demonstrate that all component entities are expected to continue providing services for at least 12 months from the date the financial statements are signed. This increases the risk that matters affecting individual components, and consequently the Group as a whole, are not identified, appropriately evaluated, or adequately disclosed, resulting in an unsupported Group going concern conclusion. Recommendation The Council should document its formal Group going concern assessment on an annual basis Page 102 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 91 of 106 www.azets.co.uk 1. Going concern assessment Other observation Management response A statement will be developed for inclusion in Group accounting working papers from 2026/27. Responsible officer: Head of Finance and Procurement Implementation date: April 2027 2. Review of nil net book value assets Other deficiency Observation Our sample of five fully utilised (depreciated) assets totalling £4.4m consisted of items which could not be verified as they were originally documented on older records which the Council no longer accesses. Therefore, the Council has removed these from the fixed asset register. The Council has a number of 'legacy' assets in their asset register which are due to be reviewed for existence. The Council is planning to undertake this exercise over the next year and it is due to be completed by 2027/28. Implication The inability to verify the existence of fully depreciated assets due to a lack of supporting records increases the risk that the fixed asset register contains assets which no longer exist, have been disposed of, or are otherwise inaccurately recorded. Recommendation The Council should complete its planned review of legacy assets to verify the existence and continued use of fully depreciated assets, removing any assets that cannot be substantiated. Progress should be monitored regularly to ensure completion by 2027/28 and to maintain an accurate fixed asset register. Management response The planned review of legacy assets will continue during 2026/27 to enhance the accuracy of the fixed asset register. Responsible officer: Head of Finance and Procurement Implementation date: 31 March 2027 Page 103 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 92 of 106 www.azets.co.uk 2. Review of nil net book value assets Other deficiency 3. Land and Building Valuation Ratios Other observation Observation During our testing of asset valuations, we identified that the internal valuation team applies land and building split ratios that differ from those used by the external valuers. Management was unable to provide a documented rationale for these differences, as the ratios have been carried forward from a historic methodology. We are satisfied this does not have a material impact on the financial statements. Implication There is a risk that the allocation between land and buildings may not accurately reflect current valuations, potentially impacting related calculations such as depreciation. We are satisfied the impact is not material on the financial statements. Recommendation The Council should review the methodology underpinning the internally derived land and building split ratios and document the rationale for using them in place of externally provided valuation information. If the Council decides to retain the internal methodology, it should review the individual asset ratios to ensure they appropriately reflect the current split between land and building values, supporting the accuracy of asset valuations and depreciation calculations. Management response The Council will review and document the internal methodology for applying the land and buildings split to valuations. Responsible officer: Estates Lead Implementation date: 31 March 2027 Page 104 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 93 of 106 www.azets.co.uk Thematic review Sensitivity analysis affordability reporting Other observation Observation The council’s reporting on affordability of capital projects and asset management should consider providing additional scenario/risk analysis to show the impact of changes in inflation and interest rates or the impact of changes in demand for services. Implication This will provide users of the report with a greater understanding of the potential consequences factors out with the council’s control could bring. Recommendation We recommend that the Council should consider developing its reporting further. Management response This detailed reporting is done at project level when business cases are being brought before elected members for approval. The Business Case format will be reviewed to assess whether further sensitivity analysis is required. Responsible officer: Strategic Change Manager Implementation date: 31 December 2026 Timelines reporting on capital projects Other observation Observation Individual projects are reported to individual thematic council Boards and include details of performance against the budget in monetary terms and explanations of any in-year adjustments. Implication The explanations for variances in these reports could be further strengthened by including timelines for each individual project which would allow more focused scrutiny. Page 105 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 94 of 106 www.azets.co.uk Timelines reporting on capital projects Other observation Recommendation We recommend that the Council should consider developing its reporting further. Management response Capital monitoring reports will be reviewed in advance of the next financial year. Reporting of timelines will be considered for major projects (e.g. over £5m) and not cyclical programmes. Responsible officer: Head of Finance and Procurement Implementation date: 31 July 2027 Budget setting and management process Other observation Observation The Council should review whether further enhancement can be made to capital forecasting and reporting arrangements. In particular, it should consider strengthening the distinction in reporting between genuine underspends, project rephasing and changes in project scope. Implication These improvements would enhance the transparency and reliability of capital programme reporting, support more effective member scrutiny and provide greater assurance that annual budgets reflect realistic expectations of project delivery. Recommendation We recommend that the Council should consider developing its budget setting and management process in line with the recommendation. Management response Capital budget monitoring is reported to policy boards regularly throughout the financial year. Any updates to the phasing of spend related to the timing of the project is reported here. Genuine underspends and overspends are reported as they Page 106 of 392
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Renfrewshire Council: 2025/26 Annual Audit Report to the Council and the Controller of Audit | Azets Page 95 of 106 www.azets.co.uk Budget setting and management process Other observation arise, both via procurement reporting and policy board reports on individual projects. Responsible officer: Director of Finance and Resources Implementation date: n/a Page 107 of 392
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Appendix 4: Follow up of prior year recommendations As part of our audit work we have followed up on control weaknesses and recommendations either raised in last year’s Annual Audit Report or carried forward from prior years. Financial statements 1. IT general controls (2024/25) Other observation Issue Our specialist Technology Risk team reviewed the design and implementation of IT general controls in the key systems impacting preparation of the financial statements and identified a few areas for improvement in relation password, active directory and undertaken testing of incident management planning. (As this is a public report and for reasons of IT/control sensitivity, we have provided specific details to the Council separately). There is a risk of system issues adversely impacting the control environment and/or financial statements. Recommendation We recommend that the specific IT points identified are addressed. Auditor update 2025/26 We have provided a specific update to the Council’s management separately. No significant control weaknesses or recommendations have been raised. Outcome Action in progress. Recommendation remains open. 2. Unapproved posted journal (2024/25) Other observation Issue We identified from our journals testing undertaken that large batch journals with over 50 lines require no system approval and therefore can be posted and approved by individuals who hold relevant access. This is due to a system issue where there are too many line items for approval within the system. Page 108 of 392
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2. Unapproved posted journal (2024/25) Other observation Management have mitigating controls in place to review period end budgetary controls where any significant variances against budget are investigated and followed up. As these specific journals do not required approval, this could mean that someone could post inappropriate or fraudulent journals without review or authorisation. As part of our testing of management override of controls we have not identified any instances of inappropriate or fraudulent journal postings during the financial year. Recommendation Management should strengthen controls over large batch journals by introducing an independent approval requirement (e.g., manual secondary review) before posting. Auditor update 2025/26 We appreciate that management have confirmed they are comfortable with this risk and have other mitigating controls in place however we are required to report to members any control weaknesses we identify on an annual basis to ensure they are content with management’s response on the matter. Work will be undertaken at the Council to assure that the batch process is only used where necessary. Internal policy has been drafted in the Finance team that outlines guidance/recommended practice in relation to journal operation and authorisation, and separation of duties but needs further consultation to understand the outside- Finance impact of recommendations. Responsible officer: Head of Finance and Procurement Implementation Revised Date: FY2026/27 Outcome Action in progress. Recommendation remains open. Page 109 of 392
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3. Payroll transaction approval (2024/25) Other observation Issue For one of the payroll transactions, we noted that one individual prepared the payroll run and also authorised this. There was no additional review by another team member. Based on the journals selected for audit testing we did not identify any instances of inappropriate journals being posted to the finance system. There is a risk of inappropriate journals postings where there is not a secondary review process of journals. Recommendation Management should strengthen controls over journals by introducing an independent approval requirement (e.g., manual secondary review) before posting. Auditor update 2025/26 The processes around payrun operation and signing of the associated BACS payment has been reviewed, with further separation of duties and checks now in place. Alerts and processes within the ERP system are already in place to mitigate any risk of fraudulent bank account changes. Outcome Action completed. Recommendation closed. 4. Common Good Funds - Property register (2024/25) Other observation Issue At the time of producing the Unaudited Accounts, there were still some assets under investigation as to whether they belonged to the Common Good. This was highlighted on the public asset register. There is a risk that misclassification of assets could lead to inaccurate financial reporting and regulatory non- compliance. Recommendation We recommend a decision is reached to determine whether these are Common Good assets and if not, update the Common Good Property register. Auditor update 2025/26 The opinion of King’s Counsel that six of the seven properties under investigation are confirmed as Common Page 110 of 392
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4. Common Good Funds - Property register (2024/25) Other observation Good assets, and will be adjusted in the fixed asset register. The Common Good Note in the audited accounts 2024/25 was updated to reflect this change. 2025/26 there is no outstanding investigation. Outcome Action completed. Recommendation closed. 5. Common Good Funds – Rental arrangements review (2024/25) Other observation Issue Renfrewshire Council administers the Common Good Fund for Renfrew on its behalf. Not all rental properties have their rental fees reviewed and updated on regular basis. The absence of documented regular rents reviews creates uncertainty over the financial return to the fund. Recommendation While the Common Good Fund cannot enter into formal lease agreements, the rents should be subject to periodic review to confirm that they remain appropriate, transparent, and provide a fair return to the fund. Auditor update 2025/26 These arrangements are being reviewed as part of the Common Good Governance Framework under development during 2026/27. Responsible officer: Principal Estates Surveyor Revised implementation date: 31 December 2026 Outcome Action in progress. Recommendation remains open. 6. Quality of working papers (2024/25) Other observation Issue Our review of the working papers identified that some of the documentation provided for audit was not always presented in a clear or easily navigable format. To support improvements in this area, we delivered a training session this year and provided feedback and suggestions to the finance team and other officers in advance of the audit. Page 111 of 392
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6. Quality of working papers (2024/25) Other observation While progress has been made, further enhancements to the clarity and structure of some of the working papers below would help reduce the extent of follow-up queries, thereby supporting a more efficient audit process. In particular, the reconciliation of the trial balance to the accounts could be presented in a more structured format, with manual adjustments more clearly identified and supported by sufficient explanation and evidence. Similarly, the debtor and creditor listings provided to audit presented the opening balance plus movements however per audit requirements we require a detailed breakdown of all closing balances as at 31 March. In addition, ongoing work on the reconciliation of revalued and non-revalued assets to the fixed asset register took longer than anticipated. These issues can lead to delays in the audit process, increase the risk of misstatements within the financial statements, and reduce the efficiency of the overall audit review. Recommendation We recommend that working papers be standardised and presented with improved clarity. Reconciliations should clearly identify manual adjustments, supported by explanations and appropriate evidence. Debtor and creditor listings should be reformatted to ensure all closing balances are presented. In addition, reconciliations between revalued and non-revalued assets and the fixed asset register should be prepared in advance and shared earlier in the audit cycle. Auditor update 2025/26 The reconciliation of the trial balance to the accounts format has been revised post discussion with management throughout the year and we are satisfied with the updated format. However, debtor and creditor listings still require further enhancement as some debtor and creditor types only show the opening balance and in year movements and not a breakdown of the year end closing balance which is required to perform audit testing. Page 112 of 392
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6. Quality of working papers (2024/25) Other observation Responsible officer: Corporate Finance Manager Revised implementation date: FY 2026/27 Outcome Action in progress. Recommendation remains open. 7. Asset Classification (2024/25) Other observation Issue As part of our audit procedures, we reviewed the Council’s approach to the classification of components within property, plant and equipment (PPE), specifically in relation to council dwellings and schools. The Council currently classifies certain components (such as kitchens, heating systems, and other fixtures and fittings) under the Vehicles, Plant, Furniture and Equipment (VPFE) asset class. While this treatment reflects management’s interpretation of the applicable accounting standards, our view based on IAS 16 and the CIPFA Code of Practice on Local Authority Accounting is that such components form part of the primary asset classes (i.e. “Council Dwellings” or “Other Land and Buildings”) as they share the same nature and use in the authority’s operations. The issue identified gives rise to an increased risk of misstatement or classification error. Recommendation We recommend that the Council reviews its classification policy for asset components within council dwellings and schools, with a view to either: •Aligning the treatment to ensure that components remain within the primary asset class, or •Enhancing disclosures and policy documentation to clearly explain the rationale for classifying components separately. Auditor update 2025/26 Review was carried out and decision was made to reassess components classified within VPE to either Council Dwellings or Other Land and Building. This was done as a restatement to the opening balances of 2024/25 rather than an in year transfer. Page 113 of 392
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7. Asset Classification (2024/25) Other observation Outcome Action completed. Recommendation closed. 8. Payroll reconciliation (2023/24) Other observation Issue The Council has a number of payruns running at different frequencies. However, there is no year-end reconciliation in place between the ledger and payroll systems to ensure that the figures in the financial statements reconcile to the payroll system. There is a risk that the ledger is not complete or accurate when reflecting payroll figures and impacting on the financial statements. Recommendation We recommend that the Council performs regular reconciliation between the ledger and payroll. Auditor update 2025/26 A payroll reconciliation process has been developed, agreed and implemented between Payroll Services Manager and Finance. Outcome Action completed. Recommendation closed. Wider Scope 1. Appraisals and business cases reporting (2024/25) Other observation Issue There is a risk of system issues adversely impacting the control environment and/or financial statements. Recommendation We recommend that the council considers how it presents options to the members to improve decision making effectiveness and openness. Auditor update 2025/26 The Council has further strengthened its approach to the development of business cases and the project management processes associated with these, including reporting arrangements. An officer Transformation Board has been established which regularly reviews the development and progress of a range of significant corporate and service projects across the council, with Page 114 of 392
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1. Appraisals and business cases reporting (2024/25) Other observation regular reporting to both the Corporate Management Team and Leadership Board on the issues discussed. The Transformation Board approach is informed by an agreed ‘gateway’ approach which includes clear stages projects must adhere to in terms of identifying requirements, clarifying scope, considering options for how objectives can be met and clearly defining how delivery will be achieved. The regular reporting of business cases to allow elected member decision-making can clearly be demonstrated in examples such as the business case framework approach for the learning estate (see report to the Education and Children’s Service Policy Board in May 2025); and the progression of an AI business case which will enable broad AI-enabled transformation across the Council as reported to the Leadership Board in April 2026. Outcome Action completed. Recommendation closed. 2. Capital budgeting and monitoring (2024/25) Other observation Issue The actual levels of the initial budgets utilisation percentage were quite low in relation to initial budgets for both housing and non-housing spend. Over optimistic assumptions can lead to under delivery of the capital programme. Recommendation We recommend that the capital budget setting process be revisited to ensure future estimates better reflect prevailing market conditions and delivery capacity. Auditor update 2025/26 Our work in this area has been covered through our reporting of the Best Value Thematic of asset management as summarised within this report. Action taken by management in setting the 2025/26 non- housing capital budget resulted in the spend v budget gap reducing to 14% (38% in 2024/25); for the 2026/27 budget process, we are unable to measure the impact of this until 2026/27 and therefore recommendation remains open. Page 115 of 392
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3. Financial sustainability (2022/23) Other observation Issue The medium term financial challenge and financial gap has been considered by the Council numerous times, but no clear options have been presented or decisions made as to how to address those challenges. The Council now needs to make difficult spending priority decisions to secure financial sustainability going forward. This poses an increasing risk to the Council’s delivery of services over the medium term and we would recommend addressing as a priority. Recommendation To present the Council with a range of options and services implications. Auditor update 2025/26 The Council’s senior management team continues to identify options for further savings and service transformation, for agreement by elected members in setting future annual revenue budgets. Outcome Action completed. Recommendation closed. Best Value 1. Transformation- Links to corporate objectives (2024/25) Other observation Issue We are satisfied that links exist between the Council’s corporate objectives and the transformation plans and while we note there is alignment between transformation programme objectives and the corporate plan outcomes, these were not formally mapped against each other. Recommendation We recommend that the Council should consider demonstrating the links between the transformation 2. Capital budgeting and monitoring (2024/25) Other observation Responsible officer: Head of Finance and Procurement Implementation date: FY 2026/27. Outcome Action in progress. Recommendation remains open. Page 116 of 392
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1. Transformation- Links to corporate objectives (2024/25) Other observation programme and its corporate plan with more clarity to help demonstrate measurement of impact of the transformation plan against the corporate plan. Auditor update 2025/26 A schematic has been developed to map Transformation projects to Council priorities, this links to the oversight work of the Transformation Board and is outlined in the Transformation Report for Leadership Board in February 2026. Corporate reports on transformation will also denote alignment with Council Plan priorities. Outcome Action completed. Recommendation closed. 2. Transformation- Reporting to the Leadership Board (2024/25) Other observation Issue We note that the timescales and financial impact or expected savings is provided for some of the projects in the reporting to the Leadership Board, but not for all. As different projects mature in their progress the Council should ensure consistency of the reporting it presents in its updates on the transformation programme. Also, while the Council develops its strategy and savings plan it should report timing, savings, cost and benefits expected to measure against those. Recommendation We recommend that the Council continues to update its reporting to the Leadership Board to improve high level oversight. Auditor update 2025/26 Update report provided to the Leadership Board in February 2026, followed by more detailed AI transformation report in April 2026. Six monthly reports will continue to be submitted to the Leadership Board and the format has been developed to address the auditor recommendations Outcome Action completed. Recommendation closed. Page 117 of 392
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© Azets 2026. All rights reserved. Azets refers to Azets Audit Services Limited. Registered in England & Wales Registered No. 09652677. VAT Registration No. 219 0608 22. Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Moving forward with confidence info@azets.co.uk | azets.co.uk Page 118 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC My Ref: AM/CB Contact: Alastair MacArthur Telephone Number: 0300 300 0285 E Mail: alastair.macarthur@renfrewshire.gov.uk Azets Audit Services Quay 2 139 Fountainbridge Edinburgh EH3 9QG Dear Sirs Renfrewshire Council Financial Statements for the year ended 31 March 2026 This representation letter is provided for the purpose of expressing an opinion as to whether the Council and the Group’s financial statements present a true and fair view, in all material respects, in accordance with applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (the 2025/26 Code). I confirm that to the best of my knowledge and belief having made such inquiries as I considered necessary for the purpose of appropriately informing myself: Financial Statements i. I have fulfilled my responsibilities as Section 95 Officer for the preparation of the Council’s financial statements in accordance with applicable law and UK adopted international accounting standards, as interpreted and adapted by the 2025/26 Code, for being satisfied that they give a true and fair view and for making accurate representations to you. ii. I have complied with the requirements of all statutory directions affecting the Council and Group and these matters have been appropriately reflected and disclosed in the financial statements. iii. I have considered whether accounting transactions have complied with the requirements of the Housing (Scotland) Act 1987 in respect of the Housing Revenue Account. iv. The financial statements are free of material misstatements, including omissions. I have reviewed and approved all audit adjustments made in the financial statements. (See appendix 1 for details of such audit adjustments). Page 119 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC v. All prior year adjustments of which I am aware have been made to the financial statements and these are appropriately disclosed in the financial statements. (See appendix 1 for details of such adjustments). vi. I have reviewed and approved all disclosures made in the financial statements and I am not aware of any other matters which require disclosure in order to comply with the requirements of UK adopted international accounting standards, as interpreted and adapted by the 2025/26 Code (A summary of the main disclosure changes is at appendix 1). vii. No uncorrected misstatements were identified during the audit and the prior years. viii. The Council and Group has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non- compliance. There has been no non-compliance with requirements of any regulatory authorities that could have a material effect on the financial statements in the event of non-compliance. ix. I acknowledge my responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error, and I believe that I have appropriately fulfilled these responsibilities. x. I am satisfied that the methods, data and significant assumptions used by the Council in making accounting estimates, including those measured at fair value, are appropriate to achieve recognition, measurement and disclosure that is reasonable in accordance with the 2025/26 Code. I am satisfied that the material judgements used in the preparation of the financial statements are soundly based, in accordance with the 25/26 Code and adequately disclosed in the financial statements. I understand my responsibilities include identifying and considering alternative methods, assumptions or source data that would be equally valid under the financial reporting framework, and why these alternatives were rejected in favour of the estimate used. There are no other material judgements that need to be disclosed. xi. I confirm that all necessary information has been provided to our management expert, as external valuers and the Council’s Estates team as internal valuers, to ensure that the valuation of land and buildings and council dwellings and where relevant right of use assets, is accurate and complete. The valuations of these assets have all been prepared in accordance with the requirements of the 2025/26 Code. xii. I confirm that I am satisfied that the actuarial assumptions underlying the valuation of pension scheme assets and liabilities for IAS19 Employee Benefits disclosures are consistent with my knowledge. I confirm that all settlements and curtailments have been identified and properly accounted for. I also confirm that all significant post-employment benefits have been identified and properly accounted for. Page 120 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC xiii. The Council has satisfactory title to all assets disclosed in the accounts. The Council has no plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities as at 31 March 2026 reflected in the financial statements. xiv. The Council has complied with all aspects of ring-fenced grants that could have a material effect on the Council and Group’s financial statements in the event of non-compliance. xv. Except as disclosed in the financial statements: a. there are no unrecorded liabilities, actual or contingent; b. none of the assets of the Council has been assigned, pledged or mortgaged; c. there are no material prior year charges or credits, nor exceptional or non- recurring items requiring separate disclosure. xvi. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of applicable law, accounting standards and the 2025/26 Code. xvii. All events subsequent to the date of the financial statements and which require adjustment or disclosure have been adjusted or disclosed. xviii. Actual or possible litigation and claims have been accounted for and disclosed in accordance with the requirements of UK adopted international accounting standards, and as interpreted and adapted by the Code. xix. I believe that the Council and Group’s financial statements should be prepared on a going concern basis. I do not expect the Council or Group to demise in its current organisational form; however, my basis for going concern acknowledges that if that situation arose the services would be transferred to another public sector body. I believe that no further disclosures relating to the Council’s ability to continue as a going concern need to be made in the financial statements. Information Provided xx. I have provided you with: a. access to all information of which I am aware that is relevant to the preparation of the Council and Group’s financial statements such as accounting records, and all other records requested; b. additional information that you have requested from us for the purpose of your audit; and c. unrestricted access to persons within the Council (via remote arrangements where necessary), from whom you determined it necessary to obtain audit evidence. Page 121 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC xxi. I have communicated to you all deficiencies in internal control of which management is aware. xxii. All transactions undertaken by the Council and Group have been recorded in the accounting records and are properly reflected in the financial statements. xxiii. I have disclosed to you the results of my assessment of the risk that the financial statements may be materially misstated as a result of fraud. xxiv. I have disclosed to you all information in relation to known fraud or suspected fraud that I am aware of and that affects the Council or Group and involves: a. management; b. employees who have significant roles in internal control; or c. others where the fraud could have a material effect on the financial statements. xxv. I have disclosed to you all information in relation to instances of, or allegations of fraud, or suspected fraud, affecting the financial statements communicated by employees, former employees, analysts, regulators or others. xxvi. I have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. xxvii. I have disclosed to you the identity of the Council and Group’s related parties and all the related party relationships and transactions of which I am aware. xxviii. I have disclosed to you all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. xxix. I acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as I am aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. I have taken all the steps that I ought to have taken in order to make myself aware of any relevant audit information and to establish that you are aware of that information. Management Commentary xxx. The disclosures within the Management Commentary fairly reflect my understanding of the Council and Group’s financial and operating performance over the period covered by the financial statements. Annual Governance Statement xxxi. I am satisfied that the Annual Governance Statement fairly reflects the Council’s risk assurance and governance framework and I confirm that I am not aware of Page 122 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC any significant risks or weaknesses in governance or internal control that are not disclosed within the Statement. Remuneration Report xxxii. I am satisfied that the disclosures within the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Wider Scope xxxiii. I have made you aware of any issues that could affect your Wider Scope reporting responsibilities, including any external or internal reports which highlight weaknesses in our arrangements for securing economy, efficiency and effectiveness in our use of resources. Approval The approval of this letter of representation was minuted by the Council at its meeting on 24 September 2026. Yours faithfully Signature: Name: Alastair MacArthur Position: Director of Finance and Resources Date: Page 123 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC Appendix 1 Adjusted misstatements Current year audit adjustments (Council and Group Accounts) No Detail Comprehensive Income and Expenditure Statement Balance Sheet Dr / (Cr) £million Dr / (Cr) £million 1. To reverse incorrect reclassification of one asset from Other Land and Buildings to Infrastructure as the asset remains separate to the land. 11.900 (11.900) 2. To write down nil net book value asset that cannot be verified by the Council. 4.439 (4.439) Net impact on reserves – increase / (decrease) - - Total reserves per the unaudited financial statements (Group) 1,887.779 1,887.779 Revised reserves per the audited financial statements (Group) 1,887.779 1,887.779 Common Good No Detail Comprehensive Income and Expenditure Statement Balance Sheet Dr / (Cr) £’000 Dr / (Cr) £’000 1. Common Good – Renfrew Understated short-term deposits and revaluation reserve fixed assets 434 (434) Net impact on reserves – increase / (decrease) - - Misclassification and disclosure changes - Adjusted No Detail 1. Minor presentational, formatting and disclosure issues. We proposed a number of minor changes and narrative amendments to improve the presentation of the accounts including a change to comparative figures. 2. Updated Note 4: Expenditure and income analysed by nature to match with supporting evidence. Page 124 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk PUBLIC No Detail 3. Updated Note 25: Related parties to provide further clarity on the classification of the remaining balance and updated figure to match with supporting evidence. 4. Updated Note 6: Adjustment between accounting basis and funding basis under regulations and Note 8: Capital Adjustment Account movement due to incorrect treatment of a reserve drawdown in the year. 5. Updated Note 22: Nature and extent of risks arising from Financial Instruments - Credit risk - Sundry Income Debt Past Due, to match with the supporting evidence 6. Updated exit package cost disclosure- one employee moved from the £300,001 to £350,000 band to the £350,001 to £400,000 band. Prior year adjustments • Restatement of PPE note: Following a review of the Council's asset componentisation policy under the CIPFA Code of Practice, certain assets previously recorded within Vehicles, Plant, Furniture and Equipment have been reclassified to Council Dwellings or Other Land and Buildings. This change reflects the assessment that these assets are building components forming part of the properties, rather than separate plant or equipment assets. • Restatement of Common Good Funds Paisley and Renfrew Income and expenditure statement: During 2024/25, following a review of historical title and legal advice, the Council reclassified £1.090m of property from Council assets. This was reflected in the reserves balance directly in the prior year. However, it should have been recorded as income in the prior year. • Restatement of Group accounts: Upon receiving the audited accounts of the Group's components, the consolidation was revised to incorporate the final audited figures. Page 125 of 392
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1 PUBLIC ___________________________________________________________________ To: Council On: 24 September 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Audited Annual Accounts 2025/26 - Renfrewshire Council Group ___________________________________________________________________ 1. Summary 1.1 The 2025/26 unaudited Annual Accounts were approved by Council on 22 June 2026. Each year the Council’s appointed external auditors carry out an audit of the Council’s financial statements and provide an opinion as to whether those statements provide a true and fair view of the financial position of the Council, and its income and expenditure for the year; and also whether they have been prepared in accordance with the relevant regulations. 1.2 The audited annual accounts are now presented for members’ noting and further recommendation to the Council that the audited accounts be approved. 1.3 There were three material adjustments made to the annual accounts over the course of the audit, along with other presentational and disclosure changes. These are detailed in Azets’ Annual Audit report, presented at agenda item 1. ___________________________________________________________________ 2. Recommendations 2.1 The Council is asked to approve the attached audited Annual Accounts 2023/24 for signature in accordance with the Local Authority Accounts (Scotland) Regulations 2014. Item 3 Page 127 of 392
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2 ___________________________________________________________________ Implications of the Report 1. Financial – The 2025/26 Annual Accounts demonstrate that the Council continues to operate services within the resources available, and in line with the relevant legislation. 2. HR & Organisational Development – none directly arising from this report. 3. Community/Council Planning – none directly arising from this report. 4. Legal – An audit opinion free from qualification demonstrates the Council’s compliance with the statutory accounting requirements set out in the Local Government (Scotland) Act 1973 and the Local Government in Scotland Act 2003. 5. Property/Assets – none directly arising from this report. 6. Information Technology – none directly arising from this report. 7. Equality & Human Rights – none directly arising from this report. 8. Health & Safety – none directly arising from this report. 9. Procurement – none directly arising from this report. 10. Risk – none directly arising from this report. 11. Privacy Impact – none directly arising from this report. 12. Cosla Policy Position – none directly arising from this report. 13. Children’s Rights – none directly arising from this report. 14. Climate Risk – none directly arising from this report. ___________________________________________________________________ Author: Christine McCourt, Head of Finance and Procurement PUBLIC Page 128 of 392
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1 PUBLIC Contents Management Commentary ................................ 2 Statement of Responsibilities .......................... 17 Annual Governance Statement ........................ 18 Remuneration Report ...................................... 29 Independent Auditor’s Report ......................... 36 Comprehensive Income and Expenditure Statement ...................................................... 40 Movement in Reserves Statement .................... 42 Balance Sheet................................................. 43 Cashflow Statement ........................................ 44 Note 1: Expenditure and Funding Analysis......... 45 Note 2: Financing and investment income & expenditure .................................................... 47 Note 3: Taxation and non-specific grant income 47 Note 4: Expenditure and income analysed by nature ............................................................ 47 Note 5: Grant income ...................................... 48 Note 6: Adjustment between accounting basis and funding basis under regulations ....................... 49 Note 7: Usable reserves ................................... 50 Note 8: Unusable reserves ............................... 53 Note 9: Property, Plant and Equipment ............. 57 Note 10: Heritage Assets ................................. 60 Note 11: Assets held for sale ............................ 60 Note 12: Intangible assets ............................... 60 Note 13: Capital expenditure and capital financing ...................................................................... 61 Note 14: Service Concession Arrangements...... 62 Note 15: Leases .............................................. 64 Note 16: Inventories ........................................ 64 Note 17: Cash and cash equivalents ................. 65 Note 18: Debtors ............................................. 65 Note 19: Creditors .......................................... 66 Note 20: Provisions ......................................... 66 Note 21: Financial Instruments ........................ 67 Note 22: Nature and extent of risks arising from Financial Instruments ..................................... 71 Note 23: External audit costs ........................... 74 Note 24: Agency services ................................. 74 Note 25: Related parties .................................. 75 Note 26: Pension schemes accounted for as defined contribution schemes ......................... 77 Note 27: Defined benefit pension schemes ....... 77 Note 28: Contingent liabilities .......................... 83 Note 29: Events after the balance sheet date .... 83 Note 30: Accounting Standards Issued not Adopted ......................................................... 83 Note 31: Accounting Policies – Renfrewshire Council .......................................................... 84 Note 32: Judgements in Applying Accounting Policies .......................................................... 96 Note 33: Assumptions made about the future .. 97f Common Good Funds ..................................... 98 Housing Revenue Account .............................. 100 Council Tax Income Account .......................... 102 Non-Domestic Rates Income Account ............ 104 Group Accounts ............................................ 105 Notes to the Group Accounts .......................... 108 Group Accounting Policies ............................. 120 Page 130 of 392
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2 PUBLIC Management Commentary The purpose of the Management Commentary is to present an overview of Renfrewshire Council’s performance during the 2025/26 financial year and to help readers understand its financial position at 31 March 2026. In addition, it outlines the main issues and risks that may impact the performance of the Council in the future. Renfrewshire Council, one of 32 local authorities in Scotland, was established by the Local Government (Scotland) Act 1994 and came into being on 1 April 1996. It serves a population of 189,170, with a mix of larger urban centres and smaller villages. The Council works closely with the Renfrewshire Health and Social Care Partnership, which delivers adult care services across the region; and with OneRen, which delivers leisure and cultural services. These partners are part of the Council’s wider Group, with partnerships spanning a number of organisations to varying degrees, as follows: During 2025/26, Renfrewshire Council was organised into four services, as follows: The services that the Council provides include: Environment, Housing and Infrastructure Includes the management of roads and transportation, housing services, public protection, waste, neighbourhood services, fleet, facilities management and sustainability. Finance and Resources Provides services such as legal, HR, ICT and finance, to elected members and other parts of the Council, as well as services to the public, including council tax, and customer and advice services. Children's Services Responsible for schools and education services, children and family social work, and justice social work services. Chief Executive's Service Responsible for the development of corporate policy, as well as partnerships, social inclusion, planning, economic development, regeneration, communications and marketing. Page 131 of 392
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3 PUBLIC Our Aims and Objectives The aims of the Council Plan 2022-2027 were revised during 2024 with a refreshed Community Plan and a new Council Plan. The Community Plan is Renfrewshire’s Local Outcomes Improvement Plan, and the Council works with local partners to achieve a Renfrewshire that is Thriving, Well, Fair and Safe. The Council’s vision to 2027, as described in the Council Plan is: The five strategic outcomes, which the Council is working with partners, communities, and businesses to deliver, and one cross-cutting theme that underpins the delivery of these outcomes, are: Place: Working together to enhance wellbeing across communities Economy: Building an inclusive, green, and resilient economy Fair: Nurturing bright, happy, and healthy futures for all Green: Leading Renfrewshire to Net Zero Living Our Values: Making a difference together Improving outcomes for Children and Families: Cross-cutting Aligned to our Council Plan is our transformation programme, Reshaping Renfrewshire, which explores how we can continue to deliver our vision, as articulated in the Council Plan, within the context of the financial challenges facing local authorities in Scotland. At its heart are the two goals of ensuring a financially sustainable long-term future and improving outcomes for our communities. Each of the four Council services prepares a Service Improvement Plan, demonstrating how they will each contribute to the delivery of the Council Plan. Work is underway to refresh the Community Plan and the Council Plan for 2027-2032. Financial Strategy The financial strategy and service plans of the Council support the delivery of the Council’s priorities outlined in the Council Plan. To achieve this, the financial strategy must ensure that resources are effectively and efficiently used in line with overall objectives; and ensure that resources are managed sustainably and in a way that continues to ensure the stability of service delivery. The medium-term Financial Outlook was reported to the Council on 25 September 2025, with a further update on 26 February 2026. These reports highlight the continued challenging financial and economic environment the Council is facing, predominantly linked to high levels of cost growth, coupled with lower real terms income growth. The Council’s medium-term financial outlook continues to be based on an assumed flat-cash revenue settlement over the short term; this, coupled with significant cost pressures, particularly around pay inflation, is the principal driver for the challenging financial outlook. On 26 February 2026, the Council decided to increase council tax for 2026/27 by 7.5%. At that time, it was reported to Council that it is estimated to be facing a £40m funding gap over the period to 2028/29, before any decisions on council tax. The Council therefore continues to target cost reductions and savings of around £20m over the medium term, and financial sustainability and stability risks remain high going into 2026/27. It should be noted that these forecasts do not include the potential impact of any additional Council support for the Renfrewshire Health and Social Care Partnership, whose financial Page 132 of 392
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4 PUBLIC outlook creates a significant financial risk for the Council. Further detail is provided later in the Financial Outlook and Key Risks section. Information on the year-end financial position of the Council at 31 March 2026 is detailed in the Financial Performance section. Review of the Year The Council reports on its progress delivering the Council Plan every six months, and the most recent report can be found here. We also publish an annual Public Performance Report, which gives residents an overview of how the Council performs in relation to its key priorities, and how we perform across the 108 indicators included in the Local Government Benchmarking Framework (LGBF). A detailed report on Renfrewshire’s performance against the LGBF indicators is considered by our Audit, Risk and Scrutiny Board every six months. Some of the key achievements we have reported on during 2025/26 are detailed below under each of our strategic themes. Key Achievements 2025/26 Place: Our new river crossing – the Renfrew bridge opened in May 2025, connecting communities on either side of the Clyde. The bridge has quickly proved to be a vital transport link, with 3.5 million journeys being recorded within the first year of opening. Our town centre regeneration plans are progressing, with a new Vision for Johnstone developed, construction underway for a new civic square in Erskine, designs being produced for the transformation of the former Brown Institute site in Renfrew, and some initial designs for landscape enhancements in the Linwood Lade area being prepared. Economy: We have continued to support our young people into post-school positive destinations and now have the second highest percentage of positive leaver destinations in Scotland, with 97.9% of our school leavers continuing with education, or moving into training or employment. The Events Programme for 2025 exceeded targets across all key performance indicators. Events delivered across the year included new events in Renfrew, Erskine, and Linwood as a result of a broader ‘five towns’ approach within the new events strategy, and new community events partnership group. The events programme generated an estimated £4.5m in economic impact. The Council’s Procurement and Economic Development teams continue to work together to support local businesses to bid for Council contracts and related work. A draft Local Supply Chain Engagement Strategy has been developed and aims to strengthen engagement with Renfrewshire’s business community, increase local supplier participation in public procurement, and improve supplier awareness, capability and readiness for public sector opportunities. Fair: A new round of participatory budgeting was delivered specifically for Council tenants. In its first year, £150,000 was made available for Renfrewshire residents to suggest projects that would improve local neighbourhoods, with tenants then voting on those to be funded. This was the first of a three-year programme with £600,000 to be distributed in total. Attainment figures for this year show that the poverty- related attainment gap has narrowed for both literacy and numeracy, and this continues to be a priority for the Council. The Council and its partners continue to work together to progress the Fairer Renfrewshire Programme, with a strong shared focus currently on the local response to cost-of-living inequality. A Fairer Renfrewshire Action Plan, agreed by the Leadership Board in December 2025, sets out the priority actions that will be progressed to tackle poverty and inequality in Renfrewshire. Green: Our Carbon Management Plan 2025-2030 was developed, setting out how we intend to reduce our emissions over the next five years. Renfrewshire Council already performs strongly relative to other Page 133 of 392
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5 PUBLIC local authorities in relation to emissions from electricity, gas and transport, as reflected in performance measures included in the Local Government Benchmarking Framework. We are participating in a regional approach to Electric Vehicle Charging, working with neighbouring authorities on procuring infrastructure. We invested £15m during the year to improve the energy efficiency of our housing stock through improved insulation, new triple glazing and solar panels. Living Our Values: As part of our focus on Best Value, the Council was subject to a Controller of Audit Best Value Report which was published in summer 2025. This was a very positive report, with no formal recommendations for the Council. ‘Areas of focus’ identified by the Accounts Commission have been added to the Corporate Improvement Plan and were detailed in a report to Council on 26 June 2025. A progress report was taken to the Leadership Board in September and work continues across all elements of the improvement agenda. We continue to have a strong focus on employee wellbeing, Initiatives in 2025/26 included the delivery of Men’s Mental Health awareness events in our Underwood Road depot, a series of ‘RenTalks’ for staff covering issues as varied as advice on personal finances and on raising teenagers, updated HR policies on equality, diversity and inclusion and respect at work, and the continued provision of services such as Time for Thriving. We carried out an extensive programme of engagement with local residents; over 1,000 people took part in interview-led surveys on perceptions of local services and Council priorities, and this was supplemented with an online survey and focus groups. We used the findings to create an action plan and intend to repeat the exercise in future years, as part of our ongoing commitment to improving our dialogue with residents and communities through future engagement opportunities. Improving Outcomes for Children and Young People: Construction is nearing completion on the Paisley Grammar School Community Campus and it will welcome pupils in August for the new 2026/27 school year. A programme of engagement activities on the next steps of our Learning Estate Strategy is planned for the remainder of this year. The Promise continues to be embedded within service planning and delivery through our active and expanding Promise Keeper network. There are currently 407 Promise Keepers working across the local authority - comprising staff, elected members, the HSCP, and partner agencies. The Keep The Promise in Renfrewshire Action Plan 2026–29 provides the route map for the next phase of implementing The Promise. Performance Indicators Our Council Plan is one way in which we report to elected members and Renfrewshire residents on our performance. The Council Plan reports on 34 indicators, of which 21 have a target. In 2025/26, 13 of our indicators met or exceeded their target, two narrowly missed the target, and two were behind target. There are four indicators for which 2025/26 data is not yet available. Council services also track additional performance indicators through their Service Improvement Plans. In 2025, the Council established an officer Performance Board to provide additional senior scrutiny over Council-wide performance. The board supports intensive improvement work and cross- Council working, and in its first year has had a particular focus on planning and building standards, customer interactions, and staff absence. This approach has allowed improvement plans to be developed and delivered in short time frames and is anticipated this will positively impact performance indicators in 2026/27. Our areas of strong performance include: • Supporting people into sustained employment; • Supporting new business start-ups; • Reducing CO2 emissions from public lighting; Page 134 of 392
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6 PUBLIC • Completing homeless duties within our target timescales; • Uptake of free school meals in primary schools; • Providing community-based placements for Looked After Children. Other areas where LGBF data indicates we have strong relative performance include: • pupil attainment at levels 5 and 6 and in numeracy at primary school level; • hospital readmissions and delayed discharges; • the condition of Class A and B roads; • rent arrears; • the time taken for non-emergency housing repairs; • financial sustainability measures; and • CO2 emissions from electricity, gas, and transport. Areas for Improvement and Development We narrowly missed our annual targets in the following areas: • The percentage of Council housing meeting Scottish Housing Quality Standards; and • The percentage of LGBF indicators where Renfrewshire Council’s performance is in the top half of Scottish Councils. There are two measures which are further behind target - one relates to affordable housing and is partly due to a change in how funding is being used, and the other is in relation to staff sickness absence, with a council-wide programme of work underway to address this. The Local Government Benchmarking Framework (LGBF) provides an opportunity for Scottish local authorities to consider their performance relative to other councils. The latest LGBF data relates to 2024/25, and although the Improvement Service have noted that the pace of improvement is slowing across the whole sector, Renfrewshire Council has improved performance on 58 out of the 92 available indicators, and increased the proportion that rank in the top 8 best performing councils. Longer-term trends show that improvements in 79% of all measures since the LGBF began, and this is a higher proportion than any of our Family Group comparator councils. The chart below shows the trend in performance – both absolute and relative to other councils – in the years since the pandemic. Page 135 of 392
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7 Annual Accounts 2025/26 PUBLIC General performance information can be found on the Council’s website at the following path: Your Council>Information, performance and statistics>Council Performance. LGBF data can be found at: Your Council>Information, performance and statistics>Council Performance>Benchmarking. Working Towards Net Zero by 2030 Renfrewshire Council’s Public Bodies Climate Change Duties reported a 4.27% emissions reduction compared with the previous year, and overall annual emissions reduction of 66.23% against the 2012/13 baseline. In November 2025, Renfrewshire Council’s Carbon Management Plan 2025-2030 was approved and published. The Plan sets out several projects across key service areas which will contribute to significant reduction in emissions over the next 5 years. These areas include Waste, Transport, Utilities, Street Lighting and Business Travel. Continued activity includes delivering change across Council operations, and large-scale projects with local benefits aligned to the five themes of Renfrewshire’s Plan for Net Zero, which are Clean Energy, Sustainable Transport, Circular Economy, Connected Communities and Resilient Place. Further detail of activity within each theme is set out in the following sections. Clean Energy: • The Council is developing outline business cases for two potential district heat networks DHN): one in Paisley, and one extending the existing AMIDS DHN to Glasgow Airport. DHNs strongly support clean energy solutions and reduced emissions on a large scale. • Year 1 of the project to upgrade and expand Building Management systems (BMS) across public buildings has been completed. This will support more energy efficient buildings and practices and reduce the Council’s emissions as a result. Year 2 projects will look at further BMS improvements and solar array expansion. • Development of the new Paisley Grammar Community Campus is nearing completion and has been built to Passivhaus standard, maximising clean energy supported by air source heat pump heating, and solar array. Sustainable Transport: • The project to accelerate the delivery of public EV Charging Infrastructure, aiming to install over 3,000 additional charge points over the coming years in collaboration with the Glasgow City Region, has progressed to procurement stage to appoint a new Charge Place Operator to take this work forward. • Continued use of hydrotreated vegetable oil (HVO) as alternative fuel for bin lorries and large fleet, reducing CO2 emissions by up to 90% and contributing to improved air quality. This is a commitment in the Council’s approved Carbon Management Plan. Circular Economy: • Exploring opportunities to maximise recycling, building on successful recycling initiatives across the school estate. An initial public buildings project is close to completion on the implementation of full recycling facilities within Renfrewshire House, followed by Underwood Road Depot. Resilient Place: • The development of an Adaptation Plan for Renfrewshire is underway supported by extensive engagement, which has taken place with internal services and external stakeholders. Once drafted, the plan will be opened for public consultation prior to being finalised. • Nature Restoration projects continue to be delivered including Restoring Renfrewshire Rivers and Biodiversity Action in Renfrewshire. Potential biodiversity sites that maximise biodiversity related benefits, in line with Nature Network corridors, are currently being identified. Page 136 of 392
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8 Annual Accounts 2025/26 PUBLIC Gender Pay Gap The gender pay gap is the difference between the average hourly rates of pay of men and women expressed as a percentage, where a positive figure indicates that women are paid less than men. A negative figure indicates that women are paid more than men. The gender pay gap is different from equal pay, which is a direct comparison of two people or groups carrying out the same or an equivalent role. At 31 March 2026, the mean gender pay gap for Renfrewshire Council was -0.81% in favour of female (-0.52% at 31 March 2025). Key Financial Ratios The following tables provide information regarding the financial performance of the Council in 2025/26 and the affordability of its ongoing commitments: Mean gender pay gap in hourly pay -0.81% Mean hourly salary £22.33 £22.15 Female Male Workforce demographics 73.45% 26.55% Female Male Employee Head Count 6,373 2,304 Female Male Page 137 of 392
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9 Annual Accounts 2025/26 PUBLIC 2024/25 Estimate Actual Actual Reserves Uncommitted General Fund reserves as a % of budgeted net expenditure 1.8% 2.0% 1.9% Reflects the level of funding available to meet unplanned expenditure and manage financial risk Movement in uncommitted General Fund balance n/a 9.7% 0.0% Reflects contribution to Unallocated balance in-year Council Tax In-year collection rate 95.0% 94.7% 94.5% Reflects the Council’s effectiveness in collecting Council Tax debt Council Tax income as a proportion of total taxation and non-specific grant income 18.5% 18.5% 18.3% Reflects the Council’s ability to vary expenditure by raising Council Tax, the principal local authority controlled source of finance Debt/Long term borrowing Capital Financing Requirement (CFR) £697.0m £650.9m £599.6m External debt £492.0m £417.2m £397.7m Ratio of financing costs to net revenue stream (General Fund) 2.7% 2.8% 2.9% Financial Indicator 2025/26 Commentary The information is this section demonstrates that the level of external debt (driven by the capital programme) is affordable, owing to the low proportion of our budget spent on servicing debt. Further information, including descriptions of these terms and their significance, is available in the Treasury Management Annual Report, presented to the June Council meeting each year. Financial Performance Primary Financial Statements The annual accounts summarise the Council’s transactions for the year, its financial position at 31 March 2026, and its cashflows. The annual accounts are prepared in accordance with the International Accounting Standards Board Framework for the Preparation and Presentation of Financial Statements as interpreted by the Code of Practice on Local Authority Accounting in the United Kingdom (“the Code”). The Primary Financial Statements include the Comprehensive Income and Expenditure Statement (CIES), Movement in Reserves Statement (MIRS), Balance Sheet and Cashflow Statement. These statements are accompanied by notes to the accounts, which provide more details on the figures shown in the statements and set out the accounting policies adopted by the Council. There are also separate statements for Council Tax, Non-Domestic Rates, the Housing Revenue Account and the Common Good Funds. The Comprehensive Income and Expenditure Statement (CIES) presents the total cost of providing Council services in 2025/26 along with the income available to fund those services. The outturn explained in the following section differs from the accounting deficit shown in the CIES due to accounting adjustments required to comply with proper accounting practice, but which under statute should not impact on local taxpayers. A reconciliation of these figures can be found in Note 1: Expenditure and Funding Analysis. General Fund The General Fund is funded by government grant and Council Tax revenues, and the Council is also able to Page 138 of 392
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10 Annual Accounts 2025/26 PUBLIC apply usable reserves from the General Fund Balance to fund expenditure. As mentioned previously, the Council’s medium-term Financial Outlook highlights the continuing challenging financial and economic environment the Council is facing, linked to inflation, coupled with slower income growth. For the General Fund in 2025/26, increases in waste costs, high inflation on vehicle parts and specialist contractors, and public building repairs, have featured in regular budget monitoring reports throughout the financial year. Further pressures emerged through the year relating to children’s social care, and staffing costs within schools. These pressures have been offset by increased investment income, additional funding relating to packaging waste disposal, and an underspend in loan charges budgeted for the learning estate, culminating in an overall service underspend against budget of £0.191m (0.03%). The Council’s largest category of spend is staffing, so naturally any pay settlement linked to high levels of inflation will create a further cost pressure. In 2025/26 a two-year national pay settlement was agreed for local government workers, of 4.0% for 2025/26 and 3.5% for 2026/27. In recognition of the challenging financial environment, the Scottish Government provided councils with additional funding to support this pay settlement in 2025/26. For Renfrewshire, this amounted to £2.6m. Adult social care had a planned year-end deficit of £5.7m, which decreased the reserves of the Renfrewshire Health and Social Care Partnership, who operate these services. As this reserve drawdown does not affect the Council’s General Fund balance, it is shown as a break-even position in the table below The Council fell just short of its target in-year council tax collection rate of 95% in 2025/26, returning a creditable 94.7%, which was an improvement on the 2024/25 collection rate. Income from Council Tax marginally over-recovered by £0.005m. After adjusting for this over-recovery in Council Tax revenues, the final position for the Council’s General Fund balance at 31 March 2026 was an underspend of £0.196m. Revised Budget Actual Variance £m £m £m Chief Executive's Service 30.217 30.195 0.022 Children's Services 273.812 275.837 (2.025) Environment, Housing and Infrastructure 78.346 78.047 0.299 Finance and Resources 51.124 50.893 0.231 Miscellaneous Services 19.907 18.243 1.664 Adult Services 112.122 112.122 0.000 Net Expenditure 565.528 565.337 0.191 Revenue Support Grant (368.933) (368.933) 0.000 Council Tax Income (108.199) (108.204) 0.005 Non-Domestic Rates Income* (108.844) (108.844) 0.000 Funding (585.976) (585.981) 0.005 Contribution to General Fund Balances (20.448) (20.644) 0.196 2025/26 *The Council collected £101.7m directly from local businesses with £7.1m due from the Scottish Government National Non- Domestic Rates Pool. Page 139 of 392
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11 Annual Accounts 2025/26 PUBLIC The Council’s Reserves The Council holds the following balances in reserve. Further details can be found in Note 7: Usable reserves. As at 31 March 2025 Usable Reserves As at 31 March 2026 £m £m 138.769 General Fund Balance 159.414 6.933 Housing Revenue Account 7.973 5.485 Capital Receipts Reserve 4.122 84.008 Other Statutory Funds 65.905 235.195 Total 237.414 The General Fund balance of £159.4m will be carried forward to 2026/27. Of this balance, £147.9m has been earmarked for a particular purpose, as outlined in Note 7: Usable reserves. This leaves unallocated reserves of £11.5m (2.0% of the Council’s net annual running costs), which is in line with levels agreed by the Council under its revised financial planning principles. It is viewed that this balance is appropriate to the financial risk environment the Council is facing, in order to mitigate adverse risks anticipated in public finances over the short to medium term. Housing Revenue Account The balance on the Housing Revenue Account (HRA) as at 31 March 2026 has increased to £7.9m. This remains a prudent level of unallocated reserves for the HRA to mitigate the impact of any unforeseen risks and to provide an element of mitigation against forecast pressures related to the prevailing economic climate. The year-end break-even position was arrived at after some budget variances were experienced in-year. Property repairs and maintenance, including voids management, significantly overspent; however, this was offset by lower capital charges and increased interest receivable following higher interest rates over the year, allowing a contribution to reserves of £1.0m. Infrastructure Assets The Scottish Government published a Statutory Override in August 2022, which has been extended to allow councils to continue the current accounting treatment for Infrastructure assets until 31 March 2027. Further detail is provided at Note 9. Capital and Borrowing Renfrewshire Council continues to make significant capital investment in council housing, schools, culture, roads and the town centre estate. On 27 February 2025, the Council approved the housing capital investment programme for 2025/26 of £56m; and the General Fund capital investment programme for 2025/26 of £129m. The capital investment programmes were affected by the availability of contractors, the complexity of refurbishment and construction works as well as high levels of inflation impacting construction costs and professional fees. Programmes have therefore been re-profiled during the year to reflect revised timescales of individual projects, or where project completion dates have been delayed, resulting in actual capital spend for the year of £44m for housing capital investment and £111m for the General Fund. Further detail is provided in Note 14: Capital expenditure and capital financing. The following charts show the actual expenditure incurred and income received in relation to the 2025/26 capital programme. Page 140 of 392
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12 Annual Accounts 2025/26 PUBLIC During the course of 2025/26 there was £64m of new long-term external borrowing to support the capital programme. The level of cash balances available to the Council remains consistent with daily cash requirements, treasury and capital investment plans. The increase in cash balances compared to 31 March 2025 is attributable in part to receipt of grant funding for the AMIDS South project late in the financial year. The Council’s borrowing strategy is prepared in accordance with the Code of Practice on Treasury Management in Local Authorities. The majority of the Council’s borrowing comes from the Public Works Loan Board with the remainder from market and other loans. Further details are provided in Note 21: Financial Instruments. The Council regulates its capital spending limits within a prudential framework recommended by CIPFA and endorsed by the Scottish Government. Each year, the Council sets its capital financing requirement (CFR) for the forthcoming year in its Treasury Management Strategy Statement (TMSS), approved by the Council on 27 February 2025 with a mid-year update on 11 December 2025. The TMSS for 2025/26 can be found on the Council Committee Management Information System at: http://renfrewshire.cmis.uk.com. The CFR is a prudent assessment of the aggregate external borrowings for capital investment purposes that are affordable and sustainable over the longer- term. The actual CFR at 31 March 2026 was £650.9m, within the approved Authorised Limit of £702.0m. The Council’s external borrowings have only been applied for capital investment purposes, with the Council’s net external debt being £417.2m at 31 March 2026 compared to the approved Operational Boundary of £674.0m. The Council’s costs of borrowing remain one of the lowest of all Scottish local authorities, are affordable, and align to the Council’s medium to long-term financial strategy. It is anticipated that borrowing costs as a proportion of net revenues will increase in future years as planned investment, predominantly in the learning estate, is completed. The Council’s non-housing financing costs were 2.8% as a proportion of the Council’s non-housing net revenue stream. Housing related financing costs as at 31 March 2026 were 19.5% of net Page 141 of 392
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13 Annual Accounts 2025/26 PUBLIC housing revenues, lower than the budgeted level of 24.5%. Net Pension Position The disclosure requirements for pension benefits under IAS19 are detailed in Notes 27 and 28. The appointed actuaries, have confirmed an increase of £109m in their assessment of the Council’s share of the actuarial position of the local government pension fund as at 31 March 2026. This is largely attributable to the corporate bond yield (upon which the pension discount rate is derived) having risen over the past year, which served to reduce the employer's pension obligations and led to the gain on the balance sheet. The assessment provides only a snapshot as at 31 March 2026 and necessarily changes on a day-to- day basis to reflect stock market movements in particular. The appointed actuaries remain of the view that the asset holdings of the Strathclyde Pension Scheme and the contributions from employees and employers provide sufficient security and income to meet future pension liabilities. Accounting rules require that a cap is placed on the value of a pension asset that can be reported in the Balance Sheet. For 2025/26, this has adjusted the value of the pension asset shown in the balance sheet from £865m to nil. The value of Unfunded liabilities at the same date is £64m. A potential change to pension rules is outlined in Note 28: Contingent liabilities; however, this has not been reflected in the pension liability reported in the Balance Sheet. Provisions and Contingencies The Council has provided for eventualities which may have a material effect on the financial position of the Council. The reasons for the provisions made are outlined in Note 20: Provisions. In general, any contingent liabilities known to the Council are covered by insurance arrangements. As outlined at Note 7, the Council has also set aside £3.2m for uninsured claims. Any contingencies that cannot yet be accurately quantified are outlined in Note 28: Contingent Liabilities. The Renfrewshire Council Group Local authorities are required to prepare Group Accounts in addition to their own Council’s accounts where they have a material interest in other organisations. The Group Accounts consolidate the results of the Council with five subsidiaries: • Renfrewshire Leisure Limited, trading as OneRen; • the Common Good Funds; • the Coats Observatory Trust; • Park Lane Developments (Renfrewshire) LLP; and • Paisley Museum Reimagined Limited. The Group Accounts also consolidate the Council’s share of five other entities treated as associates or joint ventures: • Strathclyde Partnership for Transport; • Strathclyde Concessionary Travel Scheme Joint Committee; • Renfrewshire Valuation Joint Board; • Renfrewshire Health and Social Care Integration Joint Board; and • AMIDS Renfrewshire LLP. The Council has non-material interests in a number of other entities namely Scotland Excel; and Glasgow City Region – City Deal Cabinet. Financial Outlook and Key Risks Financial Sustainability The Financial update reports throughout 2025/26 outlined continued uncertainty for local government finances. In 2020, the Council agreed Page 142 of 392
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14 Annual Accounts 2025/26 PUBLIC to replenish unallocated reserves to a threshold of £10m in order to address the risks of significant and unplanned cost pressures that may emerge over the medium term. In light of expected energy and food price volatility in the short term, a further £1m has been contributed in 2025/26. The Council continued to feel the impact of global political and economic change during 2025/26, and though general inflation did reduce from its peak of 3.8% (CPI) in summer 2025, it increased again in March 2026 to 3.3%. The Scottish Government most recently published its Medium Term Financial Strategy (MTFS) on 25 June 2025, outlining its potential spending and funding position over the subsequent 5 years. The MTFS outlined a growing financial gap for the Scottish Government, with spending pressures are expected to outstrip the resources and an estimated funding gap of £4.7 billion by 2029/30. The outlook for the local government settlement is likely to face real terms cuts over the Spending Review period. As outlined in the Revenue Estimates 2025/26 report to Council in February 2025, after adjusting for new responsibilities, areas of growing responsibility and other conditional aspects of the settlement to provide a like-for-like comparison to 2025/26, the underlying core grant for Renfrewshire Council increased by £9.9m (2.3%). Following the Council meeting, the Scottish Government announced further funding to help offset the rise in employers' National Insurance from 1 April 2025. Renfrewshire’s share of this funding was £4.793m. Existing service and cost pressures arising from pay settlements, demographic and socio-economic factors will continue to play a major role in driving spending pressures for the Council; however, the predominant focus of the Council will be addressing its projected medium-term funding gap. As reported to the Council in February 2026, the central forecast is a financial gap of £40m by the end of 2028/29, before any decisions on council tax increases. The Council continues to mitigate treasury risks, including those associated with the security of cash deposits, by actively considering debt restructuring as outlined in the Council's agreed Treasury Management Strategy. The Council also continually reviews, in consultation with its treasury advisors, the criteria for placing deposits with financial institutions on the Council’s approved counterparty list. As part of the Council’s treasury strategy, it continues to utilise internal cash balances, deferring or minimising external borrowing with the dual objectives of reducing the level of cash deposits held by the Council, whilst generating ongoing savings in net interest costs. This strategy is monitored carefully in order to ensure that the Council retains sufficient cash balances to support its ongoing requirements and remains alert to any anticipated adverse movement in future borrowing rates. Common Good Funds and Coats Observatory Trust The Council administers the Common Good Funds for the areas of Paisley, Renfrew and Johnstone, as well as the Coats Observatory Charitable Trust. In order to comply with the Code, Audit Scotland and the Office of the Scottish Charity Regulator (OSCR) requirements, the Council separately prepares the financial statements of the Coats Observatory Trust, with the financial performance of the Common Good Funds disclosed in the Council’s Annual Accounts. Balances are also included in the Group Accounts. Azets is the appointed auditor for the Coats Observatory Charitable Trust. Overall, the Common Good Funds incurred a combined in-year surplus of £3.832m which is added to the previous surplus brought forward. The Page 143 of 392
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15 Annual Accounts 2025/26 PUBLIC total net asset value improved by £3.832m, driven largely by an increase in investments of £3.007m. Both the market values of investments and income generated from dividends are likely to be subject to ongoing volatility as the economy responds to global political and economic changes, and subject to increased inflationary risk. The total net asset value of the Observatory Trust increased by £0.523m owing to investment in the Observatory as part of the Paisley Museum Reimagined project. Other Key Risks Renfrewshire Council has a robust risk management approach and strategic, corporate and service risks are monitored through our Audit, Risk and Scrutiny Board. The risks identified as Very High for the year ahead are detailed below. Risk Mitigating Actions Tackling health, wellbeing, and low- income inequalities In Renfrewshire, we seek to address persistent inequality driven by poverty, the disproportionate impact of the cost-of-living crisis on low-income households, and ongoing changes to welfare reforms through strong partnership working; through our Fairer Renfrewshire programme; through specific programmes to tackle local priorities; through national programmes such as the Scottish Attainment Challenge; and through building community capacity. A number of workstreams under the Connected Communities initiative will seek to address such unequal outcomes over the short to medium term. Partnership Financial Sustainability In common with other Scottish partnerships, the Renfrewshire Health and Social Care Partnership (HSCP) is facing significant financial pressures. Its Integration Joint Board (IJB) is currently forecasting a budget gap in 2026/27 of £7.2m. IJB reserve balances are expected to bridge this gap, but in doing so will close the 2026/27 year with reserve balances of c£6m, which will not be sufficient to cover anticipated 2027/28 budget pressures, and leaves no reserves available for future years. The Integration Scheme that governs the IJB states that should it be unable to achieve a balanced budget for future years, it would be required to seek additional funding from its partner bodies, including the Council. Successful Cyber Attack The likelihood of this risk has escalated, despite sophisticated technical security protocols and cyber architecture being in place. For those organisations who have been impacted by successful attacks, the effects are devastating. For security reasons, we do not publish details of the mitigating actions in place. The requirement to publish trade union facility‑time information arose under the Trade Union (Facility Time Publication Requirements) Regulations 2017. Following repeal of the relevant provisions of the Trade Union Act 2016 under the Employment Rights Act 2025, this statutory duty ended in February 2026. The organisation therefore no longer publishes facility‑time data for periods ending after that date. Page 144 of 392
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16 Annual Accounts 2025/26 PUBLIC Conclusion and Acknowledgements We would like to acknowledge efforts by the whole Finance team in producing the annual accounts, as well as colleagues in other services for their continued hard work and support. Further information on the annual accounts or on the Council’s general finances can be obtained on the Council website (www.renfrewshire.gov.uk), or by telephoning 0300 300 0285. Cllr Iain Nicolson Alan Russell Alastair MacArthur Leader of the Council Chief Executive Director of Finance and Resources Page 145 of 392
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17 Annual Accounts 2025/26 PUBLIC Statement of Responsibilities The Authority's Responsibilities The Authority is required to: • make arrangements for the proper administration of its financial affairs and to secure that one of its officers has responsibility for the administration of those affairs (section 95 of the Local Government (Scotland) Act 1973). In Renfrewshire Council, that officer is the Director of Finance and Resources; • manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; • ensure that the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014), and so far as is compatible with that legislation, in accordance with proper accounting practices (section 12 of the Local Government in Scotland Act 2003), and; • approve the Annual Accounts for signature. I can confirm that these annual accounts were approved for signature by the Council at its meeting on 24 September 2026. Signed on behalf of Renfrewshire Council. Cllr Iain Nicolson Leader of the Council The Director of Finance and Resources’ Responsibilities The Director of Finance and Resources is responsible for the preparation of the Authority'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 (the Accounting Code). In preparing the Annual Accounts, the Director of Finance and Resources has: • selected suitable accounting policies and then applied them consistently; • made judgements and estimates which were reasonable and prudent; • complied with legislation; and • complied with the local authority Accounting Code (in so far as it is compatible with legislation). The Director of Finance and Resources has also: • kept adequate accounting records that were up to date; and • 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 Council and its group at the reporting date and the transactions of the Council and its group for the year ended 31 March 2026. Alastair MacArthur Director of Finance and Resources Page 146 of 392
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18 Annual Accounts 2025/26 PUBLIC Annual Governance Statement Scope of responsibility Renfrewshire Council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently and effectively. The Council also has a statutory duty to make arrangements to secure best value under the Local Government in Scotland Act 2003. In discharging this overall responsibility, the Council’s members and the corporate management team are responsible for putting in place proper arrangements for its affairs and facilitating the effective exercise of its functions, which includes arrangements for the management of risk. The Council has approved and adopted a Local Code of Corporate Governance, which is consistent with the principles of the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives (SOLACE) framework; Delivering Good Governance in Local Government. A copy of the Local Code is available on our website at: www.renfrewshire.gov.uk > Your Council > Information, performance and statistics > Information Governance This statement explains how Renfrewshire Council has complied with the Local Code and also meets the Code of Practice on Local Authority Accounting in the UK, which details the requirements for an Annual Governance Statement. The purpose of the governance framework The governance framework comprises the systems and processes, and culture and values, by which the Council is directed and controlled and through which it accounts to, engages with and leads the community. It enables the Council to monitor the achievement of its strategic objectives set out in the Council Plan. The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. Internal control cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Council’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 main features of our governance arrangements are described in the Local Code but are summarised below: Corporate Governance • The Council operates within an established governance framework which incorporates a scheme of delegated functions, financial regulations, standing orders relating to contracts and procedural standing orders. These elements of the framework are kept under regular review by the Council. • The Council facilitates policy and decision making through a policy board structure. • Clear and independent governance arrangements are in place with One Ren and the Renfrewshire Health and Social Care Partnership with oversight from the Head of Policy and Partnerships and the Head of Corporate Governance respectively and the Council’s Leadership Board. In terms of One Ren specifically, the Head of Policy and Partnerships and Head of Finance and Procurement also sit on the One Ren board as Council appointed observers. A review of services commissioned by the Council from One Ren is ongoing, and as part of this process all related service and operational agreements are subject to review. • Seven Local Partnerships are in operation and have identified local priorities. Decision making Page 147 of 392
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19 Annual Accounts 2025/26 PUBLIC including that relating to relevant grants is delegated to each Local Partnership through a Lead Officer appointed by the Council, through the Chief Executive. Strategic Policy and Planning • The overarching strategic priorities and vision of the Council are set out in the Council Plan 2022- 2027, which was refreshed in 2024 to make sure our priorities were clear and focused and to reflect how quickly the context was changing. The Council Plan is aligned to the Renfrewshire Community Plan 2017-2027 and sets out 5 strategic outcomes that the organisation will work to achieve over a 5-year period with specific priorities relating to tackling inequality, promoting economic and cultural regeneration, attainment and sustainability. These strategic outcomes are underpinned by a cross-cutting theme of Improving outcomes for children and families. • Renfrewshire’s Community Plan (which also acts as Renfrewshire’s Local Outcome Improvement Plan as required by the Community Empowerment (Scotland) Act 2015) details how the Council and its community planning partners will work together to achieve the key priorities identified for Renfrewshire. A mid- term review of the Community Plan was also undertaken in 2022 in tandem with the development of the new Council Plan, which identified three key areas of focus which would be progressed by partners. • Work has recently commenced on the refresh of both plans, with a view to these being finalised by September 2027. Service Delivery and Performance Management • Services can demonstrate how their own activities link to the Council’s vision and priorities through their service improvement plans. Performance management and monitoring of service delivery is reported through policy boards regularly including six monthly updates to the Leadership Board on progress against the implementation of the Council Plan alongside six-monthly updates to policy boards on the service improvement plans. Operational reports are also provided to relevant policy boards by different services. • The Council has developed a performance management framework and uses the Pentana Portal to co-ordinate and host all performance information. • A Performance Board was established in 2025 and chaired by the Director of Environment, Housing and Infrastructure. This is an officer group with all services represented and its focus is to drive improvements in performance corporately and across Council services. Service areas can be referred for a ‘deep dive’ exercise providing access to peer support and other resources to improve performance; referrals may be from the teams themselves or from senior leadership. • Regarding Performance Monitoring, the Council Plan scorecard is considered alongside other performance information each quarter by the Performance Board (established in 2025) and areas requiring additional scrutiny can be referred up to the Corporate Management Team (CMT). The CMT has access to the Pentana portal which is updated quarterly and shows performance against all Council Plan indicators and followed up with an in-depth look at performance in one service particular area of interest at regular intervals. Performance scrutiny sessions between the Chief Executive and Directorate teams are undertaken, typically twice a year. • An annual report on the Local Government Benchmarking Framework, which includes data for over 100 indicators for all 32 local authorities, is provided to the Audit, Risk and Scrutiny Board each year. This will increase to 6 monthly in accordance with the 2025/26 Statutory Performance Direction. • The Council makes a range of performance information available on its website, including the publication of its public performance report " How are we doing?", in line with statutory requirement. • A revised Business Continuity Policy is in operation and services have business continuity plans in place. Page 148 of 392
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20 Annual Accounts 2025/26 PUBLIC Elected Members and Employees • The Council has adopted a code of conduct for its employees which is currently under review as part of the Council’s People Strategy implementation. A revised code is expected to be presented to Members for approval in the autumn 2026. Elected members adhere to the nationally prescribed Code of Conduct for Members. In addition, the Council has in place a protocol for Relationships between Political Groups, Elected Members and Officers. • Comprehensive arrangements are in place to ensure members and officers are supported by appropriate training and development, including a range of mandatory training which all staff undertake. • Registers of interests for elected members and senior officers are maintained and published on the Council’s website. Risk Management • Renfrewshire Council has a well-established approach to risk management with many positive features. During 2025/2026 the council has been progressing the recommendations from an external review undertaken the previous year. Of note, an updated Risk Matters (combined risk policy and strategy), has been prepared and approved by the Audit, Risk and Scrutiny Board in May 2026. Additionally, during 2025/2026, the risk and insurance function moved out of Internal Audit Services and is now under the leadership of the Head of Business Services, Risk and Safety. • Risks continue to be reported 6 monthly to the Audit, Risk and Scrutiny Board and a Risk Management Annual Report is also provided to Board in respect of corporate risk management arrangements. Online and in-person risk management courses continue to be available to all staff. Our innovative approach for business-as- usual risks (BaURAM © Renfrewshire Council) has now completed 3 years of operation and continues to provide valuable insight to how specific risks are being managed in practice across all areas of the council. Information Governance • The Director of Finance and Resources is the Council’s Senior Information Risk Owner and information risk is monitored through the Information Management and Governance Group and its sub-groups, including the Information Security Group. The Managing Solicitor (DPO) is the statutory Data Protection Officer. Cyber Security and Counter Fraud • Cyber-attacks are growing in both frequency and sophistication; with the evolving threat landscape being further influenced by geopolitical factors, which have increased the risk of cyber-attacks against UK public sector organisations. While no system or internal control can offer absolute protection, the Council has implemented a comprehensive, multi-layered set of cyber security controls. These controls are subject to annual testing to ensure alignment with current government standards and best practices. The Council adheres to recognised industry and public sector cyber security standards, including those set by the Public Sector Network (PSN), the National Cyber Security Centre (NCSC), the Scottish Government Public Sector Cyber Resilience Framework, and the Payment Card Industry Data Security Standards (PCI DSS). The O365 security and compliance toolset provides a wide range of protection against cyber-attacks including identity theft and phishing. • The Council holds a current Certificate of Compliance for PSN standards. ICT network and digital services are continuously monitored for threats, with ongoing vulnerability assessments conducted in partnership with our external cyber security provider. All activity is overseen by the Security & Compliance Team, led by a Security & Compliance Manager (Cyber) holding both CISSP and CISM certifications. Security events and alerts are monitored 24/7 by our cyber security partner, who are authorised to take immediate preventative action when necessary to protect systems and data and in addition the Council has a Cyber Incident Response Team (CIRT) contract in place, providing access to specialist external expertise in the event of a cyber incident. This Page 149 of 392
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21 Annual Accounts 2025/26 PUBLIC includes support for incident triage, containment and eradication, digital forensics, threat intelligence, and recovery ensuring that, alongside internal capabilities, the Council can respond effectively to incidents, minimise disruption to services, and meet regulatory and reporting obligation. • The Council complies with the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption and the Council’s arrangements for fraud prevention, detection and investigation are managed through the corporate counter fraud service. The Council’s Counter Fraud Policy was updated in November 2024. • The Council’s approach to ‘whistleblowing’ is outlined in the whistleblowing policy which was revised in April 2026 and approved by the Finance, Resources and Customer Services Policy Board to reflect the disclosure protections being brought in as part of the Employment Rights Act 2025 reforms. A session on the policy was delivered to the Council’s senior manager forum in early 2026 to promote awareness and understanding. This governance framework has been in place at Renfrewshire Council for the year ended 31 March 2026. The system of internal financial control The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management and supervision, and a system of delegation and accountability. Development and maintenance of the system is undertaken by managers within the Council. The system includes: • Guidance on financial management supported by comprehensive financial regulations and codes; • Comprehensive budgeting systems, and detailed guidance for budget holders; • Regular reviews of periodic and annual financial reports which indicate financial performance against the forecasts; • Setting targets to measure financial and other performance; • Clearly defined capital expenditure guidelines; • As appropriate, formal project management principles; • The Chief Finance Officer is the Director of Finance and Resources who complies with the CIPFA Statement on the Role of The CFO in Public Services. The role and responsibilities of the Audit Committee and the Chief Auditor The role of the audit committee is under the remit of the Audit, Risk and Scrutiny Board, which is chaired by an independent elected member, its role includes: • to approve the internal audit charter and annual internal audit plans; • to review internal and external audit reports and the main issues arising, including those relating to the annual accounts and seek assurance that action has been taken and make recommendations to the Council where appropriate; • to receive and consider the Chief Auditor’s annual report, summarising internal audit activity and the level of assurance this provides over the arrangements for internal control, risk management and governance within the Council; • to monitor the performance of Internal Audit; • to consider the annual review of the Local Code of Corporate Governance. The internal audit service operated in accordance with Public Sector Internal Audit Standards during 2025/26 and reports to the Audit, Risk and Scrutiny Board. Internal audit undertakes an annual programme of work, approved by the Board, based on a strategic risk assessment. The Council’s Chief Auditor provides an independent opinion on the adequacy and effectiveness of the governance framework, risk management and internal control. The Council conforms to the requirements of the CIPFA Statement on the Role of the Head of Internal Audit (2019). Page 150 of 392
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22 Annual Accounts 2025/26 PUBLIC Members and officers of the Council are committed to the concept of sound governance and the effective delivery of Council services. The Audit, Risk and Scrutiny Board complies with the CIPFA guidance Audit Committees: Practical Guidance for Local Authorities and Police. The Council’s Chief Auditor has responsibility to review independently and report to the Audit, Risk and Scrutiny Board annually, to provide assurance on the adequacy and effectiveness of the Local Code and the extent of compliance with it. The Audit, Risk and Scrutiny Board performs a scrutiny role in relation to the application of the Local Code of Corporate Governance and regularly monitors the performance of the Council’s Internal Audit service. Internal Audit reporting arrangements include communication of finalised audit engagements, monitoring the progress of agreed management actions and communication of any unacceptable risk identified to the Board. Review of effectiveness and continuous improvement Renfrewshire Council has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness of the framework is informed by the work of the Corporate Management Team who have responsibility for the development and maintenance of the governance environment, the Chief Auditor’s annual report, and reports from the external auditors and other review agencies and inspectorates. The effectiveness of the governance framework and how the organisation manages its risks is reviewed annually by the Corporate Management Team, including the use of an annually updated self- assessment tool covering twelve key areas of governance, internal control and risk as follows: • Asset Management • Complaints, Comments and Claims • Financial Control and Governance • Health and Safety, and managing adverse events • Information Handling • Organisational Resilience • Partnership Management • People, Wellbeing and Development • Programme Management • Service Performance • Community and Public Safety This self-assessment indicated the governance framework is being complied with in all material respects. The 2025/26 outturn compares favourably with 2024/25, with only one limited assurance score in the Information Handling module compared to six limited assurances over six modules. In addition, the review of the effectiveness of the governance arrangements and the systems of internal control within the group entities places reliance upon the individual bodies’ management assurances in relation to the soundness of their systems of internal control. The Council’s approach to continuous improvement has several strands and is closely aligned to our Council value of “we value learning”. Our Council Plan and Service Improvement Planning processes drive much of this and allow for elected member scrutiny of improvement activity. Services also undertake improvement work linked to their core duties and to statutory requirements. Registered services in education, housing, social work and social care regularly undertake self-assessment activity as part of their regulatory framework and inspection process. Services within Environment, Housing and Infrastructure maintain their ISO 9001 accreditation as one means of demonstrating quality. A Transformation Board (officer group) has been established to provide strategic oversight of the Reshaping Renfrewshire programme. Chaired by the Director of Finance and Resources, this group has a membership of senior officers across the Council and reviews the progress of all major projects and programmes across the organisation, explores and manage interdependencies, shares learning and Page 151 of 392
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23 Annual Accounts 2025/26 PUBLIC supports the management and prioritisation of resources across the programme. The Council continues to recognise the need to exercise strong financial management arrangements to manage the financial pressures common to all local authorities and it has robust financial control and financial planning processes in place. The CIPFA Financial Management (FM) Code was first adopted by the Council in June 2021, and the resulting action plan contained 59 improvement actions. There are currently 8 outstanding actions still in progress, most of a longer-term nature, with target dates up to December 2026. Work to refresh the initial engagement will be undertaken by the end of 2026/27 to ensure that improvement work continues to be focused, relevant and effective. The Council continues to manage a number of very significant issues and is operating within a context of new and emerging challenges which require the Council to respond very flexibly to the changing needs of local businesses, communities and citizens. These factors include: • Ongoing economic and geopolitical uncertainty and volatility, which has significantly increased costs and impacted supply chains utilised by the Council and its partners. The linked cost of living crisis has also required the Council to respond in new ways with partners to meet the needs of those most vulnerable across Renfrewshire through our Fairer Renfrewshire Programme and Action Plan. This remains under regular review, most recently to consider the impacts of the conflict in the middle east in terms of local household income as well as in relation to the Council and its expenditure. • Inflationary cost pressures, including those linked to pay, continue to significantly impact the Council’s financial position. The Council continues to progress its long-term change and transformation programme which will drive a range of service improvements and financial savings across the organisation over both the short and medium term. • Demand pressures on Council services continue to be experienced particularly in relation to areas such as housing and homeless services and the provision of support through, for example, the Scottish Welfare Fund. • New and emerging policy developments at a Scottish and UK government level, including in relation to employment legislation, immigration, education provision including reduced class contact time and the public service reform agenda in Scotland, particularly in relation to health and social care and education. • Responding to the changing needs of our local population, particularly in relation to migration and asylum, support for refugee resettlement and overall population growth which is projected to continue into the longer term. • Continuing to embed new ways of working across all aspects of our service delivery. This includes building on new working practices following the pandemic through hybrid and flexible working opportunities, as well as embracing the opportunities that can be realised through new advances such as AI. • Progressing the next phase of the Council’s transformation journey – Reshaping Renfrewshire which will focus on improving outcomes for local communities and residents, whilst addressing the ongoing financial challenges facing the Council over the medium term. The programme also has a strong focus on delivering against key corporate priorities such as place shaping – focusing on investment in infrastructure such as housing and our learning estate. • Building trust and engagement mechanisms with local stakeholders is a particular priority for the Council strategically and at a service level. Building on our consultation and engagement strategy and the results from our resident research, a strong commitment has been made to strengthening the Council’s approach to listening and engaging authentically with citizens and communities. It is recognised that trust in public sector authorities is reducing, and the Council will Page 152 of 392
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24 Annual Accounts 2025/26 PUBLIC need to respond positively to address this, including by tackling issues such as mis/dis/mal information. • Regardless of the Council’s technical preparedness for a cyber-attack, the threat remains acute and present, as evidenced by successful attacks on other public sector organisations, with the risk of significant impact on council operations. Audit Scotland introduced a new approach to auditing Best Value in local government which commenced in 2023 as part of the next 5-year Best Value Audit programme. This approach involves thematic areas of focus each year which will be considered for all local authorities within the same snapshot in time rather than the previous rolling programme of deep dive audits which inspect each local authority across a five-year programme. These reviews have included leadership and governance, workforce innovation and transformation. The thematic review in 2026 will consider asset management. The Council has received positive reports in relation to each of the thematic reviews which have each been presented to the Audit Risk and Scrutiny Board by the Council’s external auditors, Azets. Following a report to the Accounts Commission in 2024 in relation to Dargavel Primary School and the related s102 process, the Council was notified that further updates in relation to the s102 report would be incorporated within wider best value audit activity planned for Renfrewshire Council, which would be accelerated to early 2025. The Best Value Audit process was undertaken during 2025, with findings being reported in May 2025 by the Accounts Commission. Overall the report was very positive with it being noted that: ‘Renfrewshire Council has a strong commitment to improving, including creating a positive culture, supporting its staff to develop as leaders, and focusing on engaging with residents. It must now talk to them about tough spending decisions that lie ahead.’ The 2024/25 Action Plan from the separate self- assessment against the CIPFA guidance for effective Audit Committees which was undertaken with the members of the Audit, Risk and Scrutiny Board has now been implemented and the agreed actions are currently being progressed. The external auditors, Azets, provided an unqualified audit opinion on the 2024/25 annual accounts and concluded in their annual audit report that the vision, leadership and governance arrangements were effective and appropriate. Regular reviews of the Council’s governance arrangements are undertaken by internal audit. The programme of work undertaken by internal audit during 2025/26 identified three occasions where a limited assurance level was given in relation to the internal control, risk management and governance objectives for the specific areas of each audit review. All were specific to individual service areas and although these areas require to be addressed there is no significant impact on the Council’s overall system of internal control and action plans are in place to address the risk identified. In addition, internal audit conducted two investigative reviews of grant funding given to community organisations and these identified that the Council governance arrangements for grants were unsatisfactory and the Council’s grant conditions required to be reviewed. This is being progressed by Senior Management. Internal audit undertakes an annual exercise to ensure that recommendations arising from internal audit engagements have been implemented by service management and the results are reported to the Audit, Risk and Scrutiny Board. This work highlighted that 85% of recommendations were implemented by the due date, 14% had passed their original due date and revised implementation dates have now been set and 1% were superseded. Of the 33 recommendations followed up that were deemed to be critical, 27 have been fully implemented and 6 has been partially implemented. Revised Page 153 of 392
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25 Annual Accounts 2025/26 PUBLIC implementation dates have been agreed for each of the partially implemented recommendations. It is our view that the Council has in place a sound framework for governance, risk management and internal control and that appropriate mechanisms are in place to identify any areas of weakness. This is corroborated by an Annual Report incorporating the Annual Assurance Statement prepared by the Council’s Chief Auditor stating that subject to management addressing the critical and important recommendations made and the limited assurance report findings, it is considered that reasonable assurance can be placed upon the adequacy and effectiveness of the Council’s internal control, risk management and governance arrangements. Forward look on governance Three main developments have been identified which are likely to further strengthen governance arrangements in the forthcoming year: At the Leadership Board on 29 April 2026, it was agreed that the Council will progress the AI Transformation Programme 2026 -2030 Business Case. As part of that process various elements of governance and Elected Member oversight were agreed. This included the creation of three specific officer groups each dealing with specific matters arising from the project. The AI Strategic Programme Officer Board (chaired by the Chief Executive) will provide the overall strategic direction and oversight of the project, with key responsibilities including, approving programme priorities, ensuring alignment with corporate and service strategies, monitoring delivery progress, managing financial oversight and accountability, and reviewing risks and mitigation plans. The AI Programme Delivery Team (chaired by the Programme Lead) will coordinate day-to-day activity, working closely with services to plan, test, deploy and optimise AI solutions, with key responsibilities including coordinating technical delivery, managing sprint cycles and deployment plans, ensuring compliance with governance decisions, supporting services with implementation activities, and monitoring early impact and usage data. The Ethics and Assurance Board (chaired by the Head of Corporate Governance) will ensure responsible AI deployment with key responsibilities including reviewing Data Protection Impact Assessments, ensuring GDPR compliance, upholding ethical AI principles, monitoring fairness, transparency and accountability, and ensuring human oversight in all critical decision-making processes. To ensure Elected Member oversight of the project it was agreed that regular updates on the AI Transformation Programme 2026 – 2030 will be brought to the Leadership Board at appropriate key junctures as the overall programme is progressed over the next 3+ years, and that a 6-monthly ‘AI Transparency Report’ will also be brought to the Leadership Board outlining AI tools used by the Council, the purpose and function of each system, any data-protection or equality assessments undertaken, changes since the previous report, and any identified risks, mitigations or recommendations for future deployment.” Following on from the Internal Audit investigative reviews of grants, management acknowledged that the processes for awarding of grants throughout the Council to third party organisations were inconsistent and that the Council’s Conditions of Grant required updating. A governance review of grant processes is therefore planned to commence in 2026/27. Reflecting the approach set out and reported through the Reshaping Renfrewshire Transformation and Change Programme to the Council’s Leadership Board in February 2026, evaluation findings from the leadership programme, alongside insights from the Cultural Assurance Model (CAM), are being used to inform a more targeted and risk-based approach to leadership development for line managers and senior officers across the Council. This represents a move away from time-limited development programmes towards a more sustained focus on leadership capability as an enabler of effective governance and Page 154 of 392
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26 Annual Accounts 2025/26 PUBLIC assurance. Leadership development activity will prioritise the behaviours and capabilities that evidence shows have the greatest impact on performance, assurance, and team climate. As part of this next phase, a new managers’ induction module will be introduced to provide a consistent foundation for colleagues taking on management responsibilities within the Council. The module will support new starters to understand their role in managing performance, risk, governance and assurance from the outset, while existing managers will also be encouraged to complete it to reinforce core expectations. This approach recognises transition into management as a point of heightened organisational risk and supports more consistent managerial accountability and assurance across services. In parallel, work is underway to design a dedicated development offer for newly appointed Chief Officers, whether recruited internally or externally. This programme will provide structured, assessment- informed development alongside coaching and mentoring, supporting effective transition into role, early establishment of leadership authority, and understanding of the Council’s organisational, governance and cultural context. The intention is to launch the programme in autumn 2026 as part of a more coherent, end-to-end leadership development pathway that supports succession planning, long- term organisational resilience, and strengthened corporate governance. Work, planning for the next local government elections and the new council in 2027, has commenced throughout the Council and a highly experienced group of staff will lead and deliver workstreams that support electoral event with integrity. In addition, our external auditors Azets will undertake planned annual best value audit activity in Summer 2026, with a key focus on the Council’s activities in relation to Fairness and Inequality. Any related findings will be reported as per the standard process through the Annual Audit report in September 2026. Action Plan Following consideration of the review of adequacy and effectiveness the following action plan has been agreed to ensure continual improvement of the Council’s governance. Agreed action Responsible person Date Undertake review of Council’s conditions of grant and produce updated internal guidance on grants management processes. Head of Policy and Partnerships December 2027 Implement actions arising from the Audit, Risk and Scrutiny Board Member’s self-assessment which are detailed in the ARSB Annual Report, reported to Council in May 2026. Head of Corporate Governance/Chief Auditor March 2027 Update on Previous Action Plans The agreed actions will be subject to review to identify the progress being made in implementing these actions. Page 155 of 392
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27 Annual Accounts 2025/26 PUBLIC 2024/25 Action Plan Agreed action Progress Update Responsible person Date Implement recommendations from Best Value Reports, including the follow up report on the council’s approach to community engagement and culture change All recommendations are incorporated as actions within the Council’s agreed Corporate Improvement Plan. Updates on progress are reported on a 6 monthly basis to Leadership Board. The last update was provided in February 2026 and noted the majority of actions were now complete with a small number of longer term actions being implemented on an ongoing basis, but within agreed deadlines. Chief Executive & Director of Finance and Resources Complete Implement the new Statutory Performance Information Direction in line with statutory timescales All requirements relating to the new SPI Direction have been fully implemented – this includes amendments to our public performance report and increased frequency of reporting of Local Government Benchmarking data to Audit Risk and Scrutiny Board. Head of Policy and Partnerships Complete Address the improvement action arising from the independent review of the Council’s Risk Management Arrangements All agreed recommendations are being taken forward and are incorporated into the Strategic Risk Management Development Plan. The progress of this plan is monitored over the life cycle of the Risk Management Policy and progress is reported as part of the Annual Report. Director of Finance and Resources Complete 2023/24 Action Plan Agreed action Progress Update Responsible person Date Implement improvement plan arising from the Corporate Self-Assessment Exercise. With one exception , all of these actions have been completed. The development of a webpage on transformation is currently being progressed. Head of Policy and Partnerships September 2026 Page 156 of 392
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28 Annual Accounts 2025/26 PUBLIC Agreed action Progress Update Responsible person Date The recommendations arising from the review of the corporate health and safety internal audit report, will be considered and an action plan developed for implementation. Recommendations have been actioned, with one ongoing (the procurement and implementation of a H&S management system) which is progressing. Director of Finance and Resources Complete 2022/23 Action Plan All the agreed improvement actions are now complete. Assurance Subject to the above, and on the basis of the assurances provided, we consider the governance and internal control environment operating during 2025/26 provides reasonable and objective assurance that any significant risks impacting on the achievement of our principal objectives will be identified and actions taken to avoid or mitigate their impact. Systems are in place to continually review and improve the governance and internal control environment and action plans are in place to address identified areas for improvement. Cllr Iain Nicolson Alan Russell Leader of the Council Chief Executive Page 157 of 392
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29 Annual Accounts 2025/26 PUBLIC Remuneration Report The Local Authority Accounts (Scotland) Amendment Regulations 2014 (SSI No. 2014/200) amend the Local Authority Accounts (Scotland) Regulations 2011 (SI No 2011/64) and requires local authorities in Scotland to prepare a Remuneration Report as part of the annual statutory accounts. All information disclosed in sections 3 to 8 in this Remuneration Report will be audited by the Council’s appointed auditor, Azets. The other sections of the Remuneration Report will be reviewed by Azets to ensure that they are consistent with the financial statements. It should be noted that due to the commencement of Section 66 of the Employment Rights Act 2025, public bodies in Scotland are no longer required to include disclosures in their annual report or accounts relating to Trade Union Facility Time. As a result, this section (formerly section 9) is now removed from the Remuneration Report. 1. Remuneration Policy for Senior Employees The salary of senior employees is set by reference to national arrangements. The Scottish Joint Negotiating Committee (SJNC) for Local Authority Services sets the salaries for the Chief Executives of Scottish local authorities. The salaries of the Corporate Directors and Heads of Service are based on a spinal column point model as agreed by the Finance and Resources Policy Board on 14 May 2014. Senior employees received a 4.0% pay award in 2025/26. In December 2025, Council Leaders (through COSLA) implemented a new pay framework for Scottish local authority Chief Executives. In line with the Council’s established pay relationships, this had a consequential impact on the salary levels of Chief Officers whose pay is linked to the Chief Executive. 2. Remuneration policy for the Leader of the Council, the Provost and Senior Councillors The annual salary of the Leader of the Council and the upper limit for the annual salary of the Provost (or civic head) are set by the Scottish Government in terms of the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2007, as amended by the Local Governance (Scotland) Act 2004 (Remuneration) Amendment Regulations 2025. The salary for the Leader of the Council in 2025/26 was £50,063 per annum (£42,698 in 2024/25) and the salary for the Provost was £37,548 per annum (£32,024 in 2024/25). In terms of the same Regulations, the Scottish Government permits Renfrewshire Council to nominate up to 14 senior councillors (in addition to the Leader of the Council and the Provost), whose salaries in aggregate must not exceed a specified amount, in 2025/26 being £444,705 per annum; and whose salaries individually must be on a specified scale, in 2025/26 £25,028 to £37,458. At the Council meeting of 30 June 2022, it was agreed that Renfrewshire Council would have 13 senior councillors: six Policy Board Conveners (salary of £36,885 per annum in 2025/26); four Regulatory Board Conveners (salary of £29,924 in 2025/26); Chair of OneRen Board and Chair of Integration Joint Board (salary of £36,885 in 2025-26); Chair of Valuation Joint Board (salary of £28,207 in 2025/26), and one Leader of the Opposition (salary of £29,924 in 2025/26). 3. Remuneration of Senior Employees The regulations define a senior employee as any employee who meets one or more of the following criteria: • has responsibility for the management of the 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. Page 158 of 392
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30 Annual Accounts 2025/26 PUBLIC • 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. • whose annual remuneration, including any annual remuneration from a local authority subsidiary body is £150,000 or more. The Council has interpreted the above criteria as including the Chief Executive, Directors and the Chief Executive of OneRen. The term ‘remuneration’ means gross salary, fees and bonuses, allowances and expenses and compensation for loss of office. The table below outlines the remuneration details for senior employees, including prior year figures. The table shows the relevant amounts, before tax and other deductions, due to, or receivable by, each of the persons named for the year to 31 March 2026, whether or not those amounts were actually paid to, or received by, those persons within that period. There were no non-consolidated bonuses or performance-related payments made to any senior officer in 2025/26. 2024/25 Total Remuneration Total Remuneration £ £ 181,134 Alan Russell Chief Executive 184,806 144,953 Alastair MacArthur Director of Finance and Resources 149,498 143,953 Gordon McNeil Director of Environment, Housing & Infrastructure 149,498 138,112 Janie O'Neil Director of Children's Services 149,498 608,152 Total 633,300 Senior employees Name Post held 2025/26 In 2025/26, there was no renumeration received by Senior Officers in connection with election activities. In 2024/25 this was £10,996. 2024/25 2025/26 Total Remuneration Total Remuneration £ £ 120,016 Victoria Hollows 125,534 120,016 125,534 Chief Executive, OneRen Total Name Senior Employees of Subsidiary Bodies Post held 4. Remuneration of Senior Councillors Under the regulations, remuneration disclosures are to be made for the Leader of the Council, the Civic Head and any Councillor designated as a Senior Councillor by the Council. The table below shows the relevant amounts, before tax and other deductions, due to each of the persons named for the year to 31 March 2026, whether or not those amounts were actually paid or received within that period and relate only to the Senior Councillor posts indicated. Page 159 of 392
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31 Annual Accounts 2025/26 PUBLIC 2024/25 2025/26 Total Remuneration Name Position held Total Remuneration £ £ 42,698 Iain Nicolson Leader Of the Council 50,063 32,024 Lorraine Cameron Provost 37,548 30,746 Michelle Campbell Policy Board Convener 36,885 30,746 Marie McGurk Policy Board Convener 36,885 30,746 Jim Paterson Policy Board Convener 36,885 30,746 Emma Rodden Policy Board Convener 36,885 30,746 John Shaw Policy Board Convener 36,885 30,746 Andy Steel Policy Board Convener 36,885 25,522 Stephen Burns Regulatory Board Convener 29,924 25,522 Andy Doig Regulatory Board Convener 29,924 25,522 Cathy McEwan Regulatory Board Convener 29,924 25,522 John McNaughtan Regulatory Board Convener 29,924 30,746 Jennifer Adam Chair/Vice Chair IJB 36,885 30,746 Lisa-Marie Hughes Chair, OneRen 36,885 25,522 Iain McMillan Leader of largest opposition group 29,924 448,300 532,311Total Senior Councillors No payments were made in connection with loss of employment or office, nor were any other payments made which are not included in the table. 5. Pension Entitlement Pension benefits for councillors and local government employees are provided through the Local Government Pension Scheme (LGPS). Councillors’ pension benefits are based on career average pay. 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 of the month in which their membership of the scheme ends. The total of the revalued pay is then divided by the period of membership to calculate the career average pay. This is the value used to calculate the pension benefits. From 1 April 2015 benefits for local government employees are based on career average pay. Pension benefits are based on the pay received for each year in the scheme increased by the increase in the cost of living, as measured by the appropriate index (or indices). The scheme’s normal retirement age is linked to the state pension age of each member. 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 tiers and members contribution rates are as follows: Equivalent bandings for 2024/25 Up to £27,500 5.5% Up to £27,000 £27,501 to £33,600 7.25% £27,001 to £33,000 £33,601 to £46,100 8.5% £33,001 to £45,300 £46,101 to £61,400 9.5% £45,301 to £60,400 Over £61,401 12% Over £60,401 Tiered contribution rates on whole time pay 2025/26 If a person works part-time their contribution rate will be based on their part-time pay. There is no automatic entitlement to a lump sum. Members may opt to give up (commute) pension for Page 160 of 392
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32 Annual Accounts 2025/26 PUBLIC lump sum up to the limit set by the Finance Act 2004. The accrual rate guarantees a pension based on 1/49th of pensionable pay for each year of membership, adjusted in line with the cost of living (prior to 2015 the accrual rate guaranteed a pension based on 1/60th of final pensionable salary). 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 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 entitlements for Senior Employees and Senior Councillors for the year to 31 March 2026 are shown in the table below, together with the contribution made by the Council to each individual’s pension during the year. Any senior employees or councillors omitted from the following tables are not members of the Local Government Pension Scheme (LGPS). 2025/26 2024/25 Pension Lump Sum Pension Lump Sum £ £ £000 £000 £000 £000 Alan Russell Chief Executive 11,965 11,541 97 118 11 13 Alastair MacArthur Director of Finance and Resources 9,682 9,412 75 89 8 9 Gordon McNeil Director of Environment, Housing & Infrastructure 9,682 9,412 61 41 7 4 Janie O'Neil Director of Children's Services 9,679 9,129 18 0 3 0 41,008 39,494 251 248 29 26Total Senior Employees Name Post held In-year pension contributions by Renfrewshire Council Accrued pension benefits as at 31 March 2026 Change in accrued pension benefits since 31 March 2025 2025/26 2024/25 Pension Lump Sum Pension Lump Sum £ £ £000 £000 £000 £000 Victoria Hollows Chief Executive, OneRen 8,131 7,939 58 57 7 4 8,131 7,939 58 57 7 4 Senior Employees of Subsidiary Bodies Name Post held In-year pension contributions by Renfrewshire Leisure Accrued pension benefits as at 31 March 2026 Change in accrued pension benefits since 31 March 2025 Total The following table reports on in-year pension contributions relating to senior councillor positions only. Pension benefits shown relate to those that the individual has accrued as a consequence of their total local government service and not just their current appointment. Page 161 of 392
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33 Annual Accounts 2025/26 PUBLIC 6. Councillors’ remuneration The Council paid the following amounts to its elected members (councillors) during the year. 2025/26 2024/25 Pension Lump Sum Pension Lump Sum £ £ £000 £000 £000 £000 Iain Nicolson Leader Of the Council 3,239 2,822 13 3 1 0 Michelle Campbell Policy Board Convener 2,386 2,032 5 0 1 0 Marie McGurk Policy Board Convener 2,386 2,032 7 0 1 0 Jim Paterson Policy Board Convener 2,386 2,032 6 0 1 0 Emma Rodden Policy Board Convener 2,386 2,032 5 0 1 0 John Shaw Policy Board Convener 2,386 2,032 6 0 1 0 Andy Steel Policy Board Convener 2,386 2,032 6 0 1 0 John McNaughtan Regulatory Board Convener 1,936 1,687 5 0 1 0 Stephen Burns Regulatory Board Convener 1,936 1,687 5 0 1 0 Andy Doig Regulatory Board Convener 1,936 1,687 5 0 1 0 Jennifer Adam Chair/Vice Chair IJB 2,386 2,032 6 0 1 0 Lisa-Marie Hughes Chair, OneRen 2,386 2,032 6 0 1 0 Iain McMillan Leader of largest opposition group 1,936 1,687 2 0 0 0 Total 30,071 25,826 77 3 12 0 Leader of the Council, Provost, Senior councillors Name Post held In-year pension contributions by Renfrewshire Council Accrued pension benefits as at 31 March 2026 Change in accrued pension benefits since 31 March 2025 2024/25 2025/26 £ £ 1,051,873 Salaries 1,262,442 917 Travel costs – reimbursed 1,609 5,456 Travel costs – paid directly by the Council 6,473 2,951 Training and Conferences 4,033 0 Telephone and information technology expenses – reimbursed 53 2,983 Telephone and information technology expenses – paid directly by the Council 2,508 1,064,180 Total 1,277,118 The public record of members' salaries, allowances and expenses for 2025/26 is available for inspection on the Register of Councillors’ Interests page of the Council’s website and navigating to: Your Council>Councillors> Record of councillor salaries, allowances, expenses and training register. Page 162 of 392
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34 Annual Accounts 2025/26 PUBLIC 7. Remuneration of Employees The following table gives a statement of the number of employees whose remuneration, excluding pension contributions, was in excess of £50,000 during 2025/26, in bands of £5,000; and also details of the number of those employees highlighted who left the employment of the Council during 2025/26. This information includes those senior employees who are subject to the fuller disclosure requirements in the tables above. Note that leavers may be included due to retirement or redundancy costs. Bands with nil employees for both years are not shown. Teachers Non-teachers Total Remuneration band Teachers Non-teachers Total 228 159 387 £50,000 to £54,999 550 125 675 65 64 129 £55,000 to £59,999 81 98 179 102 58 160 £60,000 to £64,999 75 39 114 84 47 131 £65,000 to £69,999 89 48 137 76 13 89 £70,000 to £74,999 70 24 94 27 19 46 £75,000 to £79,999 70 22 92 9 7 16 £80,000 to £84,999 9 6 15 3 4 7 £85,000 to £89,999 8 5 13 6 1 7 £90,000 to £94,999 2 1 3 1 6 7 £95,000 to £99,999 6 3 9 1 2 3 £100,000 to £104,999 0 2 2 2 4 6 £105,000 to £109,999 4 2 6 0 0 0 £110,000 to £114,999 0 6 6 0 5 5 £115,000 to £119,999 0 0 0 0 0 0 £125,000 to £129,999 0 6 6 0 0 0 £130,000 to £134,999 0 1 1 0 1 1 £135,000 to £139,999 0 0 0 0 2 2 £140,000 to £144,999 0 0 0 0 0 0 £145,000 to £149,999 0 3 3 0 1 1 £170,000 to £174,999 0 0 0 0 0 0 £175,000 to £179,999 0 1 1 604 393 997 964 392 1,356 2024/25 2025/26 In 2025/26, there was one employee that was only included in this table because they left and received a termination payment (six in 2024/25). 8. Exit Packages The Council has agreed a number of exit packages in 2025/26 as detailed in the table below. The exit packages agreed were all on a voluntary basis; there were no compulsory redundancies. The Council only agrees exit packages where they are consistent with wider workforce planning and service delivery objectives; and where the savings accruing from an individual ceasing employment with the Council are sufficient to pay back the costs of the exit package within an acceptable period. The assessment of the payback period takes account of the total costs of the exit package. The total exit package costs in the table below include redundancy, pension strain and compensatory lump sum payments; and also, the notional capitalised costs of compensatory added years. These notional costs are not Page 163 of 392
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35 Annual Accounts 2025/26 PUBLIC based on actual costs, but are the estimated present value of projected costs over the lifetime of the individuals in receipt of the exit package, based on the following assumptions: 2025/26 2024/25 Future Life expectancy at age 65 – males 20.8 years 20.5 years Future Life expectancy at age 65 – females 24.2 years 24.1 years Pension increase rate 3.00% 2.80% Discount Rate 6.20% 5.80% Value Value £m £m £0 - £20,000 0 0.000 6 0.046 £20,001 - £40,000 0 0.000 2 0.059 £40,001 - £60,000 2 0.103 4 0.203 £60,001 - £80,000 0 0.000 2 0.145 £80,001 - £100,000 1 0.083 2 0.176 £100,101 - £150,000 0 0.000 3 0.365 £150,101 - £200,000 2 0.325 3 0.497 £200,001 - £250,000 1 0.239 0 0.000 £350,001 - £400,000 1 0.353 0 0.000 Total 7 1.103 22 1.491 Exit Package Cost 2025/26 2024/25 Number of Employees Number of Employees Cllr Iain Nicolson Alan Russell Leader of the Council Chief Executive Page 164 of 392
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36 Annual Accounts 2025/26 PUBLIC Independent auditor’s report to the members of Renfrewshire Council and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements We certify that we have audited the financial statements in the annual accounts of Renfrewshire Council and its group for the year ended 31 March 2026 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the Group and Council-only Comprehensive Income and Expenditure Statements, Movement in Reserves Statements, Balance Sheets, Cash Flow Statements, the Council-only Common Good Funds Income and Expenditure Statement, the Council-only Common Good Funds Balance Sheet, the Council- only Housing Revenue Account Income and Expenditure Statement, the Movement on the Housing Revenue Account Statement, the Council Tax Income Account, and the Non-Domestic Rates Income Account, and notes to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (the 2025/26 Code). In our opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the council and its group as at 31 March 2026 and of the income and expenditure of the council and its group for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2025/26 Code; and • have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003. Basis for opinion We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We were appointed by the Accounts Commission on 18 May 2022. Our period of appointment is five years, covering 2022/23 to 2026/27. We are independent of the council and its group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the council. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern basis of accounting We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the ability of the council and its group to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. Page 165 of 392
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37 Annual Accounts 2025/26 PUBLIC These conclusions are not intended to, nor do they, provide assurance on the current or future financial sustainability of the council and its group. However, we report on the council’s arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website. Risks of material misstatement We report in our Annual Audit Report the most significant assessed risks of material misstatement that we identified and our judgements thereon. Responsibilities of the Director of Finance and the Council for the financial statements As explained more fully in the Statement of Responsibilities, the Director of Finance and Resources is responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the Director of Finance and Resources determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Director of Finance and Resources is responsible for assessing the ability of the council and its group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the operations of the council and its group. The Council is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using our understanding of the local government sector to identify that the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003 are significant in the context of the council and its group; • inquiring of management as to other laws or regulations that may be expected to have a fundamental effect on the operations of the council and its group; • inquiring of the management and the Convener of the Audit, Risk and Scrutiny Board concerning the policies and procedures of the council and its group regarding compliance with the applicable legal and regulatory framework; • discussions among our audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and • considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. Page 166 of 392
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38 Annual Accounts 2025/26 PUBLIC The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the council’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Reporting on other requirements Opinion prescribed by the Accounts Commission on the audited parts of the Remuneration Report We have audited the parts of the Remuneration Report described as audited. In our opinion, the audited parts of the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Other information The Director of Finance and Resources is responsible for the other information in the annual accounts. The other information comprises the Management Commentary, Annual Governance Statement, Statement of Responsibilities and the unaudited parts of the Remuneration Report. Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Management Commentary and Annual Governance Statement to the extent explicitly stated in the following opinions prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Management Commentary and Annual Governance Statement In our opinion, based on the work undertaken in the course of the audit: the information given in the Management Commentary for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with statutory guidance issued under the Local Government in Scotland Act 2003; and the information given in the Annual Governance Statement for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Delivering Good Governance in Local Government: Framework (2016). Matters on which we are required to report by exception We are required by the Accounts Commission to report to you if, in our opinion: Page 167 of 392
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39 Annual Accounts 2025/26 PUBLIC adequate accounting records have not been kept; or the financial statements and the audited parts of the Remuneration Report are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Conclusions on wider scope responsibilities In addition to our responsibilities for the annual accounts, our conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in our Annual Audit Report. Use of our report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Rebecca Lister, (for and on behalf of Azets Audit Services), Quay 2 139 Fountainbridge Edinburgh EH3 9QG Date: Page 168 of 392
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40 Annual Accounts 2025/26 PUBLIC Comprehensive Income and Expenditure Statement This statement shows the accounting cost of providing services and managing the Council during the year. It includes, on an accruals basis, all of the Council’s day-to-day expenses and related income. It also includes transactions measuring the value of non-current assets actually consumed during the year and the real projected value of retirement benefits earned by employees during the year. The statement shows the accounting cost in accordance with generally accepted accounting practices, rather than the cost according to the statutory regulations that specify the net expenditure that Councils need to take into account when setting the annual Council Tax charge. The required adjustments between accounting basis and funding basis under regulations are shown in the Movement in Reserves Statement. Gross expenditure Gross income Net expenditure Note Gross expenditure Gross income Net expenditure £m £m £m £m £m £m 327.708 (18.179) 309.529 321.085 (17.542) 303.543 201.092 (91.120) 109.972 Environment, Housing and Infrastructure 243.065 (131.541) 111.524 106.403 (44.855) 61.548 Finance and Resources 100.357 (43.886) 56.471 48.457 (10.357) 38.100 50.385 (10.347) 40.038 13.177 (13.191) (0.014) Miscellaneous Services 17.594 (16.782) 0.812 182.574 (73.487) 109.087 Adult Services 187.721 (73.668) 114.053 879.411 (251.189) 628.222 920.207 (293.766) 626.441 1.033 0.000 1.033 (Gain)/Loss on the disposal of non-current assets 8 3.107 0.000 3.107 25.807 (5.741) 20.066 Financing and investment income and expenditure 2 25.739 (2.793) 22.946 0.000 (562.381) (562.381) Taxation and non-specific grant income 3 0.000 (631.866) (631.866) 906.251 (819.311) 86.940 949.053 (928.425) 20.628 (86.295) 8 (221.173) 0.058 8 (0.179) (31.118) 27 (15.128) (117.355) Other comprehensive (income) and expenditure (236.480) (30.415) Total comprehensive (income) and expenditure (215.852) (Surplus)/Deficit on the revaluation of non- current assets (Surplus)/Deficit from investments in equity instruments designated as Fair Value through Other Comprehensive Income Actuarial (gain)/loss on pension assets and liabilities 2024/25 2025/26 Children’s Services Chief Executive’s Service Deficit on the Provision of Services Cost of Services Figures shown in brackets represent income or gains and figures without brackets represent expenditure or losses. Page 169 of 392
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42 Annual Accounts 2025/26 PUBLIC Movement in Reserves Statement This statement shows the movement in the year on the different reserves held by the Council, analysed into usable reserves (those reserves that can be applied to fund expenditure or to reduce local taxation) and unusable reserves. The surplus or deficit on the provision of services line shows the true economic cost of providing the Council’s services, more details of which are shown in the CIES. These are different from the statutory amounts required to be charged to the General Fund Balance and the Housing Revenue Account for Council Tax-setting and dwellings rent-setting purposes. The net increase or (decrease) before transfers to other statutory reserves line shows the statutory General Fund Balance and the Housing Revenue Account Balance before any discretionary transfers to or from the other statutory reserves of the Council. 2025/26 General Fund Balance Housing Revenue Account Revenue statutory funds Capital Funds Total Usable Reserves Unusable Reserves Total reserves Note £m £m £m £m £m £m £m Balance at 1 April 2025 138.771 6.933 3.573 85.920 235.197 1,320.054 1,555.251 Movement in reserves during the year (10.043) (10.585) 0.000 0.000 (20.628) 236.480 215.852 22.168 16.975 0.000 0.000 39.143 (39.143) 0.000 Transfers to / (from) other statutory reserves 7 (0.524) 0.000 0.524 0.000 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 2.047 0.000 0.000 0.000 2.047 (2.047) 0.000 Adjustments between accounting basis and funding basis under regulations 6 6.995 (5.350) 0.000 (19.990) (18.345) 18.345 0.000 20.643 1.040 0.524 (19.990) 2.217 213.635 215.852 Balance at 31 March 2026 159.414 7.973 4.097 65.930 237.414 1,533.689 1,771.103 Increase / (Decrease) in year Total Comprehensive Income and Expenditure Adjustments to Usable Reserves permitted by accounting standards Comparative movements in 2024/25 General Fund Balance Housing Revenue Account Revenue statutory funds Capital Funds Total usable reserves Unusable reserves Total reserves Note £m £m £m £m £m £m £m Balance at 1 April 2024 117.620 6.164 3.428 95.007 222.219 1,302.617 1,524.836 Movement in reserves during the year (70.062) (16.878) 0.000 0.000 (86.940) 117.355 30.415 24.204 14.910 0.000 0.000 39.114 (39.114) 0.000 Transfers to / (from) other statutory reserves 7 (0.099) 0.000 0.145 (0.046) 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 13.901 0.000 0.000 0.000 13.901 (13.901) 0.000 Adjustments between accounting basis and funding basis under regulations 6 53.207 2.737 0.000 (9.041) 46.903 (46.903) 0.000 21.151 0.769 0.145 (9.087) 12.978 17.437 30.415 Balance at 31 March 2025 138.771 6.933 3.573 85.920 235.197 1,320.054 1,555.251 Increase / (Decrease) in year Total Comprehensive Income and Expenditure Adjustments to Usable Reserves permitted by accounting standards Page 171 of 392
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43 Annual Accounts 2025/26 PUBLIC Balance Sheet The balance sheet shows the value as at 31 March 2026 of the assets and liabilities recognised by the Council. The net assets of the Council are matched by the reserves held by the Council. Reserves are reported in two categories. The first category comprises usable reserves, which are reserves that the Council may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example the Capital Receipts Reserve, which may only be used to fund capital expenditure or to repay debt). The second category of reserves comprises those that the Council is not able to use to provide services. This category includes reserves that hold unrealised gains and losses in the value of assets (for example the Revaluation Reserve), where amounts would only become available to provide services if the assets are sold, and reserves that hold differences shown as ‘adjustments between accounting basis and funding basis under regulations’ in the Movement in Reserves Statement. As at 31 March 2025 As at 31 March 2026 £m Note £m 1,955.001 Property, plant and equipment 9 2,221.377 44.186 Heritage assets 10 44.186 1.189 Intangible assets 12 0.690 4.391 Long-term investments 21 4.707 2.002 Long-term debtors 18 1.820 2,006.769 2,272.780 2.492 Assets held for sale 11 0.000 17.534 Short-term investments 21 24.623 1.060 Inventories 16 1.165 62.480 Short-term debtors 18 75.104 5.505 Cash and cash equivalents 17 40.800 89.071 141.692 (89.745) Short-term borrowing 21 (71.081) (70.339) Short-term creditors 19 (112.834) (0.406) Short-term provisions 20 (0.567) (160.490) (184.482) (77.581) Long-term creditors 19 (73.551) (5.230) Long-term provisions 20 (6.786) (232.050) Long-term borrowing 21 (314.756) (65.238) Other long-term liabilities 27 (63.794) (380.099) (458.887) 1,555.251 1,771.103 Alastair MacArthur (235.195) Usable reserves 7 (237.414) (1,320.056) Unusable reserves 8 (1,533.689) (1,555.251) (1,771.103)Total reserves Long-term assets Current assets Current liabilities Long-term liabilities Net assets Director of Finance and Resources The unaudited accounts were issued on 22 June 2026 and the audited accounts were authorised for issue on 24 September 2026. Page 172 of 392
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44 Annual Accounts 2025/26 PUBLIC Cashflow Statement This statement shows the changes in cash and cash equivalents of the Council during the year. It shows how the Council 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 Council are funded by way of taxation and grant income or from the recipients of services provided by the Council. Investing activities represent the extent to which cash outflows have been made for resources that are intended to contribute to the Council’s future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (that is, borrowing) to the Council. 2024/25 2025/26 £m £m (86.940) Net surplus/(deficit) on the provision of services (20.628) Adjustment for non-cash movements: 125.191 Depreciation, amortisation, impairment and revaluations 106.492 (11.462) Increase/(decrease) in creditors 41.900 4.237 (Increase)/decrease in debtors (12.442) 0.227 (Increase)/decrease in inventories (0.105) 21.876 Pension (liability)/asset 13.684 3.013 Carrying amount of non-current assets sold 7.876 0.285 Other non-cash items charged to the net surplus or deficit on the provision of services 1.717 (25.010) Adjustments for items included in the net surplus or deficit on the provision of services that are investing and financing activities (51.332) 31.417 Net cash flows from operating activities 87.162 Net cash flows from investing activities : (123.212) Purchase of property, plant and equipment, investment property and intangible assets (155.489) (1.980) Proceeds from the sale of property, plant and equipment, investment property and intangible assets (3.679) 50.093 Proceeds from short-term and long-term investments (7.226) 27.091 Other receipts from investing activities 55.011 Net cash flows from financing activities (4.737) Cash payments for the reduction of the outstanding liability relating to right of use assets and on-balance sheet PFI /PPP contracts (4.526) (2.628) Repayment of short-term and long-term borrowing 64.042 (23.956) Net increase/(decrease) in cash and cash equivalents 35.295 29.461 Cash and cash equivalents at the beginning of the reporting period 5.505 5.505 Cash and cash equivalents at the end of the reporting period 40.800 The Net cash flow from operating activities above includes the following elements of interest paid and received: 2024/25 2025/26 £m £m (5.741) Interest received (2.793) 16.213 Interest paid 15.883 4.919 Interest element of right of use and PPP payments 4.663 15.391 17.753 Interest Paid and Received Page 173 of 392
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45 Annual Accounts 2025/26 PUBLIC Note 1: Expenditure and Funding Analysis The Expenditure and Funding Analysis shows how annual expenditure is used and funded from resources (government grants, rents, Council Tax and non-domestic rates) by the Council in comparison with those resources consumed or earned by the Council in accordance with generally accepted accounting practices. It also shows how this expenditure is allocated for decision making purposes between the Council’s service departments. Income and expenditure accounted for under generally accepted account practices is presented more fully in the CIES. 2025/26 Net Expenditure chargeable to the General Fund and HRA Adjustments between Funding and Accounting basis Depreciation charged to Revaluation Reserve Net Expenditure in the CIES £m £m £m £m Children's Services 275.837 14.050 13.656 303.543 Environment, Housing and Infrastructure 77.006 15.118 19.400 111.524 Finance & Resources 50.893 4.019 1.559 56.471 Chief Executive's Service 30.195 5.551 4.292 40.038 Miscellaneous Services 18.243 (17.667) 0.236 0.812 Adult Services 112.122 1.931 0.000 114.053 Net cost of services 564.296 23.002 39.143 626.441 Other income and expenditure (585.981) (19.832) 0.000 (605.813) (Surplus) / Deficit (21.685) 3.170 39.143 20.628 Opening General Fund and HRA balance (145.702) Less (Surplus) / Deficit in the year (21.685) Closing General Fund and HRA at 31 March 2026 (167.387) 2025/26 Adjustments for capital purposes Net change for the pensions adjustments Other differences Total Adjustments £m £m £m £m Children's Services 18.485 3.782 (8.217) 14.050 Environment, Housing and Infrastructure 14.238 4.347 (3.467) 15.118 Finance & Resources 1.882 2.202 (0.065) 4.019 Chief Executive's Service 4.907 0.792 (0.148) 5.551 Miscellaneous Services 1.303 (3.537) (15.433) (17.667) Adult Services 0.003 2.069 (0.141) 1.931 Net Cost of Services 40.818 9.655 (27.471) 23.002 Other income and expenditure (51.381) 4.029 27.520 (19.832) Total adjustments between accounting basis and funding basis (10.563) 13.684 0.049 3.170 • Adjustments for capital purposes: adds in depreciation, impairment and revaluation gains and losses to the service net expenditure including income on the disposal of assets and the amounts written off for those assets and the statutory charges for capital financing and capital grants which are not chargeable under generally accepted accounting practices. • Net change for the pensions adjustments: removes employer pension contributions as allowed by statute and replaces with the current and past service costs within the IAS 19 employee benefits pension related Page 174 of 392
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46 Annual Accounts 2025/26 PUBLIC expenditure and income. The net interest on the defined benefit liability is also included as charged to the CIES. • Other differences: any other differences between those amounts debited or credited to the CIES and amounts payable or receivable to be recognised under statute, including those primarily involved in the financial instruments adjustment account, the employee statutory adjustment account and other statutory funds. Any other non-statutory adjustments would also be included here. 2024/25 Net Expenditure chargeable to the General Fund and HRA Adjustments between Funding and Accounting basis Depreciation charged to Revaluation Reserve Net Expenditure in the CIES £m £m £m £m Children's Services 257.721 34.850 16.958 309.529 Communities and Housing Services 69.902 22.675 17.395 109.972 Environment & Infrastructure 47.537 12.088 1.923 61.548 Finance & Resources 28.330 7.155 2.615 38.100 Chief Executive's Service 25.322 (25.559) 0.223 (0.014) Miscellaneous Services 106.810 2.277 0.000 109.087 Net cost of services 535.622 53.486 39.114 628.222 Other income and expenditure (543.643) 1.271 0.000 (541.282) (Surplus) / Deficit (8.021) 54.757 39.114 86.940 Opening General Fund and HRA balance (123.784) Less (Surplus) / Deficit in the year (8.021) Add other items not charged to the Surplus / (Deficit) (13.897) Closing General Fund and HRA at 31 March 2025 (145.702) * For a split of this balance between the General Fund and the HRA, see the Movement in Reserves Statement. 2024/25 Adjustments for capital purposes Net change for the pensions adjustments Other differences Total Adjustments £m £m £m £m Children's Services 38.142 6.372 (9.664) 34.850 Environment, Housing and Infrastructure 19.208 7.021 (3.554) 22.675 Finance & Resources 2.208 3.738 6.142 12.088 Chief Executive's Service 5.965 1.389 (0.199) 7.155 Miscellaneous Services (6.350) (4.755) (14.454) (25.559) Adult Services 0.003 4.097 (1.823) 2.277 Net cost of services 59.176 17.862 (23.552) 53.486 Other income and expenditure (27.119) 4.014 24.376 1.271 Total adjustments between accounting basis and funding basis 32.057 21.876 0.824 54.757 Page 175 of 392
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47 Annual Accounts 2025/26 PUBLIC Note 2: Financing and investment income & expenditure 2024/25 2025/26 £m £m 21.793 Interest payable and similar charges 21.710 4.014 Net interest on the net defined benefit liability 4.029 (5.741) Interest receivable and similar income (2.793) 20.066 Total 22.946 Note 3: Taxation and non-specific grant income 2024/25 2025/26 £m £m (97.701) Income from Council Tax and community charge (108.204) (107.505) Distribution from the national non-domestic rate pool (108.844) (330.084) General Revenue Grant from the Scottish Government (359.807) (27.091) Capital grants and contributions (55.011) (562.381) Total (631.866) Note 4: Expenditure and income analysed by nature This note presents the subjective analysis of expenditure and income shown by operational service area in the CIES. 2024/25 2025/26 £m Note £m Expenditure 381.264 Employee benefits expenses 395.348 412.071 Other service expenses 418.371 86.076 Depreciation, amortisation, impairment 106.491 25.807 Interest Payments 2 25.736 1.033 (Gain) /Loss on the disposal of assets 8 3.107 906.251 Total expenditure 949.053 Income (251.189) Fees, charges and other service income (293.767) (5.741) Interest and investment income 2 (2.793) (205.206) Income from council tax and non-domestic rates 3 (217.048) (357.175) Government grants and contributions 3 (414.817) (819.311) Total income (928.425) 86.940 (Surplus) or deficit on the provision of services 20.628 Page 176 of 392
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48 Annual Accounts 2025/26 PUBLIC Note 5: Grant income The Council credited the following grants, contributions and donations direct to services in the CIES during 2025/26. 2024/25 2025/26 £m £m 37.802 Housing benefit 29.325 0.643 Housing benefit and Council Tax administration 0.653 1.029 Discretionary Housing Payment 0.486 0.600 Private sector housing grant 0.750 0.460 Education Maintenance Allowance 0.421 0.000 Gaelic Education 0.065 0.021 School Milk 0.451 4.663 Pupil Equity Fund 4.663 6.620 Other Education 3.788 3.363 Justice Social Work 4.404 12.254 Adult Services 12.254 2.369 Employability 4.167 3.526 Other grants 8.355 73.350 Total 69.782 Page 177 of 392
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49 Annual Accounts 2025/26 PUBLIC Note 6: Adjustment between accounting basis and funding basis under regulations This note details the adjustments that are made to the total comprehensive income and expenditure recognised by the Council in the year in accordance with proper accounting practice to the resources that are specified by statutory provisions as being available to the Council to meet future capital and revenue expenditure. The first table outlines the current year position, and the second table outlines the comparative prior year position. General Fund Balance Housing Revenue Account Balance Capital Statutory Funds Capital Receipts Reserve £m £m £m £m £m Reversal of items charged to the CIES: Charges for depreciation and impairment of non-current assets (49.173) (17.293) 0.000 0.000 66.466 Amortisation of intangible assets (0.883) 0.000 0.000 0.000 0.883 Capital grants and contributions applied 44.922 10.089 0.000 0.000 (55.011) Revenue expenditure funded from capital under statute (0.523) 0.000 0.000 0.000 0.523 Amounts of non-current assets written off on disposal or sale as part of the gain or loss on disposal to the CIES (2.947) (0.160) 0.000 0.000 3.107 Insertion of items not charged to the CIES: Statutory provision for the repayment of Loans Fund & Finance Lease principal 5.597 7.969 0.000 0.000 (13.566) Capital expenditure charged against the General Fund and HRA Balances 8.888 5.602 18.626 0.000 (33.116) Transfer of cash sale proceeds credited as part of the gain or loss on disposal to the CIES 0.000 0.000 0.000 (3.679) 3.679 Use of the Capital Receipts Reserve to finance new capital expenditure 0.000 0.000 0.000 5.043 (5.043) Amount by which finance costs charged to the CIES are different from finance costs chargeable in the year in accordance with statutory requirements 0.298 0.104 0.000 0.000 (0.402) Reversal of items relating to retirement benefits debited or credited to the CIES (29.351) (1.659) 0.000 0.000 31.010 Employer’s pension contributions and direct payments to pensioners payable in the year 16.685 0.641 0.000 0.000 (17.326) Amount by which officer remuneration charged to the CIES on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements (0.508) 0.057 0.000 0.000 0.451 Total adjustments (6.995) 5.350 18.626 1.364 (18.345) Usable reserves Unusable reserves2025/26 Adjustment primarily involving the Employee Statutory Adjustment Account: Adjustments primarily involving the Pension Reserve: Adjustment primarily involving the Financial Instruments Adjustment Account: Adjustments primarily involving the Capital Receipts Reserve: Adjustments primarily involving the Capital Adjustment Account: Page 178 of 392
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50 Annual Accounts 2025/26 PUBLIC General Fund Balance Housing Revenue Account Capital Statutory Funds Capital Receipts Reserve £m £m £m £m £m Reversal of items charged to the CIES: Charges for depreciation and impairment of non-current assets (67.936) (17.292) 0.000 0.000 85.228 Amortisation of intangible assets (0.848) 0.000 0.000 0.000 0.848 Capital grants and contributions applied 25.080 2.112 0.000 0.000 (27.192) Revenue expenditure funded from capital under statute (0.352) 0.000 0.000 0.000 0.352 Amounts of non-current assets written off on disposal or sale as part of the gain or loss on disposal to the CIES (1.015) (0.018) 0.000 0.000 1.033 Insertion of items not charged to the CIES: Statutory provision for the repayment of Loans Fund & Finance Lease principal 3.893 9.105 0.000 0.000 (12.998) Capital expenditure charged against the General Fund and HRA Balances 9.557 4.567 7.008 0.000 (21.132) Transfer of cash sale proceeds credited as part of the gain or loss on disposal to the CIES 0.000 0.000 0.000 (1.980) 1.980 Use of the Capital Receipts Reserve to finance new capital expenditure 0.000 0.000 0.000 4.013 (4.013) Amount by which finance costs charged to the CIES are different from finance costs chargeable in the year in accordance with statutory requirements 0.298 0.107 0.000 0.000 (0.405) Reversal of items relating to retirement benefits debited or credited to the CIES (38.880) (1.958) 0.000 0.000 40.838 Employer’s pension contributions and direct payments to pensioners payable in the year 18.357 0.605 0.000 0.000 (18.962) Amount by which officer remuneration charged to the CIES on an accruals basis is different from remuneration chargeable in the year in accordance with statutory requirements (1.361) 0.035 0.000 0.000 1.326 Total adjustments (53.207) (2.737) 7.008 2.033 46.903 Adjustments primarily involving the Capital Receipts Reserve: Adjustment primarily involving the Financial Instruments Adjustment Account: Adjustments primarily involving the Pension Reserve: Adjustment primarily involving the Employee Statutory Adjustment Account: Adjustments primarily involving the Capital Adjustment Account: Usable reserves Unusable reserves2024/25 Note 7: Usable reserves Usable reserves are those reserves the Council is able to apply to fund expenditure or reduce taxation and comprise both capital and revenue reserves. Movements in the revenue reserves during the year are outlined in the Movement in Reserves Statement and a summary is shown in below. More information about the Housing Revenue Account can be found on page 100. Page 179 of 392
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51 Annual Accounts 2025/26 PUBLIC As at 31 March 2025 As at 31 March 2026 £m £m (138.769) General Fund Balance (159.414) (6.933) Housing Revenue Account Balance (7.973) (5.485) Capital Receipts Reserve (4.122) (84.008) Other Statutory Funds (65.905) (235.195) Total (237.414) Usable Reserves This note sets out the amounts set aside from the General Fund Balance in statutory funds established under Schedule 3 of the Local Government (Scotland) Act 1975 to provide financing for specific areas of expenditure, and the amounts transferred back from these funds to meet General Fund expenditure in 2025/26. Balance at 1 April 2024 Transfers out Transfers in Balance at 31 March 2025 Transfers out Transfers in Balance at 31 March 2026 £m £m £m £m £m £m £m Insurance Fund 2.901 0.000 0.128 3.029 0.000 0.137 3.166 DHN Repair and Renewal Fund 0.186 0.000 0.000 0.186 0.000 0.372 0.558 Reservoir Repair Fund 0.341 0.000 0.017 0.358 0.000 0.015 0.373 Revenue statutory funds 3.428 0.000 0.145 3.573 0.000 0.524 4.097 Education Capital Items Fund 1.454 (0.279) 0.232 1.407 (0.275) 0.285 1.417 Investment Capital Fund 86.035 (8.714) 1.707 79.028 (21.630) 2.993 60.391 Capital statutory funds 87.489 (8.993) 1.939 80.435 (21.905) 3.278 61.808 Total 90.917 (8.993) 2.084 84.008 (21.905) 3.802 65.905 • The Insurance Fund is the funding mechanism for the control of insurable risk and covers the main classes of insurance. It is earmarked for premiums and self-funded insurance costs. • The DHN Repair and Renewal Fund is earmarked for future component replacement of the District Heating Network at the Advanced Manufacturing Innovation District Scotland (AMIDS). • The Reservoir Repair Fund is funding received from a contractor for repairs in perpetuity to the Thornly Dam. • The Education Capital Items Fund is earmarked funding for specific schools to be used in future years for planned purchases of a capital nature, such as computers and information communication technology equipment. • The Investment Capital Fund represents planned funding earmarked to support the Council’s investment programme and the wider strategic management of the Council’s associated debt profile. • In addition to the capital statutory funds above the Capital Receipts Reserve is also a statutory fund. The Capital Receipts Reserve holds cash receipts from asset sales and is used to fund planned capital expenditure. Balance at 1 April 2024 Sale proceeds Capital exp funded Balance at 31 March 2025 Sale proceeds Capital exp funded Balance at 31 March 2026 £m £m £m £m £m £m £m Capital Receipts Reserve 7.518 1.980 (4.013) 5.485 3.679 (5.042) 4.122 Page 180 of 392
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52 Annual Accounts 2025/26 PUBLIC The following note sets out the amounts within the General Fund Balance that the Council has ring-fenced for future expenditure plans. The unallocated balance of £11.476m represents 2.0% of the Council’s net annual running costs. Balance at 1 April 2024 Transfers out Transfers in Balance at 31 March 2025 Transfers out Transfers in Balance at 31 March 2026 £m £m £m £m £m £m £m Alcohol and Drugs Commission 0.767 (0.139) - 0.628 (0.628) - - City Deal 1.903 (1.007) 0.654 1.550 (0.577) 0.745 1.718 Civil Contingencies Shared Service 0.126 (0.032) 0.025 0.119 (0.034) - 0.085 Clydeplan Unfunded Pension - - - - (0.011) 0.157 0.146 Connected Communities - - - - - 0.215 0.215 Culture Bid Legacy 2.009 (0.621) 0.438 1.826 (0.657) 0.208 1.377 Development Contribution – Paisley Town Centre0.519 (0.265) - 0.254 - 1.200 1.454 Digital Infrastructure 1.441 (1.000) - 0.441 - - 0.441 Early Years Change Fund 2.100 - - 2.100 - - 2.100 Employability 10.590 - 0.110 10.700 (0.375) - 10.325 Environment & Infrastructure 0.790 (0.250) 0.300 0.840 (0.006) 0.113 0.947 Fairer Renfrewshire Programme 2.855 (0.542) 0.023 2.336 (1.089) 0.410 1.657 Financial Sustainability Fund 13.244 (5.116) 13.069 21.197 (1.374) 16.010 35.833 Fly Tipping Enforcement - (0.200) 0.250 0.050 (0.050) - - Homelessness (Housing First) - - - - - 0.337 0.337 Investment Zone Funding - - - - - 0.908 0.908 Learning Estate Support Fund - - 2.000 2.000 (0.291) 2.200 3.909 Leisure: Inclusive Play Facility 0.007 - - 0.007 (0.007) - - Loan Charges Flexibility Fund 48.759 - 14.897 63.656 - 1.000 64.656 Local Authority Economic Recovery 0.100 - - 0.100 (0.100) - - Local Heat and Energy Efficiency - - 0.036 0.036 (0.036) 0.014 0.014 Local Place Plans - - - - (0.059) 0.100 0.041 Oakshaw Heritage Trail - - 0.050 0.050 (0.050) - - Paisley Town Centre Heritage Asset 0.334 (0.334) - - - - - Planning Enforcement - - 0.120 0.120 (0.022) - 0.098 Private Sector Housing Grant 2.308 (0.141) - 2.167 - 0.780 2.947 Pupil Equity Fund 0.524 - 0.137 0.661 (0.131) - 0.530 Resettlement and Asylum Fund 1.429 (0.537) 0.247 1.139 (1.290) 0.151 - School Music Participation 0.276 (0.179) 0.162 0.259 - 0.021 0.280 Service Modernisation and Reform 10.662 (0.756) 0.269 10.175 (1.436) 3.839 12.578 Sustainable Communities Fund 0.394 (0.163) 0.028 0.259 - 0.026 0.285 Villages Improvement Fund 0.200 (0.064) - 0.136 (0.038) - 0.098 Welfare Reform 0.999 (0.713) 0.666 0.952 (0.585) 0.086 0.453 Year end flexibility: Children's Services 5.005 (2.110) 1.837 4.732 (0.677) 0.451 4.506 General Fund: Ring-fenced 107.341 (14.169) 35.318 128.490 (9.523) 28.971 147.938 Unallocated Balance 10.279 - 10.279 - 1.197 11.476 Total General Fund Balance 117.620 (14.169) 35.318 138.769 (9.523) 30.168 159.414 Housing Revenue Account 6.164 (0.298) 1.067 6.933 (1.013) 2.053 7.973 Ring-fenced elements of the General Fund Balance Page 181 of 392
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53 Annual Accounts 2025/26 PUBLIC Note 8: Unusable reserves Unusable reserves are those reserves that the Council is not able to utilise to provide services, and comprise: • Reserves that hold unrealised gains and losses, particularly in relation to the revaluation of property, plant and equipment and financial instruments, where amounts will only become available to provide services (or limit resources in the case of losses) once the gains or losses are realised as the assets are disposed of. This category of reserves comprises the Revaluation Reserve and the Financial Instruments Revaluation Reserve. • Adjustment accounts that deal with situations where income and expenditure are recognised according to statutory regulations against the General Fund Balance and the Housing Revenue Account Balance on a different basis from that expected by generally accepted accounting practices. These adjustment accounts will carry either a debit balance (showing that the Council is required by statute to fund its expenditure more slowly than accounting standards would expect) or a credit balance (where the Council has set resources aside under statute earlier than accounting standards require). The adjustment accounts effectively offset the General Fund Balance and the Housing Revenue Account Balance to give the Council more or less spending power in the short term than proper accounting practices would allow. The adjustment accounts comprise the Capital Adjustment Account, the Financial Instruments Adjustment Account, the Capital Receipts Reserve, the Pension Reserve and the Employee Statutory Adjustment Account. As at 31 March 2025 As at 31 March 2026 £m £m (813.454) Revaluation Reserve (991.009) 65.238 Pension Reserve 63.794 (589.856) Capital Adjustment Account (624.360) 10.283 Financial Instruments Adjustment Account 9.881 (0.500) Financial Instruments Revaluation Reserve (0.679) 8.233 Employee Statutory Adjustment Account 8.684 (1,320.056) Total Unusable Reserves (1,533.689) Unusable Reserves Revaluation Reserve The Revaluation Reserve contains the gains made by the Council arising from increases in the value of its non- current assets. The balance is reduced when assets with accumulated gains are: i) revalued downwards or impaired and the gains are lost, ii) used in the provision of services and the gains are consumed through depreciation; or iii) disposed of and the gains are realised. The Revaluation Reserve contains only revaluation gains accumulated since 1 April 2007, which was the date that the Revaluation Reserve was created. Accumulated gains arising before that date are consolidated into the balance on the Capital Adjustment Account. Page 182 of 392
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54 Annual Accounts 2025/26 PUBLIC As at 31 March 2025 As at 31 March 2026 £m £m (768.193) Balance at 1 April (813.454) (86.293) Upward revaluation of non-current assets (221.173) 39.114 Difference between fair value depreciation and historic cost depreciation 39.145 1.918 Accumulated (gains) / losses on disposal of non-current assets transferred to the Capital Adjustment Account 4.473 (45.261) Movement in Year (177.555) (813.454) Balance at 31 March (991.009) Revaluation Reserve Pension Reserve The Pension 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 or regulations. The Council accounts for post-employment benefits in the CIES 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 Council makes employer’s contributions to pension funds. The debit balance on the Pension Reserve shows a significant shortfall in the benefits earned by past and current employees and the Council’s share of Strathclyde Pension Fund resources available to meet them. The statutory arrangements will ensure that funding will have been set aside by the time the benefits come to be paid. As at 31 March 2025 As at 31 March 2026 £m £m 74.480 Balance at 1 April 65.238 (787.413) Actuarial (gains) / losses on pension assets and liabilities (880.441) 756.295 Restriction to Asset Ceiling 865.313 40.838 Reversal of items relating to retirement benefits debited or credited to the surplus or deficit on the provision of services in the CIES 31.010 (1.383) Effect of business combinations and disposals 0.000 (17.579) Employer’s pension contributions payable in the year (17.326) 65.238 Balance at 31 March 63.794 Pension Reserve 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. The Capital Adjustment Account is debited with the cost of acquisition, construction or enhancement as depreciation, impairment losses and amortisations are charged to the CIES (with reconciling postings from the Revaluation Reserve to convert fair value figures to a historical cost basis). The Capital Adjustment Account is credited with the amounts set aside by the Council as finance for the costs of acquisition, construction and enhancement. Page 183 of 392
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55 Annual Accounts 2025/26 PUBLIC The Capital Adjustment Account contains accumulated gains and losses on investment properties and gains recognised on donated assets that have yet to be consumed by the Council, and also revaluation gains accumulated on property, plant and equipment before 1 April 2007. The Revaluation Reserve was created to hold such gains arising from 1 April 2007 onwards. As at 31 March 2025 As at 31 March 2026 £m £m (625.941) Balance at 1 April (589.856) Reversal of items relating to capital expenditure charged to the CIES: 85.228 Charges for depreciation, impairment and revaluation losses of non-current assets 66.466 0.848 Amortisation of intangible assets 0.883 0.352 Revenue expenditure funded from capital under statute 0.523 1.980 Non-current assets sale proceeds 3.679 1.033 (Gain)/Loss on disposal of non-current assets charged to the CIES 3.107 (1.918) Adjusting amounts written out of the Revaluation Reserve (4.473) 87.523 Net written out amount of non-current assets consumed in the year 70.185 Capital financing applied in the year: (4.013) Use of the Capital Receipts Reserve to finance new capital expenditure (5.043) (27.192) Capital grants and contributions credited to the CIES that have been applied to capital financing (55.011) (14.404) Loans Fund and Finance Lease principal repayments (13.566) (21.132) Capital expenditure charged against the General Fund and Housing Revenue Account balances (33.116) 15.303 Adjustment for Service Concession Arrangements 2.047 (51.438) (104.689) (589.856) Balance at 31 March (624.360) Capital Adjustment Account Financial Instruments Adjustment Account The Financial Instruments Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for income and expenses relating to certain financial instruments, and for bearing losses or benefiting from gains in accordance with statutory provisions [or regulations]. The Council uses the Financial Instruments Adjustment Account to: • Manage premiums incurred on the early repayment of borrowings. Generally accepted accounting practices require that premiums are debited to the CIES when they are incurred (except where the loan debt being repaid is exchanged for new loan debt on substantially similar terms). However, statutory arrangements or regulations allow any premiums that would normally require to be to be taken immediately to the surplus or deficit on the provision of services, to be amortised to the General Fund Balance over the various periods of time as specified in the regulations/statutory guidance. Furthermore, statutory arrangements [or regulations] require that any premiums that were on the Council’s balance sheet at 31 March 2007 be amortised to the General Fund Balance over the unexpired term that was outstanding on the associated loans when they were redeemed. The Council had various premiums totalling £17.630m at 31 March 2007 and, under the statutory arrangements, these will be fully amortised to the General Fund Balance by financial year 2053-2054. • Manage borrowings that were on the Council’s balance sheet at 31 March 2007 and that have a stepped interest rate feature. These borrowings comprise four ‘lender option borrower option’ (LOBO) loans for which the Page 184 of 392
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56 Annual Accounts 2025/26 PUBLIC interest rate was fixed for an initial period, and at a pre-agreed later date the interest rate changed. Generally accepted accounting practices require that interest charges relating to borrowings that have a stepped interest rate feature are debited to the CIES on the basis of a single effective interest rate (EIR) over the expected life of the loans, rather than based on the contractual cash outflows of interest. However, statutory arrangements [or regulations] allow such borrowings that were on the Council’s balance sheet at 31 March 2007 to be charged to the General Fund Balance in accordance with the accounting treatment prior to 1 April 2007, which did not require the use of the effective interest rate as the basis for the interest charge. • Manage ‘soft loans’ that were on the Council’s balance sheet at 31 March 2007. Soft loans are loans advanced by the Council at nil or below prevailing interest rates. Generally accepted accounting practices require that the discounted interest rate is recognised as a reduction in the fair value of the loan, with the difference being debited to the CIES as service expenditure. However, statutory arrangements [or regulations] require that, for soft loans on the Council’s balance sheet at 31 March 2007, the reduction in value and corresponding charge to be reversed, so that there is no impact on the General Fund Balance. As at 31 March 2007 interest free loans amounting to £0.156m had been advanced to employees who had had changes implemented to their pay cycle. These loans are repayable when employees leave the Council’s employment. Refinancing premiums and discounts Borrowing on stepped interest rate loans Loans to third parties at less than market rate Total £m £m £m £m Balance at 1 April 2025 9.219 1.053 0.011 10.283 Premiums incurred in previous financial years to be charged against the General Fund Balance in accordance with statutory requirements (0.389) 0.000 0.000 (0.389) Amount by which finance costs charged to the CIES are different from finance costs chargeable in the year in accordance with statutory requirements 0.000 (0.013) 0.000 (0.013) Balance at 31 March 2026 8.830 1.040 0.011 9.881 Financial Instruments Adjustment Account Financial Instruments Revaluation Reserve The Financial Instruments Revaluation Reserve contains the gains made by the Council arising from increases in the value of its investments that are measured at fair value through other comprehensive income. The balance is reduced when investments with accumulated gains are: i) revalued downwards or impaired and the gains are lost; or ii) disposed of and the gains are realised. As at 31 March 2025 As at 31 March 2026 £m £m (0.558) Balance at 1 April (0.500) 0.058 Downward/(Upward) revaluation of investments (0.179) (0.500) Balance at 31 March (0.679) Financial Instruments Revaluation Reserve Page 185 of 392
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57 Annual Accounts 2025/26 PUBLIC Employee Statutory Adjustment Account The Employee Statutory Adjustment Account absorbs the differences that would otherwise arise on the General Fund Balance from accruing for short-term accumulating compensated absences at the end of the financial year. As at 31 March 2025 As at 31 March 2026 £m £m 6.907 Balance at 1 April 8.233 (6.907) Settlement or cancellation of accrual made at the end of the prior year (8.233) 8.233 Amounts accrued at the end of the current year 8.684 8.233 Balance at 31 March 8.684 Employee Statutory Adjustment Account Note 9: Property, Plant and Equipment The Code requires that where a component of an asset is replaced, the carrying amount (i.e. net book value) of the old component shall be derecognised to avoid double counting and the new component is reflected in the carrying amount of the infrastructure asset. However, due to practical difficulties in applying component accounting for the recognition and derecognition of replaced components of infrastructure assets, most local authorities have been unable to comply with the requirement to assess the net book value of the replaced component and have treated the amount of the replaced component as zero, because the replaced component is considered to have been fully used up at the point that it is replaced. In recognition of this difficulty, the Scottish Government issued a Statutory Override in August 2022. Finance circular 6/2025 extended the temporary measures until 31 March 2027. Renfrewshire Council has elected to apply both of the following provisions: • Statutory Override 1: For accounting periods commencing from 1 April 2021 until 31 March 2027 a local authority is not required to report the gross cost and accumulated depreciation for infrastructure assets. • Statutory Override 2: For accounting periods commencing from 1 April 2010 until 31 March 2027 the carrying amount to be derecognised in respect of a replaced part of an infrastructure asset is required to be a nil amount, and no subsequent adjustment shall be made to the carrying amount of the asset with respect to that part. Page 186 of 392
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58 Annual Accounts 2025/26 PUBLIC Note 9: Property, Plant and Equipment (continued) Council dwellings Other land and buildings Vehicles, plant, furniture and equipment Infrastructure assets Assets under construction Surplus assets Total Of which funded by PPP/ROU £m £m £m £m £m £m £m £m Balance sheet net carrying amount at 31 March 2025 844.137 612.096 45.018 235.476 196.036 22.238 1,955.001 116.964 Other Reclassifications 0.000 (1.572) 0.753 108.697 (107.878) 0.000 0.000 0.000 Additions 38.544 4.764 10.857 15.875 85.065 0.000 155.105 3.937 Disposals (0.832) (2.995) (0.009) 0.000 0.000 (0.458) (4.294) 0.000 Depreciation (33.317) (42.967) (7.455) (12.591) 0.000 (0.121) (96.451) (9.441) Revaluation adjustments taken to the Revaluation Reserve 196.636 21.350 (0.079) 0.000 0.000 3.266 221.173 0.000 Revaluation adjustments recognised in the CIES 0.000 (7.829) 0.000 0.000 0.000 (1.328) (9.157) (1.081) Balance sheet net carrying amount at 31 March 2026 1,045.168 582.847 49.085 347.457 173.223 23.597 2,221.377 110.379 Gross carrying amount at 31 March 2026 1,045.168 685.051 127.227 n/a 173.223 25.890 2,056.559 126.772 Accumulated depreciation at 31 March 2026 0.000 (102.204) (78.142) n/a 0.000 (2.293) (182.639) (16.393) Infrastructure Assets 0.000 0.000 0.000 347.457 0.000 0.000 347.457 0.000 Balance sheet net carrying amount at 31 March 2026 1,045.168 582.847 49.085 347.457 173.223 23.597 2,221.377 110.379 Movements in 2025/26 Page 187 of 392
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59 Annual Accounts 2025/26 PUBLIC Council dwellings Other land and buildings Vehicles, plant, furniture and equipment Infrastructure assets Assets under construction Surplus assets Total Of which funded by PFI £m £m £m £m £m £m £m £m Balance sheet net carrying amount at 31 March 2024 766.932 643.505 47.638 228.036 149.695 22.415 1,858.221 107.508 Reclassified (to)/ from Assets Held for Sale 0.000 0.000 (2.492) 0.000 0.000 0.000 (2.492) 0.000 Other Reclassifications* 5.918 3.440 (0.042) 0.464 (10.869) (0.001) (1.090) 0.000 Recognition of Right of Use Assets and Increase in PPP liability 0.000 20.136 0.659 0.000 0.000 0.000 20.795 20.215 Additions 27.532 5.067 7.914 18.604 60.144 0.179 119.440 2.991 Disposals (1.204) (0.310) (0.005) 0.000 0.000 (0.304) (1.823) 0.000 Depreciation (31.260) (44.541) (9.226) (11.628) 0.000 (0.121) (96.776) (8.809) Impairment adjustments recognised in the CIES 0.000 0.000 0.000 0.000 (2.934) 0.000 (2.934) 0.000 Revaluation adjustments taken to the Revaluation Reserve 76.219 9.601 0.406 0.000 0.000 0.067 86.293 11.454 Revaluation adjustments recognised in the CIES 0.000 (24.802) 0.166 0.000 0.000 0.003 (24.633) (16.395) Balance sheet net carrying amount at 31 March 2025 844.137 612.096 45.018 235.476 196.036 22.238 1,955.001 116.964 Gross carrying amount at 31 March 2025 844.137 698.658 127.029 n/a 196.036 27.450 1,893.310 142.166 Accumulated depreciation at 31 March 2025 0.000 (86.562) (82.011) n/a 0.000 (5.212) (173.785) (25.202) Infrastructure Assets 0.000 0.000 0.000 235.476 0.000 0.000 235.476 0.000 Balance sheet net carrying amount at 31 March 2025 844.137 612.096 45.018 235.476 196.036 22.238 1,955.001 116.964 Movements in 2024/25 (restated) *During 2024/25 the Council reclassified £1.090m of property from Council assets to the Paisley Common Good Fund (£0.285m) and the Renfrew Common Good Fund (£0.805m). This reclassification was undertaken following a review of historical title and legal advice confirming the assets formed part of the Common Good. Following a review of the Council’s asset componentisation policy in line with the CIPFA Code of Practice on Local Authority Accounting, certain assets previously classified within Vehicles, Plant, Furniture and Equipment have been reassessed as more appropriately recognised as either Council Dwellings or Other Land and Buildings. Reflecting that the assets meet the definition of building components rather than stand-alone plant. The opening net balances of the 2024/25 values have been restated to reflect this. Page 188 of 392
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60 Annual Accounts 2025/26 PUBLIC Note 10: Heritage Assets A valuation of the fair value of the Council’s Heritage Assets was last carried out by an external valuer in 2021/22. In the five years prior to 2025/26, there were no acquisitions, donations, or disposals of Heritage Assets. The value at 31 March 2026 was £44.186m (£44.186m at 31 March 2025). The combined collections managed by the Renfrewshire Arts and Museums Service number in excess of 350,000 objects and it is impractical to undertake a full valuation of all the items in the collection. The balances above reflect the valuation of materials examined by the external valuer during 2021/22. Further detail on the valuation of each category of asset is outlined in Accounting Policy K on page 88. The details of the valuations of the assets are as follows: • Archaeology items • Natural history and science book collections • Art collection • Ceramics • Natural history and Numismatics • Science and social history collections • Special collections • Textiles • Transport collection • World cultures Note 11: Assets held for sale The following table summarises the movement in the fair value of assets held for sale during the year: 2024/25 2025/26 £m £m 0.100 Opening balance at 1 April 2.492 Assets reclassified as held for sale: 2.492 Other Land and Buildings 0.000 (0.100) Assets sold (2.492) 2.492 Closing balance at 31 March 0.000 Assets Held for Sale Note 12: Intangible assets The Council accounts for purchased software licences as intangible assets. The cost of the licences is amortised on a straight-line basis over the expected life of the licences, which is three to five years for all ICT systems. Amortisation charges are initially charged to ICT services and then absorbed as an overhead across all the service headings in the net expenditure of services. The movement on intangible asset balances during the year is shown in the following table. 2024/25 2025/26 £m £m Balance at 1 April 5.927 Gross carrying amount 6.060 (4.203) Accumulated amortisation (4.871) 1.724 Net carrying amount at 1 April 1.189 0.313 Additions: purchases 0.384 (0.180) Disposals 0.000 0.180 Disposal amortisation 0.000 (0.848) Amortisation for the year (0.883) 1.189 Net carrying amount at 31 March 0.690 Comprising: 6.060 Gross carrying amount 6.444 (4.871) Accumulated amortisation (5.754) 1.189 Balance at 31 March 0.690 Purchased Software Licences There are no individual intangible assets that are material to the financial statements. Page 189 of 392
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61 Annual Accounts 2025/26 PUBLIC Note 13: Capital expenditure and capital financing Capital expenditure involves the creation of assets, the benefit of which will be available to future Council Tax and non-domestic rate payers. It is financed from borrowing and capital income (sales receipts), and so the cost of the asset is effectively borne over a number of years. The Council’s overall capital investment programme is sub-divided into two programmes: housing and non-housing. In 2025/26 total spending on capital projects was £156.012m (£120.105m in 2024/25) and was within the overall prudential limits approved by Council. Capital receipts of £5.043m (£4.013m) were used to fund spending on capital projects. The net capital expenditure for the year of £62.842m (£67.768m in 2024/25) was financed from external borrowing, credit arrangements and from cash balances. The table below shows the total amount of capital expenditure incurred in the year, including the value of assets acquired under lease and service concession arrangements. Also shown are the resources that have been used to finance this capital expenditure. Where capital expenditure is to be financed in future years by charges to revenue as assets are used by the Council, the expenditure results in an increase in the Capital Finance Requirement (CFR), a measure of the capital expenditure incurred historically by the Council that has yet to be financed. The movement in the CFR during the year is also analysed in the table below. As at 31 March 2025 As at 31 March 2026 £m £m 510.099 Opening Capital Financing Requirement 599.561 Capital investment: 119.440 Property, plant and equipment 155.105 0.313 Intangible assets 0.384 0.352 Revenue expenditure funded from capital under statute 0.523 20.795 Recognition of Right of Use Assets and increase in PPP Liability 0.000 Sources of finance: (4.013) Capital receipts – sale of council assets (5.043) (27.192) Government grants and other contributions (55.011) (21.132) Sums set aside from revenue – direct revenue contributions (33.116) (14.404) Loans Fund/Finance Lease principal repayments (13.566) 15.303 Adjustment for Service Concession Arrangements 2.047 599.561 Closing Capital Financing Requirement 650.884 Explanation of movements in year: 58.971 Increase/(decrease) in underlying need to borrow (unsupported by government financial assistance) 53.098 3.529 Increase/(decrease) in Right of Use Asset Creditor (0.400) 26.962 Increase/(decrease) in PPP finance lease creditor (1.375) 89.462 Increase/(Decrease) in Capital Financing Requirement 51.323 At 31 March 2026 the Council had commitments on capital contracts for non-housing projects of £72.361m (£65.412m in 2024/25) and for housing projects of £87.040m (£11.534m in 2024/25). This expenditure will be funded from a combination of government grants, external borrowing, income from selling assets and contributions from revenue budgets. Page 190 of 392
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62 Annual Accounts 2025/26 PUBLIC Note 14: Service Concession Arrangements The Council entered into a Public Private Partnership on 1 July 2006 for the provision and maintenance of educational buildings and other facilities. This agreement provides the Council with replacement buildings such as primary and secondary schools and community education premises. The provider is required to ensure the availability of these buildings to a pre-agreed standard, with deductions from the fee payable being made if facilities are unavailable or performance is below the minimum standard. When the agreement ends in 2038, the buildings will be handed to the Council at nil consideration with a guarantee of no major maintenance requirements for a five-year period. The Council only has rights to terminate the contract if it compensates the contractor in full for costs incurred and future profits that would have been generated over the course of the remainder of the contract. The assets used to provide services are recognised on the Council’s Balance Sheet. Movements in their value over the year are shown in the movement on the Property, Plant and Equipment balance in Note 9. The Council makes an agreed payment each year which is increased by inflation and can be reduced if the contractor fails to meet availability and performance standards. Under the agreement the Council is committed to paying the following sums (assuming an average inflation rate of 2.5% per annum and excluding any performance/availability deductions). The discount rate used in this calculation is the interest rate implicit in the PFI agreement, which was fixed at the outset at 7.6%. Future Repayment Periods - Schools Service Charges Liability Repayment Interest Repayment Total £m £m £m £m Payable within 1 year 12.168 4.468 5.074 21.710 Payable within 2-5 years 55.285 20.964 16.653 92.902 Payable within 6-10 years 88.492 31.681 10.879 131.052 Payable within 11-15 years 36.739 11.651 0.997 49.387 Total 192.684 68.764 33.603 295.051 In 2019/20, the Council entered into a Service Concession Agreement for the use of a waste materials recovery facility at Bargeddie. Residual waste is then processed at a thermal treatment plant in Dunbar. North Lanarkshire Council is the lead authority and is contracted to Viridor. Five councils, including Renfrewshire, have an inter- authority agreement with North Lanarkshire Council. Renfrewshire Council’s share of the contract is 20%. The discount rate used in this calculation is the interest rate implicit in the agreement, which was fixed at the outset at 5.68%. Future Repayment Periods - Waste Facility Service Charges Liability Repayment Interest Repayment Total £m £m £m £m Payable within 1 year 4.587 0.152 0.300 5.039 Payable within 2-5 years 25.066 0.862 1.105 27.033 Payable within 6-10 years 28.222 0.257 1.257 29.736 Payable within 11-15 years 30.896 1.757 0.959 33.612 Payable within 16-20 years 24.953 2.245 0.312 27.510 113.724 5.273 3.933 122.930Total Page 191 of 392
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63 Annual Accounts 2025/26 PUBLIC Outstanding Service Concession Arrangements Schools Waste Facility Total £m £m £m Balance at 1 April 2024 (60.235) (4.701) (64.936) Increase in liability to recognise net present value of contingent rents (16.285) (0.580) (16.865) Payments during the year 4.492 (0.100) 4.392 Balance at 31 March 2025 (72.028) (5.381) (77.409) Increase in liability to recognise net present value of contingent rents (1.081) (0.020) (1.101) Payments during the year 4.345 0.127 4.472 Balance at 31 March 2026 (68.764) (5.274) (74.038) In accordance with Accounting Policy and in line with Finance Circular 10/2022, the Council applied the permitted PPP Service Concession Arrangement flexibility in financial year 2022/23 on a retrospective annuity basis with a useful life of 40 years. The flexibility being applied is consistent with the current Loans Fund arrangements and is considered prudent, sustainable and affordable over the life of the asset. The current annuity charges based on the estimated useful life for the schools service concession arrangement have been compared against the liability repayment profile based on the estimated useful asset lives for the schools service The most appropriate asset life was considered to be 40 years which replicated the useful life of other similar type assets on the council’s balance sheet i.e. schools. The calculation of the repayment charges for the service concession arrangement using asset life annuity is compared to the current charges which are made over the contract period. In addition to the one-off retrospective element, an in-year saving occurred in the scheduled debt repayments in 2025/26 of 2.047m (£1.406m in 2024/25). This will be followed by a reduction in the annual charges for a further 12 years and then the continuation of statutory charges after the contract arrangements have been repaid. Over the full asset life of the service concession arrangement, the total debt liability remains the same. With effect from 1 April 2024, IFRS 16 Leases also applied to service concession arrangements. Under IFRS 16, where indexation affects future service concession payments, the lease liability requires to be remeasured. Instead of expensing the increased payment, the net present value of future payments that comprise the liability is recalculated based on revised level of payments. The effect of this has been to increase balance sheet assets by £1.101m (2024/25 £16.865m), with an equal increase in lease liabilities as at 31 March 2026. Prior Repayment Current Repayment (Cost)/Reduction £m £m £m Pre 2025/26 66.860 22.358 44.502 Paid in 2025/26 4.345 2.298 2.047 Payable within 1 year 4.468 2.503 1.965 Payable within 2-5 years 20.964 12.309 8.655 Payable within 6-10 years 31.681 21.207 10.474 Payable within 11-15 years 11.651 30.424 (18.773) Payable within 16-20 years 0.000 43.538 (43.538) Payable within 21-25 years 0.000 5.332 (5.332) Total 139.969 139.969 0.000 PPP Service Concession Liability Repayment Page 192 of 392
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64 Annual Accounts 2025/26 PUBLIC Note 15: Leases Renfrewshire Council as Lessee Right of Use Assets The Council adopted IFRS 16 leases from 1 April 2024, as per the Code of Practice for Local Authority Accounting. The main impact of the new requirements is that for arrangements previously accounted for as operating leases, a right of use asset and a lease liability have been brought into the balance sheet at 1 April 2024. Leases for items of low value and leases that expire on or before 31 March 2025 are exempt from the new arrangements. The Council has 17 properties classed as a right of use asset with a liability. As at 31 March 2026, outstanding obligations to make payments are as follows: As at 31 March 2025 As at 31 March 2026 £m £m 0.413 Not later than one year 0.349 1.220 Between one and five years 1.208 1.457 Between six and ten years 1.171 0.376 Later than ten years 0.338 3.466 3.066 Renfrewshire Council as Lessor Operating Leases The Council leases out property and equipment under operating leases for the following purposes: • for the provision of community services, such as sports facilities, tourism services and community centres • for economic development purposes to provide suitable affordable accommodation for local businesses. The future minimum lease payments receivable under non-cancellable leases in future years are: As at 31 March 2025 As at 31 March 2026 £m £m 0.235 Not later than one year 0.281 0.494 Between one and five years 0.658 1.355 Later than five years 1.524 2.084 2.463 The minimum lease payments receivable does not include rents that are contingent on events taking place after the lease was entered into, such as adjustments following rent reviews. Note 16: Inventories 2024/25 2025/26 £m £m 1.287 Balance at 1 April 1.060 9.670 Additions during the year 9.787 (9.893) Recognised as an expense during the year: inventories sold, exchanged or distributed (9.677) (0.004) Recognised as an expense during the year: inventories written down (0.005) 1.060 Balance at 31 March 1.165 Inventories Page 193 of 392
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65 Annual Accounts 2025/26 PUBLIC Note 17: Cash and cash equivalents The balance of cash and cash equivalents is made up of the following components. With the exception of imprest accounts held at Council establishments, the balances in all of the categories listed below are used together to manage the Council’s overall cash balances on a day-to-day basis. 2024/25 Cash and cash equivalents 2025/26 £m £m (13.479) Current account balances with the council's banker (3.139) 0.516 Euro account balances with the council's banker - sterling equivalent 0.550 5.301 Callable deposits with UK banks and building societies 8.024 13.127 Callable deposits in money market funds and ultra-short bond funds 35.327 0.040 Imprest accounts held at council establishments 0.038 5.505 Total cash and cash equivalents 40.800 Note 18: Debtors Amounts due to be received by the Council at 31 March are set out below. This is analysed by type of debtor to provide greater transparency of the sums due. Short-term Long-term Short-term Long-term £m £m £m £m 23.728 0.000 Central government bodies (non-NHS) 36.109 0.000 5.037 0.900 Central government bodies (NHS) 9.128 0.810 1.535 0.000 Other local authorities 2.269 0.000 8.281 0.000 HM Revenue and Customs 7.559 0.000 0.064 0.029 Employees 0.001 0.026 21.889 0.000 Council Tax arrears 23.634 0.000 (14.397) 0.000 less impairment (15.738) 0.000 4.376 0.000 Rent arrears 5.029 0.000 (3.240) 0.000 less impairment (4.031) 0.000 35.814 6.045 Other entities and individuals 25.481 5.953 (20.607) (4.972) less impairment (14.337) (4.969) 62.480 2.002 Total Debtors 75.104 1.820 31 March 2025 As at 31 March 2026 Page 194 of 392
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66 Annual Accounts 2025/26 PUBLIC Note 19: Creditors Amounts due to be paid by the Council as at 31 March are set out below. This is analysed by type of creditor to provide greater transparency of the sums due. Short-term Long-term Short-term Long-term £m £m £m £m (5.485) (0.549) Central government bodies (non-NHS) (31.704) (0.517) (1.894) 0.000 Central government bodies (NHS) (0.264) 0.000 (2.506) 0.000 Other local authorities (2.042) 0.000 0.000 0.000 Public corporations and trading funds (0.007) 0.000 (7.895) 0.000 HM Revenue and Customs (8.857) 0.000 (5.368) 0.000 Strathclyde Pension Fund and Scottish Public Pensions Agency (5.478) 0.000 (14.069) 0.000 Employees (14.644) 0.000 (4.345) (67.683) Service concession arrangements: schools (4.468) (64.296) (0.017) (5.364) Service concession arrangements: waste facility (0.152) (5.121) (0.413) (3.053) Right of Use Assets (0.349) (2.717) (3.488) 0.000 Council Tax refundable to taxpayers (3.438) 0.000 (1.656) 0.000 Council Tax receipts in advance (1.320) 0.000 (23.203) (0.932) Other entities and individuals (40.111) (0.900) (70.339) (77.581) Total Creditors (112.834) (73.551) As at 31 March 2025 As at 31 March 2026 Note 20: Provisions Provisions are made where an event has taken place that gives the Council a legal or constructive obligation that probably requires settlement by a transfer of economic benefits or service potential, and a reliable estimate can be made of the amount of the obligation. Teacher’s maternity pay is a short-term provision, made to reflect the changes in European legislation that allow teachers to accrue all holidays during parental leave. The movement in these short-term provisions is detailed below: Short-term Provisions Teachers’ maternity pay Other Total £m £m £m As at 1 April 2025 (0.142) (0.264) (0.406) Additional provisions made during the year (0.146) (0.421) (0.567) Amounts used during the year 0.142 0.264 0.406 As at 31 March 2026 (0.146) (0.421) (0.567) A summary of the movements in the long-term provisions made by the Council is detailed below, along with an explanation of the reason for the provision: Page 195 of 392
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67 Annual Accounts 2025/26 PUBLIC Long-term Provisions Holiday pay compensation Insurance claims Total £m £m £m Balance at 1 April 2025 (0.445) (4.785) (5.230) Additional provisions made during the year 0.000 (1.951) (1.951) Amounts used during the year 0.000 0.395 0.395 As at 31 March 2026 (0.445) (6.341) (6.786) Holiday pay compensation payments The Council has received a number of claims arising from a European Court of Justice ruling in relation to holiday pay. A provision has been made to reflect the potential outcome of known claims. Insurance claims The provision for insurance claims represents the actuarial assessment of excess costs arising from insurance claims together with identified liabilities in respect of insurance claims outstanding against Renfrewshire Council and predecessor local authorities. The Council has increased its net assessment by £1.951m on the basis of information held by the Council and notified by Glasgow City Council, the coordinating authority for the former Strathclyde Regional Council. Note 21: Financial Instruments Categories of financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. The term ‘financial instrument’ covers both financial assets and financial liabilities and includes trade payables, borrowings (for example Public Works Loan Board debt and market debt), financial guarantees, bank overdraft, trade receivables, loans receivable, cash deposits with financial institutions (some on a fixed term basis and some which are immediately available) and longer-term investments. The following categories of financial instrument are carried in the balance sheet. Loans to other entities and individuals comprise a loan to Kilbarchan Amateur Athletic Club of £0.071m (2024/25 £0.073), home loans of £0.201m (2024/25 £0.213m) and social care charging order debtors of £0.653m (2024/25 £0.737m). Note that these balances are not principal amounts owed, rather valued at amortised cost based on a notional (effective) interest rate. Page 196 of 392
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68 Annual Accounts 2025/26 PUBLIC Long-term Current Long-term Current £m £m £m £m (232.050) (5.000) (294.432) (0.002) 0.000 (2.694) 0.000 (3.110) (232.050) (7.694) (294.432) (3.112) 0.000 (46.766) (20.000) (26.766) 0.000 (0.858) 0.000 (0.857) 0.000 (0.588) (0.324) (0.251) 0.000 (48.212) (20.324) (27.874) 0.000 (33.839) 0.000 (40.095) (232.050) (89.745) (314.756) (71.081) 0.000 (33.091) 0.000 (74.297) (76.100) (4.775) (72.136) (4.968) (0.395) 0.000 (0.260) 0.000 (76.495) (37.866) (72.396) (79.265) As at 31 March 2025 As at 31 March 2026 Financial Liabilities Total Public Works Loan Board (PWLB) borrowing Borrowing from group entities Total Borrowing Financial Liabilities included in Creditors Principal sum borrowed Accrued interest Principal sum borrowed Accrued interest EIR adjustments Total non-PWLB borrowing (“market debt”) At amortised cost trade payables Service Concession and Right of Use Asset liabilities Financial guarantees Long-term Current Long-term Current £m £m £m £m 0.000 17.521 0.000 24.589 0.000 0.017 0.000 0.039 0.000 (0.004) 0.000 (0.005) 4.391 0.000 4.707 0.000 4.391 17.534 4.707 24.623 0.000 (8.165) 0.000 4.903 0.000 0.029 0.000 0.025 0.000 (0.003) 0.000 (0.003) 0.000 13.644 0.000 35.876 0.000 5.505 0.000 40.801 5.959 70.444 5.873 77.977 4.826 0.044 0.916 0.041 (4.972) (23.847) (4.969) (18.369) 5.813 46.641 1.820 59.649 As at 31 March 2025 Financial Assets At amortised cost: Principal Accrued interest As at 31 March 2026 Loss allowance At fair value through other comprehensive income - designated equity instruments At fair value through profit or loss Principal Accrued interest Loss allowance Total Investments Total Cash and cash equivalents At amortised cost: At amortised cost: Trade receivables Loans made for service purposes Loss allowance Financial Assets included in Debtors Page 197 of 392
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69 Annual Accounts 2025/26 PUBLIC Equity instruments elected to fair value through other comprehensive income The Council has elected to account for the Insurance Fund at fair value through other comprehensive income because it is a long-term strategic holding and changes in its fair value is not considered to be part of the Council’s annual financial performance. The Insurance Fund is invested in the Phoenix Fund, managed on behalf of the Council by LGT Wealth Management. The objective of the fund is to achieve long term growth with low volatility, through a widely diversified portfolio. The fair value of the investment is £4.707m at 31 March 2026 (£4.391m as at 31 March 2025). Income from the Fund is reinvested. Fair value of financial instruments Financial instruments, except those classified at amortised cost, are carried in the Balance Sheet at fair value. For most assets, including money market funds, the fair value is taken from the market price. The fair values of other instruments have been estimated by calculating the net present value of the remaining contractual cash flows at 31 March 2026. The Council’s ‘Fair value through other comprehensive income’ assets comprise its insurance fund investments. The fair value of the insurance fund investments equates to the market value of those investments, and this valuation has been provided by the Council’s investment manager, LGT Wealth Management. Financial instruments classified at amortised cost are carried in the Balance Sheet at amortised cost. Their fair values have been estimated by calculating the net present value of the remaining contractual cash flows at 31 March 2026, using the following methods and assumptions: • Loans borrowed by the Council have been valued by discounting the contractual cash flows over the whole life of the instrument at the appropriate market rate for local authority loans. • For ‘lender option borrower option’ (LOBO) loans, PWLB premature repayment rates have been applied to provide the fair value under PWLB debt redemption procedures. The PWLB redemption rates provide a reasonable proxy for rates and a number of market participants have used this basis when considering early redemption costs for market loans. It is likely that lenders will only exercise their options when market rates have risen above the contractual loan rate. The interest rate risk associated with the Council’s LOBOs is not deemed to be significant and the potential penalties charged may make the redemption of the loans an uneconomic option. • The fair values of other long-term loans and investments have been discounted at the market rates for similar instruments with similar remaining terms to maturity on 31 March. • The fair values of financial guarantees have been estimated based on the likelihood of the guarantees being called and the likely payments to be made. • No early repayment or impairment is recognised for any financial instrument. • The fair value of short-term instruments, including trade payables and receivables, is assumed to approximate to the carrying amount given the low and stable interest rate environment. Fair values are shown in the table below, split by their level in the fair value hierarchy: • Level 1 – fair value is only derived from quoted prices in active markets for identical assets or liabilities, e.g. bond prices • Level 2 – fair value is calculated from inputs other than quoted prices that are observable for the asset or liability, e.g. interest rates or yields for similar instruments • Level 3 – fair value is determined using unobservable inputs, e.g. non-market data such as cash flow forecasts or estimated creditworthiness. Page 198 of 392
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70 Annual Accounts 2025/26 PUBLIC The fair value for each category of financial instrument is shown below, with the balance sheet carrying amount shown for comparison. Carrying Amount Fair value Financial Liabilities Carrying Amount Fair value £m £m £m £m Financial liabilities measured at amortised cost: (239.743) (189.683) Public Works Loan Board borrowing 2 (297.547) (238.477) (48.211) (53.523) Non-PWLB borrowing (“market debt”) 2 (48.198) (53.858) Other liabilities: (80.875) (80.875) Service Concession and Finance Lease liabilities 3 (77.103) (77.103) (0.395) (0.395) Financial guarantees 3 (0.260) (0.260) (369.224) (324.476) (423.108) (369.698) Financial liabilities measured at amortised cost: (33.839) n/a Borrowing from group entities (40.618) n/a (33.091) n/a Trade payables: short-term (74.297) n/a (66.930) (114.915) As at 31 March 2025 As at 31 March 2026 Fair value level Total financial liabilities for which fair value is disclosed Total financial liabilities for which fair value is not disclosed Carrying Amount Fair value Financial Assets Carrying Amount Fair value £m £m £m £m 13.128 13.128 Callable deposits in money market funds and ultra-short bond funds 1 35.326 35.326 0.516 0.516 Euro current account balances with the council’s banker 2 0.550 0.550 4.391 4.391 Investments in pooled funds (insurance fund) 1 4.707 4.707 18.035 18.035 40.583 40.583 17.534 17.534 Fixed term deposits with UK building societies 2 24.623 24.623 (8.178) (8.178) Callable deposits with UK banks and building societies (including sterling current account balances with the Council’s banker) 2 4.885 4.885 0.040 0.040 Imprest accounts held at council establishments 2 0.040 0.040 1.023 1.037 Loans made for service purposes 3 0.925 0.945 10.419 10.433 30.473 30.493 28.454 28.468 71.056 71.076 Financial assets measured at amortised cost: 1.020 n/a Trade receivables and prepayments: long-term 0.934 n/a 46.598 n/a Receivables and prepayments: short-term 59.610 n/a 47.618 60.544 As at 31 March 2025 As at 31 March 2026 Total financial assets for which fair value is disclosed Total financial assets for which fair value is not disclosed Fair value level Total Financial assets measured at fair value Total Financial assets measured at amortised cost Items of income, expense, gain and loss relating to financial instruments The following items of income, expense, gain and loss relating to financial instruments are included within the lines ‘Financing and investment income and expenditure’ and ‘(Surplus)/Deficit from investments in equity instruments designated as Fair Value through Other Comprehensive Income’ in the CIES. Page 199 of 392
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71 Annual Accounts 2025/26 PUBLIC 2024/25 Amortised cost Elected to Fair Value through Other Comprehensive Income Fair Value through Profit or Loss 2025/26 £m £m £m £m £m £m 17.118 Interest expense 0.000 0.000 0.000 16.517 16.517 2.472 Impairment losses 1.602 0.000 0.000 0.000 1.602 0.007 Fee expense 0.000 0.000 0.000 0.022 0.022 19.597 Total expense in the Surplus / Deficit on the Provision of Services 1.602 0.000 0.000 16.539 18.141 (5.736) Interest income (1.677) 0.000 (1.105) 0.000 (2.782) (0.128) Dividend income 0.000 (0.136) 0.000 0.000 (0.136) (5.864) Total income in the Surplus/Deficit on the Provision of Services (1.677) (0.136) (1.105) 0.000 (2.918) 0.068 Net (gain) or loss on revaluation 0.000 (0.180) (0.023) 0.000 (0.203) 0.068 (Surplus)/Deficit on the revaluation of financial assets 0.000 (0.180) (0.023) 0.000 (0.203) 13.801 Net (Gain)/Loss for the year (0.075) (0.316) (1.128) 16.539 15.020 Financial Assets Financial liabilities at amortised cost Note 22: Nature and extent of risks arising from Financial Instruments The Council’s management of treasury risks actively works to minimise the Council’s exposure to the unpredictability of financial markets and to protect the financial resources available to fund services. The Council complies with CIPFA’s Code of Treasury Management Practices and has written principles for overall risk management as well as written policies and procedures covering specific areas such as credit risk, liquidity risk and market risk. In line with the Treasury Management Code, the Council approves a Treasury Management Strategy before the commencement of each financial year. The Strategy sets out the parameters for the management of risks associated with financial instruments. The Council also produces Treasury Management Practices specifying the practical arrangements to be followed to manage these risks. The Treasury Management Strategy includes an Investment Strategy in compliance with Scottish Government guidance on Local Government Investments. This Guidance emphasises that priority is to be given to security and liquidity, rather than yield. The Council’s Treasury Management Strategy and its Treasury Management Practices seek to achieve a suitable balance between risk and return or cost. Credit Risk Credit risk arises from the short-term lending of surplus funds to financial institutions and local authorities, as well as credit exposures to the Council’s customers. It is the policy of the Council to place deposits only with other local authorities and a limited number of high-quality banks, building societies and money market funds whose credit rating is independently assessed as sufficiently secure by the Council’s treasury advisers and to restrict lending to a prudent maximum amount for each entity. Page 200 of 392
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72 Annual Accounts 2025/26 PUBLIC The Treasury Management Strategy outlines the limits placed on investments with any counterparty. The table below summarises the credit risk exposures of the Council’s treasury investment portfolio (including accrued interest) by credit rating. 2024/25 2025/26 £m £m 13.071 AAA (money market funds and ultra-short bond funds) 35.226 2.465 A+ 3.431 2.810 A 4.571 17.521 UK Debt Management Office 24.589 35.867 Total 67.817 Total Investment Portfolio by Credit Rating The Council does not generally allow credit for customers such that, at 31 March 2026, £10.540m of sundry income debt is past its due date for payment (£9.111m as at 31 March 2025). The past due amount can be analysed by age as follows: 2024/25 2025/26 £m £m 1.549 Less than three months 1.971 1.864 Three to six months 1.310 0.666 Six months to one year 1.211 5.032 More than one year 5.476 9.111 Total 9.968 Sundry Income Debt Past Due Loss allowances on trade receivables have been calculated by reference to the Council’s historic experience of default, adjusted for current and forecast economic conditions. Receivables are determined to have suffered a significant increase in credit risk where they are 30 or more days past due and they are determined to be credit-impaired where they are 90 or more days past due. Receivables are written off to the Surplus or Deficit on the Provision of Services when there is no reasonable prospect of payment, or when they become prescribed; but steps are still taken to collect sums owing when information becomes available which suggests the debtor can make payment. Collateral Renfrewshire Council occasionally provides loans to residents who wish to buy their homes under Right to Buy legislation. In such cases the Council takes a standard security over the property. As at 31 March 2026 the outstanding value of home loans advanced by the Council was £0.201m (£0.213m as at 31 March 2025). Liquidity risk The Council’s main source of borrowing is HM Treasury’s Public Works Loan Board, but the Council also has loans classed as ‘lender option borrower option’ (LOBO). There is no significant risk that the Council will be unable to raise finance to meets its commitments under financial instruments. The Council has safeguards in place to ensure that a significant proportion of its borrowing does not mature for repayment at any one time in the future to reduce the financial impact of re-borrowing at a time of unfavourable interest rates. The Council’s policy is to ensure that no more than 15% of loans are due to mature within any financial year and 50% within any rolling five-year period through a combination of prudent planning of new loans taken out and, where it is economic to do so, making early repayments. Page 201 of 392
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73 Annual Accounts 2025/26 PUBLIC The maturity analysis of the principal element of borrowing is as follows: £m % £m % 5.000 1.76% Less than one year 0.002 0.00% 0.007 0.00% Between one and two years 15.000 4.40% 0.000 0.00% Between two and five years 49.000 14.36% 278.809 98.24% More than five years 277.198 81.24% 283.816 100.00% Total 341.200 100.00% As at 31 March 2025 Principal Borrowing Maturity Analysis As at 31 March 2026 Market risk: interest rate risk Changes in market interest rates influence the interest payable on borrowings and on interest receivable on surplus funds invested. For example, a rise in interest rates would mean an increase in the interest charged on borrowing at variable rates and an increased cost to the taxpayer. An increase in interest rates would also mean an increase in the income received on lending at variable rates and a reduction in cost for the taxpayer. Changes in market rates also affect the notional ‘fair value’ of lending and borrowing. For example, a rise in interest rates would reduce the fair value of both lending and borrowing at fixed rates. Changes in the fair value of lending and borrowing do not impact upon the taxpayer and are confined to prescribed presentational aspects in the Accounts. The Council has a variety of strategies for managing the uncertainty of future interest rates and the financial impact on the Council’s finances: • it is the policy of the Council to limit its exposure to variable rate borrowing to a maximum of 25% of what it borrows; • during periods of falling rates and where it is economically advantageous to do so, the Council will consider the repayment and restructuring of fixed interest rate debt; • the Council takes daily advice from its specialist treasury advisers and actively monitors changes in interest rates to inform decisions on the lending of surplus funds, new borrowings and restructurings of existing borrowings. To illustrate the notional impact of changes in interest rates upon the Council, the following table shows the financial effect if rates had been 1% higher during 2025/26, with all other variables held constant. Decrease in the fair value of fixed rate loans and deposits Decrease in the fair value of fixed rate borrowing 0.130 (0.684) (0.554) (0.182) 0.008 31.214 Increase in interest payable on new fixed rate borrowings taken during the year Increase in interest receivable on deposits placed during the year Notional impact on the Surplus/Deficit on the Provision of Services Share of this impact which would be attributable to the Housing Revenue Account Other changes that would have no impact on the Surplus/Deficit on the Provision of Services or Other Comprehensive Income and Expenditure: As at 31 March 2026 £m Interest rate risk The impact of a 1% fall in interest rates would be as above but with the changes being reversed. Page 202 of 392
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74 Annual Accounts 2025/26 PUBLIC Market risk: price risk The Council’s Insurance Fund is invested in an externally managed fund under the powers of schedule 3 of the Local Government (Scotland) Act 1975 and section 3 of the Local Government etc. (Scotland) Act 1994. The investments are managed on behalf of the Council by LGT Wealth Management in the Phoenix Fund. The objective of the fund is to achieve long-term growth with low volatility, through a widely diversified portfolio. The benchmark return is SONIA+2% per annum. During 2025/26 the book cost of investments increased by £0.136m (£0.135m increase during 2024/25). The investment is classified as fair value through other comprehensive income, meaning that all movements in price will impact on the gains and losses recognised in other comprehensive income and expenditure. This is an accounting requirement that has no impact on the taxpayer. To illustrate the impact of changes in share price upon the Council, an increase or fall of 5% in the general price of shares at 31 March 2026 would have resulted in a £0.086m gain or loss being recognised in Other Comprehensive Income and Expenditure for 2025/26. Market risk: foreign exchange risk As at 31 March 2026 the Council had a foreign currency deposit of €0.629m with the Council’s banker (€0.617m as at 31 March 2025). This sum was being held in order to mitigate the foreign exchange risk associated with a contract being entered into as part of the Glasgow and Clyde Valley City Deal programme. The sterling valuation of this deposit as at 31 March 2026, based on the euro to sterling exchange rate at that time, was £0.550m. To illustrate the impact of changes in foreign exchange rates upon the Council, a relative increase or decrease of 1% in the euro to sterling exchange rate at 31 March 2026 would have resulted in a £0.005m gain or loss being recognised in Other Comprehensive Income and Expenditure for 2025/26. Note 23: External audit costs 2024/25 2025/26 £m £m 0.487 Fees payable with regard to external audit services carried out by the appointed auditor for the year 0.500 0.487 Total 0.500 Audit Fees Note 24: Agency services The Council bills and collects non-domestic rates on behalf of the Scottish Government from ratepayers situated within Renfrewshire Council and East Renfrewshire Council. The Council also bills and collects, along with its own Council Tax, domestic water and sewerage charges on behalf of Scottish Water. 2024/25 2025/26 £m £m 107.505 Scottish Government - Contributions (to)/from the non-domestic rates pool 108.844 15.951 Non-domestic rates collected: East Renfrewshire 16.102 0.073 Service income from East Renfrewshire Council for collection of non-domestic rates 0.075 (16.024) Cost of collection of Non-domestic rates from East Renfrewshire (16.177) 38.164 Domestic water and sewerage charges collected 41.970 (38.164) Domestic water and sewerage charges paid over to Scottish Water (41.970) 0.730 Service income from Scottish Water for collection of domestic water and sewerage charges 0.741 Agency Services Page 203 of 392
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75 Annual Accounts 2025/26 PUBLIC Note 25: Related parties The Council’s related parties are those bodies or individuals that have the potential to control or significantly influence the Council, or to be controlled or significantly influenced by the Council, or where those individuals or bodies and the Council are subject to common control. The Council is required to disclose material transactions that have occurred with related parties and the amount of any material sums due to or from related parties. Related party relationships require to be disclosed where control exists, irrespective of whether there have been transactions between the related parties. Disclosure of this information allows readers to assess the extent to which the Council 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 Council. Senior Officers and Elected Members Members of the council and senior officers have control over the Council’s financial and operating policies. They have the responsibility to adhere to a Code of Conduct, requiring them to declare an interest in matters that directly or indirectly influence, or appear to influence, their judgement or decisions taken during the course of their work. The total of councillors’ and senior officers’ remuneration allowances paid in 2025/26 are shown in the Remuneration Report on page 29. Senior Officers No senior officer holds a remunerated position outside of their Council employment. For details of Senior Officers’ interests, please check the register of interests on the Council website at: Register-of-senior-officers-interests Senior Elected Members Under the Council Code of Conduct, elected members and senior officials must declare any registered interests in any bodies where the Council itself does not have significant influence over their operations. Each member’s Register of Interest is available at Councillors - Renfrewshire Website. In 2025/26, the Council made payments totalling £9.921m (£6.581m 2024/25) to bodies where members hold a position where they have significant influence or control as listed below: 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 4.401 (0.108) 0.107 0.000 Quarriers - Charity Care Organisation 4.651 0.087 0.019 (0.050) 0.599 (3.971) 0.480 0.140 NHS Greater Glasgow and Clyde Health Board 2.312 (5.417) 1.137 (0.019) 0.000 0.000 0.000 0.000 Johnstone Sound Radio Station 0.006 0.000 0.000 0.000 1.520 0.000 0.000 0.000 Kibble Trust 2.699 0.000 0.000 0.000 0.061 0.000 0.000 0.000 Erskine Arts - Charity n/a n/a n/a n/a 0.000 (0.006) 0.001 0.001 St Mirren Independent Supporters Association* 0.235 (0.008) (0.001) 0.000 6.581 (4.085) 0.588 0.141 Total 9.903 (5.338) 1.155 (0.069) NB: This disclosure excludes group entities and trade union membership. *These figures relate to expenditure to and income from St Mirren Football Club and not the Supporters Association Page 204 of 392
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76 Annual Accounts 2025/26 PUBLIC Key Related Parties: subsidiaries and associates The organisations set out in the group accounts note are those which the Council is considered to have control or influence over. For further details of the nature of group relationships, please refer to the Group Accounts and Notes from page 104. IAS 24 requires related party transactions during the year to be disclosed. This disclosure should include the nature of the transaction and any outstanding balances. Significant transactions with other public bodies are displayed below: 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 155.834 (49.083) 0.000 (24.186) Renfrewshire Health and Social Care Integration Joint Board 162.824 (48.633) 0.000 (28.480) 0.000 0.000 0.000 0.000 Advanced Manufacturing Innovation District Scotland (AMIDS) 0.139 0.000 0.000 (0.066) 155.834 (49.083) 0.000 (24.186) Total 162.963 (48.633) 0.000 (28.546) Joint Ventures 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 16.186 (0.631) 0.274 (1.487) Renfrewshire Leisure Ltd trading as OneRen 15.762 (0.362) 1.320 (0.690) 0.352 0.000 0.000 0.000 Coats Observatory Trust 0.523 0.000 0.000 0.000 0.048 (0.056) 0.000 0.000 Paisley Museum Reimagined Ltd 0.005 (0.037) 0.000 0.000 16.586 (0.687) 0.274 (1.487) Total 16.290 (0.399) 1.320 (0.690) Subsidiary 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 2.955 (0.165) 0.000 0.000 Strathclyde Partnership for Transport 3.031 (0.550) 0.551 (0.007) 0.332 0.000 0.000 0.000 Strathclyde Concessionary Travel Scheme Joint Committee 0.341 0.000 0.000 0.000 1.643 (0.162) 0.000 (1.493) Renfrewshire Valuation Joint Board 1.644 (0.110) 0.000 (1.530) 4.930 (0.327) 0.000 (1.493) Total 5.016 (0.660) 0.551 (1.537) Associates Page 205 of 392
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77 Annual Accounts 2025/26 PUBLIC Key Related Parties: Other Public Bodies Scottish Government The Scottish Government has effective control over the operations of the Council as it is responsible for providing the statutory framework within which the Council operates, provides the majority of its funding in the form of grants and prescribes the terms of many of the transactions that the Council has with other parties, such as Council Tax and Non-Domestic Rates. Significant transactions with the Scottish Government are shown in the table below: 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2025/26 Expenditure £m Income £m Debtor £m Creditor £m Expenditure £m Income £m Debtor £m Creditor £m 0.000 (452.499) 0.202 0.000 Scottish Government 0.000 (484.436) 0.020 0.000 0.000 (452.499) 0.202 0.000 0.000 (484.436) 0.020 0.000 Note 26: Pension schemes accounted for as defined contribution schemes Renfrewshire Council participates in the Scottish Teachers' Superannuation Scheme. The scheme is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations. The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary. The last four-yearly valuation was undertaken as at 31 March 2024, which set the contribution rate payable from 1 April 2024 to 31 March 2027. Renfrewshire Council has no liability for other employers’ obligations to the multi-employer scheme. As the scheme is unfunded there can be no deficit or surplus to distribute on the wind-up of the scheme or withdrawal from the scheme. The scheme is an unfunded multi-employer defined benefit scheme. It is accepted that the scheme can be treated for accounting purposes as a defined contribution scheme in circumstances where Renfrewshire Council is unable to identify its share of the underlying assets and liabilities of the scheme. While the employee rate applied is variable, it will provide an actuarial yield of 9.6% of pensionable pay. At the last valuation a shortfall of £2.9bn was identified in the notional fund, which will be repaid by the increased rate of employers’ pension contribution, effective from 1 April 2024, of 26%. Based on the proportion of employer contributions paid in 2025/26, Renfrewshire Council’s level of participation in the scheme is 2.9%. The Council paid £26.142m (£24.806m in 2024/25) for employer's contributions to the Scottish Public Pensions Agency. £0.313m of expenditure (£0.375m in 2024/25) was charged to service revenue accounts in respect of “added years” pension enhancement termination benefits, representing 0.3% of teachers’ pensionable pay (0.4% in 2024/25). The estimated contribution for 2026/27 is £25.327m. Note 27: Defined benefit pension schemes 27a: Participation in pension schemes The pension scheme for teachers (the Scottish Teachers’ Superannuation Scheme) is explained in the previous note, whilst this note relates exclusively to the pension scheme for all other employees: the Local Government Pension Scheme. Page 206 of 392
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78 Annual Accounts 2025/26 PUBLIC The Local Government Pension Scheme in Scotland (LGPS) is a funded, defined benefit, statutory occupational pension scheme. It is regulated by the Scottish Public Pensions Agency but is administered locally by fund administering authorities through regional pension funds. For Renfrewshire Council, the fund administering authority is Glasgow City Council and the regional pension fund is the Strathclyde Pension Fund. As a funded scheme, the Council and employees pay contributions into the fund, calculated at a level intended to balance the scheme’s pension liabilities with the scheme’s investment assets. The statutory nature of the fund means that the post- employment benefits are defined and set out in law. The Strathclyde Pension Fund is a multi-employer fund, and it is possible for each employer to identify its own share of the assets and liabilities of the fund on a consistent and reasonable basis. The principal risks to the scheme are assumptions relating to longevity, inflation, and investment performance; in addition, statutory changes to the scheme. These risks are mitigated to an extent by statutory requirements limiting charges to the Council’s general fund. The Council has additional liabilities for unfunded discretionary pension payments outside the main schemes such as arrangements for the award of discretionary post- employment 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 pensions liabilities, and cash has to be generated to meet actual pensions payments as they eventually fall due. 27b: Transactions relating to post- employment benefits The Council accounts for post-employment benefits in the CIES as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and accounting for investment returns on any resources set aside to meet the costs. However, the charge according to statutory regulations that is required to be made against the General Fund Balance and the Housing Revenue Account Balance is based upon the employer contributions payable by the Council to the pension fund in the year. This requires an adjustment to be made in the movement in reserves statement to remove the cost (according to generally accepted accounting practices) of post-employment benefits and replace that cost with the value of employer contributions payable to the fund in the year. The following transactions have been made in the CIES and the General Fund Balance via the movement in reserves statement during the year: Page 207 of 392
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79 Annual Accounts 2025/26 PUBLIC 2024/25 2025/26 £m £m Included within net cost of services: 34.765 Current service cost 25.076 0.665 Past service cost/(gain) 1.905 Included within Financing and Investment income and expenditure: 62.127 Interest cost 66.026 27.231 Interest on the effect of the asset ceiling 43.834 (85.344) Expected return on scheme assets (105.831) 39.444 Total of Post-employment benefits charged to the Surplus/Deficit on the Provision of Services 31.010 Included within Other Comprehensive Income and Expenditure: 22.312 Return on Assets excluding amounts included in net interest (62.505) (2.183) Actuarial gains and losses arising on changes in Demographic Assumptions 7.329 (196.867) Actuarial gains and losses arising on changes in Financial Assumptions (34.765) (14.730) Actuarial gains and losses arising on changes in Other Assumptions 9.629 (594.551) Changes in effect of Asset Ceiling (800.129) (746.575) Total of LGPS post-employment benefits charged to the CIES (849.431) Movement in reserves statement: (787.413) Actuarial losses or (gains) (880.441) 756.295 Restriction on pension asset to Asset Ceiling 865.313 (1.383) Effect of business combinations and disposals 0.000 40.838 Reversal of items relating to post-employment benefits debited or credited to the Surplus/Deficit on the Provision of Services 31.010 (17.579) Employer contributions and direct payments to pensioners payable in the year (17.326) (9.242) Movement in the year on the Pension Reserve (1.444) The cumulative amount of actuarial gains and losses recognised in the CIES as at 31 March 2026 is a gain of £1,180.866m (£1,179.986m gain as at 31 March 2025). 27c: Assets and liabilities relating to post-employment benefits Renfrewshire Council's share of the defined benefit obligation (that is, the scheme liabilities) and of the scheme assets in the Strathclyde Pension Fund has been assessed by Hymans Robertson LLP, the Fund’s independent actuaries. The assessment indicates that, as at 31 March 2026, scheme assets exceeded the defined benefit obligation by £801.519m (£691.057m excess of obligations over assets as at 31 March 2025). The defined benefit obligation is valued on an actuarial basis using the “projected unit credit” method, which estimates the pensions that will be payable in future years (dependent on assumptions about mortality rates, salary levels and other factors) discounted to their present value. The discount rate used at 31 March 2026 was 6.2% based on the indicative rate of return on high quality corporate bonds. Scheme assets are valued at fair value which, in the case of marketable securities, is market value using the current bid price. Where no market price is available, the fair value of scheme assets is estimated. The valuations are based on the latest formal valuation of the Strathclyde Pension Fund which was carried out as at 31 March 2024. The common position for employers participating in the Strathclyde Pension Fund is that, based on a snapshot valuation as at 31 March 2026, a net pension asset is disclosed as a result of prevailing market conditions at that date. The net pension position of £801.519m represents an increase in asset of £110.462m between 31 March 2025 and 31 March 2026. Page 208 of 392
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80 Annual Accounts 2025/26 PUBLIC The net pension asset has a substantial impact on the net worth of the Council as recorded in the balance sheet). However, this surplus of scheme assets is restricted to the “asset ceiling” i.e., the net present value of future service costs less net present value of future contributions over the future working lifetime as at 31 March 2026. This has been calculated to be £0 for funded obligations. After adjusting for the asset ceiling, the balance sheet now reflects a pension liability of £63.794m, representing the unfunded obligations of the scheme. Local government legislation provides that local authorities have an obligation to meet the expenditure of the joint boards of which they are constituent members. As a consequence, Renfrewshire Council has additional liabilities arising from the pension scheme deficits of the Renfrewshire Valuation Joint Board. In accordance with accounting regulations, the group accounts include a share of the post-employment benefits transactions, defined benefit obligations and scheme assets of this joint board. Further information can be found in the annual report and accounts of each joint board. The main fund (Fund 1) of Strathclyde Pension Fund does not have an asset and liability matching (ALM) strategy. 27d: Movement in defined benefit obligation (scheme liabilities) The following is a reconciliation of the 2025/26 opening and closing balances of the present value of Renfrewshire Council’s share of the Strathclyde Pension Fund’s defined benefit obligation (that is, scheme liabilities). 2024/25 2025/26 £m £m 1,297.361 Balance at 1 April 1,144.060 34.765 Current service cost 25.076 0.665 Past service cost (including curtailments) 1.905 62.127 Interest cost 66.026 10.447 Member contributions 11.893 2.686 Effect of business combinations and disposals 0.000 (213.780) Actuarial losses or (gains) (17.807) Losses or (gains) on curtailment (5.398) Estimated benefits paid: unfunded (5.340) (44.813) Estimated benefits paid: other (45.036) 1,144.060 Balance at 31 March 1,180.777 27e: Movement in scheme assets The following is a reconciliation of the 2025/26 opening and closing balances of the fair value of Renfrewshire Council’s share of the Strathclyde Pension Fund’s scheme assets. Page 209 of 392
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81 Annual Accounts 2025/26 PUBLIC 2024/25 2025/26 £m £m 1,790.201 Balance at 1 April 1,835.117 85.344 Expected return on scheme assets 105.831 10.447 Member contributions 11.893 12.181 Employer contributions 11.986 5.398 Contributions in respect of unfunded benefits 5.340 4.069 Effect of business combinations and disposals 0.000 (22.312) Actuarial (losses) or gains 62.505 (5.398) Estimated benefits paid: unfunded (5.340) (44.813) Estimated benefits paid: other (45.036) 1,835.117 Balance at 31 March 1,982.296 The expected return on scheme assets is determined by considering the expected returns available on the assets underlying the current investment policy as provided by the administering authority. Expected yields on fixed interest investments are based on gross redemption yields as at the balance sheet date. Expected returns on equity investments reflect long-term real rates of return experienced in the respective markets. The actual return on scheme assets from 1 April 2025 to 31 March 2026 was 9.2%. The fair value of the assets held in the scheme may be analysed as follows: Quoted Prices in active markets Prices not quoted in active markets Total Quoted Prices in active markets Prices not quoted in active markets Total £m £m £m £m £m £m 380.164 1.187 381.351 Equity instruments 416.848 1.433 418.281 0.000 424.190 424.190 Private Equity 0.000 475.395 475.395 0.000 138.456 138.456 Real Estate 0.000 137.411 137.411 6.719 839.751 846.470 Investment Funds 0.000 887.283 887.283 0.000 (0.001) (0.001) Derivatives 0.000 0.000 0.000 0.000 44.651 44.651 Cash and cash equivalents 0.000 63.926 63.926 386.883 1,448.234 1,835.117 Fair value of scheme assets 416.848 1,565.448 1,982.296 As at 31 March 2025 As at 31 March 2026 27f: Scheme history: analysis of defined benefit obligation and scheme assets The Council’s share of the accumulated deficit or surplus in the scheme is shown below. The analysis shows the nature of various elements of the Council’s share of the scheme’s defined benefit: Page 210 of 392
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82 Annual Accounts 2025/26 PUBLIC As at 31 March 2025 As at 31 March 2026 £m £m (485.593) Current employee members (532.790) (49.398) Pre-local government reorganisation (1996) liabilities (48.448) (115.874) Deferred pensioners (117.260) (427.957) Pensioners (418.485) (1,078.822) Total Present Value of the Defined Benefit Obligation - Funded liabilities (1,116.983) 1,835.117 Fair value of scheme assets 1,982.296 756.295 Net Asset / (Liability) arising from funded obligations 865.313 (756.295) Restriction to asset ceiling (865.313) (59.651) Retirals from Renfrewshire Council (58.663) (5.587) Retirals pre-local government reorganisation (1996) (5.131) (65.238) Total Present Value of the Defined Benefit Obligation - Unfunded liabilities (63.794) (65.238) Net Pension Asset / (Liability) (63.794) Basis for estimating assets and liabilities The following table shows the principal assumptions used by Hymans Robertson LLP, the Fund’s independent actuaries, to estimate the Council’s post-employment benefits transactions for 2025/26, and the Council’s share of the Strathclyde Pension Fund’s defined benefit obligation (scheme liabilities) and scheme assets as at 31 March 2026: 2024/25 2025/26 5.8% Discount rate for defined benefit obligation 6.2% 2.7% Long-term expected rate of return on scheme assets* 3.0% 3.5% Rate of increase in salaries 3.7% 2.8% Rate of increase in pensions 3.0% 2.8% Rate of inflation 3.0% Mortality assumptions (years): Longevity at age 65 for current pensioners: 19.5 Men 19.9 22.3 Women 22.4 Longevity at age 65 for future pensioners: 20.5 Men 20.8 24.1 Women 24.2 Take up of option to convert annual pension into retirement lump sum 75% For Pre-April 2009 service 75% 75% For Post-April 2009 service 75% *The expected rates of return are set equal to the discount rate as per IAS19. Page 211 of 392
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83 Annual Accounts 2025/26 PUBLIC The estimation of the defined benefit obligations is sensitive to the actuarial assumptions set out in the table above. The sensitivity analyses below have been determined based on reasonably 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 estimations in the sensitivity analysis have followed the accounting policies for the scheme, i.e. on an actuarial basis using the projected unit credit method. The methods and types of assumptions used in preparing the sensitivity analysis did not change from those used in the previous period. The limitations of methods and assumptions used are associated with any changes in market conditions that affect the net discount rate. These can have a significant effect on the value of the obligations reported. Impact on the Defined Benefit Obligation on the Scheme % £m 0.1% decrease in the Real Discount Rate 2% 18.333 1 year increase in the member life expectancy 4% 47.231 0.1% increase in the Salary Increase Rate 0% 1.230 0.1% increase in the Pension Increase Rate 1% 17.079 Impact on the Authority’s cash flows An objective of the Fund is to keep employers’ contributions at as constant a rate as possible. The Fund has agreed a strategy to achieve a funding rate of 100% in the longer term. Employers’ and employees’ contributions have been determined so that rates are standard across all participating employers. The rate for employer contributions has been set at 6.5% for 2025/26, rising to 17.5% in 2026/27. The total contribution expected to be made by the Council to the Strathclyde Pension Fund in the forthcoming year to 31 March 2027 is £29.852m. The weighted average duration of the defined benefit obligation is 17 years. Note 28: Contingent liabilities i) The Council has been notified of a number of contractor claims for additional costs incurred on construction contracts. The Council disputes the claims, which may be referred for arbitration. The Council recognises a contingent liability for potential costs, which may be incurred to resolve this dispute. It is not considered practicable at this stage to estimate the financial effect. ii) Following two court cases, including Mrs Goodwin v Department for Education, it is expected that proposed changes to public service pension schemes will be required, to ensure that surviving same-sex spouses and civil partners receive benefits equivalent to those received by the surviving spouses of opposite- sex marriages. Strathclyde Pension Fund’s actuary estimates that the potential impact may be 0.1% of gross obligations, which equates to £1.141m for the Council. This estimate is not reflected in the Primary Financial Statements because the trigger event that would require recognition has not yet occurred. Note 29: Events after the balance sheet date Events taking place after the authorised date for issue per the balance sheet 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. Note 30: Accounting Standards Issued not Adopted The Code requires the disclosure of information relating to the impact of an accounting change that Page 212 of 392
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84 Annual Accounts 2025/26 PUBLIC will be required by a new standard that has been issued but not yet adopted. The following new standards and amendments to existing standards have been published but not yet adopted by the Code: • Amendments to the Classification and Measurement of Financial Instruments (amendments to IFRS 9 and IFRS 7) issued in May 2024. • Contracts referencing nature dependent electricity (amendments to IFRS 9 and IFRS 7) issued in December 2024. There is no material impact anticipated in future years from the implementation of these standards. Note 31: Accounting Policies – Renfrewshire Council The Financial Statements for the year ended 31 March 2026 have been prepared in accordance with proper accounting practice as per section 12 of the Local Government in Scotland Act 2003. Proper accounting practice comprises the Code of Practice on Local Authority Accounting in the United Kingdom (the Accounting Code) and the Service Reporting Code of Practice, supported by International Financial Reporting Standards and recommendations made by the Local Authority (Scotland) Accounts Advisory Committee (LASAAC). They are designed to give a true and fair view of the financial performance and position of the Council and comparative figures for the previous financial year are provided. There are no significant departures from these recommendations. The accounts have been prepared under the historic cost convention, other than changes resulting from the revaluation of certain categories of non-current assets and financial instruments, and on a going concern basis. A Accruals of Expenditure and Income Activity is accounted for in the year that it takes place, not simply when cash payments are made or received. In particular: i) Revenue from the sale of goods or provision of services is recognised when the performance obligation relating to the transaction has been satisfied, and it is probable that the economic benefits or service potential associated with the transaction will flow to the Council. ii) Supplies are recorded as expenditure when they are consumed. Where there is a gap between the date supplies are received and their consumption, they are carried as inventories on the Balance Sheet. Works are charged as expenditure when they are completed, before which they are carried as assets under construction on the Balance Sheet. iii) Interest payable on borrowings and receivable on investments is accounted for on the basis of the effective interest rate for the relevant financial instrument. Interest receivable and dividend income is recognised when it is probable that the economic benefits or service potential associated with the transaction will flow to the Council. iv) Where income and expenditure have 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 there is evidence that debts are unlikely to be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected. v) Supplier invoices paid in the two weeks following the year-end are accrued together with specific accruals in respect of further material items provided the goods or services were received by 31 March 2026 or relate to services associated with the prior financial year. Page 213 of 392
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85 Annual Accounts 2025/26 PUBLIC B Business Improvement District Following the formation of the Paisley First BID company on 15 January 2015, the Council has entered into an agreement to act as the billing body for the purposes of the Planning etc. (Scotland) Act 2006 and the Regulations and is responsible for the administration, collection and recovery of the BID Levy. As the Council is acting as agent for the BID company, no transactions in relation to the BID levy or BID Revenue Account are included in the CIES with the exception of any contribution made by the Council to the BID project, the costs and income related to the collection of the BID levy or any income from the BID company in relation to services provided. C Cash and Cash Equivalents Cash is defined as cash in hand and deposits repayable on demand less overdrafts repayable on demand. Cash equivalents are defined as call accounts, money market funds and instant deposits. Fixed term deposits are not classified as cash or cash equivalents as these are held for investment purposes rather than for meeting short-term cash commitments. D Charges for the Use of Assets Services are charged for the use of assets no matter how they are financed, and this charge includes a provision for depreciation where appropriate. E Contingent Assets and Liabilities Contingent assets and liabilities are not recognised in the financial statements but are disclosed as a note to the accounts where they are deemed material. F Employee Benefits Benefits payable during employment All salaries and wages earned up to 31 March 2026 are included in the Accounts irrespective of when payment was made. An accrual is made for the cost of holiday entitlements earned by employees, but not taken before the year end and which employees may carry forward into the next financial year; along with any pay inflation agreed for the year and not yet paid. Termination benefits Termination benefits are amounts payable as a result of a decision by the Council to terminate an officer’s employment before the normal retirement date or an officer’s decision to accept voluntary redundancy. They are charged on an accruals basis to the relevant service line in the CIES when the Council is demonstrably committed to either terminating the employment of an officer or making an offer to encourage voluntary redundancy. The Council is only demonstrably committed to a termination when it has a detailed formal plan for the termination, and it is without realistic possibility of withdrawal. Where termination benefits involve the enhancement of pensions, statutory provisions require the General Fund balance to be charged with the amount payable by the Council to the pension fund or pensioner in the year, not the amount calculated according to the relevant accounting standards. In the Movement in Reserves Statement, appropriations are required to and from the Pensions Reserve to remove the notional debits and credits for pension enhancement termination benefits and to replace them with debits for the cash paid to the pension fund and pensioners and any such amounts payable but unpaid at the year-end. Post-employment benefits The Council participates in two formal pension schemes: the Local Government Pension Scheme which is administered by Strathclyde Pension Fund; and the Scottish Teachers’ Superannuation Scheme. Liabilities for the Scottish Teachers’ Superannuation Scheme cannot be identified specifically to the Council; therefore, the scheme is accounted for as a defined contributions scheme. Page 214 of 392
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86 Annual Accounts 2025/26 PUBLIC The Local Government Pension Scheme is accounted for as a defined benefit scheme in accordance with International Accounting Standard 19 (IAS19) (as revised in 2011). Renfrewshire Council's share of the net pension asset or liability in Strathclyde Pension Fund and a pension reserve are recognised in the Balance Sheet. The CIES recognises changes during the year in the pension asset or liability. Service expenditure includes pension costs based on employers' pension contributions payable and payments to pensioners in the year. Liabilities are included in the Balance Sheet on an actuarial basis using the projected unit method. Liabilities are discounted to their value at current prices using a discount rate based on the indicative rate of return on high quality corporate bonds. Assets are included in the Balance Sheet at their fair value, principally the bid price for quoted securities, and estimated fair value for unquoted securities. G Events after the Balance Sheet date Events after the Balance Sheet date are those events that occur between the end of the reporting period and the date when the Statements are authorised for issue. There are two types of events: • Adjusting events – those that provide evidence of conditions that existed at the end of the reporting period, and the Statements are adjusted to reflect such events • Non-adjusting events – those that are indicative of conditions that arose after the reporting period, and the Statements are not adjusted. Events taking place after the date of authorisation for issue are not reflected in the Statements. H Prior Period Adjustments When items of income and expense are material, their nature and amount is disclosed separately, either on the face of the CIES or in the notes to the accounts, depending on how significant the items are to an understanding of the Council’s financial performance. Where there has been a change in accounting policy, that change will be applied retrospectively. Where there has been a change in accounting estimate, that change will be applied prospectively. Where a material misstatement or omission has been discovered relating to a prior period, that misstatement or omission will be restated unless it is impracticable to do so. I Financial Instruments Financial Assets Financial assets are classified into three categories of valuation: • At amortised cost; • At fair value through other comprehensive income – designated equity instruments; and • At fair value through profit or loss. Financial Assets Measured at Amortised Cost Financial assets measured at amortised cost are recognised on the Balance Sheet when the Council becomes a party to the contractual provisions of a financial instrument and are initially measured at fair value. They are subsequently measured at their amortised cost. Annual credits to the Financing and Investment Income and Expenditure line in the CIES for interest receivable are based on the carrying amount of the asset multiplied by the effective rate of interest for the instrument. For most of the loans made by the Council, this means that the amount presented in the Balance Sheet is the outstanding principal receivable (plus accrued interest) and interest credited to the CIES is the amount receivable for the year in the loan agreement. Any gains and losses that arise on the derecognition of an asset are credited or debited to the Financing and Investment Income and Expenditure line in the CIES. The Council has assets such as investments and debtors which are classified as financial assets measured at amortised cost. Page 215 of 392
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87 Annual Accounts 2025/26 PUBLIC Financial Assets Measured at Fair Value through other Comprehensive Income (FVOCI) Financial assets that are measured at FVOCI are recognised on the Balance Sheet when the Council becomes party to the contractual provisions of a financial instrument and are initially measured and carried at fair value. Investment income is credited to Financing and Investment Income and Expenditure in the CIES when it becomes receivable by the Council. Where an equity instrument is designated as FVOCI, changes in fair value are posted to Other Comprehensive Income and Expenditure and are balanced by an entry in the Financial Instruments Revaluation Reserve (an unusable reserve). When the asset is derecognised, the cumulative gain or loss previously recognised in Other Comprehensive Income and Expenditure is transferred from the Financial Instruments Revaluation Reserve and recognised in the Surplus or Deficit on the Provision of Services. The Council has made an irrevocable election to designate these assets as FVOCI on the basis that they are held for non-contractual benefits, not for trading, but for strategic purposes. Financial assets measured at fair value through profit and loss Assets are recognised on the Balance Sheet when the Council becomes a party to the contractual provisions of a financial instrument and are initially measured and carried at fair value. Where there are no fixed or determinable payments, income (e.g. dividends) is credited to the CIES when it becomes receivable by the Council. Assets values are based on the following principles: • instruments with quoted market prices – the market price • other instruments with fixed and determinable payments – discounted cash flow analysis • equity shares with no quoted market prices – independent appraisal of company valuations. Any gains and losses that arise on the derecognition of the asset are credited/debited to the Financing and Investment Income and Expenditure line in the CIES. Where fair value cannot be measured reliably, the instrument is carried at cost (less any impairment losses). Expected Credit Loss Model Where assets are identified as impaired as a result of an expected credit loss, the asset is written down and a charge made to the Financing and Investment Income and Expenditure line in the CIES. If the asset has fixed or determinable payments, the impairment loss is measured as the difference between the carrying amount and the present value of the revised future cash flows discounted at the asset’s original effective interest rate. Otherwise, the impairment loss is measured as any shortfall of fair value against the acquisition cost of the instrument (net of any principal repayment and amortisation). Financial Liabilities Financial liabilities are recognised on the Balance Sheet when the Council becomes a party to the contractual provisions of a financial instrument and initially measured at fair value and carried at their amortised cost. Annual charges to the Financing and Investment Income and Expenditure line in the CIES for interest payable are based on the carrying amount of the liability, multiplied by the effective rate of interest for the instrument. The effective interest rate is the rate that exactly discounts estimated future cash payments over the life of the instrument to the amount at which it was originally recognised. For most of the borrowings that the Council has, this means that the amount presented in the Balance Sheet is the outstanding principal repayable (plus accrued interest) and interest charged to the CIES is the amount payable for the year according to the loan agreement. Gains and losses on the repurchase or early settlement of borrowing are credited and debited to the Financing and Investment Income and Expenditure line in the Income and Expenditure Account in the year of extinguishment. However, where repurchase has taken place as part of a restructuring of the loan portfolio that involves the Page 216 of 392
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88 Annual Accounts 2025/26 PUBLIC modification or exchange of existing instruments, the premium or discount is respectively deducted from or added to the amortised cost of the new or modified loan and the write-down to the CIES is spread over the life of the loan by an adjustment to the effective interest rate. Where premiums and discounts have been charged to the CIES, regulations allow the impact on the General Fund Balance to be spread over future years. The Council has a policy of spreading the gain/loss over the term that was remaining on the loan against which the premium was payable or discount receivable when it was repaid. The reconciliation of amounts charged to the CIES to the net charge required against the General Fund Balance is managed by a transfer to or from the Financial Instruments Adjustment Account in the Movement in Reserves Statement. Financial Guarantees Financial guarantees are recognised at fair value assessed as the probability of the guarantees being called and the likely amount payable under the guarantees. Loans Fund The Council operates a Loans Fund and all loans raised are paid into the Fund. Advances are made to departments to finance capital expenditure during the year. Repayments to the Loans Fund are calculated using the annuity method. The local Authority (Capital Financing and Accounting) (Scotland) Regulations 2016 - loans fund accounting came into force on 1 April 2016 and replaced the statutory provisions for local authority borrowing, lending and loans funds as set out in Schedule 3 of the local Authority (Scotland) Act 1975. The regulations contain the following provisions in respect of the loans fund: • Regulation 12 places a duty on a local authority to maintain a loans fund, which is to be administered in accordance with the proper accounting practices and prudent financial management; • Regulation 13 requires a local authority to make loans fund advances each year for expenditure of or lending to third parties by, the local authority which it has determined should be met from borrowing; and • Regulation 14 requires a local authority to determine for each loans fund advance the period over which it will be repaid and the amount of each repayment. Both the period and the annual amounts must be considered by the authority to be prudent. Interest is calculated and allocated to the CIES in accordance with Local Authorities Scotland Accounts Advisory Committee’s (LASAAC) Guidance Note 2: Statement on the Calculation and Allocation of Loans Fund Interest and Expenses. Financial Instruments - Fair Value Measurement Fair value is defined 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. The fair value measurement assumes that the transaction to sell the asset or transfer the liability take place either in the principal market for that asset or liability or, in the absence of a principal market, in the most advantageous market for the asset or liability. The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Valuation techniques used are appropriate in the circumstances and have sufficient data available, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Inputs to the valuation techniques in respect of assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, as follows: Page 217 of 392
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89 Annual Accounts 2025/26 PUBLIC • Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that the authority can access at the measurement date • Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly • Level 3 – unobservable inputs for the asset or liability. The fair value hierarchy gives priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). J Government Grants and other Contributions Government grants and third-party contributions and donations are recognised as due to the Council when there is reasonable assurance that: • the Council will comply with the conditions attached to the payments; and • the grants or contributions will be received. Amounts recognised as due to the Council are not credited to the CIES until conditions attaching to the grant or contribution have been satisfied. Monies advanced as grants and contributions for which conditions have not been satisfied are carried in the Balance Sheet as creditors. When conditions are satisfied, the grant or contribution is credited to the relevant service line or Taxation and Non-Specific Grant Income in the CIES. Where capital grants are credited to the CIES, they are reversed out of the General Fund Balance in the Movement in Reserves Statement. Where the grant has yet to be used to finance capital expenditure, it is posted to the Capital Grants Unapplied Account. Where it has been applied, it is posted to the Capital Adjustment Account. Amounts in the Capital Grants Unapplied Account are transferred to the Capital Adjustment Account once they have been applied. K Heritage Assets The Council’s heritage assets are held in the museums operated by OneRen (Paisley Museum and Art Gallery, Renfrew Town Hall and Museum, and The Secret Collection). The purpose of holding these assets according to the Museums’ Statement of Purpose is “to enhance public understanding of the human and natural world, principally by the use of original objects”. Heritage assets are recognised and measured (including the treatment of revaluation gains and losses) in accordance with the Council’s accounting policies on property, plant, and equipment. However, some of the measurement rules are relaxed in relation to heritage assets. The accounting policies in relation to heritage assets that are deemed to include elements of intangible heritage assets are also presented below. Purchased acquisitions are recognised at cost and donated acquisitions are recognised at valuation with reference to appropriate commercial markets. Acquisitions are made in line with the approved Acquisition and Disposal Policy. The collections of heritage assets are accounted for as follows: Art Collection The collection includes fine, contemporary and applied art works. The collection is included in the balance sheet at market value where this is available (from external valuations provided by suitably experienced and knowledgeable experts) or insurance valuations provided by the relevant collection curator. The assets within the collection are deemed to have indeterminate lives and a high residual value, and therefore no depreciation is charged. Page 218 of 392
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90 Annual Accounts 2025/26 PUBLIC Shawl and textile design The museums hold a collection of approximately 1,000 Paisley-type shawls, and a considerable collection of original designs for shawl manufacture. The collection is included in the balance sheet at insurance valuation which is based on market values. The assets within the collection are deemed to have indeterminate lives and a high residual value, and therefore no depreciation is charged. Natural History The collection includes vertebrate and invertebrate zoology, botany, geology and microslide collections; in addition to a library of natural history books. The collection is included in the balance sheet at insurance valuation which is based on market values. The assets within the collection are deemed to have indeterminate lives and a high residual value, and therefore no depreciation is charged. Human History The museums hold collections relating to social history, transport, science (including an important collection of astronomical apparatus in Coats Observatory), archaeology, arms, local archives, numismatics, photography, textiles, ethnography and Egyptology. The collection is included in the balance sheet at insurance valuation which is based on market values. However, where an external valuation or cost information is available, or a valuation may be secured at a cost which is not prohibitive relative to the value of the item, then the Council will recognise the asset in the balance sheet at this value. The assets within the collection are deemed to have indeterminate lives and a high residual value, and therefore, no depreciation is charged. In addition to the museum collections, there are a number of public space statues, monuments, memorials, fountains and outdoor artworks at various locations throughout Renfrewshire. These assets are not generally recognised in the balance sheet. The Council considers that obtaining valuations would involve disproportionate cost and that reliable cost or valuation information cannot be obtained for these items. This is because of the diverse nature of assets held, the number of assets and the lack of comparable data. However, where reliable cost information can be reasonably obtained, the asset will be included in the balance sheet. The carrying amounts of heritage assets are reviewed where there is evidence of impairment for heritage assets, eg where an item has suffered physical deterioration or breakage or where doubts arise as to its authenticity. Any impairment is recognised and measured in accordance with the Council’s general policies on impairment. Heritage assets will occasionally be disposed of in accordance with the approved Acquisitions and Disposal Policy (a copy of which is available). Assets are only disposed of for curatorial reasons (eg the item has deteriorated to such an extent it is no longer suitable for public display) and not with the aim of generating funds. Any proceeds of such items are accounted for in accordance with the Council’s general provisions relating to the disposal of property, plant and equipment. Disposal proceeds are disclosed separately in the notes to the financial statements and are accounted for in accordance with statutory accounting requirements relating to capital expenditure and capital receipts. Expenditure incurred in preserving individual items is recognised in the CIES. L Intangible Assets The Council accounts for purchased software licences as Intangible Assets. Expenditure on intangible assets is capitalised when it is expected that future economic benefits or service potential will flow from the intangible asset to the Council. Items costing less than £10,000 are not treated as Intangible Assets. Intangible assets are measured initially at cost. Amounts are not revalued, as the fair value of the assets held by the Council cannot be determined by Page 219 of 392
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91 Annual Accounts 2025/26 PUBLIC reference to an active market. The depreciable amount of an intangible asset is amortised over its useful life. An asset is tested for impairment whenever there is an indication that the asset might be impaired. Any gain or loss arising on the disposal or abandonment of an intangible asset is posted to the Other Operating Expenditure line in the CIES. Where expenditure on intangible assets qualifies as capital expenditure for statutory purposes, amortisation, impairment losses and disposal gains and losses are not permitted to have an impact on the General Fund Balance. The gains and losses are therefore reversed out of the General Fund Balance in the Movement in Reserves Statement and posted to the Capital Adjustment Account and (for any sale proceeds greater than £10,000) the Capital Receipts Reserve. M Interests in Companies and Other Entities The Council has material interests in two charitable companies, two limited liability partnership and Joint Boards and Committees that have the nature of subsidiaries and associates under accounting conventions, requiring it to prepare group accounts. In the Council’s own single-entity accounts, these interests are not recorded as the Council has no shares in, or ownership of, any of these organisations. Reflected in the Council’s single-entity balance sheet is a 50% share in an Integration Joint Board, which is recorded as an investment. N Inventories Inventories (generally consumable stock) are included in the Balance Sheet at weighted average cost. The Code requires inventories to be held at lower of cost or Net Realisable Value. Weighted average cost is used as the measure of cost. O Investment Property Investment properties are those that are used solely to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost and subsequently at fair value. Properties are not depreciated but are revalued annually according to market conditions at the year-end. Gains and losses on revaluation are posted to the Financing and Investment Income and Expenditure line in the CIES. The same treatment is applied to gains and losses on disposal. Rentals received in relation to investment properties are credited to the Financing and Investment Income line and result in a gain for the General Fund Balance. However, revaluation and disposal gains and losses are not permitted by statutory arrangements to have an impact on the General Fund Balance. The gains and losses are therefore reversed out of the General Fund Balance in the Movement in Reserves Statement and posted to the Capital Adjustment Account and (for any sale proceeds greater than £10,000) the Capital Receipts Reserve. P Leases The Council as Lessee Right of use assets As a lessee, The Council previously classified leases as operating or finance leases based on its assessment of whether the lease significantly transferred all of the risks and rewards incidental to ownership of the underlying asset to the Council. Under IFRS 16, the Council recognises right of use assets and corresponding lease liabilities for most lease arrangements. The Council has elected to apply recognition exemptions and will not recognise right of use assets and lease liabilities for short term leases that have a term of 12 months or less and leases of a low value, under £10,000. The Council will recognise the lease payments associated with these leases as an expense on a straight-line basis over the lease term. Page 220 of 392
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92 Annual Accounts 2025/26 PUBLIC At the commencement date, a lease liability will be measured at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit in the lease, if that rate can be readily identified. If that rate cannot be readily determined, the Council’s incremental borrowing rate will be used. Right of use assets are measured either at: • An amount equal to the lease liability; • Their carrying amount at the commencement date; • For right of use assets for nominal lease payments, right of use assets shall be recognised at fair value as at commencement date. Any gain being the difference between that fair value and lease liability, recognised as a donated asset on the commencement date. The Council as Lessor Finance Leases Where the Council grants a finance lease over a property or an item of plant or equipment, the relevant asset is written out of the Balance Sheet as a disposal. Lease rentals receivable are apportioned between: • a capital receipt for the disposal of the asset – applied to write down the Debtor (together with any premiums received); and • finance income (credited to the CIES). Operating Leases Where the Council grants an operating lease over a property or an item of plant or equipment, the asset is retained in the Balance Sheet. Rental income is credited to the CIES. Q Overheads and Central Support Costs Where internal costs are allocated to user departments, the basis of allocation varies by originating department, for example the cost of Payroll Services may be allocated on the number of payslips per service. In many instances the allocation is time-based. Internal transactions are no longer present in the income and expenditure figures reported in the CIES. R Service Concession Arrangements – School Buildings and Other Facilities The Council carries the assets used under PFI or Service Concession contracts on its Balance Sheet as part of Property, Plant and Equipment. The original recognition of these assets at fair value (based on the cost to purchase the property, plant and equipment) was balanced by the recognition of a liability for amounts due to the scheme operator to pay for the capital investment. The accounting treatment of the contractual arrangements are in accordance with IFRIC12 Service Concession Arrangements. S Property, Plant and Equipment Assets that have physical substance and are held for use in the production or supply of goods or services, for rental to others or for administrative purposes, and that are expected to be used during more than one financial year are classified as Property, Plant and Equipment. Recognition Expenditure on the acquisition, creation or enhancement of Property, Plant and Equipment is capitalised on an accruals basis. Expenditure that maintains but does not add to an asset’s potential to deliver future economic benefits or service potential is charged as an expense when it is incurred. Measurement Assets are initially measured at cost, comprising: • the purchase price; • any costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating. Page 221 of 392
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93 Annual Accounts 2025/26 PUBLIC The cost of assets acquired other than by purchase is deemed to be its fair value. The valuation of work-in- progress is based on cost plus an appropriate proportion of overheads, together with attributable profits and allowances for foreseeable losses. Plant, furniture and computer equipment costing less than £10,000 are not treated as fixed assets. This de- minimis level does not apply where certain categories of these assets are grouped together and form part of the approved capital programme. Donated assets are measured initially at fair value. The difference between fair value and any consideration paid is credited to the CIES. Where gains are credited to the CIES, they are reversed out of the General Fund Balance to the Capital Adjustment Account. Assets are then carried in the Balance Sheet using the following measurement bases: • infrastructure, community assets and assets under construction – depreciated historical cost; • council dwellings – fair value, determined using the basis of existing use value for social housing (EUV-SH). Council dwellings are valued using a Beacon Principle (adjusted vacant possession) methodology in accordance with the Royal Institution of Chartered Surveyors (RICS) guidance; • Vehicles, plant, furniture and equipment – depreciated replacement cost; • Other land and buildings – fair value, determined as the market value amount that would be paid for the asset in its existing use (existing use value – EUV). Operational assets are shown at the lower of net current replacement cost or net realisable value in existing use. Non-operational assets are shown at the lower of net current replacement cost or net realisable value. Where there is no market-based evidence of fair value because of the specialist nature of an asset, depreciated replacement cost is used as an estimate of fair value. Assets included in the Balance Sheet at fair value are revalued sufficiently regularly to ensure that their carrying amount is not materially different from their fair value at the year-end, but as a minimum every five years. The effective date of any revaluation is 31 March. Valuations are undertaken by the Council Valuer who is MRICS qualified. Increases in valuations are matched by credits to the Revaluation Reserve to recognise unrealised gains. The Revaluation Reserve contains revaluation gains recognised since 1 April 2007 only, the date of its formal implementation. Gains arising before that date have been consolidated into the Capital Adjustment Account. From 1 April 2025, the Code of Practice on Local Authority Accounting (the Code) requirements changed in respect of revaluations of property, plant and equipment. The Council will revalue assets over a rolling programme of revaluations over a five year cycle with annual indexation applied during the 4 intervening years. If the total annual indexation is material then the carrying amount of the assets will be revalued to the indexation amount using the Elimination Method, where accumulated depreciation will be eliminated against the gross carrying amount of the asset, after taking into account accumulated impairment losses. Fair Value Measurement The authority measures some of its non-financial assets such as surplus assets and investment properties at fair value at each reporting date. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. The authority uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Inputs to the valuation techniques in respect of assets for which fair value is measured are categorised within the fair value hierarchy as follows: Page 222 of 392
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94 Annual Accounts 2025/26 PUBLIC • Level 1 - quoted prices in active markets for identical assets that the authority can access at the measurement date; • Level 2 - inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly; • Level 3 - unobservable inputs for the asset. 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 an impairment loss is recognised for the shortfall. Where impairment losses are identified, they are accounted for as follows: • where there is a balance of revaluation gains for the asset in the Revaluation Reserve, the carrying amount of the asset is written down against that balance (up to the amount of the accumulated gains); • where there is no balance in the Revaluation Reserve, the carrying amount of the asset is written down against the relevant service line(s) in the CIES. Where an impairment loss is reversed subsequently, the reversal is credited to the relevant service line(s) in the CIES, up to the amount of the original loss, adjusted for depreciation that would have been charged if the loss had not been recognised. Disposals When it becomes probable that the carrying amount of an asset will be recovered principally through a sale transaction rather than through its continuing use, it is reclassified as an Asset Held for Sale. The asset is revalued immediately before reclassification and then carried at the lower of this amount and fair value less costs to sell. Where there is a subsequent decrease to fair value less costs to sell, the loss is posted to the Other Operating Expenditure line in the CIES. Gains in fair value are recognised only up to the amount of any previously losses recognised in the Surplus or Deficit on Provision of Services. Depreciation is not charged on Assets Held for Sale. Assets that are to be abandoned or scrapped are not reclassified as Assets Held for Sale. When an asset is disposed of or decommissioned, the carrying amount of the asset in the Balance Sheet (whether Property, Plant and Equipment or Assets Held for Sale) is written off to the Other Operating Expenditure line in the CIES as part of the gain or loss on disposal. Receipts from disposals (if any) are credited to the CIES also as part of the gain or loss on disposal (i.e. netted off against the carrying value of the asset at the time of disposal). Any revaluation gains accumulated for the asset in the Revaluation Reserve are transferred to the Capital Adjustment Account. Amounts received for a disposal in excess of £10,000 are categorised as capital receipts and are credited to the Capital Receipts Reserve. Depreciation Depreciation is provided for on all Property, Plant and Equipment assets by the allocation of their depreciable amounts over their useful lives. An exception is made for assets without a determinable finite useful life, investment properties and assets that are not yet available for use (i.e., assets under construction). When surplus assets are revalued, the useful life of the asset is updated and depreciation recalculated on that basis. Deprecation is calculated on the following bases: • dwellings and other buildings – straight-line allocation over the useful life of the property of between 10 and 50 years as estimated by the Council Valuer; • vehicles, plant and equipment – a percentage of the value of each class of assets in the Balance Sheet, as advised by a suitably qualified officer based on useful lives of between 3 and 30 years; Page 223 of 392
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95 Annual Accounts 2025/26 PUBLIC • infrastructure – straight-line allocation based on useful lives of between 10 and 60 years. General Fund services are charged with depreciation where appropriate for the use of assets no matter how they are financed. Depreciation on the Council’s non-operational assets is not charged to service revenue accounts. It is however reflected in the CIES through non-distributable costs. Where an item of Property, Plant and Equipment asset has major components whose cost is significant in relation to the total cost of the item, the components are depreciated separately. Significance is determined by comparing a component’s cost against the overall cost of an asset, and a component is deemed significant if its cost is 20% or more of the total asset cost. The de-minimis threshold for componentisation is £1m. Revaluation gains are also depreciated, with an amount equal to the difference between current value depreciation charged on assets and the depreciation that would have been chargeable based on their historical cost being transferred each year from the Revaluation Reserve to the Capital Adjustment Account. T Provisions Provisions are made where an event has taken place that gives the Council a legal or constructive obligation that probably requires settlement by a transfer of economic benefits or service potential, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to the appropriate service line in the CIES. When payments are eventually made, they are charged to the provision carried in the Balance Sheet. Estimated settlements are reviewed at the end of each financial year. U Reserves The Council has various reserve funds. The two capital reserves arising from the system of capital accounting are the Revaluation Reserve and the Capital Adjustment Account. The former of these represents the store of gains on revaluation of fixed assets not yet realised through sales and the latter relates to amounts set aside from capital resources to meet past expenditure. The two accounting reserves arising from the restatement of financial instruments to “fair value” are the Financial Instruments Adjustment Account and the Financial Instruments Revaluation Reserve. The Financial Instruments Adjustment Account is a balancing account to allow for differences in statutory requirements and proper accounting practices for lending & borrowing by the Council. The Financial Instruments Revaluation Reserve is a store of gains or losses on revaluation of the investments of the Insurance Fund not yet realised through sales. The Pension Reserve arises from the IAS19 accounting disclosures for retirement benefits and recognises the Council's share of actuarial gains and losses in the Strathclyde Pension Fund and the change in the Council’s share of the Pension Fund net liability chargeable to the CIES. V Revenue Expenditure Funded from Capital under Statute Expenditure incurred during the year that may be capitalised under statutory provisions but does not result in the creation of a non-current asset has been charged as expenditure to the relevant service in the CIES in the year. Where the Council has determined to meet the cost of this expenditure from existing capital resources or by borrowing, a transfer in the Movement in Reserves Statement from the General Fund Balance to the Capital Adjustment Account then reverses out the amounts charged so that there is no impact on the level of Council Tax. W Value Added Tax Income and Expenditure excludes any amount relating to Value Added Tax (VAT), as all VAT is payable to HM Revenue & Customs and all VAT is recoverable from them. Page 224 of 392
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96 Annual Accounts 2025/26 PUBLIC Note 32: Judgements in Applying Accounting Policies In applying the accounting policies, the Council has had to make certain judgements about complex transactions or those involving uncertainty about future events. Where a judgement has been made, this is referred to in the relevant note to the core financial statements; however, a summary of those with the most significant effect is detailed below. Item Judgement Public Sector Funding The Council has assessed that anticipated levels of local government funding over the medium term do not provide sufficient indication that the assets of the Council might be impaired as a result of a need to close facilities and reduce levels of service provision. The medium term outlook is discussed further in the Management Commentary. Service Concession Arrangements The Council is deemed to control the services provided under the agreement for the provision of schools. The accounting policies for PFI schemes and similar arrangements have been applied and the assets under the contract are included within Property, Plant and Equipment on the Council’s Balance Sheet. Bargeddie Waste Facility is shared by a number of Scottish councils with North Lanarkshire Council taking the lead. The apportionment of costs and liabilities over the life of the facility, which was funded by a service concession agreement, has been agreed between the councils involved and the local external audit team. Note 14 provides further details. Impairment of financial assets In line with IFRS9: Financial Instruments, the approach to impairment of financial assets depends on the type of asset being assessed, either using a ‘historic loss rate’ approach, or a ‘probability of default’ approach, whereby historical experience of default rates across a similar class of instrument and credit rating is used to estimate 12-month expected credit losses. Further detail can be found at Note 21: Financial Instruments. Determination of Contingent Liabilities and Provisions A Provision is defined by the Code as a liability of uncertain timing or amount. A Contingent Liability is a possible obligation whose timing or value cannot be reliably measured and the Council makes a judgement on which is appropriate based on information available at the Balance Sheet date. Rolling Valuation Programme The Council employs professional valuers who are registered with the Royal Institution of Chartered Surveyors. These valuers carry out regular reviews of the value of assets reported in the Balance Sheet and any significant changes in value are processed as asset revaluations or impairments. These values are based on their professional opinion using available market information at the time of assessment. Due to the high number of assets, a rolling programme of asset valuation has been established for many years, with the aim one fifth of the portfolio each financial year. This carries inherent risk that assets not valued in-year have been subject to material changes in value. The highest risk in this respect relates to assets valued using the Depreciated Replacement Cost (DRC) method, which for Renfrewshire Council, includes schools and leisure centres. To mitigate for this risk, annual indexation is applied during the four intervening years where the assets will be revalued to their indexed amount if a material change has occurred. Page 225 of 392
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97 Annual Accounts 2025/26 PUBLIC Note 33: Assumptions made about the future The Annual Accounts contains estimated figures that are based on assumptions made by the Council 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 items in the Council’s Balance Sheet as at 31 March 2026 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows: Item Uncertainty Effect if results differ from assumption Pensions Liability 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. A firm of consulting actuaries is engaged to provide the Council with expert advice about the assumptions to be applied. The carrying value of the net pension asset was £865.3m, before the asset cap, as at 31 March 2026 (asset of £689.5m as at 31 March 2025). Further detail can be found in Note 29: Defined Benefit Pension Schemes. The effects on the net pension asset of changes in individual assumptions can be measured. For instance, a 0.1% decrease in the discount rate assumption would result in a decrease in the pension asset of £18.3m. However, the assumptions interact in complex ways. At 31 March 2026, the Council’s actuaries advised that (before the asset cap is applied) the net pensions asset had increased by £9.6m as a result of estimates being corrected as a result of experience; increased by £7.3m as a result of updating demographic assumptions; and increased by £34.7m as a result of updating financial assumptions.Property, Plant and Equipment 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 assets. The current economic climate makes it uncertain that the authority will be able to sustain its current spending on repairs and maintenance, bringing into doubt the useful lives assigned to assets. If the useful life of assets is reduced, depreciation increases and the carrying amount of the asset falls. It is estimated that if the annual depreciation charge for buildings would increase by £6.862m for every year that useful lives had to be reduced. Page 226 of 392
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98 Annual Accounts 2025/26 PUBLIC Common Good Funds The Common Good Funds comprise land granted to a Burgh by the Crown; further grants of land and buildings, mainly in the late 19th and early 20th century by local industrialists and other landowners for the common good of the inhabitants of the Burgh; and rental income and sale proceeds from such land. The bulk of the Paisley Common Good was granted to the Burgh of Paisley by the King Charles II Charter, dated 27 and 28 July 1666, and has been administered by the Burgh and its successors since that date. The bulk of the Renfrew Common Good was granted to the Royal Burgh of Renfrew by the Queen Anne Charter, dated 7 August 1703, and again has been administered by the Burgh and its successors since that date. Income and expenditure statement Paisley Johnstone Renfrew Total £m £m £m £m Expenditure 0.271 0.000 1.097 1.368 Income (1.763) 0.000 (3.437) (5.200) (Surplus)/Deficit for the year (1.492) 0.000 (2.340) (3.832) (Surplus)/Deficit Brought Forward (6.578) (0.052) (36.803) (43.433) Accumulated (Surplus)/Deficit at 31 March 2025 (8.070) (0.052) (39.143) (47.265) Income and Expenditure Statement for the Year Ending 31 March 2026 Paisley Johnstone Renfrew Total £m £m £m £m Expenditure 0.247 0.000 0.853 1.100 Income (0.452) 0.000 (1.476) (1.928) (Surplus)/Deficit for the year (0.205) 0.000 (0.623) (0.828) (Surplus)/Deficit Brought Forward (6.373) (0.052) (36.180) (42.605) Accumulated (Surplus)/Deficit at 31 March 2024 (6.578) (0.052) (36.803) (43.433) Income and Expenditure Statement for the Year Ending 31 March 2025 (restated) During 2024/25, following a review of historical title and legal advice, the Council reclassified £1.090m of property from Council assets to the Paisley Common Good (£0.285m) and the Renfrew Common Good (£0.805m). The Income and Expenditure Statement for the year ended 31 March 2025 has been restated to reflect this. Balance Sheet Paisley Johnstone Renfrew Total £m £m £m £m Tangible Fixed Assets 1.891 0.000 13.877 15.768 Heritage Assets 0.063 0.046 0.109 0.218 Investments 5.629 0.000 21.591 27.220 Debtors 0.000 0.000 0.024 0.024 Short-term deposits 0.493 0.006 4.004 4.503 Total assets 8.076 0.052 39.605 47.733 Creditors: Amounts Falling Due Within One Year (0.006) 0.000 (0.029) (0.035) Net Assets 8.070 0.052 39.576 47.698 Income Funds (3.899) (0.036) (22.315) (26.250) Revaluation reserve: Investments (1.803) 0.000 (6.514) (8.317) Revaluation reserve: Fixed Assets (2.368) (0.016) (10.747) (13.131) Total Reserves (8.070) (0.052) (39.576) (47.698) Balance at 31 March 2026 Page 227 of 392
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99 Annual Accounts 2025/26 PUBLIC Balance at 31 March 2025 Paisley Johnstone Renfrew Total £m £m £m £m Tangible Fixed Assets 1.049 0.000 13.915 14.964 Heritage Assets 0.063 0.046 0.109 0.218 Investments 5.019 0.000 19.194 24.213 Debtors 0.000 0.000 0.020 0.020 Short term deposits 0.452 0.006 3.591 4.049 Total assets 6.583 0.052 36.829 43.464 Creditors: Amounts Falling Due Within One Year (0.005) 0.000 (0.026) (0.031) Net Assets 6.578 0.052 36.803 43.433 Income Funds (3.836) (0.036) (21.923) (25.795) Revaluation reserve: Investments (1.307) 0.000 (4.602) (5.909) Revaluation reserve: Other Fixed Assets (1.435) (0.016) (10.278) (11.729) Total Reserves (6.578) (0.052) (36.803) (43.433) Accounting Policies and Note Accounting Policies adopted for the Common Good are the same as those adopted for Renfrewshire Council except for the application of IAS 16. IAS 16 requires that assets be depreciated and that the charge for depreciation be set against and surplus in the Income and Expenditure account. In addition, IAS 16 requires any decreases in the value of assets to be recognised in the Income and Expenditure account, unless there is a previous increase in the value of the asset held in the Revaluation Reserve. Conversely, any increases in the value of assets are to be recognised in the surplus or deficit in the Income and Expenditure account, to the extent that it reverses a decrease of the same asset previously recognised in the Income and Expenditure account. The Council is required to make arrangements for the proper administration of its financial affairs and to ensure that one of its officers has the responsibility for the administration of those affairs. The Director of Finance and Resources has been designated as that officer in Renfrewshire Council. They manage the affairs of the Council to secure the economic, efficient, and effective use of resources and safeguard its assets and those of any charitable trust it controls. Given that the Common Good is owned by the Council, these specific provisions are supplemented by the general provisions relating to the administration of local authority monies, i.e., the duty to obtain best value. Income to the Common Good Funds is solely from investment returns (both financial investments and property rental income) and bank interest; no donations to the Funds are solicited. The only other source of income, which arises periodically, is from the sale of fixed assets. The investment performance of the Common Good Funds is monitored regularly by Council officers and is reported bi-annually to the Investment Review Board, which is comprised of five cross-party elected members. The minutes of the Investment Review Board are submitted to the Finance, Resources and Customer Services Policy Board, whose meetings are held in public. In turn, the minutes of this Board are submitted to the full Council for ratification. Therefore, all elected members are kept informed of both the performance of the funds and any decision regarding the operation of the Funds, which would be made by the Finance, Resources and Customer Services Policy Board. Revaluation adjustments related to investments are included in Income within the CIES and were £0.000m for Paisley Common Good and £0.023m for Renfrew Common Good. Page 228 of 392
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100 Annual Accounts 2025/26 PUBLIC Housing Revenue Account Income and expenditure statement The Housing Revenue Account (HRA) reflects a statutory obligation to maintain a revenue account for local authority housing provision in accordance with the Housing (Scotland) Act 1987. The Housing Revenue Account income and expenditure statement shows the economic cost in the year of providing housing services in accordance with generally accepted accounting practices, rather than the amount to be funded from rents and government grants. Councils charge rents to cover expenditure in accordance with regulations; this may be different from the accounting cost. The increase or decrease in the year, on the basis on which rents are raised, is shown in the movement on the Housing Revenue Account statement. 2024/25 2025/26 £m £m 22.179 Repairs and maintenance 23.118 15.120 Supervision and management 17.118 32.202 Depreciation and impairment of non-current assets 34.268 (0.058) Increase/(Decrease) in the allowance for bad debts 0.321 3.810 Other expenditure 3.345 73.253 Total Expenditure 78.170 (53.993) Dwelling rents (58.120) (1.120) Non-dwelling rents (1.183) (1.808) Other income (2.205) (56.921) Total Income (61.508) 16.332 Net Cost of HRA services as included in the CIES 16.662 HRA share of the operating income and expenditure included in the CIES: 0.018 (Gain)/Loss on sale of HRA non-current assets 0.160 3.137 Interest payable and similar charges 3.936 (1.850) Interest and investment income (1.102) 1.353 Pensions interest cost and expected return on pensions assets 1.018 (2.112) Taxation and non specific grant income (10.089) 16.878 Deficit for the year on HRA services 10.585 Movement on the Housing Revenue Account statement This statement shows the movement in the year on the Housing Revenue Account (HRA) Balance. The surplus or deficit for the year on the HRA income and expenditure statement represents the true economic cost of providing the Council’s HRA services, more details of which are shown in the HRA income and expenditure statement itself. The adjustments between accounting basis and funding basis under regulations detail the adjustments that are made to the HRA income and expenditure, as recognised by the Council in the year in accordance with proper accounting practice, to the statutory amounts required to be charged to the HRA Balance for dwellings rent setting purposes. An analysis of these adjustments can be found in Note 6: Adjustment between accounting basis and funding basis under regulation on page 49. Page 229 of 392
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101 Annual Accounts 2025/26 PUBLIC 2024/25 2025/26 £m £m (6.164) Balance on the HRA at 1 April (6.933) 16.878 Deficit for the year on the HRA income and expenditure statement 10.585 (2.737) Adjustments between accounting basis and funding basis under statute 5.350 (14.910) Adjustments to Usable Reserves permitted by accounting standards (16.975) (0.769) Net (Increase)/Decrease before transfers to or from reserves (1.040) (6.933) Balance on the HRA at 31 March (7.973) Notes to the Housing Revenue Account income and expenditure statement The number and types of dwelling in the Council’s housing stock The Council was responsible for managing 11,942 dwellings during 2025/26 (12,078 in 2024/25). The following shows an analysis of these dwellings by type. The figures below exclude void initiative properties. Number Average weekly rent Type of dwelling Number Average weekly rent 419 £70.22 One-apartment 416 £69.04 3594 £84.83 Two-apartment 3,516 £85.84 5773 £99.00 Three-apartment 5,716 £99.01 2078 £111.22 Four-apartment 2,080 £109.75 214 £120.08 Five-apartment 214 £118.64 12,078 Total 11,942 As at 31 March 2025 As at 31 March 2026 Other information Dwellings Non-Dwellings Total as at 31 March 2026 Total as at 31 March 2025 £m £m £m £m Void Rent Loss 1.697 0.272 1.969 2.461 Rental Income Arrears 3.987 0.581 4.568 4.184 Provision for uncollectable rent arrears 3.205 0.542 3.747 3.568 Corporate and Democratic Core costs 0.046 0.033 Page 230 of 392
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102 Annual Accounts 2025/26 PUBLIC Council Tax Income Account The Council Tax income account shows the gross income raised from Council Taxes levied and deductions made under statute. Councils raise taxes from residents through Council Tax, which is a tax linked to property values. The Council Tax Reduction Scheme represents a discount introduced across Scotland following the abolition of Council Tax Benefits as part of the UK government’s Welfare Reform programme. The resultant net income is transferred to the Council’s CIES. 2024/25 2025/26 £m £m 132.893 Gross council tax levied 146.445 (17.658) Other discounts and reductions (19.367) (13.666) Council tax reduction scheme (15.141) (3.387) Write-off of uncollectable debts and allowance for impairment (3.622) (0.481) Adjustment to previous years’ community charge and council tax (0.111) 97.701 Transfer to the Comprehensive Income and Expenditure Statement 108.204 Calculation of the Council Tax Dwellings are valued by the Assessor and placed within valuation bands ranging from the lowest “A” to the highest “H”. The band D Council Tax charge is calculated using the Council Tax base, and this in turn fixes the charge for each of the other bands, which are based on pre-determined proportions relative to the band D charge. The band D charge for 2025/26 was £1,572.61 (£1,436.17 in 2024/25). 2024/25 2025/26 £ £ 957.45 A 1,048.41 1,117.02 B 1,223.14 1,276.60 C 1,397.88 1,436.17 D 1,572.61 1,886.97 E 2,066.23 2,333.78 F 2,555.49 2,812.50 G 3,079.69 3,518.62 H 3,852.89 Council Tax Band If a property is occupied by only one person over 18, a discount of 25% is applied. Since 15 July 2016, unoccupied and unfurnished properties have been exempted from Council Tax for the first six months. A discount of 10% is then available for the next six months and 100% additional Council Tax levy is then payable for as long as the property remains empty, although the 10% discount may be extended by a further 12 months if the property is being actively marketed for sale or let. Certain persons are disregarded for Council Tax purposes, including students, people who are in detention and those who are severely mentally impaired. Reductions in Council Tax are available for people with disabilities. Page 231 of 392
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103 Annual Accounts 2025/26 PUBLIC Charges for water and sewerage services are the responsibility of Scottish Water. Renfrewshire Council collects total monies and makes a precept payment to Scottish Water on the basis of collection levels based on a pre- determined formula. The figures below exclude the water and sewerage charges. Calculation of the Council Tax base The Council Tax base is the number of chargeable dwellings across all valuation bands (adjusted for dwellings where discounts apply), after providing for non-payment, expressed as an equivalent number of band D dwellings. Band Number of dwellings Number of exemptions Disabled relief Discounts Council Tax Reduction Total equivalent dwellings Ratio to Band D 2025/26 Band D equivalent 2024/25 Band D equivalent A 13,115 1,923 6 1,900 3,359 5,983 0.67 3,988 3,857 B 25,860 1,641 56 3,344 5,198 15,676 0.78 12,192 11,958 C 15,519 572 55 1,675 1,965 11,298 0.89 10,043 9,923 D 13,895 319 46 1,327 754 11,537 1.00 11,537 11,258 E 11,808 203 88 786 406 10,386 1.31 13,646 13,465 F 7,280 87 61 329 123 6,696 1.62 10,881 10,779 G 4,619 97 16 159 55 4,293 1.96 8,407 8,182 H 199 8 1 9 2 179 2.45 439 456 92,295 Band A dwellings subject to disabled relief 6 6 Class 17 and 24 dwellings 65 70 Sub-total 71,204 69,954 Less: Provision for non-payment and future award of discounts and reliefs (2,401) (2,098) Council Tax Base 68,803 67,856 Page 232 of 392
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104 Annual Accounts 2025/26 PUBLIC Non-Domestic Rates Income Account This account is an agent’s statement that reflects the statutory obligation for those councils who issue bills to non- domestic rate payers to maintain a separate non-domestic rate account. The account shows the rates collected from non-domestic rate payers during the year. Any difference between the rates collected and the amount the Council is guaranteed to receive under the national pooling arrangements is adjusted via the Scottish Government's general revenue grant to the Council. Non-domestic rate income is redistributed from the national non-domestic rate pool in proportions based on the prior year mid-year income returns net of prior year adjustments. In 2012/13 the Scottish Government introduced the Business Rates Incentivisation Scheme (BRIS) which allows councils, where an agreed target income figure is exceeded, to retain 50% of the ‘above target’ income. 2024/25 2025/26 £m £m 146.060 Gross rates levied 142.990 (26.998) Reliefs and other deductions (29.712) (1.840) Write-off of uncollectable debts and allowance for impairment (1.734) 117.222 Net Non-Domestic Rates income 111.544 (10.047) Adjustment to previous years’ non-domestic rates (9.819) 0.330 Contribution (to)/from the National Non-Domestic Rate pool 7.119 107.505 Transfer to the Comprehensive Income and Expenditure Statement 108.844 The nature and amount of each rate fixed The non-domestic rates charge for each subject is determined by the rateable value placed upon it by the Assessor, multiplied by the rate per pound (the “rate poundage”) set each year by the Scottish Government. For 2025/26 the charge was 49.8 pence in the pound, with a 5.6 pence supplement for properties with a rateable value over £51,000 and a 7.0 pence supplement for properties with a rateable value above £100,000. Analysis of Renfrewshire Council’s rateable values 2025/26 £m 90.538 54.879 30.095 1.989 90.866 268.367 (8.202) 260.165 (1.558) 258.607Net Rateable Value at 31 March Analysis of Rateable Values Commercial Industrial and freight transport Education and public service Communications Others Rateable Value at 1 April Adjustments (Full Year Rateable Value) Less: Wholly Exempt Subjects Rateable Value at 31 March Page 233 of 392
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105 Annual Accounts 2025/26 PUBLIC Group Accounts Group Comprehensive Income and Expenditure Statement This statement shows the accounting cost of providing services and managing operations during the year. It includes, on an accruals basis, all day-to-day expenses and related income. The statement shows the accounting cost in accordance with generally accepted accounting practices, rather than the cost according to the statutory regulations that specify the net expenditure that councils need to take into account when setting the annual Council Tax charge. The required adjustments between accounting basis and funding basis under regulations are shown in the group movement in reserves statement. Council PPE (Note 9) Council share of Group PPE Total Group PPE £m £m £m Balance sheet net carrying amount at 31 March 2024 1,858.221 15.748 1,873.969 Assets reclassified (to) or from the “held for sale” category (2.492) 0.000 (2.492) Other asset reclassifications (1.090) 1.090 0.000 Recognition of Right of Use Assets and Increase in PPP liability 20.795 0.000 20.795 Additions 119.440 0.352 119.792 Disposals (1.823) 0.000 (1.823) Depreciation (96.776) (0.593) (97.369) Impairment adjustments recognised in the CIES (2.934) 0.000 (2.934) Revaluation adjustments taken to the Revaluation Reserve 86.293 0.000 86.293 Revaluation adjustments recognised in the CIES (24.633) 0.000 (24.633) Balance sheet net carrying amount at 31 March 2025 1,955.001 16.597 1,971.598 Gross carrying amount at 31 March 2025 1,893.3100 21.5900 1,914.900 Accumulated depreciation at 31 March 2025 (173.7850) (4.9930) (178.778) Infrastructure assets 235.476 0.000 235.476 Balance sheet net carrying amount at 31 March 2025 1,955.001 16.597 1,971.598 Movements in 2024/25 (restated) Figures shown in brackets represent income or gains and figures without brackets represent expenditure or losses. Page 234 of 392
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106 PUBLIC Group Movement in Reserves Statement The group movement in reserves statement shows the movement in the year on the different reserves held by the Council's group, analysed into the Council's usable reserves, the Council's unusable reserves and the Council's share of the reserves of the subsidiaries, associates, and joint ventures within the group. 2025/26 Council’s Usable Reserves Council’s Unusable Reserves Council’s Total Reserves Council’s share of Reserves of Subsidiaries, Associates and Joint Ventures Total Reserves Note £m £m £m £m £m Balance at 1 April 2025 235.197 1,320.054 1,555.251 105.140 1,660.391 Movement in reserves during the year Total Comprehensive Income and Expenditure (5.332) 236.480 231.148 (3.314) 227.834 Adjustments between Group accounts and Council accounts G5 (15.296) 0.000 (15.296) 15.296 0.000 Adjustments to Usable Reserves permitted by accounting standards 7 39.143 (39.143) 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 2.047 (2.047) 0.000 0.000 0.000 Adjustments between accounting basis and funding basis under regulations 6 (18.345) 18.345 0.000 0.000 0.000 Increase / (Decrease) in year 2.217 213.635 215.852 11.982 227.834 Balance at 31 March 2026 237.414 1,533.689 1,771.103 117.122 1,888.225 Comparative movements in 2024/25 (restated) Council’s Usable Reserves Council’s Unusable Reserves Council’s Total Reserves Council’s share of Reserves of Subsidiaries, Associates and Joint Ventures Total Reserves Note £m £m £m £m £m Balance at 1 April 2024 222.219 1,302.617 1,524.836 99.413 1,624.249 Movement in reserves during the year Total Comprehensive Income and Expenditure (70.981) 117.355 46.374 (10.232) 36.142 Adjustments between Group accounts and Council accounts G5 (15.959) 0.000 (15.959) 15.959 0.000 Adjustments to Usable Reserves permitted by accounting standards 39.114 (39.114) 0.000 0.000 0.000 Adjustment for Service Concession Arrangements 13.901 (13.901) 0.000 0.000 0.000 Adjustments between accounting basis and funding basis under regulations 6 46.903 (46.903) 0.000 0.000 0.000 Increase / (Decrease) in year 12.978 17.437 30.415 5.727 36.142 Balance at 31 March 2025 235.197 1,320.054 1,555.251 105.140 1,660.391 Page 235 of 392
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107 PUBLIC Group Balance Sheet The group balance sheet shows the value as at 31 March 2026 of the assets and liabilities recognised by the Council. The net assets of the Council’s group are matched by the reserves held by the group. Reserves are reported in two categories: usable reserves, which are those reserves that the group may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations; and unusable reserves, comprising those that the group is not able to use to provide services. This category includes reserves that hold unrealised gains/losses in the value of assets where amounts would only become available to provide services if the assets are sold, and reserves that hold timing differences shown as ‘adjustments between accounting basis and funding basis under regulations’ in the group movement in reserves statement. As at 31 March 2025 (restated) As at 31 March 2026 £m Note £m 1,971.599 Property, plant and equipment G10 2,239.421 44.404 Heritage assets G11 44.404 0.409 Investment property G9 0.403 1.189 Intangible assets 12 0.690 28.604 Long-term investments G15 31.927 57.358 Investments in associates and joint ventures G3 63.785 2.002 Long-term debtors G15 1.820 2,105.565 2,382.450 2.492 Assets held for sale 11 0.000 17.534 Short-term investments G15 24.623 1.120 Inventories 1.221 62.985 Short-term debtors G12 77.270 7.514 Cash and cash equivalents G15 42.991 91.645 146.105 (85.804) Short-term borrowing G15 (68.642) (70.047) Short-term creditors G13 (111.748) (0.406) Short-term provisions 20 (0.567) (156.257) (180.957) (77.581) Long-term creditors 19 (73.551) (5.230) Long-term provisions 20 (6.786) (232.050) Long-term borrowing G15 (314.756) (0.023) Liabilities in associates and joint ventures G3 (0.048) (65.678) Other long-term liabilities (64.232) (380.562) (459.373) Alastair MacArthur 1,660.391 1,888.225 (265.762) Usable reserves G7 (269.253) (1,394.629) Unusable reserves G8 (1,618.972) (1,660.391) (1,888.225) Director of Finance and Resources Total reserves Long-term assets Current assets Current liabilities Long-term liabilities Net assets The unaudited accounts were issued on 22 June 2026 and the audited accounts were authorised for issue on 24 September 2026. Page 236 of 392
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108 PUBLIC Group Cashflow Statement The group cash flow statement shows the changes in cash and cash equivalents of the Council’s group during the year. It shows how the Council 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 Council are funded by way of taxation and grant income or from the recipients of services provided by the Council. Investing activities represent the extent to which cash outflows have been made for resources that are intended to contribute to the Council’s future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (that is, borrowing) to the Council. The Council’s share of the cash flows of its associates and joint ventures is disregarded for the purpose of this statement because the Council’s share of the associates’ and joint ventures’ reserves is unusable and cannot be used to fund services. 2024/25 2025/26 £m £m (83.848) Group surplus/(deficit) (13.094) 140.324 Adjustment for non-cash movements 155.469 (25.010) Adjustments for items included in the group surplus/deficit that are investing and financing activities (55.032) 31.466 Net cash flows from operating activities 87.343 (48.008) Net cash flows from investing activities (111.383) (7.365) Net cash flows from financing activities 59.516 (23.907) Net increase/(decrease) in cash and cash equivalents 35.476 31.422 Cash and cash equivalents at the beginning of the reporting period 7.515 7.515 Cash and cash equivalents at the end of the reporting period 42.991 Notes to the Group Accounts The Council’s share of Group entities is reviewed on an annual basis and some prior year figures are adjusted as a result, when compared to the prior year audited accounts. The impact was an increase in net assets of £0.012m. Note G1: Details of the group’s combining entities Renfrewshire Council is represented on the board of a number of organisations. The extent of the Council interest has been reviewed in determining those entities that should be consolidated and incorporated within the group accounts. Those organisations, which have a significant impact on the Council’s operations, are listed below. The accounting period for all of these bodies is the year to 31 March 2026. In addition to the information included in the group accounts on the preceding pages the accounting regulations require specific disclosures about the combining entities and the nature of their business. OneRen, the Paisley, Renfrew and Johnstone Common Good Funds, Paisley Museum Reimagined Limited, Park Lane Developments (Renfrewshire) LLP and the Coats Observatory Trust administered by Renfrewshire Council (as sole trustee) are treated as subsidiaries in the Council’s group accounts, with assets, liabilities, reserves, income and expenses being consolidated line-by-line. AMIDS (Renfrewshire) LLP is a joint venture arrangement. Page 237 of 392
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109 PUBLIC Renfrewshire Leisure Limited, trading as OneRen, is a company limited by guarantee formed in 2014 and registered as a charity in Scotland. Its principal place of business is the Lagoon Leisure Centre, 11 Christie Street, Paisley PA1 1NB. The charity provides leisure and culture facilities within Renfrewshire Council’s area to the general public and operates ten leisure centres within Renfrewshire plus a range of cultural service buildings, libraries and community halls. The objectives of the charity are to provide facilities for recreation, sport, cultural and other leisure activities for the benefit of the community in Renfrewshire. Any surplus generated by the charity is applied solely to its continuation and development. The accounts of the charity are published separately and may be obtained from the Chief Executive, OneRen, Lagoon Leisure Centre, 11 Christie Street, Paisley PA1 1NB. The group comprehensive income and expenditure statement (CIES) includes total net comprehensive income for the year of £0.740m (2024/25 £1.144m restated) for OneRen, total net comprehensive income for the year of £4.266m (2024/25 £0.830m restated) for the Paisley, Renfrew and Johnstone Common Good Funds, total net comprehensive expenditure for the year of £0.027m (2024/25 net comprehensive income of £0.227m) for Park Lane Developments (Renfrewshire) LLP, total net comprehensive income for the year of £0.070m (2024/25 £0.045m restated) for Paisley Museum Reimagined Limited and total net comprehensive income for the year of £0.523m (2024/25 £0.352m restated) for the Coats Observatory Trust. The group balance sheet includes net assets of £1.937m (2024/25 £1.197m restated) for OneRen, net assets of £47.698m (2024/25 £43.433m restated) for the Common Good Funds, net assets of £0.094m (2024/25 £0.121m) for Park Lane Developments (Renfrewshire) LLP, net assets of £1.287m (2024/25 £1.209m restated) for Paisley Museum Reimagined Limited and net assets of £2.369m (2024/25 £1.845m) for the Coats Observatory Trust. Strathclyde Concessionary Travel Scheme Joint Committee comprises the twelve councils in the west of Scotland and oversees the operation of the concessionary fares scheme for public transport within its area. The costs of the scheme are met by a combination of funding from the twelve constituent councils and by direct grant funding from the Scottish Government. Strathclyde Partnership for Transport administers the scheme on behalf of the committee. In 2025/26, Renfrewshire Council contributed £0.341m or 8.16% of the committee’s estimated running costs (2024/25 £0.332m or 8.11%) and its share of the year-end net asset was £0.374m (2024/25 £0.303m) and is included in the group balance sheet. Copies of its accounts may be obtained from the Treasurer to Strathclyde Concessionary Travel Scheme, Strathclyde Partnership for Transport, 131 St. Vincent Street, Glasgow G2 5JF. Strathclyde Partnership for Transport was formed on 1 April 2006 as the successor to the Strathclyde Passenger Transport Authority. It is a joint committee of the twelve councils in the west of Scotland. In association with the related strategic development committees, the partnership’s remit includes the promotion of joint working to set out the policy framework for achieving the most effective management, development and integration of the transport network across boundaries in the medium to longer term through the Regional Transport Strategy. Renfrewshire Council contributed £3.031m or 8.26% to the committee’s estimated running costs in 2025/26 (2024/25 £2.955m or 8.22%) and its share of the year-end net asset was £48.100m (2024/25 £44.072m) and is included in the group balance sheet. Copies of its accounts may be obtained from the Treasurer to Strathclyde Partnership for Transport, 131 St. Vincent Street, Glasgow G2 5JF. Page 238 of 392
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110 PUBLIC Strathclyde Partnership for Transport Renfrewshire Council’s Share Strathclyde Partnership for Transport Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 367.769 30.227 Long-term assets 403.546 33.339 186.984 15.369 Current assets 217.896 18.002 (16.326) (1.342) Current liabilities (37.182) (3.072) (2.213) (0.182) Long-term liabilities (2.051) (0.169) 536.214 44.072 Net assets 582.209 48.100 Income and Expenditure Summary 115.145 9.464 Income 122.303 10.104 83.326 6.849 less: Expenditure 89.846 7.423 31.819 2.615 Surplus for the year 32.457 2.681 As at 31 March 2025 As at 31 March 2026 2024/25 2025/26 Renfrewshire Valuation Joint Board was formed in 1996 at local government re-organisation by Act of Parliament. Its principal place of business is Renfrewshire House, Cotton Street, Paisley PA1 1BF. The board maintains the electoral, council tax and non-domestic rates registers for the three councils of East Renfrewshire, Inverclyde and Renfrewshire. The board’s running costs are met by the three member councils. Surpluses or deficits on the board’s operations are shared between the councils. In 2025/26, Renfrewshire Council contributed £1.644m or 57.5% of the board’s estimated running costs (2024/25 £1.6m or 57.7%) and its share of the year-end net asset was £1.084m (2024/25 £0.903m restated) and is included in the group balance sheet. Copies of its accounts may be obtained from the Treasurer to the Renfrewshire Valuation Joint Board, Renfrewshire Council, Renfrewshire House, Paisley PA1 1JB. The following additional disclosures are required under accounting regulations for Renfrewshire Valuation Joint Board because it is a related party to the Council. Renfrewshire Valuation Joint Board Renfrewshire Council’s Share Renfrewshire Valuation Joint Board Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 0.167 0.097 Long-term assets 0.725 0.417 1.543 0.890 Current assets 1.551 0.891 (0.098) (0.057) Current liabilities (0.184) (0.106) (0.046) (0.027) Long-term liabilities (0.206) (0.118) 1.565 0.903 Net assets 1.886 1.084 Income and Expenditure Summary 3.205 1.848 Income 3.426 1.969 2.827 1.630 less: Expenditure 3.122 1.795 0.378 0.218 Deficit for the year 0.303 0.174 As at 31 March 2025 (restated) As at 31 March 2026 2024/25 (restated) 2025/26 The Public Bodies (Joint Working) (Scotland) Act 2014 established the framework for the integration of health and adult social care in Scotland. On 27 June 2015, Scottish Ministers legally established the Renfrewshire Health and Social Care Integration Joint Board (IJB) as a formal legal partnership between Renfrewshire Council and NHS Greater Glasgow and Clyde. Page 239 of 392
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111 PUBLIC The IJB is responsible for the strategic planning of the functions delegated to it and for ensuring the delivery of its functions through the locally agreed operational arrangements. Copies of the financial statements for the IJB may be obtained from Chief Officer, Renfrewshire Health and Social Care Integration Joint Board, Renfrewshire House, Cotton Street, Paisley, PA1 1WB. Renfrewshire Integration Joint Board Renfrewshire Council’s Share Renfrewshire Integration Joint Board Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 24.159 12.080 Current assets 28.454 14.227 24.159 12.080 Net assets 28.454 14.227 Income and Expenditure Summary 419.678 209.839 Income 443.270 221.635 421.595 210.797 less: Expenditure 438.976 219.488 (1.917) (0.958) (Deficit)/Surplus for the year 4.294 2.147 As at 31 March 2025 As at 31 March 2026 2024/25 2025/26 Note G2: Non-material interest in other entities In addition to the combining entities detailed in note G1, the Council has a “significant interest” in a number of joint committees. The Council’s share of the net assets or liabilities of these joint committees is not material to the fair understanding of the financial position and transactions of the Council. Accordingly, the group accounts do not include these organisations. In the interest of transparency, the following disclosures are made concerning the business nature of each organisation. Scotland Excel is formed by agreement among local authorities throughout Scotland and is maintained through a joint committee comprising representatives from all of the member councils. Launched on 1 April 2008 as a centre of procurement expertise for the local government sector, it is the largest non-profit making purchasing agency in Scotland. Its aim is to help improve the efficiency and effectiveness of public sector procurement. Renfrewshire Council contributed £0.130m (3.3%) to the committee’s estimated running costs in 2025/26 (£0.130m in 2024/25). Glasgow and the Clyde Valley Strategic Development Planning Authority was dissolved on 31 March 2025 and all activities transferred to the Glasgow City Region City Deal Cabinet. Under the Town and Country Planning (Scotland) Act 1997, eight member councils had responsibilities not only for local planning matters within their own boundaries but also for strategic issues affecting the wider Glasgow and Clyde Valley area. The committee was responsible for preparing, monitoring and reviewing the Strategic Development Plan on behalf of the member councils and for liaising with central government, Scottish Enterprise and other bodies. No contribution was required from Renfrewshire Council in 2025/26. In 2024/25 the contribution was £0.053m (12.5%) to the committee’s estimated running costs. Glasgow City Region – City Deal Cabinet is a Joint Committee, the purpose of which is to determine the Strategic Development priorities for the Clyde Valley Region and to monitor and ensure the delivery of the City Deal programme as agreed between member authorities and the UK and Scottish Governments. The City Deal programme aims to deliver a £1.13 billion investment programme through 20 infrastructure projects and will drive innovation and growth through the support of the key sectors, including delivery of labour market and innovation programmes. The committee operates in an administrative / project management capacity and does not hold any Page 240 of 392
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112 PUBLIC assets or liabilities developed from the City Deal programme. Renfrewshire Council contributed £0.037m (10%) to the committee’s estimated running costs in 2025/26 (£0.031m (9.7%) in 2024/25). Note G3: Associates and joint ventures The aggregate value of the assets, liabilities, income and expenditure of the Council’s associates and joint ventures are shown in the two tables which follow. The net asset figure from these two tables combined (£14.179m + £49.558m = £63.737m) equates to the net of the two figures disclosed in the group balance sheet as ‘Investments in associates and joint ventures’ (£63.785m) and ‘Liabilities in associates and joint ventures’ (£0.048m). Aggregate of Joint Venture results Renfrewshire Council’s Share Aggregate of Joint Venture results Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 24.629 12.315 Current assets 29.168 14.584 (0.032) (0.016) Current liabilities (0.150) (0.075) (0.484) (0.242) Long-term liabilities (0.660) (0.330) 24.113 12.057 Net assets 28.358 14.179 Income and Expenditure Summary 419.786 209.893 Income 443.432 221.717 421.738 210.869 less: Expenditure 439.187 219.595 (1.952) (0.976) (Deficit)/Surplus for the year 4.245 2.122 As at 31 March 2025 As at 31 March 2026 2024/25 2025/26 Joint ventures Aggregate of Associate results Renfrewshire Council’s Share Aggregate of Associate results Renfrewshire Council’s Share £m £m £m £m Balance Sheet Summary 367.936 30.324 Long-term assets 404.271 33.756 193.187 16.636 Current assets 224.313 19.29 (17.348) (1.473) Current liabilities (37.652) (3.201) (2.259) (0.209) Pension asset / (liability) (2.257) (0.287) 541.516 45.278 Net assets 588.675 49.558 Income and Expenditure Summary 122.728 11.667 Income 130.103 12.43 91.994 8.953 less: Expenditure 96.498 9.506 30.734 2.714 Surplus for the year 33.605 2.924 As at 31 March 2025 (restated) As at 31 March 2026 2024/25 (restated) 2025/26 Associates Note on contingent assets, contingent liabilities and capital commitments The Council is unaware of any material contingent asset or contingent liability as at 31 March 2026 in relation to any of its associates or joint ventures. The Council is unaware that any commitments have been entered into by any of its associates or joint ventures as at 31 March 2026, either with the Council itself or with other parties. Page 241 of 392
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113 PUBLIC Note G4: Material items of group income and expenditure In order to assist the reader in a better understanding of the impact of the inclusion of the results of the associates and joint ventures, the following tables provide an analysis of the Council’s share of the material amounts of income and expenditure disclosed in the group CIES. 2024/25 (restated) 2025/26 £m £m Share of (surplus) or deficit: (1.354) Subsidiaries: (2.488) (0.798) Paisley, Renfrew and Johnstone Common Good Funds (1.858) (0.352) Coats Observatory Trust (0.523) 0.068 OneRen (0.056) (0.227) Park Lane Developments (Renfrewshire) LLP 0.027 (0.045) Paisley Museum Reimagined Limited (0.078) (2.714) Associates: (2.924) (2.615) Strathclyde Partnership for Transport (2.681) 0.119 Strathclyde Concessionary Travel Scheme Joint Committee (0.069) (0.218) Renfrewshire Valuation Joint Board (0.174) Joint Venture: 0.958 Renfrewshire Health and Social Care Integration Joint Board (2.147) 0.018 AMIDS (Renfrewshire) LLP 0.025 (3.092) Aggregate share of (surplus) or deficit (7.534) Share of other comprehensive (income) and expenditure: (1.242) Subsidiaries: (3.092) (0.030) Paisley, Renfrew and Johnstone Common Good Funds (2.408) (1.212) OneRen (0.684) (1.393) Associates: (1.356) (1.273) Strathclyde Partnership for Transport (1.347) (0.005) Strathclyde Concessionary Travel Scheme Joint Committee (0.002) (0.115) Renfrewshire Valuation Joint Board (0.007) (2.635) Aggregate share of other comprehensive (income) and expenditure (4.448) (5.727) Aggregate share of total comprehensive (income) and expenditure (11.982) Material items of group income and expenditure Note G5: Adjustments between group accounts and council accounts In the group movement in reserves statement, adjustments between group accounts and council accounts are required to bring the Council’s reserve balances back to the amount presented in the Council-only figures (before adjustments between accounting basis and funding basis under regulations). This is because intra-group transactions are eliminated when total comprehensive income and expenditure is calculated for the group. The adjustments between group accounts and council accounts can be analysed as follows: Page 242 of 392
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114 PUBLIC 2024/25 2025/26 £m £m 0.168 Grants made by the Paisley, Renfrew and Johnstone Common Good Funds to Renfrewshire Council in contribution towards the funding of community events and projects 0.230 0.059 Governance costs charged to the Paisley, Renfrew and Johnstone Common Good Funds by Renfrewshire Council 0.059 (0.186) Interest income received from Renfrewshire Council by the Paisley, Renfrew and Johnstone Common Good Funds (0.173) (16.654) Service charge and other expenditure payable by Renfrewshire Council to OneRen (15.762) 0.631 Expenditure payable by OneRen to Renfrewshire Council 0.373 0.023 Expenditure/(income) payable by/(to) Paisley Museum Reimagined Limited to/(by) Renfrewshire Council (0.023) (15.959) Total adjustments between Group accounts and Council accounts (15.296) Adjustments between Group accounts and Council accounts Note G6: Group financing and investment income and expenditure 2024/25 (restated) 2025/26 £m £m 21.607 Interest payable and similar charges 21.537 4.014 Net interest on the net defined benefit liability 4.029 (5.762) Interest receivable and similar income (2.803) (1.404) Income and expenditure in relation to investment properties and changes in their fair values 0.006 (0.308) Other investment income (3.059) 18.147 Total financing and investment income and expenditure 19.710 Group financing and investment income and expenditure Note G7: Group Usable reserves 2024/25 (restated) 2025/26 £m £m (235.195) Council Usable Reserves - Note 7 (237.414) Group Usable Reserves: (25.794) Paisley, Renfrew and Johnstone Common Good Funds: unrestricted funds (26.250) (1.637) OneRen (2.375) (1.209) Paisley Museum Reimagined Limited (1.287) (1.927) Renfrewshire Health and Social Care Integration Joint Board (1.927) (265.762) Total Group Usable Reserves (269.253) Group Usable Reserves Page 243 of 392
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115 PUBLIC Note G8: Group Unusable reserves Unusable reserves are those reserves that the Council is not able to utilise to provide services. Included within the total Group Unusable Reserves are the unusable reserves of the Council’s subsidiaries; also included is the Council’s share of the reserves of the associates and joint ventures within the group. 2024/25 (restated) 2025/26 £m £m (1,320.056) Council Unusable Reserves - Note 8 (1,533.689) Group Unusable Reserves: (5.909) Paisley, Renfrew and Johnstone Common Good Funds: financial instruments revaluation reserve (8.316) (11.730) Paisley, Renfrew and Johnstone Common Good Funds: revaluation reserve (13.132) (1.845) Coats Observatory Trust: revaluation reserve (2.369) 0.440 OneRen: pension reserve 0.438 (0.121) Park Lane Developments (Renfrewshire) LLP (0.094) Council share of the Reserves of associates and joint ventures: (44.072) Strathclyde Partnership for Transport (48.100) (0.303) Strathclyde Concessionary Travel Scheme Joint Committee (0.374) (0.903) Renfrewshire Valuation Joint Board (1.084) (10.153) Renfrewshire Health and Social Care Integration Joint Board (12.300) 0.023 AMIDS (Renfrewshire) LLP 0.048 (1,394.629) Total Group Unusable Reserves (1,618.972) Group Unusable Reserves Note G9: Group investment properties The following items of income and expense have been accounted for in the ‘Financing and investment income and expenditure’ line in the group CIES: 2024/25 2025/26 £m £m (0.315) Rental income from investment property (0.088) (0.315) Net (gain) or loss (0.088) Group Investment Properties There are no restrictions on the Council’s ability to realise the value inherent in investment property, nor on the right to the remittance of income and the proceeds of disposal. With regards Common Good properties, the Council is obliged to observe the provisions of the Community Empowerment (Scotland) Act 2015 in terms of public consultation on disposal proposals; however, the right to the remittance of income and proceeds of disposal remains with the Common Good Funds. The following table summarises the movement in the fair value of investment properties during the year: 2024/25 2025/26 £m £m 0.415 Balance at 1 April 0.409 (0.006) Fair value changes (0.006) 0.409 Balance at 31 March 0.403 Group Investment Properties Page 244 of 392
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116 PUBLIC Note G10: Group Property, plant and equipment Council PPE (Note 9) Council share of Group PPE Total Group PPE £m £m £m Balance sheet net carrying amount at 31 March 2025 1,955.001 16.597 1,971.598 Additions 155.105 0.693 155.798 Disposals (4.294) 0.000 (4.294) Depreciation (96.451) (0.073) (96.524) Revaluation adjustments taken to the Revaluation Reserve 221.173 0.827 222.000 Revaluation adjustments recognised in the CIES (9.157) 0.000 (9.157) Balance sheet net carrying amount at 31 March 2026 2,221.377 18.044 2,239.421 Gross carrying amount at 31 March 2026 2,056.559 23.112 2,079.671 Accumulated depreciation at 31 March 2026 (182.639) (5.068) (187.707) Infrastructure assets 347.457 0.000 347.457 Balance sheet net carrying amount at 31 March 2026 2,221.377 18.044 2,239.421 Movements in 2025/26 Council PPE (Note 9) Council share of Group PPE Total Group PPE £m £m £m Balance sheet net carrying amount at 31 March 2024 1,858.221 15.748 1,873.969 Assets reclassified (to) or from the “held for sale” category (2.492) 0.000 (2.492) Other asset reclassifications (1.090) 1.090 0.000 Recognition of Right of Use Assets and Increase in PPP liability 20.795 0.000 20.795 Additions 119.440 0.352 119.792 Disposals (1.823) 0.000 (1.823) Depreciation (96.776) (0.593) (97.369) Impairment adjustments recognised in the CIES (2.934) 0.000 (2.934) Revaluation adjustments taken to the Revaluation Reserve 86.293 0.000 86.293 Revaluation adjustments recognised in the CIES (24.633) 0.000 (24.633) Balance sheet net carrying amount at 31 March 2025 1,955.001 16.597 1,971.598 Gross carrying amount at 31 March 2025 1,893.3100 21.5900 1,914.900 Accumulated depreciation at 31 March 2025 (173.7850) (4.9930) (178.778) Infrastructure assets 235.476 0.000 235.476 Balance sheet net carrying amount at 31 March 2025 1,955.001 16.597 1,971.598 Movements in 2024/25 (restated) Page 245 of 392
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117 Annual Accounts 2024/25 PUBLIC Note G11: Group heritage assets A valuation of the fair value of the Council’s Heritage Assets was carried out by an external valuer between October 2021 and March 2022, resulting in an increase of £4.883m. The value at 31 March 2026 was £44.404m (£44.404m in 2024/25). Included in this value are the civic regalia and equipment of the Paisley, Renfrew and Johnstone Common Good Funds, which have been externally valued on a present value insurance basis at £0.218m as at 31 March 2026 (£0.218 at 31 March 2025). Note G12: Group short-term debtors The balances detailed below are composed mostly of the debtors of the Council, to which the debtors of OneRen, Park Lane Developments (Renfrewshire) LLP and the Paisley, Renfrew and Johnstone Common Good Funds have been added. As at 31 March 2025 (restated) As at 31 March 2026 £m £m 7.148 Trade receivables 8.364 6.471 Prepayments 5.229 49.366 Other receivables 63.677 62.985 Total 77.270 Group Short-term Debtors Note G13: Group short-term creditors The balances detailed below are composed mostly of the creditors of the Council, to which the creditors of OneRen, Park Lane Developments (Renfrewshire) LLP and the Paisley, Renfrew and Johnstone Common Good Funds have been added. As at 31 March 2025 (restated) As at 31 March 2026 £m £m (14.078) Trade payables (31.470) (55.969) Other payables (80.278) (70.047) Total (111.748) Group Short-term Creditors Note G14: Amounts due between Renfrewshire Council and its associates and joint ventures An analysis of the amounts owing and owed between the Council and its associates and joint ventures, analysed into amounts relating to loans and amounts relating to other balances, is shown in the table below. As at 31 March 2025 As at 31 March 2026 £m £m Amounts owing to Renfrewshire Council: 0.309 Other balances 0.551 0.309 Total 0.551 Amounts owed by Renfrewshire Council: (24.186) Liability for Renfrewshire Integration Joint Board’s retained underspend (28.480) (1.801) Other balances (1.520) (25.987) Total (30.000) Page 246 of 392
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118 Annual Accounts 2024/25 PUBLIC Note G15: Group financial instruments Balance sheet carrying amounts of group financial instruments The following categories of financial instrument are carried in the group balance sheet. Additional qualitative information on the various categories of financial instruments can be found in Note 21: Financial Instruments. Long-term Current Long-term Current £m £m £m £m (232.050) (5.000) (294.432) (0.002) 0.000 (2.694) 0.000 (3.110) (232.050) (7.694) (294.432) (3.112) 0.000 (46.766) (20.000) (26.766) 0.000 (0.858) 0.000 (0.857) 0.000 (0.588) (0.324) (0.251) 0.000 (48.212) (20.324) (27.874) 0.000 (29.898) 0.000 (38.089) (232.050) (85.804) (314.756) (69.075) 0.000 (32.506) 0.000 (72.705) (76.100) (4.775) (72.136) (4.968) (0.395) 0.000 (0.260) 0.000 (76.495) (37.281) (72.396) (77.673) Service concession and finance lease liabilities Financial guarantees Financial Liabilities included in Creditors As at 31 March 2025 (restated) Financial Liabilities At amortised cost: Trade payables Principal sum borrowed Accrued interest Total Public Works Loan Board (PWLB) borrowing Principal sum borrowed Accrued interest EIR adjustments Total non-PWLB borrowing (“market debt”) Borrowing from group entities Total Borrowing As at 31 March 2026 Long-term Current Long-term Current £m £m £m £m 0.000 17.521 0.000 24.589 0.000 0.017 0.000 0.039 0.000 (0.004) 0.000 (0.005) 28.604 0.000 31.927 0.000 28.604 17.534 31.927 24.623 0.000 (6.155) 0.000 7.094 0.000 0.029 0.000 0.025 0.000 (0.003) 0.000 (0.003) 0.000 13.644 0.000 35.876 0.000 7.515 0.000 42.992 5.959 70.939 5.873 80.064 1.014 0.044 0.916 0.041 (4.972) (23.847) (4.969) (18.369) 2.001 47.136 1.820 61.736 At amortised cost: Loss allowance At fair value through profit or loss Total Cash and cash equivalents At amortised cost: Trade receivables At amortised cost: Loans made for service purposes At amortised cost: Loss allowance Financial Assets included in Debtors At amortised cost: Accrued interest As at 31 March 2025 Financial Assets As at 31 March 2026 At amortised cost: Principal At amortised cost: Accrued interest At amortised cost: Loss allowance At fair value through other comprehensive income - designated equity instruments Total Investments At amortised cost: Principal Note: the figures in this table include accrued interest where this is applicable Page 247 of 392
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119 Annual Accounts 2024/25 PUBLIC Fair value of group financial instruments The fair value through other comprehensive income financial assets carried on the group balance sheet comprise the Council’s insurance fund investments and the investments of the Paisley and Renfrew Common Good Funds. The fair value of these investments equates to the market value of the investments as provided by the Council’s investment manager, LGT Wealth Management. In terms of the fair value measurement hierarchy the financial instruments measured at fair value are considered to be Level 1 being quoted prices (unadjusted) in active markets for identical assets or liabilities that the authority can access at the measurement date, Level 2 being inputs other than quoted prices that can be accessed at the measurement date, or Level 3 being unobservable inputs e.g. cashflow forecasts or estimated creditworthiness (see table below). Carrying Amount Fair value Financial Liabilities Carrying Amount Fair value £m £m £m £m Financial liabilities measured at amortised cost: (239.743) (189.683) Public Works Loan Board borrowing 2 (297.547) (238.477) (48.211) (53.523) Non-PWLB borrowing (“market debt”) 2 (48.198) (53.858) Other liabilities: (80.875) (80.875) Service concession and finance lease liabilities 3 (77.103) (77.103) (0.395) (0.395) Financial guarantees 3 (0.260) (0.260) (369.224) (324.476) (423.108) (369.698) Financial liabilities measured at amortised cost: (29.898) n/a Borrowing from group entities (38.089) n/a (32.506) n/a Trade payables: short-term (72.705) n/a (62.404) (110.794) Fair value level Total financial liabilities for which fair value is disclosed Total financial liabilities for which fair value is not disclosed As at 31 March 2025 As at 31 March 2026 Carrying Amount Fair value Financial Assets Carrying Amount Fair value £m £m £m £m 13.128 13.128 Callable deposits in money market funds 1 35.326 35.326 0.516 0.516 Euro account balances with the Council’s banker 2 0.550 0.550 28.604 28.604 Investments in pooled funds 1 31.927 31.927 42.248 42.248 67.803 67.803 17.534 17.534 Fixed term deposits with UK building societies 2 24.623 24.623 (6.168) (6.168) Callable deposits with UK banks and building societies* 2 7.077 7.077 0.040 0.040 Imprest accounts held at council establishments 2 0.040 0.040 1.023 1.037 Loans made for service purposes 3 0.925 0.945 12.429 12.443 32.665 32.685 54.677 54.691 100.468 100.488 Financial assets measured at amortised cost: 1.020 n/a Trade receivables and prepayments: long-term 0.934 n/a 47.093 n/a Receivables and prepayments: short-term 61.697 n/a 48.113 62.631 Total Financial assets measured at fair value Total Financial assets measured at amortised cost Total financial assets for which fair value is disclosed Total financial assets for which fair value is not disclosed As at 31 March 2025 (restated) As at 31 March 2026 Fair value level *includes current sterling account balances with the Council’s banker. Page 248 of 392
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120 Annual Accounts 2024/25 PUBLIC The short-term nature of cash and cash equivalents means that their fair value equates to their balance sheet carrying amount. Further qualitative information on the fair value of financial instruments can be found in Note 22. Items of income, expense, gain and loss relating to group financial instruments The following items of income, expense, gain and loss relating to group financial instruments are included within the lines ‘Financing and Investment income and expenditure’ and ‘(Surplus) or deficit from investments in equity instruments designated as ‘Fair Value through Other Comprehensive Income (OCI*)’ in the group CIES. 2024/25 Amortised cost Elected to Fair Value through OCI* Fair Value through Profit or Loss 2025/26 £m £m £m £m £m £m 16.932 Interest expense 0.000 0.000 0.000 16.344 16.344 2.197 Impairment losses 1.602 0.000 0.000 0.000 1.602 0.000 Fee expense 0.000 0.000 0.000 0.022 0.022 0.423 Other expense 0.000 (0.600) 0.000 0.000 (0.600) 19.552 Total expense in the Surplus / Deficit on the Provision of 1.602 (0.600) 0.000 16.366 17.368 (5.756) Interest income (1.687) 0.000 (1.105) 0.000 (2.792) (0.828) Dividend income 0.000 (0.873) 0.000 0.000 (0.873) (6.584) Total income in the Surplus/Deficit on the Provision of (1.687) (0.873) (1.105) 0.000 (3.665) 0.040 Net (gain) or loss on revaluation 0.000 (2.588) (0.023) 0.000 (2.611) 0.040 (Surplus)/Deficit on the revaluation of financial assets 0.000 (2.588) (0.023) 0.000 (2.611) 13.008 Net (Gain)/Loss for the year (0.085) (4.061) (1.128) 16.366 11.092 Financial Assets Financial liabilities at amortised cost Group Accounting Policies Introduction The Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (“the Code”) requires local authorities to consider their interests in all types of entity. This includes other local authorities or similar bodies defined in section 106 of the Local Government (Scotland) Act 1973, for example statutory bodies such as valuation boards. Authorities are required to prepare a full set of group accounts in addition to their own Council’s accounts where they have a material interest in such entities. Combining entities Renfrewshire Council’s group accounts consolidate the results of the Council with the results of the Paisley, Renfrew and Johnstone Common Good Funds; the Coats Observatory Trust administered by Renfrewshire Council; and eight other entities: 1. Renfrewshire Leisure Limited, trading as OneRen; 2. Paisley Museum Reimagined Limited; 3. Park Lane Developments (Renfrewshire) LLP; 4. Strathclyde Partnership for Transport; 5. Strathclyde Concessionary Travel Scheme Joint Committee; 6. Renfrewshire Valuation Joint Board; Page 249 of 392
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121 Annual Accounts 2024/25 PUBLIC 7. Renfrewshire Health and Social Care Integration Joint Board; 8. AMIDS (Renfrewshire) LLP. The Council has effective control over OneRen, Paisley Museum Reimagined Limited, the Paisley, Renfrew and Johnstone Common Good Funds and the Coats Observatory Trust administered by Renfrewshire Council (as sole trustee) and, as such, these are treated as subsidiaries in the Council’s group accounts, with assets, liabilities, reserves, income and expenses being consolidated line-by- line. The Council also holds 50% (£50) of the share capital of Park Lane Developments (Renfrewshire) LLP. Under the terms of the Partnership Agreement, the Council has enhanced voting rights and Park Lane Developments (Renfrewshire) LLP has no claim on the remaining assets should the partnership be wound up; therefore, the entity is treated as a subsidiary. Strathclyde Partnership for Transport and Strathclyde Concessionary Travel Scheme Joint Committee are included within the group accounts under the definition of associate, even though the Council holds less than 20% or more of the voting (or potential voting) power (which is the criterion normally used to confer significant influence). However, the view has been taken that the nature of the funding arrangements between the constituent Councils and these entities is sufficient to confer significant influence. Renfrewshire Valuation Joint Board is included within the group accounts as an associate because the Council does not have a controlling interest in the body in terms of the voting rights. Renfrewshire Council’s share of each associate’s net assets or liabilities is calculated based on the Council’s proportionate contribution to each associate’s annual revenue costs. The Council has no shares in, or ownership of, any of these three organisations, which are entirely independent of the Council under law and for taxation. The Public Bodies (Joint Working) (Scotland) Act 2014 established the framework for the integration of health and adult social care in Scotland. Scottish Ministers legally established the Renfrewshire Health and Social Care Integration Joint Board on 27 June 2015 as a formal legal partnership between Renfrewshire Council and NHS Greater Glasgow and Clyde. This entity is included as a joint venture in the Council’s group accounts. Renfrewshire Council’s share of the joint venture’s net liabilities is calculated based on the Council’s proportionate ordinary shareholding in the joint venture. Basis of preparation of group statements and going concern For the associates and joint ventures detailed above, the combination has been accounted for under the accounting conventions of the acquisition basis using the equity method, with the Council’s share of the net assets or liabilities of each entity incorporated and adjusted each year by the Council’s share of that entity’s results and the Council’s share of other gains and losses (recognised in the group CIES). For four of the combining entities the Council has a share in a net liability. The net liability position of both the Renfrewshire Valuation Joint Board and OneRen arises from the inclusion of liabilities related to the defined benefit pension schemes as required by IAS19 (which requires that pension liabilities reflect the long-term cost of paying post-employment benefits). For Park Lane Developments (Renfrewshire) LLP the net liability arises from long- term borrowing to fund regeneration work within and around the site of the former Arnott’s store in Paisley. All of the organisations noted above prepare their annual accounts on a going concern basis. Arrangements with the Council and other funders for Page 250 of 392
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122 Annual Accounts 2024/25 PUBLIC the longer-term funding of Park Lane Developments (Renfrewshire) LLP are considered sufficient to meet future funding requirements. The Council will continue to support Paisley Museum Reimagined Limited until their anticipated revenue generation materialises. Consideration for acquisition of associates’ net assets or liabilities The Council has acquired its share of the net assets of its associates for a nil consideration. There is no deferred or contingent purchase consideration. A fair value for its share of the net assets or liabilities of the three joint boards and committees at the point of acquisition and the post-acquisition results are unable to be accurately determined in view of the length of time since the transfer of these responsibilities at local government re-organisation in 1996 and the change in accounting for pensions under FRS17 in 2003/04. It is not possible to provide the fair value of the investment in the other combining entities of the Council as there are no published price quotations for these entities. No goodwill has been included in the group balance sheet in view of the length of time since acquisition, that no consideration was involved and that a fair value at the date of acquisition cannot now be properly assessed. Group boundary: non-material interests in other entities The Council has a significant interest in three joint committees that have not been included in the group accounts. The Council’s share of their net assets or liabilities is not material to the fair understanding of the financial position and transactions of the Council. In the interest of transparency, details of the business nature of each organisation are shown in notes G1 and G2. Inventories Inventories (generally consumable stock) are included in the group balance sheet at weighted average cost and the lower of cost or net realisable value: weighted average cost – Council’s stock; lower of cost or net realisable value – OneRen’s stock. The difference in valuation methods does not have a material effect on the results of the group given the levels of stockholdings in these entities. Post-employment benefits In common with Renfrewshire Council, all combining entities, except Park Lane Developments (Renfrewshire) LLP, participate in the Local Government Pension Scheme, which is administered locally by Glasgow City Council through the Strathclyde Pension Fund. The associates have accounting policies for pensions accounting that are consistent with those of the Council. Property, plant and equipment The basis of valuation across the combining entities is in accordance with the Code. Operational property, plant and equipment assets are shown at the lower of net replacement cost or net realisable value in existing use with the following exceptions: i) The Concessionary Travel Scheme Joint Committee has no fixed assets. ii) Strathclyde Partnership for Transport holds exceptional types of fixed assets in its balance sheet. Within intangible assets, there are subsidised bus contracts that are recorded at amortised cost. There are also “third-party” assets that are rolling stock and other public assets used by other transport operators but which the partnership has the power to direct to the benefit of the travelling public within the partnership’s operating area – these are held at historic cost. iii) OneRen uses the historic cost convention for its recent leasehold improvements, but this is Page 251 of 392
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123 Annual Accounts 2024/25 PUBLIC considered a suitable proxy for market value in existing use on a replacement cost basis. OneRen also uses depreciated historic cost for its computers, plant, furniture and fittings rather than the Council’s depreciated replacement cost basis, however this is not considered to be material given the small values involved. Restrictions on the transfer of funds The Council’s share of the reserves of its associates is unusable in that it cannot be used to fund the Council’s services nor to reduce taxation. All associates are entirely independent of the Council under law and for taxation. The Council is unable to access their reserves, whether classified as usable or otherwise in the associate’s own financial statements. Value Added Tax Value Added Tax in respect of the Council’s subsidiaries that are independent of the Council under law and for taxation, viz. OneRen, Park Lane Development (Renfrewshire) LLP and Paisley Museum Reimagined Limited, is accounted for within income and expenditure to the extent that it is irrecoverable from HM Revenue and Customs. Page 252 of 392
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Finance and Resources, Renfrewshire House, Cotton Street, Paisley PA1 1JB Telephone: 0300 300 0285 www.renfrewshire.gov.uk PUBLIC Page 253 of 392
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1 ___________________________________________________________________ To: Council On: 24 September 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Azets Report to those charged with governance - Coats Observatory Trust Annual Accounts 2025/26 ___________________________________________________________________ 1. Summary 1.1 Each year the Council’s appointed external auditors carry out an audit of the financial statements of the Coats Observatory Trust, controlled by Renfrewshire Council, and provide an opinion as to whether those statements provide a true and fair view of the financial position of the charity and its income and expenditure for the year; and also whether they have been prepared in accordance with the relevant regulations. 1.2 In accordance with International Auditing Standards (ISA260), the external auditor, Azets, is obliged to report to those charged with the governance of the organisation matters which have arisen in the course of the audit. 1.3 The attached ISA260 report from Azets outlines their findings from the audit of the 2025/26 Coats Observatory Trust accounts. 1.4 Under the Local Authority Accounts (Scotland) Regulations 2014, the Council must meet to consider the Annual Accounts and aim to approve those accounts for signature no later than 30 September. 1.5 There was one audit adjustment made to the annual accounts over the course of the audit. The figures and details are listed on page 23 of the Annual Audit Report, and can be explained as follows: • Statement of Financial Activities – To recognise the annual audit fee to the Trust and corresponding donation from Renfrewshire Council. PUBLIC Item 4 Page 255 of 392
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2 1.6 Other minor and presentational changes were also agreed, along with the disclosure changes outlined on page 24 of the Annual Audit Report. 1.7 Azets officers will attend the meeting to present their reports ________________________________________________________________ 2. Recommendations 2.1 Members are requested to consider the attached report from Azets. ___________________________________________________________________ Implications of the Report 1. Financial The 2025/26 Annual Accounts demonstrate that the Council continues to operate the Trust within the resources available, and in line with the relevant legislation. The Trust’s audit fee, which was £6,760 in 2025/26, is paid by Renfrewshire Council. 2. HR & Organisational Development There are no direct implications arising from the recommendations in this report. 3. Community/Council Planning Community Plan Our Renfrewshire is thriving The report demonstrates the Council’s appropriate trusteeship of the Coats Observatory Trust for the benefit of the community. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy and our future The report demonstrates the Council’s appropriate trusteeship of the Coats Observatory Trust for the benefit of the community. Building strong, safe and resilient communities Tackling inequality, ensuring opportunities for all Creating a sustainable Renfrewshire for all to enjoy Working together to improve outcomes 4. Legal An audit opinion free from qualification demonstrates the Council’s compliance with the statutory accounting requirements set out in the Local PUBLIC Page 256 of 392
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3 Government (Scotland) Act 1973, the Local Government in Scotland Act 2003, and the Charities Accounts (Scotland) Regulations 2006. 5. Property/Assets The Coats Observatory is currently undergoing refurbishment work as part of the Paisley Museum Reimagined project, however there are no direct property implications arising from the recommendations in this report. 6. Information Technology There are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights There are no direct implications arising from the recommendations in this report. 8. Health & Safety There are no direct implications arising from the recommendations in this report. 9. Procurement There are no direct implications arising from the recommendations in this report. 10. Risk There are no direct implications arising from the recommendations in this report. 11. Privacy Impact There are no direct implications arising from the recommendations in this report. 12. Cosla Policy Position There are no direct implications arising from the recommendations in this report. 13. Children’s Rights There are no direct implications arising from the recommendations in this report. 14. Climate Change There are no direct implications arising from the recommendations in this report. ___________________________________________________________________ Author: Christine McCourt, Head of Finance and Procurement Page 257 of 392
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PUBLIC azets.co.uk 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit September 2026 azets.co.uk Coats Observatory Trust Fund Page 259 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit Page 2 of 27 PUBLIC Table of Contents Key messages 3 Introduction 5 Financial statements audit 7 Appendices 18 This report is for the benefit of the Trust Fund and is made available to the Controller of Audit for Scotland and Audit Scotland. This report has not been designed to be of benefit to anyone except for the Trust Fund , the Controller of Audit for Scotland and Audit Scotland. It should not be quoted in whole or in part without our prior written consent and should not be relied upon by third parties. No responsibility is assumed by Azets Audit Services to any third parties. We do not accept any responsibility for any loss occasioned to any third party acting, or refraining from acting, on the basis of the content of this report, as this report was not prepared for, nor intended for, any other purpose. Page 260 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 3 of 27 www.azets.co.uk PUBLIC Key messages The Charities Accounts (Scotland) Regulations 2006 outline the accounting and auditing requirements for charitable bodies. The Regulations require an auditor to prepare a report to the charity trustees where an audit is required by any other enactment. The Trust Fund is Renfrewshire Council’s charitable trust and is covered by the requirements of section 106 of the Local Government (Scotland) Act 1973 and consequently require a full audit. Each registered charitable trust has required a full audit since 2013/14. Coats Observatory Trust Fund is a registered charity preparing its accounts on an accruals basis. Financial statements audit Audit opinion The annual accounts are due to be considered by the Audit, Risk and Scrutiny Board on 21 September 2026 and approved upon completion of the audit. We anticipate our independent auditor’s report to be unqualified subject to the following concluding procedures: • Engagement manager and engagement lead final quality reviews • Receipt and review of the signed management representation letter • Receipt and review of the final amended signed statement of accounts and trustees report • Response from management regarding subsequent events up to the date of the opinion Audit approach Our audit approach has been based on gaining an understanding of the Trust Fund’s control environment and has been risk based. This included: • An evaluation of the internal control environment, including the IT systems and controls; and • Substantive testing on significant transactions and material account balances, including the procedures outlined in this report in relation to our significant audit risks. We have not altered our audit plan following receipt of the draft financial statements. Page 261 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 4 of 27 www.azets.co.uk PUBLIC Key audit findings The Trust Fund had reasonable administrative processes in place to prepare the annual accounts and the supporting working papers. We obtained adequate evidence in relation to the significant audit risks identified in our audit plan. The accounting policies used to prepare the financial statements are considered appropriate. We are satisfied with the appropriateness of the accounting estimates and judgements used in the preparation of the financial statements. All material disclosures required by relevant legislation and applicable accounting standards have been made appropriately. Audit adjustments One audit adjustment has been identified and made through the course of the audit. No unadjusted misstatements were identified within the financial statements. Details of the adjusted misstatements and disclosure changes are included at Appendix 2. Internal controls The purpose of the audit was for us to express an opinion on the Trust Fund’s financial statements. The audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. Our audit is, therefore, not designed to identify all control weaknesses. No material weaknesses or significant deficiencies were noted during our audit. Page 262 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 5 of 27 www.azets.co.uk PUBLIC Introduction Scope of audit The annual audit comprises the audit of the financial statements. We outlined the scope of our audit in our External Audit Plan for Renfrewshire Council (“the Council”), which we presented to the Audit, Risk and Scrutiny Board at the outset of our audit. We have not made any subsequent changes to the risks outlined in that plan. Responsibilities The Trustees are responsible for preparing its annual accounts, including financial statements, which show a true and fair view of the results for the year and position at the year end, and for implementing appropriate internal control systems. The weaknesses or risks identified in this report are only those that have come to our attention during our normal audit work. Communication in this report of matters arising from the audit or of risks or weaknesses does not absolve management from its responsibility to address the issues raised and to maintain an adequate system of control. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance, including establishing and maintaining internal controls over the reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulations. As auditors, we obtain reasonable, but not absolute, assurance that the financial statements, as a whole, are free from material misstatement, whether caused by fraud or error. We would like to thank all management and staff for their co-operation and assistance during our audit. Auditor independence International Standards on Auditing in the UK (ISAs (UK)) require us to communicate on a timely basis all facts and matters that may have a bearing on our independence. We confirm that we complied with the Financial Reporting Council’s (FRC) Ethical Standard. In our professional judgement, we remained independent, and our objectivity has not been compromised in any way. We set out in Appendix 1 our assessment and confirmation of independence. Adding value All of our clients quite rightly demand of us a positive contribution to meeting their ever- changing business needs. We add value by being constructive and forward looking, by Page 263 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 6 of 27 www.azets.co.uk PUBLIC identifying areas of improvement and by recommending and encouraging good practice. In this way we aim to promote improved standards of governance, better management and decision making and more effective use of public money. Any comments you may have on the service we provide would be greatly appreciated. Comments can be reported directly to any member of your audit team or to Audit Scotland. Openness and transparency This report will be published on Audit Scotland’s website www.audit-scotland.gov.uk. Page 264 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 7 of 27 www.azets.co.uk PUBLIC Financial statements audit Under International Standards on Auditing (UK) and the Code of Audit Practice approved by the Accounts Commission for Scotland, we are required to report whether, in our opinion: • The financial statements give a true and fair view of the state of affairs of the Trust Fund as at 31 March 2026 and of its incoming resources and application of resources for the year then ended; • The financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; • The financial statements have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulation 8 of The Charities Accounts (Scotland) Regulations 2006; and • The information given in the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Charities SORP (FRS 102). We are also required to report on whether the other information included in the annual accounts (including the Trustees’ Annual Report) is materially consistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Our audit opinion Opinion Basis for opinion Conclusions Financial statements We conduct our audit in accordance with applicable law and International Standards on Auditing. Our findings / conclusions to inform our opinion are set out in this section of our annual audit report. The annual accounts are due to be considered by the Audit, Risk and Scrutiny Board on 21 September 2026 and approved upon completion of the audit. We intend to issue unqualified opinions in our independent auditor’s report. Page 265 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 8 of 27 www.azets.co.uk PUBLIC Opinion Basis for opinion Conclusions Going concern basis of accounting In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees intend to discontinue the charity's operations, or have no realistic alternative but to do so. We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Other information: Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except to the extent explicitly stated in the opinions prescribed by the Accounts Commission. We are required to consider whether the other information is materially inconsistent with the financial statements or with other knowledge obtained during the audit or otherwise appears materially misstated. We have nothing to report in this regard. Opinions prescribed by the Accounts Commission On the Trustees’ Annual Report We plan and perform audit procedures to gain assurance that information given in the Trustees' Annual Report is consistent with the financial statements and that report has been prepared in We have no matters to report. Page 266 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 9 of 27 www.azets.co.uk PUBLIC Opinion Basis for opinion Conclusions accordance with the Charities SORP (FRS 102). Matters reported by exception We are required to report on whether: • proper accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have no matters to report. An overview of the scope of our audit The scope of our audit was detailed in our External Audit Plan for the Renfrewshire Council, which was presented to the Audit, Risk and Scrutiny Board in March 2026. The plan explained that we follow a risk-based approach to audit planning that reflects our overall assessment of the relevant risks that apply to the Trust Fund. This ensures that our audit focuses on the areas of highest risk (the significant risk areas). Planning is a continuous process, and our audit plan is subject to review during the course of the audit to take account of developments that arise. In our audit, we test and examine information using sampling and other audit techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. This includes: • An evaluation of the Trust Fund’s internal control environment, including the IT systems and controls; and • Substantive testing on significant transactions and material account balances, including procedures outlined in this report in relation to our key audit risks. Page 267 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 10 of 27 www.azets.co.uk PUBLIC Quality indicators We have applied a suite of quality indicators to assess the reliability of the Trust’s financial reporting and response to the audit. Metric Grading (Mature / developing / significant improvement required) Commentary Quality and timeliness of draft financial statements Mature We received the unaudited financial statements in line with our agreed audit timetable. The financial statements were of a good standard. Revisions were provided promptly where required. Quality of working papers provided and adherence to timetable Mature We received supporting working papers in line with our audit timetable. These were also of a good standard. Further information was provided promptly where required. Timing and quality of key accounting judgements Mature We did not identify any issues with the timing and quality of key accounting judgements. Access to finance team and other key personnel Mature We received full access to the finance team and other key personnel throughout the audit. All audit queries and requests were responded to in a timely manner. Quality and timeliness of the Annual Accounts. As well as the quality and timeliness of supporting working papers for those statements. Mature We did not identify any issues with quality and timeliness of the audited part of the Annual Accounts. Page 268 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 11 of 27 www.azets.co.uk PUBLIC Metric Grading (Mature / developing / significant improvement required) Commentary Volume and magnitude of identified errors Mature We identified one error on audit which the Trust Fund agreed to adjust. Further details are set out in Appendix 2. There were no unadjusted misstatements. Significant risk areas and key audit matters Significant risks are defined by auditing standards as risks that, in the judgement of the auditor, require special audit consideration. In identifying risks, we 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. Audit procedures are designed to mitigate these risks. As required by the Code of Audit Practice and the planning guidance issued by Audit Scotland, we considered the significant risks for the audit that had the greatest effect on our audit strategy, the allocation of resources in the audit and directing the efforts of the audit team. These were defined as the ‘Key Audit Matters’ for the audit, as detailed in the tables below. Our audit procedures relating to these matters were designed in the context of our audit of the annual accounts as a whole, and not to express an opinion on individual balances, transactions or disclosures. We do not expect to modify our opinion on the Trust Fund’s annual accounts with respect to any of the risks described below. The table below summarises each significant risk and whether it reflects a fraud risk and/or Key Audit Matter. Detail behind each risk and the work undertaken is set out on the following pages. Page 269 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 12 of 27 www.azets.co.uk PUBLIC Risk area Financial statement / Assertion level risk Fraud risk Key Audit Matter Risk of material misstatement Outcome of work Management override of controls Financial statement Yes Yes Very High From our work we found no evidence of fraud or error through management override of controls. Significant risks at the financial statement level These risks are considered to have a pervasive impact on the financial statements as a whole and potentially affect many assertions for classes of transaction, account balances and disclosures. Risk area Management override of controls Significant risk description Management is in a unique position to perpetrate fraud because of their ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Although the level of risk of management override of controls will vary from entity to entity, the risk is nevertheless present in all entities. Due to the unpredictable way in which such override could occur, it is a risk of material misstatement due to fraud and thus a significant risk. This was considered to be a significant risk and Key Audit Matter for the audit. Risk of material misstatement: Very High Page 270 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 13 of 27 www.azets.co.uk PUBLIC Risk area Management override of controls How the scope of our audit responded to the significant risk Key judgement There is the potential for management to use their judgement to influence the financial statements as well as the potential to override controls for specific transactions. Audit procedures • Documented our understanding of the journals posting process and evaluated the design effectiveness of management controls over journals; • Analysed the journals listing for the year and determined the criteria for selecting high risk and/or unusual journals; • Tested high risk and/or unusual journals posted during the year and after the draft accounts stage back to supporting documentation for appropriateness and corroboration and to ensure approval had been undertaken in line with the Trust Fund’s journals policy; • Gained an understanding of the key accounting estimates and critical judgements made by management. We challenged key assumptions and considered for reasonableness and evaluated any indicators of bias which could result in material misstatement due to fraud; and • Evaluated the rationale for any changes made to accounting policies, estimates or significant unusual transactions. Key observations We have not identified any indication of management override of controls in the year. We did not identify any areas of bias in key judgements made by management and judgements were consistent with prior years. Page 271 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 14 of 27 www.azets.co.uk PUBLIC Materiality Materiality is an expression of the relative significance of a matter in the context of the financial statements as a whole. A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditor’s report. The assessment of what is material is a matter of professional judgement and is affected by our assessment of the risk profile of the Trust Fund and the needs of users. We reviewed our assessment of materiality throughout the audit. Whilst our audit procedures are designed to identify misstatements which are material to our audit opinion, we also report any uncorrected misstatements of lower value errors to the extent that our audit identifies these. Our initial assessment of materiality was £55,000. On receipt of the 2025/26 unaudited financial statements, we reassessed materiality and updated it from our initial assessment to £71,000. We consider that our updated assessment has remained appropriate throughout our audit. Materiality £ Overall materiality for the financial statements £71,000 Performance materiality (75% of materiality) £53,250 Trivial threshold £3,550 Materiality Our assessment is made with reference to the Trust Fund’s net assets. We consider this to be the principal consideration for users of the financial statements when assessing financial performance. Our assessment of materiality equates to approximately 3% of net assets as disclosed in the 2025/26 unaudited annual accounts. The financial statements are considered to be materially misstated where total errors exceed this value. Page 272 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 15 of 27 www.azets.co.uk PUBLIC Performance materiality 75% of materiality Performance materiality is the working level of materiality used throughout the audit. We use performance materiality to determine the nature, timing and extent of audit procedures carried out. We perform audit procedures on all transactions, or groups of transactions, and balances that exceed our performance materiality. This means that we perform a greater level of testing on the areas deemed to be at significant risk of material misstatement. Performance materiality is set at a value less than overall materiality for the financial statements as a whole to reduce to an appropriately low level the probability that the aggregate of the uncorrected and undetected misstatements exceed overall materiality. Trivial misstatements 5% of overall materiality Trivial misstatements are matters that are clearly inconsequential, whether taken individually or in aggregate and whether judged by any quantitative or qualitative criteria. Individual errors above this threshold are communicated to those charged with governance. We also consider whether any specific items of account require a separate, lower materiality. We have determined that no specific materiality levels needed to be set for this audit. Internal controls As part of our work we considered internal controls relevant to the preparation of the financial statements such that we were able to design appropriate audit procedures. Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify any control weaknesses, we report these at Appendix 3. These matters are limited to those which we have concluded are of sufficient importance to merit being reported. We did not identify any significant control weaknesses during our audit. Other communications We set out below details of other matters which we, as auditors, are required by auditing standards and the Code to communicate to those charged with governance. Page 273 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 16 of 27 www.azets.co.uk PUBLIC Matter Audit commentary and findings Significant matters on which there was disagreement with management There were no significant matters on which there was disagreement with management. Significant management judgements which required additional audit work and / or where there was disagreement over the judgement and / or where the judgement is significant enough that we are required to report it to those charged with governance before they consider their approval of the accounts There were no other significant management judgements which required additional audit work, where there was disagreement over the judgement or where the judgement is significant enough that requires reporting. Prior year adjustments identified At the time of writing this report, there were no prior year adjustments found by the audit team. However, there was restatement to the account identified by finance team including the following; • Restatement of Statement of Financial Activities -Expenditure relating to Trust Fund assets. This is a presentational issue only relating to how donation income has been applied to expenditure on capital assets and does not impact on the Total Funds held by the Trust. Concerns identified in the following: • Consultation by management with other accountants on accounting or auditing matters • Matters significant to the oversight of the financial reporting process • Adjustments / transactions identified as having been made to meet an agreed system position / target No concerns were identified in relation to these areas. Page 274 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 17 of 27 www.azets.co.uk PUBLIC Accounting policies Our work included a review of the adequacy of disclosures in the financial statements and the appropriateness of the accounting policies adopted by the Trust Fund. The accounting policies, which are disclosed in the financial statements are considered appropriate. The accounting policies used in preparing the financial statements are unchanged from the previous year. Key judgements and estimates As part of the planning stages of the audit, we identified the accounting estimates made by management and determined which of those are key to the overall financial statements. We reviewed the key estimates and judgements that management made in respect to the identified key accounting estimates for indication of bias and assessed whether the judgements used by management are reasonable. Presentation and disclosures There are no significant financial statements disclosures that we consider should be brought to your attention. All the disclosures required by relevant legislation and applicable accounting standards have been made appropriately. Fraud and suspected fraud We have previously discussed the risk of fraud with management and the Audit, Risk and Scrutiny Board. We have not been made aware of any incidents in the period. No issues have been identified during the course of our audit. Our work as auditor is not intended to identify any instances of fraud of a non-material nature and should not be relied upon for this purpose. Non-compliance with laws and regulations As part of our standard audit testing, we have reviewed the laws and regulations impacting the Trust Fund. There are no indications from this work of any significant incidences of non- compliance or material breaches of laws and regulations. You have not made us aware of any significant incidences of non-compliance with relevant laws and regulations. Written representations A letter of management representations has been requested from the Trust Fund. Related parties We are not aware of any related parties or related party transactions which have not been disclosed. Page 275 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 18 of 27 www.azets.co.uk PUBLIC Appendices Appendix 1: Responsibilities of Coats Observatory Trust Fund and Auditors 19 Appendix 2: Audit adjustments 23 Appendix 3: Action plan 25 Appendix 4: Follow up of prior year recommendations 26 Page 276 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 19 of 27 www.azets.co.uk PUBLIC Appendix 1: Responsibilities of the Trust Fund and the Auditor Responsibilities of the Trust The Trust Fund is required to make arrangements for the proper administration of its financial affairs and to secure that one of its officers has responsibility for the administration of those affairs. The Director of Finance and Resources has been designated as that officer at the Trust Fund. They manage the affairs of the Trust Fund to secure the economic, efficient and effective use of resources and safeguard its assets. Area Trust’s responsibilities Corporate governance The Director of Finance and Resources has responsibility for ensuring that an effective system of internal financial control is maintained and operated. This system of internal financial control can only provide reasonable and not absolute assurance that assets are safeguarded, transactions are recorded and properly authorised, 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 and a system of delegation and accountability. The Director of Finance and Resources is responsible for keeping proper accounting records that are up to date and ensure that the financial statements comply with the Charities Accounts (Scotland) Regulations 2006 (as amended) and Accounting and Reporting by Charities: Statement of Recommended Practice (SoRP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16 July 2014. Decisions regarding the operation, assets, processes or policies of the Trust Fund are delegated by the Council to the Finance, Resources and Customer Services Policy Board (FRCSPB). Financial statements and related reports The Trust Fund has responsibility for: • preparing financial statements which give a true and fair view of the financial position of the Trust Fund and its expenditure and income, in accordance with the applicable financial reporting framework and relevant legislation; and • maintaining accounting records and working papers that have been prepared to an acceptable professional standard and support the Page 277 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 20 of 27 www.azets.co.uk PUBLIC Area Trust’s responsibilities balances and transactions in its financial statements and related disclosures. Management is responsible, with the oversight of those charged with governance, for communicating relevant information to users about the Trust and its financial performance, including providing adequate disclosures in accordance with the applicable financial reporting framework. The relevant information should be communicated clearly and concisely. Standards of conduct for prevention and detection of fraud and error The Trustees are responsible for establishing arrangements to prevent and detect fraud, error and irregularities, bribery and corruption and also to ensure that its affairs are managed in accordance with proper standards of conduct. Auditor responsibilities Code of Audit Practice The Code of Audit Practice (the Code) describes the high-level, principles-based purpose and scope of public audit in Scotland. The Code outlines the responsibilities of external auditors and it is a condition of our appointment that we follow it. Our responsibilities Auditor responsibilities are derived from the Code, statute, International Standards on Auditing (UK) and the Ethical Standard for auditors, other professional requirements and best practice, and guidance from Audit Scotland. We act independently in carrying out our role and in exercising professional judgement. We report to the Audit, Risk and Scrutiny Board and others, including Audit Scotland, on the results of our audit work. Weaknesses or risks, including fraud and other irregularities, identified by auditors, are only those which come to our attention during our normal audit work in accordance with the Code and may not be all that exist. Page 278 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 21 of 27 www.azets.co.uk PUBLIC A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Audit quality The Auditor General and the Accounts Commission require assurance on the quality of public audit in Scotland through comprehensive audit quality arrangements that apply to all audit work and providers. These arrangements recognise the importance of audit quality to the Auditor General and the Accounts Commission and provide regular reporting on audit quality and performance. Audit Scotland maintains and delivers an Audit Quality Framework. The most recent audit quality report can be found at Quality of public audit in Scotland: Annual report 2025/26 | Audit Scotland Independence and ethics The Ethical Standards and ISA (UK) 260 require us to report full and fair disclosure of matters relating to our independence. In accordance with our profession’s ethical requirements and further to our audit plan issued confirming audit arrangements we confirm that there are no further facts or matters that impact on our integrity, objectivity and independence as auditors that we are required or wish to draw to your attention. Non-audit services: No non-audit services are provided to the Trust Fund. Contingent fees: No contingent fee arrangements are in place for any services provided. Gifts and hospitality: We have not identified any gifts or hospitality provided to, or received from, any member of the Trust Fund, senior management or staff and members of the audit team. Relationships: We have no other relationships with the Trust Fund, its directors, senior managers and affiliates, and we are not aware of any former partners or staff being employed, or holding discussions in anticipation of employment, as a director, or in a senior management role covering financial, accounting or control related areas. Our period of total uninterrupted appointment as at the end of 31 March 2026 was four years. Page 279 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 22 of 27 www.azets.co.uk PUBLIC Audit fees The total fees charged to the Trust Fund for the provision of services in 2025/26 were as follows. Prior year fees are also shown for comparative purposes: 2025/26 2024/25 Auditor remuneration (expected fee level) £6,760 £6,480 Total audit fee £6,760 £6,480 Page 280 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 23 of 27 www.azets.co.uk PUBLIC Appendix 2: Audit adjustments Adjusted misstatements Details of items corrected following discussions with management are as below. Current year audit adjustments No Detail Statement of Financial Activities Statement of Balances Dr / (Cr) Dr / (Cr) 1. To record the Trust fund audit fee this year of £6,760. Dr. Governance Costs: External Audit Fee Cr. Donation from Renfrewshire Council 6,760 (6,760) Net impact on reserves (restricted funds )– increase / (decrease) - - Total reserves (restricted funds) per the unaudited financial statements 2,368,664 2,368,664 Revised reserves (restricted funds) per the audited financial statements 2,368,664 2,368,664 Unadjusted misstatements We have not identified any unadjusted misstatements during our audit. Misclassification and disclosure changes Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the Trust Fund. We identified some presentational issues in the financial statements, and these have all been amended by management. Details of all disclosure changes amended by management following discussions are as below. Page 281 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 24 of 27 www.azets.co.uk PUBLIC Adjusted No Detail 1. Minor presentational, formatting and disclosure issues. We proposed a number of minor changes and narrative amendments to improve the presentation of the accounts. 2. To disclose a restatement note to explain the changes being made to the prior year comparative figure. 3. To update note 2 Analysis of income/expenditure to better reflect the transactions occurring in the year. 4. To disclose auditor’s remuneration. Unadjusted We have not identified any unadjusted misclassification and disclosure changes to report. Prior year unadjusted misstatements There were no prior year unadjusted misstatements reported in the prior year audit. Page 282 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 25 of 27 www.azets.co.uk PUBLIC Appendix 3: Action plan Our action plan details the weaknesses and opportunities for improvement that we have identified during our 2025/26 audit. The matters reported are limited to issues we have identified during the course of our audit which we feel are of sufficient importance to merit reporting to you under the auditing standards. The recommendations are categorised into three risk ratings: Key: 1. Significant deficiency 2. Other deficiency 3. Other observation We have not identified any control weaknesses that require reporting during the course of our audit work. Page 283 of 392
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Coats Observatory Trust Fund: 2025/26 Annual Audit Report to the Audit, Risk and Scrutiny Board and the Controller of Audit | Azets Page 26 of 27 www.azets.co.uk PUBLIC Appendix 4: Follow up of prior year recommendations As part of our audit work we have followed up on control weaknesses and recommendations either raised in last year’s Annual Audit Report or carried forward from prior years. We confirm there were no recommendations raised in the prior year that required follow up in the current year audit. Page 284 of 392
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PUBLIC © Azets 2026. All rights reserved. Azets refers to Azets Audit Services Limited. Registered in England & Wales Registered No. 09652677. VAT Registration No. 219 0608 22. Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Moving forward with confidence info@azets.co.uk | azets.co.uk Page 285 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk My Ref: AM/CB Contact: Alastair MacArthur Telephone Number: 0300 300 0285 E Mail: alastair.macarthur@renfrewshire.gov.uk Azets Audit Services Quay 2 139 Fountainbridge Edinburgh EH3 9QG Dear Sirs Coats Observatory Trust Fund Financial Statements for the year ended 31 March 2026 This representation letter is provided for the purpose of expressing an opinion as to whether Coats Observatory Trust Fund’s (“The Trust Fund”) financial statements present a true and fair view, in all material respects, in accordance with applicable law and UK adopted international accounting standards, as interpreted and adapted by the Charities Statement of Recommended Practice (SORP). I confirm to the best of my knowledge and belief and having made appropriate enquiries of the Coats Observatory Trust Fund’s trustees, the following representations given to you in connection with your audit of Coats Observatory Trust Fund’s annual accounts for the year ended 31 March 2026. All representations are made to the best of our knowledge and belief. Financial Statements i. We have fulfilled our responsibilities as trustees under the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102, the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006, for the preparation of Coats Observatory Trust Fund’s financial statements in accordance with applicable law and UK adopted international accounting standards, as interpreted and adapted by the Charities Statement of Recommended Practice (SORP), for being satisfied that they give a true and fair view and for making accurate representations to you. ii. All the transactions undertaken by Coats Observatory Trust Fund have been properly reflected and recorded in the accounting records. iii. All the accounting records have been made available to you for the purpose of your audit. I have provided you with unrestricted access to all appropriate persons within the charity, and with all other records and related information requested, PUBLIC Page 286 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk including minutes of all management and trustee meetings and correspondence with the Office of the Scottish Charity Regulator. iv. The financial statements are free of material misstatements, including omissions. v. I have reviewed and approved all disclosures made in the financial statements and I am not aware of any other matters which require disclosure (See appendix 1 for details of such audit adjustments). vi. All prior year adjustments of which I am aware have been made to the financial statements and these are appropriately disclosed in the financial statements. (See appendix 1 for details of such adjustments). vii. I acknowledge my responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error, and I believe that I have appropriately fulfilled these responsibilities. viii. The Trust Fund has satisfactory title to all assets. The Trust Fund has no plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities as at 31 March 2026 reflected in the financial statements. ix. Except as disclosed in the financial statements: a. there are no unrecorded liabilities, actual or contingent; b. none of the assets of the Trust Fund has been assigned, pledged or mortgaged; c. there are no material prior year charges or credits, nor exceptional or non- recurring items requiring separate disclosure. x. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of applicable law and accounting standards. xi. All events subsequent to the date of the financial statements and which require adjustment or disclosure have been adjusted or disclosed. xii. Actual or possible litigation and claims have been accounted for and disclosed in accordance with the requirements of UK adopted international accounting standards, and as interpreted and adapted by the Charities SORP. xiii. I believe that the Trust Fund’s financial statements should be prepared on a going concern basis. I do not expect the Trust Fund to demise in its current organisational form. I believe that no further disclosures relating to the Trust Fund’s ability to continue as a going concern need to be made in the financial statements. PUBLIC Page 287 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk Information Provided xiv. I have provided you with: a. access to all information of which I am aware that is relevant to the preparation of the Trust Fund’s financial statements such as accounting records, and all other records requested; b. additional information that you have requested from us for the purpose of your audit; and c. unrestricted access to persons within the Trust Fund (via remote arrangements where necessary), from whom you determined it necessary to obtain audit evidence. xv. I have communicated to you all deficiencies in internal control of which management is aware. xvi. All transactions undertaken by the Trust Fund have been recorded in the accounting records and are properly reflected in the financial statements. xvii. I have disclosed to you the results of my assessment of the risk that the financial statements may be materially misstated as a result of fraud. xviii. I have disclosed to you all information in relation to known fraud or suspected fraud that I am aware of and that affects the Trust Fund and involves: a. management; b. employees who have significant roles in internal control; or c. others where the fraud could have a material effect on the financial statements. xix. I have disclosed to you all information in relation to instances of, or allegations of fraud, or suspected fraud, affecting the financial statements communicated by employees, former employees, analysts, regulators or others. xx. I have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. xxi. I have disclosed to you the identity of the Trust Fund’s related parties and all the related party relationships and transactions of which I am aware. xxii. I have disclosed to you all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. xxiii. I acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as I am aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. PUBLIC Page 288 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk Assets and liabilities xxiv. The Trust Fund has satisfactory title to all assets and there are no liens or encumbrances on the charity’s assets. xxv. All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate. xxvi. Where plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities, these are fully reflected in the financial statements. xxvii. I confirm that the valuation of the Observatory asset has been assessed for impairment and I am comfortable that the valuation remains appropriate as at 31st March 2026. The assets are currently undergoing refurbishment and will be revalued once the work is complete. Accounting estimates xxviii. The methods, data and significant assumptions used by us in making accounting estimates, including those measured at fair value, are appropriate to achieve recognition, measurement and disclosure that is reasonable in the context of the applicable financial reporting framework. I am satisfied that the material judgements used in the preparation of the financial statements are soundly based and adequately disclosed in the financial statements. Grants and donations xxix. All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to you. There have been no breaches of terms or conditions in the application of such income. Approval I acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as I am aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. The approval of this letter of representation was minuted by the Audit, Risk and Scrutiny Board at its meeting on 21 September 2026. Yours faithfully Name: Alastair MacArthur Position: Director of Finance and Resources Date: PUBLIC Page 289 of 392
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Finance & Resources Director: Alastair MacArthur CPFA Renfrewshire House, Cotton Street, Paisley PA1 1JB www.renfrewshire.gov.uk Appendix 1 Adjusted misstatements Current year audit adjustments No Detail Statement of Financial Activities Statement of Balances Dr / (Cr) Dr / (Cr) 1. To record the Trust fund audit fee this year of £6,760. Dr. Governance Costs: External Audit Fee Cr. Donation from Renfrewshire Council 6,760 (6,760) Net impact on reserves (restricted funds )– increase / (decrease) - - Total reserves (restricted funds) per the unaudited financial statements 2,368,664 2,368,664 Revised reserves (restricted funds) per the audited financial statements 2,368,664 2,368,664 Prior year adjustments • Restatement of Statement of Financial Activities -Expenditure relating to Trust Fund assets: Due to double accounting of expenditure. PUBLIC Page 290 of 392
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1 PUBLIC ___________________________________________________________________ To: Council On: 24 September 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Audited Financial Statements 2025/26 – Coats Observatory Trust ___________________________________________________________________ 1. Summary 1.1 The 2025/26 unaudited financial statements were approved by Council on 22 June 2026. Each year the appointed external auditors carry out an audit of the financial statements of Coats Observatory Trust and provide an opinion as to whether those statements provide a true and fair view of the financial position of the charity and its income and expenditure for the year; and also whether they have been prepared in accordance with the relevant regulations. 1.2 The audited financial statements are now presented for Members’ noting and further recommendation to the Council that they be approved. 1.3 There was one audit adjustment made to the annual accounts over the course of the audit, along with other presentational and disclosure changes. These are detailed in Azets Annual Audit report, presented at agenda item 3. ___________________________________________________________________ 2. Recommendations 2.1 The Council is requested to approve the attached 2025/26 audited financial statements for the Coats Observatory Trust. Item 5 Page 291 of 392
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2 Implications of the Report 1. Financial – The 2025/26 Annual Accounts demonstrate the Council continues to manage the charity it controls within the resources available and in line with relevant legislation. 2. HR & Organisational Development – none directly arising from this report. 3. Community/Council Planning – none directly arising from this report. 4. Legal – An audit opinion free from qualification demonstrates compliance with the relevant legislation and statutory accounting requirements. 5. Property/Assets – none directly arising from this report. 6. Information Technology – none directly arising from this report. 7. Equality & Human Rights – none directly arising from this report. 8. Health & Safety – none directly arising from this report. 9. Procurement – none directly arising from this report. 10. Risk – none directly arising from this report. 11. Privacy Impact – none directly arising from this report. 12. Cosla Policy Position – none directly arising from this report. 13. Children’s Rights – none directly arising from this report. 14. Climate Risk – none directly arising from this report. ___________________________________________________________________ Author: Christine McCourt, Head of Finance and Procurement PUBLIC Page 292 of 392
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Appendix 3 RENFREWSHIRE COUNCIL COATS OBSERVATORY TRUST FUND SC019454 TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 1 APRIL 2025 to 31 MARCH 2026 PUBLIC Page 293 of 392
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Contents TRUSTEES’ REPORT .........................................................................1 INDEPENDENT AUDITOR’S REPORT ........................................................4 TRUST ACCOUNTS FINANCIAL STATEMENTS OVERVIEW ................................8 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2026 .....9 STATEMENT OF BALANCES AS AT 31 MARCH 2026 ................................... 10 NOTES TO THE FINANCIAL STATEMENTS ............................................... 11 PUBLIC Page 294 of 392
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Renfrewshire Council Coats Observatory Trust Fund Trustees’ Report P a g e | 1 Trustees’ Report 1. Introduction Renfrewshire Council acts as sole trustee for the Coats Observatory Trust Fund which has charitable status and is registered with the Office of the Scottish Charity Regulator (OSCR): The financial statements of the Trust are included in this report: The principal address of the Trust Fund is: Renfrewshire Council Finance and Resources Renfrewshire House Cotton Street Paisley PA1 1JB Renfrewshire Council administers the Trust Fund and separately accounts for it. Renfrewshire Council was established by the Local Government (Scotland) Act 1994 and came into being on 1 April 1996. The Council provides a wide range of public services such as education, children’s social services, environmental services, council housing and economic regeneration. The Trust Accounts do not form part of Renfrewshire Council’s single entity balance sheet, although under s222 of the Local Government (Scotland) Act 1973, the property of the Trust “vest[s] in” the relevant local authority. However, the Trust Fund accounts are included within the group accounts of the Council. A copy of the group accounts can be obtained from the address above, or on the Council’s website at www.renfrewshire.gov.uk. Independent Auditors: Azets Quay 2 139 Fountainbridge Edinburgh EH3 9QG Trustees Guidance provided by OSCR indicates that those who have “general control and management” of the charity are the charity trustees. Decisions regarding the general control and management of the Trust Fund are made by the Finance, Resources and Customer Services Policy Board (FRCSPB), which has delegated authority from the Council in this regard; but ultimately control rests with the full Council of elected members. We have therefore interpreted the above guidance as meaning that all elected members of Renfrewshire Council are charity trustees. The following individuals were the Trustees of the Trust Fund in their capacity as elected members of Renfrewshire Council during the 2025/26 financial year: PUBLIC Page 295 of 392
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Renfrewshire Council Coats Observatory Trust Fund Trustees’ Report P a g e | 2 Jennifer Adam Neill Graham Jamie McGuire Fiona Airlie-Nicolson John Gray Marie McGurk Stephen Burns Anne Hannigan Iain McMillan Jacqueline Cameron John Hood John McNaughtan Lorraine Cameron Lisa-Marie Hughes Kevin Montgomery Michelle Campbell Robert Innes Sam Mullin Graeme Clark Alec Leishman Will Mylet Carolann Davidson Bruce MacFarlane Iain Nicolson Eddie Devine James MacLaren Jim Paterson Andy Doig Kenny MacLaren Emma Rodden Audrey Doig Mags MacLaren John Shaw Alison Ann-Dowling Colin McCulloch Ben Smith Chris Gilmour Janis McDonald Andy Steel Edward Grady Cathy McEwan Gillian Graham David McGonigle Day to day management of the Trust Fund is delegated to the Director of Finance and Resources of Renfrewshire Council. All of these trustees are normally elected or re-elected at local government elections. By-elections are held to elect new members in the event of existing members vacating their position. New members automatically become trustees of this fund. 2. Structure, Governance and Management The Coats Observatory Fund was inherited by the local authority in early 1963 from the Paisley Philosophical Society. The Council, as trustees, owns the buildings comprising the Coats Observatory. These buildings are leased to OneRen at nil consideration. History The original purpose of the Trust when it was set up was: “for the upkeep of Coats Observatory equipment”. This purpose was relevant while there were cash funds available; however these funds have been exhausted, and only the property assets remain. Governance and Management The Council is required to make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. The Director of Finance and Resources has been designated as that officer in Renfrewshire Council. They manage the affairs of the Council to secure the economic, efficient and effective use of resources and safeguard its assets and those of any charitable trust it controls. Given the Trust Fund is controlled by the Council, these specific provisions are supplemented by general provisions relating to the administration of local authority monies, i.e. the duty to obtain best value. The Director of Finance and Resources has responsibility for ensuring an effective system of internal financial control is maintained and operated. This system of internal financial control can only provide reasonable and not absolute assurance that assets are safeguarded, transactions are recorded and properly authorised, and that material errors or irregularities are either prevented or would be detected within a timely period. The system of internal financial control is based on a PUBLIC Page 296 of 392
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Renfrewshire Council Coats Observatory Trust Fund Trustees’ Report P a g e | 3 framework of regular management information, financial regulations, administrative procedures and a system of delegation and accountability. The Director of Finance and Resources is responsible for keeping proper accounting records which are up to date and which ensure that the financial statements comply with the Charities Accounts (Scotland) Regulations 2006(as amended) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16th July 2014. Decisions regarding the operation, assets, processes or policies of the Trust Fund are delegated by the Council to the Finance, Resources and Customer Services Policy Board (FRCSPB). Risk The Trustees have overall responsibility for the Trust Funds’ system of internal control. This system is designed by senior management to ensure effective and efficient operation, including financial reporting and compliance with laws and regulations. The Trustees acknowledge that such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. 3. Financial Review The Trust Fund has no explicit reserves policy. The Trust Fund is not in deficit and no donations to the Fund are solicited. Since 2021, the assets of the Trust have been under refurbishment as part of the Paisley Museum Reimagined project, funded by Renfrewshire Council. This is disclosed within the Statement of Financial Activities. 4. Future Plans Given there are no cash funds remaining, nor are any anticipated, the Council will explore with OSCR the future of the charity, always considering the ongoing sustainability of the Observatory and ensuring appropriate governance arrangements remain in place. The £45m Paisley Museum Reimagined project will create a new, world-class museum space, shaped by and for the people of Paisley. As part of this project, expected to complete in 2025, the Observatory is currently under refurbishment and will open to the public with improved accessibility upon completion. A full revaluation of the Observatory will be carried out when it is reopened. The Trustees wish to thank the Renfrewshire Council officers involved in producing the Report and Financial Statements. Signed: Alastair MacArthur Director of Finance and Resources Renfrewshire Council Date: On behalf of the Trustees: Councillor John Shaw Convener – Finance, Resources and Customer Services Policy Board Renfrewshire Council Date: PUBLIC Page 297 of 392
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P a g e | 4 Independent auditor’s report to the trustees of Coats Observatory Trust Fund and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements We certify that we have audited the financial statements in the statement of accounts of Coats Observatory Trust Fund for the year ended 31 March 2026 under Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. The financial statements comprise the Statement of Financial Activities, Statement of Balances and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and the United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the charity as at 31 March 2026 and of its incoming resources and application of resources for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulation 8 of The Charities Accounts (Scotland) Regulations 2006. Basis for opinion We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern basis of accounting We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. PUBLIC Page 298 of 392
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P a g e | 5 Responsibilities of the trustees for the financial statements The trustees are responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees intend to discontinue the charity's operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using our understanding of the local government sector and charity sector to identify that the Local Government (Scotland) Act 1973, the Charities and Trustee Investment (Scotland) Act 2005, and The Charities Accounts (Scotland) Regulations 2006 are significant in the context of the charity; • inquiring of management and those charged with governance as to other laws or regulations that may be expected to have a fundamental effect on the operations of the charity; • inquiring of management and those charged with governance concerning the charity’s policies and procedures regarding compliance with the applicable legal and regulatory framework; • discussions among our audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and • considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the charity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, PUBLIC Page 299 of 392
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P a g e | 6 the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Reporting on other requirements Other information The trustees are responsible for the other information in the statement of accounts. The other information comprises the Trustees’ Annual Report. Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Trustees’ Annual Report to the extent explicitly stated in the following opinion prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Trustees’ Annual Report In our opinion, based on the work undertaken in the course of the audit, the information given in the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Charities SORP (FRS 102). Matters on which we are required to report by exception We are required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in our opinion: • proper accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Use of our report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. PUBLIC Page 300 of 392
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P a g e | 7 Rebecca Lister, (for and on behalf of Azets Audit Services), Quay 2 139 Fountainbridge Edinburgh EH3 9QG Date: Azets Audit Services is eligible to act as an auditor in terms of Part VII of the Local Government (Scotland) Act 1973 PUBLIC Page 301 of 392
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 8 Trust Accounts Financial Statements Overview 1. Introduction The following pages detail the Statement of Financial Activities, the Statement of Balances and relevant Notes to the Accounts, as required by the Charities Accounts (Scotland) Regulations 2006. A Cash Flow Statement is not required as the charity is classified as a small charity as defined in the Charities Statement of Recommended Practice (SORP) and therefore is exempt from producing a Cashflow Statement. 2. Statement of Financial Activities The Statement of Financial Activities provides an analysis of the income and expenditure for the period. If applicable, the Statement would also show any movements in relation to fixed assets 3. Statement of Balances The Statement of Balances reconciles the cash and bank balances at the beginning and end of the financial year with the surpluses or deposits shown in the Statement of Financial Activities. The Coats Observatory is classed as an Asset Under Construction, which means there is a pause in depreciation until the asset is back in use. 4. Notes to the Accounts Notes to the accounts expand on or explain the information contained in the Statement of Financial Activities and the Statement of Balances. PUBLIC Page 302 of 392
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 9 Statement of Financial Activities for the year ended 31 March 2026 2024/25 2025/26 (restated) Total Note Unrestricted Restricted Total £ £ £ £ Income (352,221) Donations from Renfrewshire Council 2 0 (529,930) (529,930) Expenditure 0 Governance Costs: External Audit Fee 2 0 6,760 6,760 (352,221) (Surplus) / Deficit for period 0 (523,170) (523,170) Reconciliation of Funds (1,493,273) Total Funds brought forward 0 (1,845,494) (1,845,494) (1,845,494) Total Funds Carried Forward 0 (2,368,664) (2,368,664) PUBLIC Page 303 of 392
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 10 Statement of Balances as at 31 March 2026 As at 31 March 2025 As at 31 March 2026 Total Note Unrestricted Restricted Total £ £ £ £ Fixed Assets Assets Under Construction Buildings at Coats Observatory, Paisley 1,421,073 Opening balance 0 1,773,294 1,773,294 352,221 Additions 1 0 523,170 523,170 1,773,294 Closing balance 0 2,296,464 2,296,464 Other Assets Land at Coats Observatory, Paisley 72,200 Opening balance 0 72,200 72,200 0 Additions 1 0 0 0 72,200 Closing balance 0 72,200 72,200 1,845,494 0 2,368,664 2,368,664 Represented By 1,845,494 Restricted Funds 0 2,368,664 2,368,664 1,845,494 0 2,368,664 2,368,664 Signed Signed Alastair MacArthur Councillor John Shaw Director of Finance and Resources Convenor – Finance, Resources and Customer Services Policy Board Renfrewshire Council Renfrewshire Council Date Date PUBLIC Page 304 of 392
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 11 Notes to the Financial Statements 1. Prior Year Restatement During the year it has been identified that a donated asset of £352,221 received in the prior year and applied towards the expenditure on capital assets had been incorrectly presented within the Statement of Financial Activities (SOFA). The donation was correctly recognised but the subsequent expenditure was presented as revenue expenditure within the SOFA. Therefore, the original treatment resulted in £0 movement in reserves within the SOFA despite reserves increasing by £352,221 in the Statement of Balances for the increase in the capital asset. The comparative figures have been restated to: • Remove the £352,221 from expenditure relating to Trust Assets; • Increase the surplus for the year by £352,221. There is no impact on the value of funds as the transaction had been correctly presented within the Statement of Balances. 2. Accounting Policies Introduction The Financial Statements for the year ended 31 March 2026 have been prepared in accordance with the Accounting and Reporting by Charities : Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).They are designed to give a true and fair view of the financial performance and position of the Trust Fund and comparative figures for the previous financial year are provided. There are no significant departures from accounting standards other than that outlined specifically below. The accounting concepts of “materiality” and “going concern” have been considered in the application of accounting policies. In this regard the materiality concept means that information is included where the information is of such significance as to justify its inclusion. The accounts have been prepared on a going concern basis. The going concern concept assumes that the Trustees will not significantly curtail the scale of the charities’ operations, however it is anticipated that the Observatory Fund will not continue indefinitely. This has been no impact on the financial statements as the assets of the Fund comprise solely of the Observatory buildings which are independently valued. The accounts have been prepared using the accruals basis whereby total income and expenditure have been recorded when they were earned or incurred. The accounts have been prepared under the historic cost convention, other than changes resulting from the revaluation of certain categories of assets. The following accounting policies used in its PUBLIC Page 305 of 392
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 12 preparation have been reviewed following the introduction of Financial Reporting Standard 18 “Accounting Policies” (FRS18). Fund Accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Incoming/Outgoing Resources Recognition of incoming resources All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Recognition of expenditure All expenditure is accounted for on an accruals basis. Charitable Activities Decisions regarding the way the Trust Funds’ income is spent are taken by the Finance, Resources and Customer Services Policy Board of Renfrewshire Council, whose membership comprises 15 of the trustees of the Trust Fund. Costs of Generating Funds The cost of administering the Trust Fund is borne entirely by Renfrewshire Council. Governance Costs Governance costs, where applicable, include the: • costs of the preparation and examination of statutory accounts; • cost of any legal advice to trustees on governance or constitutional matters; and • cost of administering grants. Assets The Fund includes the land and buildings of Coats Observatory, Paisley. The latest valuations were carried out in 2021/22 for the office and 2020/21 for the observatory. Depreciation is paused due to the asset being categorised as an Asset Under Construction during the period of refurbishment (commenced in June 2021) currently underway as part of the Paisley Museum Reimagined project. Refurbishment spend is disclosed as asset additions in the Statement of Balances. The assets will be revalued when the refurbishment is complete, anticipated to be during 2026/27. 3. Analysis of income/expenditure The refurbishment expenditure recorded as asset additions in the Statement of Balances is funded by Renfrewshire Council in the form of a grant within the Statement of Financial Activities. The value of the donation represents an estimate of in-year spend on the Paisley Museum Reimagined project PUBLIC Page 306 of 392
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Renfrewshire Council Coats Observatory Trust Fund Financial Statements P a g e | 13 that relates directly to the refurbishment of the Coats Observatory and associated buildings. The spend was directly incurred by Renfrewshire Council and disclosed as a donation to the Trust. Renfrewshire Council is responsible for paying any fees incurred by the Trust. The only fee incurred by the Trust in 2025/26 was the external audit fee. The external audit fee has been recognised as an expense to the Trust, with the payment made by Renfrewshire Council recognised as a donation to the Trust. 2024/25 2025/26 Donations from Renfrewshire Council Total Total £ £ For the refurbishment of Trust assets 352,221 523,170 For the payment of external audit fee 0 6,760 Total Donated Income 352,221 529,930 4. Trustees’ remuneration and expenses Neither the trustees of the Trust Fund nor any associated person connected with them have received any remuneration for their services. Further, no directly incurred expenses were reimbursed to the trustees during the period (nil in 2025/26). 5. Related parties During the period, the Council also acted as the banker for the Trust Fund and all transactions, incoming and outgoing, are made via the Council’s bank accounts. There are no outstanding balances due to or from Renfrewshire Council nor were there any direct cash transactions during 2025/26. PUBLIC Page 307 of 392
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PUBLIC To: Council On: 24 September 2026 Report by: Director of Finance and Resources Heading: Financial Outlook and Medium-Term Financial Plan 1. Summary 1.1 This report provides the Council with an updated medium-term forecast financial position, covering the five-year period 2027/28 to 2031/32, and the key assumptions and risks that underpin it. This update continues to emphasise the ongoing challenging financial environment for local government in Scotland and particular issues relevant to Renfrewshire Council. 1.2 Successive financial outlook reports have highlighted the need for the Council to continue to develop and deliver significant savings in order to ensure ongoing financial sustainability, and this is still the case. However, as the years of financial constraint continue, it is increasingly difficult for any new savings proposals not to have a significant impact on service delivery and on the communities that the Council serves. 1.3 This report provides an update on the forecast level of spend and income over the medium term, and how these combine to provide a projected recurring financial gap of c£38m by the end of 2031/32. 1.4 The report outlines how specific reserves may be applied to support the Council’s financial stability in the short term, and it also provides a capital update that outlines proposed changes to the current capital programme. 2. Recommendations 2.1 Note the economic updates outlined in Sections 3 and 4; Item 6 Page 309 of 392
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PUBLIC 2.2 Note the key financial assumptions and projected medium-term revenue position outlined in Section 5; 2.3 Note the savings update and agree the savings targets outlined in Section 6; 2.4 Note the reserves update and agree the principles outlined in Section 7; 2.5 Note the financial risks to the forecast position outlined in Section 8; 2.6 Note the treasury and debt update provided in Section 9 and the long term financial planning principles outlined to secure and support future strategic investment; and 2.7 Note the capital update and approve revisions to the Capital Plan as outlined in Section 10. 3. Economic outlook and Key fiscal events 3.1 As Members will be aware, there are a number of downside geopolitical risks that continue to impact public finances, including ongoing conflicts in Ukraine and the Middle East. This continues to bring volatility and create uncertainty in global supply chains, and associated costs. 3.2 Twelve-month CPI inflation increased to 2.9% in July, coming from energy, food and transport. Pay inflation remains high but is expected to ease over the rest of the year. The Bank of England expects inflation to rise later in 2026 before returning sustainably towards its 2% target over the medium term. 3.3 At its July 2026 meeting, the Bank of England's Monetary Policy Committee (MPC) voted to maintain Bank Rate at 3.75%, deciding that uncertainty surrounding energy prices and the risk of renewed inflationary pressures warranted a cautious approach. The Bank Rate is expected to remain broadly at its current level in the short term. 3.4 Economic growth is expected to remain modest over the next two years, with UK GDP growth forecast at 1.1% for 2026. While the Scottish Fiscal Commission's (SFC) latest official forecast projects Scottish GDP growth of 1.3% in 2026 and 2027, more recent independent forecasts have revised expectations downward to around 0.8%-0.9%, reflecting the impact of higher energy prices, economic uncertainty and weaker investment growth. Page 310 of 392
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PUBLIC 3.5 The SFC published its Fiscal Update in August 2026, in which they note that the outlook for 2027/28 remains considerably challenging for the Scottish budget. Their forecasts suggest that revenue spending could fall after taking account of inflation, with capital spending expected to fall further than planned. While the Scottish Budget has benefited from additional resource linked to UKG decision on spending for Special Educational Needs and Disability (SEND) in 2026/27, this additional resource is one-off. The SFC is forecasting a fall in the real terms value of the resource block grant in 2027/28 of 1.2%. This may change depending on UK Government decisions at the UK Budget – the arrival of a new Prime Minister and Chancellor may change the previously understood fiscal strategy. 3.6 Regardless of these, the outlook for the Scottish Budget is challenging. Additional pressures from the income tax reconciliation mechanism (outlined by the SFC as costing £720m in 2027/28), ongoing pay and demand pressures, as well as Scottish Government policy commitments will all bear on the 2027/28 budget. 4. Scottish Budget 2027/28 and Local Government Finance Settlement 4.1 The Scottish Government’s Scottish Spending Review (SSR) published in January 2026 alongside the 2026/27 Scottish Budget set out the Scottish Government’s indicative revenue spending plans for 2027/28 and 2028/29, with an additional year (2029/30) for capital spend. The spending review outlined a planned £1.5bn savings target over the period, underpinned by plans for public sector reform and NHS efficiencies. The Programme for Government published on 1 September outlined potential changes to the structure of local governance in Scotland, with engagement currently ongoing. At the time of drafting, there is no clear indication as to how any preferred model may affect the council’s financial position or outlook, therefore no assumptions have been included. 4.2 The UK Government Budget has confirmed that the UK Budget will be announced on 28 October. This typically drives timelines around the Scottish Budget, and it is expected the Draft Budget will be published on 3 December. Members will be aware that the Council must agree its budget and associated council tax decision by 11 March each year. 4.3 Renfrewshire Council’s settlement has benefited in the past year from the area’s relative growth in population, and this is expected to continue into 2027/28. Page 311 of 392
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PUBLIC 4.4 The latest population estimate was published in mid-July 2025. This showed that Renfrewshire’s population increased again and now stands at 189,270, an increase of 660 (0.3%) on 2024 and above the national rate of just under 0.1%. This yearly increase is based on a rebased figure for 2024 which was revised down slightly. Renfrewshire remains the 9th largest Council in Scotland in terms of population. This recent population increase places our estimated population at the highest level recorded since 1980 and continues increases recorded from the mid-2000s, however the rate of change has slowed significantly compared to the period following the 2022 census. 4.5 In terms of what this means at a strategic level: increased population is generally positive, as people are choosing to move to Renfrewshire, supporting the local economy, using services and contributing to their communities. However, in line with the rest of Scotland, Renfrewshire is experiencing a significantly ageing population, which leads to demand pressures on health and social care services. This trend is likely to become more acute as the top end of the working age population moves into the 65+ cohort. 4.6 The Scottish Government’s January 2026 public sector pay policy restated the 2025 position of a 9% increase over 2025/26 to 2027/28, with an annual cap of 3%. The most recent local government pay settlement agreed was for 4% in 2025/26 and 3.5% in 2026/27. In recognition of this, the Scottish Government has committed to reviewing the policy as part of the 2027/28 budget process. 4.7 The Scottish Government has made a number of policy commitments which will impact on the local government settlement, including a commitment to reduce class contact time for teachers, expand free breakfast provision in schools, and extend the rights of care experienced children under the Children (Care, Care Experience and Services Planning) (Scotland) Act 2026. A core assumption of this report is that the financial consequences of these commitments will be fully funded by the Scottish Government. 5. Medium term forecast position and assumptions 5.1 The most recent financial outlook update reported to Council in February 2026 covering the period 2026/27 to 2030/31, outlined gross revenue pressures of c£80million by 2030/31 before any decisions on council tax. This forecast was based on a number of key assumptions, which officers continually assess in light of new information. The updated core assumptions underpinning the forecast position within this report are outlined in Table 1 below: Page 312 of 392
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PUBLIC Table 1: Core budget assumptions September 2026 2027/28 2028/29 2029/30 2030/31 2031/32 Pay award 3.0% 2.5% 2.5% 2.0% 2.0% Employer Pension contribution rate (LG employees) 6.5% 6.5% 6.5% 15.0% 15.0% Non-pay inflation 0% 0% 0% 0% 0% Contract inflation 2.0% 2.0% 2.0% 2.0% 2.0% Revenue Grant 1.0% 0.5% 0.5% 0.0% 0.0% Council tax (rate) 6.5% 6.5% 6.5% 6.5% 6.5% Council tax (base) 0.7% 0.8% 0.7% 0.6% 0.6% Pay 5.2 The current pay settlement for teaching staff covers the period up to July 2027 (3.25% from 1 August 2026) and for local government (non- teaching) staff the agreement until 31 March 2027 was 3.5%. The assumptions for pay over the medium term are noted above. For context, each 1% pay award across both the teaching and non- teaching workforce would cost an estimated £3.5m per year. 5.3 On top of pay inflation, the Council’s pay bill also includes employer NICs and pension contributions. The Council’s current employer contribution rate to the Strathclyde Pension Fund is 17.5%, however, the current triennial valuation process will confirm rates for the next three-year period. The assumption in this Financial Outlook is that the 17.5% rate will reduce to 6.5% over the next three year triennial revaluation period. This position is not at the time of drafting confirmed by Strathclyde Pension Fund, however it is expected the position will be determined by the end of September. The indication from SPF is that the long term employer contribution rate is expected to be 15%, however due to the current well-funded position, the contribution rate could be reduced to 6.5% in the short to medium term. There remains uncertainty with this however, and a risk remains for the Council that an increase back to the longer term rate may be required in 2029/30. In this case, the Council would require to reinstate the budget back to the 15% rate in a relatively short period of time. This would present a significant challenge, and it is anticipated that the use of ringfenced reserves could be required to smooth this position. Page 313 of 392
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PUBLIC 5.4 The employer contribution rate for the teachers’ pension scheme is also currently the subject of an actuarial valuation, however the formal position on this is unlikely to be agreed until early 2027. There was a substantial change in the employer contribution rate in England following the actuarial revaluation – the rate will reduce from 28.68% to 17.68% from 1 April 2027. The current rate in Scotland is 26%. For the purposes of this report, it is assumed that any change in the employer contribution rate will be matched by an equivalent change in revenue grant funding. Non-pay costs 5.5 The Council has a long-standing principle of no general inflationary uplifts being funded, with an expectation that Directors and their management teams will seek ongoing efficiencies in order to meet general inflationary pressures. This position has been significantly tested in recent years as both general inflation (as indicated by CPI) and construction cost inflation have both breached into double figures. Utilities in particular have seen large increases in cost; along with road fuel and costs associated with waste recycling and disposal. 5.6 The pressure on these budgets, along with other above inflation costs linked to conflicts in Ukraine and the Middle East, has resulted in a position where some costs have exceeded available budgets despite the best efforts of officers. This has been particularly prevalent in Children’s Services transport costs, as well as services delivered by the Environment, Housing and Infrastructure service; and the resulting overspends have been robustly scrutinised by relevant Policy Boards. 5.7 In closing the 2025/26 position, the Council added £1m to its Unearmarked General Fund balance to address some of this expected price volatility; however, the Council continues to face a number of expenditure risks, which are outlined in more detail in section 8 below. 5.8 Owing to revenue spending pressures the Council has had a long period of only basic buildings maintenance being in place. This has resulted in a position where the overall condition of the estate is deteriorating; most pressingly in the schools estate but also across other areas of public buildings including the leisure estate. The lifecycle maintenance and repairs budget has been increased over the past two years to address the scale of backlog and other repairs, and a further recurring £0.5m could be incorporated for this purpose in 2027/28. Page 314 of 392
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PUBLIC 5.9 The cost of running the local government election in May 2027 is estimated at £0.6m. As this is non-recurring, it is assumed that this will be funded from reserves, rather than adding to the recurring base budget and then removing it in 2028/29. Education costs 5.10 Members have agreed a learning estate strategy that includes a business case process to support and inform schools and early learning estate investment decisions. As reported to the Education and Children’s Services Policy Board in May 2026, a number of business cases are underway for the next phase of the programme – Trinity High School, Johnstone High School, and Johnstone Primary School Estate projects. In addition, both the expanded Park Mains HS and Thistle PS will become operational in August 2027. Both teaching and running costs have been incorporated into forecast spend. 5.11 Following agreement of the 2026/27 budget, a further pressure emerged around Additional Support Needs demand within schools, with a £0.2m investment agreed to be funded from reserves, with inclusion in the base budget from 2027/28. However the scale of this pressure has escalated during the current year. Renfrewshire Council has a rate of ASN demand (45% in 2025) that is higher than national average in Scotland, and the complexity of need means that in many cases a 1:1 support ratio needs to be in place. This pressure will continue to be closely monitored. 5.12 Across both ASN and mainstream school transport provision, the budget has come under severe pressure as tendered costs increase from private providers. Additional budget of £3.6m has been added in the past 2 years; however, the most recent forecast position for the 2026/27 outlines a further overspend of £0.8m. An additional recurring budget of £1m has been included in the outlook position for 2027/28. This means that spend on school transport has practically doubled in 4 years, predominantly linked to cost increases rather than increased numbers of children travelling. This level of cost increase will be difficult to contain without impacting on other Council service budgets and services. Borrowing costs 5.13 The Council’s strategic aspirations in terms of the learning estate and infrastructure (where this is not grant funded) will require to be appropriately resourced in the revenue budget to support prudential borrowing and revenue contributions to capital. Page 315 of 392
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PUBLIC This issue is outlined in more detail in section 9 below, however the forecast position includes an increase in loans fund costs each year for the full forecast period – potentially taking the ratio of debt to net revenue stream from 2.9% to 5.3%. This approach will provide the Council with the ability to lock in capital investment capacity to support long-term strategic investment planning. Income 5.14 The Scottish Government’s MTFS indicates an average 2.7% cash- terms increase to the local government settlement over the period of the plan. However, the MTFS, similar to the Council’s plans, shows a deficit position. Therefore, the Scottish Government will need to make savings or reduce planned spend over this period, potentially adjusting its expenditure plans to remain within available resource. On balance, the Council’s base forecast for revenue grant is therefore ‘flat-cash’. Given the scale of the budget gap projected by the Scottish Government, this forecast may be on the optimistic side, and this position will be kept under close review. The Council should however benefit in terms of distribution from an overall increase in share of the Scottish population. 5.15 In relation to council tax, Council previously agreed a core assumption of 6.5% increases for the remainder of the current administration period, noting that this decision would be for Council to take on an annual basis when setting each budget. This assumption remains the case across the five-year period covered here. Members will be aware that council tax is a key element of agreeing a balanced budget, so some variation from this core assumption is likely, depending on how other areas of spend and income move. 5.16 In setting the 2026/27 budget, an ongoing level of income from DEFRA in relation to the PackUK waste disposal packaging scheme was baselined. In recognition that this income may reduce over time as suppliers produce less packaging, there is an assumed 5% reduction in this income stream each year within the outlook position. 5.17 The Council has agreed to develop a Visitor Levy scheme proposition for Renfrewshire. While the Council has yet to make a formal decision as to whether to introduce the levy, given the statutory timescales involved around consultation and implementation, the likely earliest date for potential implementation would be April 2029. Within the outlook position, a new income stream of (prudently) £1m, which is net of administrative costs, has been included in 2029/30. Page 316 of 392
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PUBLIC It is expected a proportion of this funding will require to be invested in visitor related services and infrastructure. 5.18 Council officers will continue to work towards a principle of full cost recovery for services, setting fees and charges in line with this principle. An increase of 5% per annum has been in place for a number of years and this level is assumed to continue over the medium term. Officers will also explore other options for increasing income, or introducing new income streams, such as the visitor levy. Gross revenue position 5.19 The cost assumptions above result in the projected revenue position outlined in Table 2 over the next 5 years i.e. before any decisions on further savings, but inclusive of an assumed level of council tax increase in line with the core assumptions in Table 1 above. Table 2: Summary medium term forecast Summary medium term forecast - September 2026 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 £m £m £m £m £m £m Opening base budget gap/(surplus) (3.2) (6.9) (3.5) 5.3 12.7 29.9 New pressures: Pay 15.4 10.7 9.3 9.3 17.9 7.8 Non-pay 14.8 10.1 9.1 8.5 7.0 6.0 Borrowing 5.3 5.0 3.5 3.5 3.5 4.5 Asset maintenance 1.5 0.5 Gross pressures 33.8 19.5 18.4 26.5 41.1 48.2 Savings: Fees & Charges 5% (0.3) (0.3) (0.3) (0.4) (0.4) 0.6 Council Tax base increase (0.6) (1.0) (1.1) (1.1) (0.9) (1.0) Corporate and service savings (2.5) (10.6) (2.9) (3.1) (1.8) (1.0) Total Savings (3.4) (11.9) (4.3) (4.5) (3.1) (1.4) Sub-Total 30.4 7.6 14.0 22.0 38.0 46.8 Increase in SG revenue grant (23.9) (3.7) (1.9) (1.9) 0.0 0.0 Baseline EPR funding (4.4) 0.2 0.2 0.2 0.2 0.2 Budget gap prior to CT decision 2.1 4.1 12.4 20.3 38.1 47.0 CT increase (6.5% from 27/28) (9.2) (8.6) (8.2) (8.8) (9.4) (10.1) CTR requirement 1.0 1.1 1.2 1.2 1.3 Recurring budget gap/(surplus) (7.1) (3.5) 5.3 12.7 29.9 38.2 Recurring Motion Investment 0.2 0.0 0.0 0.0 0.0 0.0 Net recurring budget gap/(surplus) (6.9) (3.5) 5.3 12.7 29.9 38.2 Agreed one-off spend 7.9 0.0 0.0 0.0 0.0 0.0 Use of reserves 1.0 (3.5) 5.3 12.7 29.9 38.2 Page 317 of 392
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PUBLIC 5.20 The position for the current financial year is shown for information; however, it can be seen that the Council has agreed a budget that returned to a positive recurring financial balance in 2026/27. 5.21 While the return to a recurring balanced position in 2026/27 is positive, without further substantial savings being delivered, a financial gap is projected for 2028/29 of £5m, increasing to £38m by 2031/32. For clarity, this is after the assumed council tax increases in Table 1 above. It is also worth highlighting, the above analysis makes no provision for additional financial support to Renfrewshire IJB – this financial risk is explored in further detail in section 8 below. 5.22 The Council will have choices in how to address the financial gap, however these will essentially be restricted to three main themes: reduce planned spend (specifically, that spend which is within the Council’s control); generate savings to offset the forecast increase in cost; or increase income. For context, each 1% increase in council tax generates c£1.1m. The most likely solution will be a combination of all three. 5.23 There would also be a short-term option in terms of utilising reserve balances to temporarily close the gap, however the underlying financial gap would remain to be addressed on a recurring basis. As has been discussed in many previous reports, the use of reserves to achieve financial balance can only ever be a short-term option, which should only be agreed in circumstances where planned and agreed recurring savings, required to achieve recurring balance, cannot be delivered in line with the financial gaps emerging. These issues are explored in further detail below. 6 Savings 6.1 Previous financial updates have outlined the measures the Council has taken to deliver substantial savings in recent years from transformation programmes, financial sustainability workstreams and corporate financing measures such as adjustments to the Council’s long term debt smoothing strategy. 6.2 Action taken by the Council since 2011/12 has generated substantial levels of saving totalling £193m, however as has been reported previously, in each successive year it is increasingly difficult to continue to generate savings at scale. From an average saving of £19.5m per annum in the period from 2011/12 to 2014/15, the average saving over 2022/23 to 2026/27 was £5.8m. Page 318 of 392
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PUBLIC As outlined above however, without continuing significant levels of saving being generated, there is a risk the Council will not remain financial sustainable. There is a significant anticipated saving in 2027/28 linked to the reduction in the employer pension contribution rate outlined at 5.3 above, estimated at £8-9m. 6.3 As outlined in the most recent Reshaping Renfrewshire report, key areas of focus for the Council in terms of transformation will be: to reshape how we use council assets, reimagining the role they serve within our communities; to drive long term economic growth and address the climate transition journey; to develop our strategic partnerships to support delivery of shared goals; and to secure a digital agenda that drives the delivery of large-scale savings whilst also transforming how we work, how we use data to inform our decisions, and improve our service delivery to, and choice for our citizens. 6.4 In respect of the digital agenda specifically, it has been recognised that artificial intelligence may provide substantive potential for service change. The Council is concluding the appointment of a supplier to support the Council’s AI Transformation Programme. Regular updates on the AI Transformation Programme will be reported to the Leadership Board at key points throughout the programme, including a six-monthly ‘AI Transparency Report’ outlining the AI tools used by the Council, the purpose, and function of each system, any data-protection or equality assessments undertaken, changes since the previous report, and any identified risks, mitigations or recommendations for future deployment. 6.5 The phasing of resulting financial savings is included in the forecast outlook position, from 2028/29 to 2030/31, targeting c£4.8m in total. This is net of anticipated recurring costs. The delivery of these savings is also predicated on a requirement for short-term investment to facilitate the transformational change necessary, and the Council maintains a Service Modernisation Fund for this purpose. Savings delivery on this scale is contingent on wide adoption of AI technology across services, and robust vacancy management as services take advantage of the service reconfiguration possible through the use of AI. 6.6 A recurring financial gap remains over the medium term, meaning further work will be required to secure the Council's long-term financial sustainability. The savings identified within this report should therefore be viewed as an initial programme, with additional proposals to be developed as the financial outlook becomes clearer. In the shorter term, reserve balances may be required to support financial stability while longer-term solutions are implemented. Page 319 of 392
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PUBLIC 7 Reserves 7.1 The planned use of reserves as a support to the Council’s medium- term financial position has been outlined in previous reports as likely to be required; and the analysis above clearly demonstrates this requirement over the medium term. The application of reserves is a legitimate tool in managing temporary financial challenges and securing immediate financial stability while the design and delivery of well- managed sustainable savings are generated to match financial pressures; it cannot, however, be more than a short-term measure. 7.2 In summary, the Financial Sustainability reserve will be the prime source of financial stability support over the medium term. The balance on this reserve coming into 2026/27 was £35.8m. Delays with the achievement or non-achievement of savings will require to be supported through the application of this reserve. 7.3 Members should continue to recognise the risk that savings may be delayed or deliver less benefit than anticipated, and should prudently plan for this eventuality. In addition, Members’ attention is drawn to the significant financial risks outlined in section 8 of this report, in particular the ongoing risk posed by the financial outlook of Renfrewshire HSCP. 7.4 While there remain uncertainties in much of the analyses above, it is helpful to reiterate previously agreed principles in terms of the planned use of specific reserves which could be deployed to support the Council’s medium- term financial position, namely that: o There should be no planned use of unallocated reserves, which are held as a risk contingency (however the Council took a deliberate decision to increase unallocated balances by £1m in closing 25/26 in recognition of specific cost volatility – up to £1m therefore could be applied in 26/27 to fund known pressures); o Unallocated reserves should be maintained at a minimum of £10m (c2.0% of net running costs) over the medium term; and o The Council commits to the planned use of the Financial Sustainability reserve to support the medium-term financial position, and in the interim, develops and implements plans to address the forecast structural financial gap in a sustainable manner. Page 320 of 392
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PUBLIC 7.5 Updated revenue outlook reports will continue to be provided to future Council meetings, including the annual budget setting meeting, incorporating the confirmed level of Scottish Government revenue support in 2027/28, plus any revised financial assumptions and any variation in the requirement to utilise ring-fenced reserve balances from that outlined here. 8 Risk management 8.1 The most recent financial overview report to the Finance, Resources and Customer Services Policy Board outlined a projected revenue overspend in 2026/27 of £6.0m. This includes a projected overspend with Adult Social Care services managed by Renfrewshire IJB of £5.1m; with remaining Council services therefore projecting an overspend of £0.9m. 8.2 There are a number of financial risks which the Council is facing in-year that have the potential to significantly affect the forecast outturn position outlined above: i. Pay inflation - Provision has been made in the budget for a level of pay uplifts based on affordability, and the prospect of reducing inflation; however, given current economic volatility, there is some likelihood that this provision will be insufficient. Any costs over and above budgeted levels will require to be funded from reserve balances in-year, with adequate provision requiring to be made in future budgets. ii. Reduced class contact time – the Scottish Government has outlined its intention to reduce teacher class contact time from 22.5 hours to 21 hours per week, starting with primary schools from August 2027. Officers in Children’s Service are currently developing plans, however early indications are that the additional cost could be in the order of £3-4m per annum. The working assumption is that this will be fully funded by the Scottish Government as a new burden; however, this is yet to be fully confirmed on a recurring basis. One- off preparatory work funding will be made available to councils during 2026/27. iii. Renfrewshire IJB – as has been previously reported to members, Renfrewshire IJB continues to face significant cost pressures, with the June report to the IJB outlining a projected year end overspend of £5.1m for 2026/27. A recurring financial gap of c£12m is forecast for 2027/28, some of which could be offset through the applications of remaining reserves. Page 321 of 392
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PUBLIC IJB officers continue to implement savings through the Sustainable Futures plan, with a number of service changes being required to mitigate the projected overspend. This work is ongoing, however the difficulties in securing recurring savings at the scale required is not to be underestimated. For Adult Social Care alone, pay inflation averages £0.950m per year for the next 5 years. In addition, based on the report to the IJB in March 2026, it is estimated that IJB reserve balances will be fully exhausted during 2027/28, potentially requiring both the Council and NHS Greater Glasgow & Clyde to provide significant additional support. Council officers continue to engage regularly with IJB officers to ensure appropriate visibility of the forecast position. Members will be aware that in terms of risk scoring, the Council, similar to all councils across the country, now has IJB financial sustainability as its highest financial risk given the potential for this issue to impact severely and directly on the Council’s financial stability. iv. Waste Disposal Costs – the Council deals with multiple streams of recyclate disposal on a daily basis, and contracts with suppliers to collect and process this waste. Many of these waste streams have generated income for the Council in past years, but currently the majority present a significant cost to the Council. The position, however, is subject to frequent change, linked to global supply chain needs, leading to market sensitivity. Consequently, a further recurring sum is not recommended in the base budget; rather Members are asked to approve the principle that adverse fluctuations in these costs can be managed by drawing on the Financial Sustainability Fund, if there is no available capacity in the in-year service revenue budget. The proposed development of a transfer station as outlined below would help mitigate this financial risk, but not extinguish it. v. The Children (Care, Care Experience and Services Planning) (Scotland) Act 2026 received Royal Assent on May 15, 2026, following approval by the Scottish Parliament. Its provisions extend accommodation support and continuing care for care experienced individuals up to age 26 in certain circumstances. It is assumed within the medium term outlook position that new burden funding will be forthcoming from the Scottish Government to support additional costs arising from these new requirements. Page 322 of 392
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PUBLIC vi. Savings delivery - Directors and their management teams continue to try to manage as efficiently and effectively as possible within a highly constrained financial envelope; however this is becoming increasingly difficult following 15 years of savings delivery at scale and a continually volatile financial environment. This increased level of financial risk further supports the requirement to hold a prudent level of unallocated reserves. 9 Treasury management and debt 9.1 The medium term forecast position outlined in the sections above contain an assumed increase in the funding required to support borrowing which is a prerequisite to ensuring the Council’s ambitious capital plans remain affordable and financially sustainable. It will be critical for the Council to understand not just the capital costs concerned and the risks inherent in managing these (see section 10 below); but also in ensuring that the revenue consequences of that investment are affordable and are appropriately provided for within council revenue plans. 9.2 Prior to agreeing any capital project; and as has been explicitly approved in the context of the learning estate strategy, the Council must as part of its business case gateway process ensure that appropriate provision has been made in future revenue plans to fund both borrowing costs and any increased operational costs resulting from capital investment. 9.3 It is recognised that increased investment in the council’s asset base is both desirable and essential, however investment decisions must be taken in the context of the current constrained financial environment. Increases in revenue support for borrowing will inevitably result in choices between capital investment and dealing with ongoing service pressures and priorities. Any increase in property related costs should aim to be mitigated by rationalisation in the size of the council’s property portfolio – in line with the principles of the property asset management strategy. A reduced number of better condition buildings from which to deliver services should remain the aspiration. 9.4 Members have been advised previously that the Council has one of the lowest debt-to-revenue spend ratios in Scotland. The ratio at the end of 2025/26 was 2.8%, whereas the Scottish average sits around 6%. There is no target rate; this is determined by a range of factors around historic levels of investment, historic borrowing rates, timing of investment decisions, and other non-financial factors such as overall estate condition and local priorities. Page 323 of 392
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PUBLIC This low rate does not mean that we have excess funds available, as what the Council is not spending on serving debt, it is spending on delivering services. This is very important to understand moving forward. Given there is a clear aspiration to improve the estate, this will mean less revenue funding available for service delivery. 9.5 Supporting substantial future capital spend (and therefore borrowing) requires a commitment from the Council over a long period to prioritise revenue provision for loan charges as a core principle of its budget strategy. Steadily increasing loans fund budgets in this way locks-in revenue resources as part of financial planning to provide certainty of future borrowing capacity, and also generates short-term investment from CFCR contributions in advance of new loan charges commencing, thereby increasing the overall capital funding available. 9.6 The Council’s 2026/27 budget was agreed incorporating an increase in provision for borrowing costs of £3.0m; with a further commitment of similar increases in future years. Setting aside funding at least on this scale will be a precursor for any decisions for further at scale investment in the property estate. This is both required over the remainder of the current Council administration term in order to underpin the learning estate strategy but will also need to be established as a fixed feature of the Council’s very long term financial planning arrangements to secure ongoing investment capacity over the next 20 years. The outlook position assumes a baseline of additional loan charges provision of £2.5m per year. 9.7 Successive treasury management reports to Council have outlined that the Council’s borrowing strategy is to firstly use internal cash balances to fund the capital investment programme. This strategy remains, however internal cash balances have been depleted, and it is likely that external borrowing will be required in the medium term. Any external borrowing will be undertaken in line with the Council’s agreed treasury strategy. The current relatively high interest rate environment will be an influence on the timing of borrowing decisions, however there may be circumstances where the Council requires to borrow externally in the relative short term, potentially increasing costs in that period. 10 General Fund Capital Programme 10.1 The Council continues to deliver its ambitious capital programme, incorporating the delivery of significant investment in cultural venues and wider infrastructure linked to City Deal projects and Levelling Up Funding; as well as major improvement and expansion projects in the school estate. Page 324 of 392
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PUBLIC 10.2 Council has agreed its learning estate strategy which continues this level of ambition over the medium to longer term; with an initial planned spend in the order of £170m over the initial phase of the strategy. With early business cases underway for this phase, and construction inflation a considerable factor over time, it is becoming apparent that this sum will be insufficient to support the Council’s ambitions, and therefore work is ongoing to assess what additional borrowing capacity will be required going into the 2027/28 financial year. 10.3 An outline business case for a new waste transfer station was approved at the August meeting of the Infrastructure, Land and Environment Policy Board. An estimate of just under c£6m total cost is included in the recommended development option. To fund this, the Board also agreed to recommend the drawdown of £3.6m from the Financial Sustainability Fund to support this capital investment and that the remaining capital cost is funded from prudential borrowing. It should be noted that this early estimated cost is subject to change as the final business case is progressed, however it is recommended that the Capital Plan is updated to reflect this investment. 10.4 Members should remain alert to the fact that major capital investment projects bring an inherent level of financial risk and further costs may emerge as they are delivered and contractually concluded. It remains possible that costs may be incurred in excess of agreed budgets within the existing capital plan given the scale and nature of the Council capital programme and growing incidence within the construction industry of contractors pursuing contractual claims, reflecting the ongoing financial pressures and volatility being experienced. 10.5 Where budgets are expected to be exceeded, appropriate approval will be sought to adjust the capital plan to reflect these costs with any consequential impact on the overall capital plan or revenue consequences being clearly articulated. Implications of the Report 1. Financial – the report highlights the scale of the short and medium term financial challenge the Council faces. The development and implementation of savings options at pace and scale will be critical to the ongoing financial sustainability of the Council. The report indicates a projected recurring financial gap of c£38m by the end of 2031/32. 2. HR & Organisational Development – the medium term financial position and associated savings plans require to align with workforce plans to ensure the size and composition of the workforce remains Page 325 of 392
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PUBLIC appropriate and affordable. 3. Community/Council Planning – the Council requires to remain financially sustainable in order to deliver on its priorities as outlined in the Community and Council plans; and these plans in turn require to inform the financial strategy. 4. Legal – the Council is legally required to set a balanced budget. 5. Property/Assets – the report outlines investment that aims to ensure the Council’s property asset base is efficient and properly maintained. 6. Information Technology – the report outlines the digital agenda, including AI, as a critical factor in the delivery of future savings, efficiencies and improved customer service. 7. Equality & Human Rights - The recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report, however the report highlights the need for the Council to continue to make substantial savings which may impact on service delivery. Each savings proposal will be individually assessed for any impact on equalities and human rights. 8. Health & Safety – none arising directly from this report. 9. Procurement – none arising directly from this report. 10. Risk – as outlined in the report the Council’s financial sustainability risk remains relatively high, and increased in the short term due to the potential financial implications arising from the Renfrewshire IJB’s financial outlook. 11. Privacy Impact – none arising directly from this report. 12. Climate Risk – none arising directly from this report. 13. Children’s Rights – none arising directly from this report. 14. Cosla Policy Position – none arising directly from this report. Author: Alastair MacArthur, Director Page 326 of 392
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1 PUBLIC To: Council On: 24 September 2026 Report by: Chief Executive Heading: Public Service Reform ___________________________________________________________________ 1. Summary 1.1 On 1 September 2026, the First Minister presented the Scottish Government’s Programme for Government 2026-2031. The Programme for Government notes the significant challenges facing Scotland public services including increased costs, complexity and demand for services across the population. It sets out a range of proposals to “rewire” public services in Scotland by reducing the number of public bodies that are operating across the country and specifically reducing the number of health boards from 14 to two. 1.2 Linked to these proposals, the First Minister also set out proposals to reform local governance arrangements more broadly, and to consider the implications for the provision of social care. 1.3 At present, detailed information has not yet been provided on the specific nature of the reform proposals although the Government have indicated they are currently considering how best to set this out and share this with COSLA and the wider local government community. A rapid period of engagement is also proposed by the Scottish Government over the next 3 months with relevant stakeholders. Initial information relating to the proposed engagement methodology in relation to local governance reform was shared with the Council Chief Executive on 15th September 2026. Elected members are asked to consider the invitation to engage as outlined at Section 4.3, and to advise the Chief Executive on the response to be provided to the Scottish Government. Item 7 Page 327 of 392
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2 PUBLIC 1.4 Notwithstanding the engagement proposed, it is recognised that there will be an ongoing requirement to provide regular updates to the Leadership Board on the implications of any proposed reforms as further information becomes available. Elected members are asked to note that should time limited responses be required to any consultation and engagement processes being undertaken by the Scottish Government on reform proposals, a special meeting of the Leadership Board may need to be held to allow elected members to agree a formal response. 1.5 We are also committed to keeping our employees informed as details emerge, as well as to sharing information with communities and citizens in relation to the potential implications of reform proposals. 1.6 _____________________________________________________________________ 2. Recommendations 2.1 It is recommended that Elected Members: I. Note the content of the report. II. Consider the request received from the Scottish Government on 15th September for the Council to participate in the Scottish Government’s engagement process as set out in section 4.3. _____________________________________________________________________ 3. Programme for Government – Public Services Reform agenda 3.1 On 1 September 2026, Scottish Government published its Programme for Government 2026-2031. The Programme for Government sets out four overarching priorities: eradicating child poverty, growing the economy, tackling the climate emergency and delivering high-quality and sustainable public services. 3.2 There are a range of commitments within the Programme for Government which require direct local authority support to deliver, including in relation to housing and homelessness, education and childcare, economic development, community wealth building, climate adaptation, prevention and public service delivery. 3.3 In terms of “public service delivery”, the Programme for Government outlines several specific areas of focus which, depending on the scale and nature of implementation, may have a significant impact on the role and delivery of public services in Scotland. The document notes the significant challenges facing Scotland public services including increased costs, complexity and demand for services across the population, and sets out an ambition to 'rewire the state' around people rather than institutions, reduce duplication, rationalise public bodies, strengthen prevention and consider whether services and functions are being delivered at the most appropriate level. Page 328 of 392
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3 PUBLIC 3.4 Civil servants have been engaging with COSLA and professional organisations on public services reform for a number of years, in particular in relation to areas such as health and social care provision following the decision not to proceed with a National Care Service. Whilst it was anticipated that further exploration of health reform may be progressed within the Programme for Government, the level and nature of the reform proposed in relation to public services is much wider than expected. 3.5 A potentially significant degree of reform is proposed across the public sector, including replacement of the existing 14 territorial NHS Boards with two Strategic Health Boards, rationalisation of public bodies and greater consolidation of functions, digital platforms and shared services. Significant reform of social care is also proposed within the document. 3.6 Further to the publication of the Programme for Government, there has been no further release of information on the detail of the reform proposals, and what they mean for local authorities. In recent interviews, the First Minister has however noted a preference for “regional local government” with greater pooling of resources and strategic capacity at a regional level. In terms of social care, the First Minister has noted that a single line of decision making, accountability and funding for social care is preferred, led by the NHS. 3.7 The Scottish Government has indicated that a three month consultation process will be undertaken in relation to the proposals relating to local governance, and specifically in relation to social care reform. Initial information on the engagement process relating to local governance reform was sent to the Chief Executive on 15 September 2026, with further detail provided in section 4 below. 3.8 A special meeting of COSLA Leaders was held on Friday 11th September which was also attended by the First Minister, Deputy First Minister and Ivan McKee, Cabinet Secretary for Public Service Reform. Following the meeting, COSLA issued an agreed position statement: “Public service reform will only succeed if it is rooted in communities, not organisational charts. Local Government will engage with Scottish Government, but we will not support reforms that dilute local democracy, centralise decision- making or remove accountability from the people we serve. Decisions around public service reform must be made in agreement between Local Government and the Scottish Government and have the endorsement of councils on any issue affecting them.” 3.9 A full summary of the statement is available through the following link - Public Service Reform Must Strengthen Local Decision Making, Not Weaken It | COSLA. Page 329 of 392
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4 PUBLIC Wider transformation discussions 3.10 Local authorities have been progressing transformation programmes to address the significant financial and demographic pressures facing the sector and wider public services for many years. A national transformation programme lead by the Improvement Service and SOLACE has over the last few years in particular, been working to progress opportunities for joined up working and shared services across local authorities. Renfrewshire Council also has its own transformation programme – Reshaping Renfrewshire – which is being progressed to improve outcomes within the resources available to the Council and its partners. 3.11 As reported previously to Leadership Board, discussions have also been progressed by Glasgow City Region (GCR) in relation to developing regional economic growth opportunities within the context of both Scottish and UK Government’s stated commitment to the regional empowerment and devolution agenda. GCR has been progressing a range of workstreams to develop a potential regional empowerment proposal that could be considered and supported jointly across member organisations for engagement with national governments which was expected to be subject to future reporting to the Leadership Board. How the Scottish Government’s emerging proposals for reform will integrate with the GCR work being progressed in the context of the regional agenda is not clear at this stage and is expected to be subject to subsequent clarification during the engagement process over the coming months. 3.12 Regular updates in relation to both the Reshaping Renfrewshire transformation programme and GCR related work on regional devolution, will continue to be provided to the Leadership Board. ___________________________________________________________________ 4 Next steps 4.1 As noted above, the public services reform agenda is now moving at pace and there remains considerable uncertainty in terms of the potential implications of reform for local authorities. 4.2 On 15th September 2026, the Chief Executive received notification from the Acting Director of Local Government and Communities, setting out the Scottish Government’s broadly anticipated approach to the engagement process over the coming months, which is focused on securing engagement at political, officer-level and wider stakeholder engagement activities across Scotland, including: • Ongoing ministerial engagement with COSLA leadership and political groups. • Targeted discussions and roundtables involving Ministers and Council Leaders, including with groups of councils where there is interest in facilitating regional/clustered discussions. Page 330 of 392
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5 PUBLIC • Discussions with local government and Scottish Government officers on the overall programme and specific thematic areas to explore the issues, options and the evidence available/required which are likely to be facilitated through COSLA. • Wider dialogue events bringing together local authorities, public service partners, communities, the third sector, business representatives, trade unions and others. • Targeted discussions with a range of sectoral stakeholders and representative bodies. • Opportunities for broader public engagement through digital channels 4.3 As part of this correspondence there was a request to consider and express and interest in assisting and supporting Government in terms of the planned engagement process with respect to three key strands of the planned engagement: Invitation to participate – Dialogue on Local Governance reform 1. Political engagement o Whether there is an interest in helping to facilitate a ministerial discussion or roundtable involving elected members, including where it may make sense to do so with other councils; o Whether there are existing political forums, regional groupings or arrangements that would provide a useful setting for such discussions. 2. Wider dialogue events o Whether your council, or a cluster of neighbouring councils, would be interested in working with the Scottish Government to host one of a small number of wider engagement events (presumed to operate across Scotland) from mid-October to mid-November. o These events would bring together a broad range of local partners, including public bodies, communities, the third sector, business interests and trade unions, to contribute to the wider listening exercise. o The Scottish Government have indicated a particular interested in identifying areas where there is enthusiasm to convene a diverse range of local voices and perspectives. 3. Additional opportunities o Any other suggestions you may have regarding engagement activity, stakeholder groups we should involve, or approaches that would help ensure the dialogue is as inclusive and productive as possible. Page 331 of 392
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6 PUBLIC 4.4 Scottish Government officials have requested a quick response to this invitation, and elected members are asked to consider this request and to advise officers on the level and nature of engagement to be supported. 4.5 Over and above this specific participation request, officers will ensure that information in relation to public service reform proposals and the consultation process itself is shared timeously with elected members. Regular reports will be provided to the Leadership Board, however given the likely pace and intensity of the reform agenda going forward, elected members are asked to note that it may be necessary to hold special meetings of the board to consider time limited matters such as a formal consultation response to any proposals. 4.6 As we move forward, a particular focus will continue to be engaging with the Council’s workforce and local trade union representatives to ensure that information is shared openly when this becomes available. It is recognised that proposals in relation to public service reform, and the wider reporting of these within the media, will require the organisation to provide reassurance and clarity on information available in the public domain to our employees as a priority. 4.7 Information on reform proposals and implications for communities and service users will also be provided as this becomes available. _________________________________________________________________ Implications of the Report 1. Financial – The reform of public services is intended to deliver more efficient service delivery, however further information in relation to the financial implications of the reform agenda, is not yet available and would require to be robustly assessed as and when this is provided. 2. HR & Organisational Development – As noted within the report, as further information becomes available on proposed reforms, it will be important to share this with the Council’s workforce, and to provide an opportunity to engage in relation to the impact of any planned reforms. 3. Community/Council Planning – the Programme for Government notes that the promotion of wider community empowerment principles will be a key element of the wider reform of public services. 4. Legal – At present there is no specific information on the reforms proposed for local authorities and the provision of social care in particular, or the legislative basis upon which any reforms would be progressed. 5. Property/Assets - none 6. Information Technology - none 7. Equality and Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. As the detail of the proposed reforms is not available, it is not yet possible to Page 332 of 392
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7 PUBLIC undertake a detailed assessment of equality implications. Detailed equalities and human rights assessments would be required to be undertaken at both a national and local level, when full information is made available to local authorities. 8. Health and Safety - none 9. Procurement – none 10. Risk – none 11. Privacy Impact – none 12. COSLA Policy Position – none 13. Children’s Rights – As the detail of the proposed reforms is not available, it is not yet possible to undertake a detailed assessment of children’s rights implications. 14. Climate Risk – none ___________________________________________________________________ Report Author: Laura McIntyre, Head of Policy and Partnerships Page 333 of 392
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Public To: Council On: 24 September 2026 Report by: Director of Finance & Resources and Director of Environment, Housing & Infrastructure Heading: Governance Arrangements 1. Summary 1.1 The Council at its meeting held on 14 May 2026 agreed to appoint Councillor McGurk the Licensing Board. Council is asked to reappoint Councillor McGurk as set out in section 3.1 of this report. 1.2 The Tobacco & Vapes Act 2026 received assent in April 2026. That Act confers various statutory duties on the local weights & measures authority (Trading Standards). The Council’s Scheme of Delegated Functions will require to be updated to reflect the new duties and responsibilities that will fall to Environment, Housing & Infrastructure. 1.3 At its meeting held on 26 February 2026, Council agreed to formally declare a ‘Dolly Day’ in Renfrewshire, to be marked annually, in honour of Dolly Parton’s 80th birthday and her outstanding contribution to literacy and early years development through the Imagination Library. A request has now been received that Council buildings be lit pink on 25 September each year, starting this year, to mark ‘Dolly Day’. The report sets out arrangements arising from an occasional overlap with MacMillan Cancer Support’s MacMillan Coffee Morning. 2. Recommendations 2.1 That Councillor McGurk be reappointed to the Licensing Board. 2.2 That The Tobacco & Vapes Act 2026 be included in the list of Item 8 Page 335 of 392
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Public legislation set out in the Scheme of Delegated Functions which fall within the scope of the Director of Environment, Housing & Infrastructure and the Head of Climate, Public Protection & Roads. 2.3 That Council buildings be lit pink on 25 September each year, starting this year, to mark ‘Dolly Day’ subject to the detail set out in section 3.3 of the report. _____________________________________________________________________ 3.1 At the meeting of Council held on 14 May 2026 it was agreed that Councillor McGurk be appointed to the vacant position on the Licensing Board. In terms of the Licensing (Scotland) Act 2005 the Licensing Board shall consist of not fewer than 5 and not more than 10 members as may be determined by the Council. All members of the Board require to undertake a course of training accredited by the Scottish Ministers within three months of their appointment to the Licensing Board, whether or not they have been Licensing Board members before. Assessment of training shall be undertaken under exam conditions. Following the meeting it was not possible to arrange a suitable date for that training to be undertaken within that three month period and accordingly the appointment fell. A suitable date has now been agreed. Therefore Council is asked to reappoint Councillor McGurk to the Board. 3.2 The Tobacco and Vapes Act 2026 is a significant piece of legislation aimed at reducing tobacco use in the UK. It introduces measures to phase out the sale of tobacco products for future generations, particularly targeting individuals born on or after 1 January 2009. The Act establishes a framework for regulating the sale, display, and advertising of tobacco and vaping products, addressing associated health risks. The Council’s Scheme of Delegated Functions includes an Undernote which lists the range of legislation which falls within the scope of the Director of Environment, Housing & Infrastructure and the Head of Climate, Public Protection & Roads. Agreement to include The Tobacco and Vapes Act 2026 in the Undernote is requested. 3.3 At its meeting held on 26 February 2026, Council agreed a motion which noted that 2026 marked the 80th birthday of Dolly Parton and recognised her work as the founder of the Imagination Library, a globally recognised early years literacy programme which gifts free, high-quality books to children from birth to age five. It further noted that the Imagination Library operates successfully in Renfrewshire, supporting families, improving early language development, encouraging a lifelong love of reading, and helping to reduce educational inequality. Council recognised the significant positive impact the Imagination Library has had for children and families across Page 336 of 392
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Public Renfrewshire, particularly in supporting early learning, parental engagement, and inclusion. Council therefore resolved to formally declare a ‘Dolly Day’ in Renfrewshire, to be marked annually, in honour of Dolly Parton’s 80th birthday and her outstanding contribution to literacy and early years development through the Imagination Library. Reflecting the terms of that motion, a request has now been received from Children’s Services that Council buildings be lit pink on 25 September each year, starting this year, to mark ‘Dolly Day’. Members are asked to note that Council has previously agreed to annually light up Council buildings green to support McMillan Cancer Support’s MacMillan Coffee Morning. That event falls on the last Friday of September. It is therefore proposed that this year the buildings will be pink to mark Dolly Day. Thereafter, on any year where the MacMillan Coffee Morning falls on 25 September one significant Council building will be lit up pink to mark Dolly Day, with all others being lit up green to mark the MacMillan event. Implications of the Report 1. Financial - none 2. HR & Organisational Development - none 3. Community/Council Planning – none 4. Legal – as set out in the report 5. Property/Assets – none 6. Information Technology – none 7. Equality & Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report as it deals with Member appointments to Boards, a change of the Council’s Scheme of Delegation to reflect a statutory change, and a building light up request. 8. Health & Safety – none 9. Procurement – none 10. Risk – none 11. Privacy Impact – none 12. CoSLA Policy Position – none 13. Children’s Rights - none 14. Climate change - none List of Background Papers Page 337 of 392
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Public None Author: Mark Conaghan Head of Corporate Governance 0300 300 0287 mark.conaghan@renfrewshire.gov.uk Page 338 of 392
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PUBLIC To: Council On: 24 September 2026 Report by: Chief Executive Heading: Renfrewshire Community Protection Chief Officers Group - Annual Report 2025/26 ___________________________________________________________________ 1. Summary 1.1 Renfrewshire Community Protection Chief Officers Group (COG) is responsible for leadership, strategic oversight and scrutiny of multi-agency public protection activity and practice in Renfrewshire, including in relation to child protection, adult protection, community safety, the management of offenders and community justice, alcohol and drugs, gender-based violence and migration and asylum. 1.2 The group is chaired by the Chief Executive of Renfrewshire Council with core representation from NHS Greater Glasgow and Clyde and Police Scotland, and wider membership drawn from other partners agencies and services. 1.3 This is the eleventh annual report of the Community Protection Chief Officers Group. It provides an overview of the key areas of work of in relation to public protection during 2025/26. 1.4 The annual report attached at Appendix 1 to this report provides detailed information on the activities which have been undertaken over this period, whilst section 4.3 of the report highlights the key priorities that partners have identified for 2026/27. _____________________________________________________________________ 2. Recommendations 2.1 It is recommended that Elected Members note the content of the report. _____________________________________________________________________ Item 9 Page 339 of 392
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PUBLIC 3. Background 3.1 Renfrewshire Chief Officers Group was established to provide leadership, governance, direction and oversight to ensure local accountability for all aspects of public protection. Chief Officers are responsible for ensuring that their respective agencies, individually and collectively reflect national guidance, which directs local services to work in partnership to achieve public protection measures. The arrangements are comparable to Chief Officer Group arrangements in other local authority areas throughout Scotland and were independently reviewed and updated in April 2021. 3.2 The key areas of activity overseen by the Renfrewshire Chief Officers Group are: • Child Protection • Adult Protection • Offender Management • Community Protection • Community Justice • Alcohol and Drug Partnership • Equally Safe Strategy; and • Migration and Asylum 3.3 The Chief Officers Group provides regular reports to the Member Officer Group which is comprised of elected members on a cross-party basis, and key officers from the Council and partner organisations. The purpose of the Member Officer Group is to provide senior elected members with the opportunity to formally and regularly discharge their strategic independent scrutiny and assurance role in relation to key activity and significant developments which have implications for public protection matters in Renfrewshire. 3.4 This is the eleventh annual report of the Chief Officers Group. It provides an overview of the key areas of work in relation to public protection in Renfrewshire over the course of 2025/26, and in doing so highlights the ongoing importance of partnership working. ___________________________________________________________________ 4. Strategic focus for 2026/27 4.1 Throughout the first six months of 2026, the Chief Officers Group completed a self-evaluation exercise, to further support its commitment to embedding a culture of continuous improvement and shared accountability. 4.2 The findings from the self-evaluation were positive, particularly in terms of assessments of culture, leadership and governance, aspects which have also been identified as key areas of strengths through external inspection processes. A small number of improvements were identified to strengthen the role of the Page 340 of 392
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PUBLIC Chief Officers Group in terms of driving learning, improvement and leadership, and these are now being progressed through a targeted action plan. 4.3 The Chief Officer Group has also recently reviewed and agreed its priorities for the year ahead: • Responding to the national child exploitation review findings. • Providing oversight to the response from all learning reviews currently being progressed by sub-committees of the Chief Officers Group. • Implementing the actions resulting from the self-evaluation exercise. • Continuing to promote opportunities to promote community cohesion across Renfrewshire. • Considering local actions being progressed to tackle homelessness in Renfrewshire, given the issues being experienced on this issue at a local and national level. 4.4 The Chief Officers Group will continue to seek to ensure that performance and practice are scrutinised at a strategic level, to identify what works well, to highlight any areas for improvement, and to consider where further opportunities for early intervention and prevention activity would achieve improved outcomes for local people. 4.5 The group will also continue to review on an ongoing basis the implementation of relevant policies and legislation which relate to public protection. _________________________________________________________________ Implications of the Report 1. Financial – none 2. HR & Organisational Development – none 3. Community/Council Planning – the Community Protection Chief Officers is embedded within the wider approach to community planning in Renfrewshire. 4. Legal - none 5. Property/Assets - none 6. Information Technology - none 7. Equality and Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report because it is for noting only. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health and Safety - none 9. Procurement – none Page 341 of 392
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PUBLIC 10. Risk – none 11. Privacy Impact – none 12. COSLA Policy Position – none 13. Children’s Rights – Renfrewshire Council together with the members of the Chief Officers Group recognise, respect, support and promote Children’s Rights. 14. Climate Risk – none ___________________________________________________________________ Report Author: Michelle Stewart, Corporate Priorities Officer Email: michelle.stewart@renfrewshire.gov.uk Page 342 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Community Protection Chief Officers Group 2025/26 Annual Report Page 343 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Contents Welcome Page 1 Chief Officers Group Membership Page 2 Member Officers Group Membership Page 3 Renfrewshire Profile Page 4 Chief Officers Group Self Evaluation Page 5 Child Protection Page 6 National Review of Group-Based Child Sexual Abuse and Exploitation Page 9 Adult Support and Protection Page 10 Equally Safe in Renfrewshire Page 15 Alcohol and Drugs Page 19 Suicide Prevention Page 22 Community Justice Page 24 Public Protection Page 25 Migration and Asylum Page 30 Police Scotland Page 31 Scottish Fire and Rescue Service Page 36 Strategic Focus 2025/26 Page 39 Page 344 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Welcome to our end of year report Renfrewshire’s Chief Officers Group (COG) was established to provide leadership, governance, direction and oversight, and to ensure local accountability for all aspects of public protection. Chief Officers are responsible for ensuring that their respective agencies, individually and collectively reflect national guidance, which directs local services to work in partnership to achieve public protection measures. The COG provides regular reports to the Member Officer Group (MOG) which is comprised of Elected Members on a cross-party basis and key officers from the Council and partner agencies. This provides senior Elected Members with the opportunity to formally and regularly discharge their strategic independent scrutiny and assurance role in relation to key activity and significant developments, which have implications for public protection matters in Renfrewshire. This is the eleventh annual report of the COG. It provides an overview of the key areas of work in relation to public protection in Renfrewshire over the course of 2025/26, and in doing so highlights the ongoing importance of partnership working. 1 Page 345 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Supported by: • Renfrewshire’s Chief Social Work Officer • Chief Officer, Renfrewshire Health and Social Care Partnership • Independent Chair of the Adult and Child Protection Committees • Independent Chair of the Alcohol and Drugs Partnership • Head of Climate, Public Protection and Roads • Head of Policy and Partnerships • Adult and Child Protection Lead Officers • Local Senior Officer for the Scottish Fire and Rescue Service Chief Officers Group Membership Key Areas Child Protection Adult Protection Community Protection Offender Management Community Justice Alcohol and Drugs Equally Safe Migration and AsylumChief Executive Chief Executive / Executive Nursing Director Divisional Commander ‘K’ Division 2 Page 346 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Member Officer Group Membership The group is comprised of Elected Members on a cross-party basis and key officers of the council as follows: • Three senior members of the administration • Two members of the main opposition group • One other opposition member • Chief Social Work Officer / Head of Children and Justice Social Work • Chief Officer, Renfrewshire Health and Social Care Partnership or Head of Health and Social Care • Head of Climate, Public Protection and Roads • Head of Policy and Partnerships, Chief Executive’s Service Also, in attendance as required: • Independent Chair of the Child Protection and Adult Protection Committees • Divisional Commander, Police Scotland or appropriate senior nominee The group will also invite the participation of other key individuals or agencies involved in the areas of concern of the Member Officer Group as required. 3 Page 347 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Approximately 189,270 people live in Renfrewshire, with our population projected to continue to grow. Renfrewshire Profile Life expectancy is below the Scottish average. Female life expectancy is 80.9 compared to 81.6 nationally and male life expectancy is 76.5 compared to 77.1 nationally. Our population is becoming increasingly diverse with the latest census data showing 94.5% of the population is categorised as white, 2.7% are of an Asian ethnicity and 1.3% are African, Caribbean or Black. Renfrewshire is located in west central Scotland and is the 9th largest Council in Scotland by head of population but covering a relatively small land mass of 270 square kilometres. The Scottish Index of Multiple Deprivation (SIMD) assesses 6,976 small areas known as data zones. Almost 25% of all data zones in Renfrewshire are in the 20% most deprived nationally and 2 are within the 10 most deprived zones nationally. 4 Page 348 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Chief Officers Group Self Evaluation 5 Agreement was reached at the Chief Officers Group meeting on 14 January 2026 to progress a self-evaluation exercise, which would further support the Group’s commitment to embedding a culture of continuous improvement and shared accountability. A self-evaluation framework was developed by Council officers based on the PSIF model andinformed by other resources such as the Chief Officer public protection induction resource. The agreed self-evaluation framework involveda simple three stage process: Stage 1: Completion of a self-assessment checklist Stage 2: A consensus session Stage 3: An improvement planning session Each of these stages has now concluded, the findings were positive, particularly in terms of culture, leadership and governance. The findings however evidenced a significant degree of reflection by COG members, with the following improvement areas identified and an action plan developed. Strategic Focus and Leadership • Agree 2–3 clear strategic priorities and small number of outcome measures to drive improvement • Align agendas, spotlight sessions, and reporting to these priorities • Embed brave, focused leadership through constructive challenge and reflective discussion Assurance, Learning and Impact • Strengthen challenge and scrutiny of reports to drive improvement • Improve how impacts and outcomes are measured using qualitative and quantitative evidence • Embed regular self-evaluation and learning, informed by audit, review and inspection activity Identity, influence and engagement • Strengthen the collective identity of the Chief Officers Group as a single strategic partnership • Articulate and demonstrate influence and added value within a complex public protection arena • Improve communication and engagement with key stakeholders • Explore how the Chief Officers Group can improve awareness of public protection risks. Page 349 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Renfrewshire Child Protection Committee (RCPC) RCPC is the local partnership responsible for leading, developing and improving child protection across agencies and communities. Its independent chair is Tam Baillie. RCPC delivers its key functions of continuous improvement, public information and engagement and strategic planning through a range of multi-agency subgroups: A key priority of the RCPC Plan for 2025-28 is to undertake a review of the RCPC subgroups. Since June 2025, Children Affected by Parental Alcohol and Drug Use and the Vulnerable Young Persons Strategic Group have been reporting to RCPC on a quarterly basis. Inter-agency Referral Discussions (IRDs) From 1 April 2025 to 31 March 2026, 341 IRDs were undertaken for 547 children. The outcomes for these children were: progression to child protection (368 children); information/advice (33 children); referral to another agency (19 children); and no further action (127 children). Child Protection Register RCPC collects and reviews data in line with Version 2 of the Minimum Dataset for Child Protection Committees in Scotland. The number of children whose names are placed on the Child Protection Register is reviewed quarterly by RCPC and weekly by senior managers from the key agencies. On 31 March 2026, the names of 93 children were on the Child Protection Register compared to 63 children in March 2025. Of these children, 40 had been on the register for between 0 and 12 weeks, 19 had been on the register for between 13 and 26 weeks, 24 had been on the register for between 27 and 52 weeks and 10 for more than 52 weeks. The Complex Case Oversight Group considers all children whose names have been on the register for a year or more. Learning and Development Continuous Improvement Policy, Practice and Procedures Complex Case Oversight Group CAPADU Learning Review Vulnerable Young Persons Joint Communications Group (RCPC and RAPC) Child Protection 6 Page 350 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Training The Learning and Development Subgroup of RCPC has oversight of inter-agency training. The training priorities are informed by training needs analysis and the outcome of learning reviews, the following training was provided during the reporting period: • Joint child and adult protection course for the general workforce • Attachment, Trauma and Neuroscience (using virtual reality) to understanding the importance of early intervention and nurture • Safe and Together: Internationally recognised model for tackling Domestic Abuse and Coercive Control • Contextual Safeguarding: Addressing Child Exploitation (using virtual reality) for adolescents affected by Child Criminal and Sexual Exploitation • Child Protection Level 2 and GIRFEC refresher to multi-agency staff who work directly with children and their families • Training in the Assessment of Care Toolkit for understanding neglect and working in partnership with parents and carers to address neglect • Recently updated Parental Mental Health and Child Welfare and Protection Training • Online Safety, developing a safety net for children online Child Protection 7 Page 351 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Improvement Plan RCPC continues to progress its improvement plan for 2025-2028 which incorporates improvement actions from the recent joint inspection of services for children at risk of harm in Renfrewshire. During 2025/26, RCPC undertook a number of key areas of work including: RCPC Conference RCPC delivers a biennial Child Protection Conference. Planning is underway for the 2026 conference which will take place on Thursday 8th October 2026. The theme of the conference will be ‘Protection Generation Z: Child Protection in an Age of Connection and Complexity’. Speakers will include Dez Holmes, Research in Practice and Stuart Allardyce, The Lucy Faithfull Foundation. Child Protection App In March 2026, RCPC launched a child protection app which includes the local child protection procedures along with additional guidance and procedures. The app is aimed at practitioners and managers across Renfrewshire and can be downloaded to a mobile phone or the content can be accessed through the Rights Decisions website. Learning Reviews RCPC continues to progress the improvement plans for the two Learning Reviews that concluded in 2024/25. These are now nearing completion. During 2025/26, a further two Learning Reviews were concluded, and improvement plans are now in place. In addition, a Thematic Learning Review took place to consider how young people aged 16 to 17 involved with mental health services are supported where there are adult support and protection or child protection concerns. It is anticipated that the Thematic Review will conclude by late 2026. IRD Audit In October 2026, RCPC undertook a multi-agency audit of 105 IRDs which did not progress to child protection. The audit provided reassurance around decision making in IRDs and that IRDs were being held appropriately. Child Protection 8 Page 352 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level National Review of Group-Based Child Sexual Abuse and Exploitation 9 In February 2026, the Care Inspectorate wrote to all local authorities to confirm the commencement of a national review of group-based child sexual abuse and exploitation, at the request of Scottish Ministers. The review is being jointly led by the Care Inspectorate and His Majesty’s Inspectorate of Constabulary in Scotland (HMICS), with contributions from Healthcare Improvement Scotland (HIS) and Education Scotland. The purpose of the national review is to evaluate how effectively Community Planning Partnerships (CPPs) prevent, identify, and respond to group-based child sexual abuse and exploitation, as well as group-based child criminal exploitation. The review will also assess the extent to which Chief Officer Groups (COGs) understand the scale, nature, and risks associated with these forms of exploitation. The review focuses on children under 18, including young adults who were under 18 within the past two years and may have been vulnerable to exploitation during that period. Inspectors are considering both current practice and activity between 1 January 2024 and 31 December 2025, with the option to request historical information. The review is examining: • Strategic and operational leadership, including how agencies work together to ensure effective arrangements for prevention, identification, and response • Operational processes, including the quality and consistency of practice in responding to concerns about group-based sexual and criminal exploitation • Impact on children, including how well supports improve safety, wellbeing, and outcomes for those at risk or affected The national review is being delivered in three phases: Phase One (February–September 2026): Assessment of COG understanding and oversight. This includes a self-evaluation, completion of a national questionnaire, and structured interviews. Phase Two (Summer 2026–Autumn 2027): A risk-based programme of scrutiny informed by Phase One findings, identifying strengths and areas for improvement. Phase Three (2027 onwards): National recommendations and improvement actions based on learning from the first two phases. In Renfrewshire, a dedicated planning and preparation group has been established to ensure a coordinated and robust response. Page 353 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Renfrewshire Adult Protection Committee (RAPC) RAPC is chaired by an independent chair Tam Baillie and meets quarterly. RAPC is a multi-agency forum which leads on the coordination and development of local responses to adult support and protection (ASP), including prevention of further harm. RAPC leads the strategic development, implementation and oversight of ASP arrangements for adults at risk of harm in Renfrewshire. It is committed to raising public awareness of ASP issues and working collaboratively with partner agencies and local communities to safeguard adults at risk of harm. The key functions of RAPC are undertaken by a range of subgroups which are shown below: Learning and Development Subcommittee The Learning and Development Subcommittee has oversight of multi-agency ASP training and development in Renfrewshire. In November 2025, RAPC hosted the Biennial Conference with a focus on adult support and protection and mental health. Over 130 multi-agency staff from the adult protection partnership attended the event. The main speaker was Betsy, an adult with lived experience who provided a thought-provoking input. Throughout the reporting period, RAPC has held regular online Lunchtime Learning Sessions on a range of subjects relevant to ASP. These have included cuckooing, the Herbert Protocol and missing persons, adult learning reviews and The Promise: care experienced adults. The following multi-agency training was provided during the reporting period: • Introduction to ASP - See Something, Say Something Training • Child and Adult Protection General Awareness Raising Training- For the Wider Workforce • Behind the Dementia • Dementia and Distress • Transforming Connections (Trauma skilled level) Adult Support and Protection 10 Page 354 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Continuous Improvement Subcommittee The subcommittee leads on multi-agency ASP continuous improvement activity in Renfrewshire, providing scrutiny to data, audit and have oversight of RAPC’s improvement plan. During the current reporting period, the subcommittee established a multi-agency Data Subgroup which supports multi- agency data sharing and analysis to identify trends, anticipate risks and strengthens ASP services through identified improvement actions. Single agency ASP audits have been implemented across social work and health to support quality assurance and to support improvement across the services. Work is currently underway to incorporate police audits into the process. The subcommittee is in the process of standing up an adult participation short life working group to lead on ensuring that those involved in ASP processes contribute to the evaluation and improvement of services and to increase representation of people with lived experience at RAPC. Policy and Practice Subcommittee During the reporting period, the Policy and Practice Subcommittee updated and ratified RAPC multi-agency guidance on Adult Learning Reviews and Large-Scale Investigations (LSIs). Care Home Collaborative Support Team Group In addition to the subgroups, the Care Home Collaborative Support Team Group provides enhanced clinical and care oversight arrangements for care homes to support care home staff to keep residents safe. Clinical and care professionals have a leading role in the oversight for care homes and meet monthly. Partners remain proactive and deployed clinical and care teams, to improve standards and reduce any risk to residents. Operational Manager Practice Development Group During the reporting period, the Operational Manager Practice Development Group continued to meet to strengthen operational leadership and improve connectivity between the RAPC, subgroup activity, and operational staff across Social Work, NHS and Police Scotland. Adult Support and Protection 11 Page 355 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Joint Communications Subcommittee The joint RAPC and RCPC communications subcommittee continued to meet during this reporting period. The subcommittee has made progress in the following areas: • Coordinating and hosting the launch of the National Framework for ASP Learning and Development in Scotland in February 2026 • Launching the RAPC webpages on the Renfrewshire HSCP website which provide information about RAPC; information for people working with adults who may be at risk of harm; multi-agency training and events; local and national ASP policies, procedures and guidance • Raising awareness of National Adult Support and Protection Day 2026 across professionals and the public in Renfrewshire • Publishing a quarterly RAPC Newsletter providing an overview of the work of the committee; national ASP updates; learning and development opportunities; an overview of services and publications which are of interest to those working in the field of ASP Adult Support and Protection and Child Protection 12 Page 356 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Referrals and Inquiries In 2025/26 there were 2040 referrals which is a 33.8% increase from 2024/25 where referrals were 1525. The number of adults the referrals related to were 1312. 87.9% of the adults referred had one or two referrals in the reporting year. 12.1% were referred three or more times in the reporting year. The total number of Inquiries for 2025/26 was 1791. Of these 1070 were completed with the use of Investigatory powers.From this, there were 62 inquiries for 59 adults where an enhanced risk assessment was required. The enhanced risk assessment was completed for 37.1% of adults referred three or more times. All activity related to Inquiries and Investigatory activity; Renfrewshire complies with the Code of Practice using Council Officers for all investigatory activity and Council Officer oversight for enquiries without investigatory powers where a non-Council Officer completed it. The highest care group of adults at risk of harm who had inquiries undertaken were those with Dementia (569) followed by adults with other Mental Health conditions accounting for 427. 59.4 % of our inquiries were for adults 65 years and over. The data confirms that the person’s home is where harm occurs with 981 (54.8%) occurring within their own home and 462 (25.8%) within a care home. The location of harm occurring in a care home has increased slightly from the previous year. Physical Harm remains the principal type of harm and was reported in 507 inquires (28.31%). It continues to be the highest reason for referral followed by psychological/emotional harm 277 (15.47%) and self neglect 201 (11.22%). Large-Scale Investigations (LSI) There were no LSI’s during the reporting period. Any care homes on the cusp of an LSI are managed under a preventative approach, where the HSCP balance a supportive approach with a statutory duty under Adult Support and Protection legislation. The HSCP was proactive, as soon as issues were identified the necessary support and services were deployed via HSCP clinical teams. Adult Support and Protection 13 Page 357 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Adult Support and Protection Adults with Incapacity (AWI) Demand for AWI reports, which require to be completed by a qualified Mental Health Officer, remains high for both private and Chief Social Work Officer applications. There were 298 requests for AWI mental health officer reports during the period compared to 264 requests in the previous year. Thehigh rate of local requests can in part be caused by discharges from the Royal Alexander Hospital, Paisley. Hospital discharges are continually monitored and all related requests for AWI reports are prioritised. Where appropriate, the MHO service will ask for the use of interim orders to facilitate discharge. Welfare Guardianships Orders where the CSWO is appointed Welfare Guardian fell from 102 in 2024/25 to 96 in 2025/2026. Each order requires a qualified social worker to act as the “nominated officer” on behalf of the CSWO to supervise the powers in order. In addition, there were approximately 158 private welfare guardianship reports completed, and these orders require a minimum of one statutory visit by a guardianship supervisor after being granted to offer support. 14 Page 358 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Equally Safe Partnership Activity Renfrewshire’s Equally Safe Partnership is a multi-agency coalition bringing together statutory and third-sector organisations to prevent and eradicate violence against women and girls, ensuring an effective and strategic approach is taken to progressing the priorities set out in the national Equally Safe Strategy. Violence against women and girls has far-reaching and damaging consequences for individuals, communities and public services. Renfrewshire’s Equally Safe Partnership is strengthening workforce knowledge and skills to identify and respond effectively to violence against women and girls, while ensuring perpetrators are held accountable. In line with the Equally Safe strategy, the partnership is using recognised frameworks and approaches, including the Equally Safe in Practice Knowledge and Skills Framework, the Safe and Together Model, and Equally Safe at Work accreditation. These initiatives aim to prevent and eradicate gender-based violence and challenge the attitudes and systems that allow it to continue. The partnership is represented at national VAWG forums, which continue to highlight challenges with current funding models and the need for sustainable, coordinated commissioning of services for women and children affected by violence. Demand is rising and becoming more complex across services and COSLA have highlighted that Violence Against Women Partnerships and multi- agency arrangements require sustained resourcing to coordinate delivery and manage risk effectively. Scottish Government are piloting a VAWG Needs Assessment Tool which aims to strengthen partnership working, promote shared responsibility, and identify opportunities to improve safety, wellbeing and services. We await the publication of the updated Equally Safe Delivery Plan and will refresh local plans accordingly. A further national development is the introduction of a national multi-agency domestic homicide and suicide review model for Scotland. Domestic Homicide and Suicide Reviews (DSHR) were introduced in Scotland in April 2026 to identify what lessons can be learned and applied following a death where abuse is known or suspected in order to help prevent future abuse and deaths. The approach is welcomed; however, concerns have been highlighted about the disconnect between the DHSR Guidance and the role of Violence Against Women Partnerships, MATACs, MARACs, and existing learning review processes in place locally. Equally Safe in Renfrewshire 15 Page 359 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Renfrewshire MARAC Annual Referral Trends During 2025, Renfrewshire MARAC reviewed 234 high-risk domestic abuse cases, compared with 350 referrals in 2024. Although this represents a 33% reduction in referrals, the previous year experienced exceptionally high demand, and referral levels remain significant. The continued volume of cases demonstrates the effectiveness of partner agencies in identifying and responding to individuals at risk of serious harm. The impact of domestic abuse on families remains evident, with 349 children linked to MARAC referrals during the year, highlighting the need for safeguarding responses that address the needs of both victims and affected children. The complexity of cases remains a key feature of MARAC activity, particularly in relation to repeat victimisation. During 2025, 104 referrals (44%) involved repeat cases, indicating that many victims continue to experience ongoing or escalating risk despite intervention and support. This underlines the importance of coordinated multi-agency safety planning, disruption of harmful behaviour and sustained support services. Overall, while referral numbers have reduced from the previous year, the data demonstrates the continuing importance of MARAC in managing complex, high-risk domestic abuse cases and maintaining strong partnership responses across Renfrewshire. Renfrewshire Women’s Aid Renfrewshire Women's Aid experienced significant growth and development in 2025/26, continuing to provide refuge and support services while relocating to larger, more discreet premises in Paisley, which officially opened in June 2025. The new premises have enhanced service delivery by providing dedicated, welcoming spaces for support, staff, meetings and training, including a family-friendly room that enables children to play safely while their mothers access support. Strong partnership working has enabled Children’s Services Social Work to make effective use of the new facilities in supporting women open to Justice services as well as families. Equally Safe in Renfrewshire 16 Page 360 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Caledonian System The Caledonian System is Scotland’s accredited integrated practice intervention approach for men convicted of domestic abuse offences.This Court mandated programme aims to improve the lives of women, children and men impacted by this crime. It provides an intensive, approximately 2-year programme for sentenced men (individual and groupwork), alongside trauma informed support for partners and children. Recurring funding from Scottish Government has been agreed and internal planning is now well underway to implement the Caledonian System in Renfrewshire. Extensive specialist staff training provided by the national Caledonian team is scheduled to take place across September and October 2026. 16 Days of Activism Services and community groups across Renfrewshire’s multi- agency partnership actively participated in the annual 16 Days of Activism Against Gender-Based Violence. The 16 Days run from 25th November (the International Day for the Elimination of Violence Against Women) until 10th December (International Human Rights Day). The partnership supported Renfrewshire’s annual Reclaim the Night march, which took place on 27th November 2025 with the theme UNITE! – Invest to Prevent Violence Against Women and Girls. Equally Safe in Renfrewshire 17 Page 361 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Children and Young People In June 2025, in partnership with Education Scotland, Renfrewshire hosted a youth assembly. The event brought together nearly 200 young people from across Scotland, including representatives from 10 Renfrewshire secondary schools, to promote leadership and peer-led action on gender-based violence under the theme “Action for Change”. The day featured keynote speakers, including renowned American author and educator, Dr Jackson Katz, the creator and co-founder of the Mentors in Violence Prevention (MVP) programme. The youth assembly offered young people the chance to have their voice heard and directly influence how the Council and its partners support young people to prevent violence. It's one of many events led by Youth Services and Children's Services as part of Young and Equally Safe in Renfrewshire (YES), which aims to tackle gender-based violence affecting young people, across schools and communities. The YES project was shortlisted as a finalist in the Youthlink National Award 2026. The MVP (Mentors in Violence Prevention) Programme is Renfrewshire’s approach to tackling gender-based violence in schools. Through peer mentoring, younger students are encouraged to consider and discuss different scenarios such asbehaviour online, the use of harmful language, coercive control, gender labelling and alcohol and consent. A range of safe options which can prevent situations from escalating are then discussed. MVP is running in all Renfrewshire secondary schools with over 500 pupils involved and taking part in mentor training. In April 2026, Park Mains High School in Erskinewas the focus for an Education Scotland case study onengaging boys and menin the MVP programme. ‘Ready to Talk’ is a campaign run in partnership with I Am Me Scotland, NSPCC Scotland and Renfrewshire Child Protection Committee which launched in October 2025. The campaign aims to keep young people safe from child sexual exploitation (CSE) by recognising the importance of having supportive conversations about (un)healthy relationships. Renfrewshire Council’s Women and Children First service celebrated 25 years of supporting women and children affected by gender-based violence. The team are increasingly involved in contributing to Child Protection processes, reflecting strong multi- agency protection arrangements and earlier identification of the significant risk of harm associated with domestic abuse. Equally Safe in Renfrewshire 18 Page 362 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Drug Deaths In Renfrewshire, there were 46 drug-related deaths in 2024 which represents an increase of 4.5% from 44 in 2023. Drug-related deaths in Renfrewshire, 2014 to 2024 Renfrewshire had the sixth highest rate of deaths per 100,000 population (2010-2024) at 29.1 and above the Scottish average of 19.1. This is similar to the previous 5-year rate where we had the seventh highest rate of deaths at 28.9. Alcohol Deaths In Renfrewshire, there were 49 alcohol-specific deaths in 2024 which represents a decrease of 6% from 52 in 2023. Alcohol- specific deaths in Renfrewshire, 2014 to 2024 The alcohol-specific deaths rate for Renfrewshire for 2020-2024 was 24.9. The alcohol-specific deaths rate for Scotland for 2020- 2024 was 21.9. At council area in the last five years, Glasgow City, Inverclyde, North Lanarkshire, West Dumbartonshire, Dundee City and Na h-Eileanan Siar all had alcohol-specific death rates higher than Renfrewshire. Alcohol and Drugs - Analysis of Current Trends NOTE: 2025 Data for Drug–related deaths and Alcohol-specific were not published at the time of writing. 19 30 19 42 38 50 45 67 50 39 40 46 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 44 37 40 44 50 36 44 53 42 52 49 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Page 363 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Alcohol and Drugs Needs Assessment The New Harbour Project The ADP Needs Assessment identified people experiencing homelessness or housing instability as a priority group due to the increased risks of substance-related harm, poor health outcomes and alcohol and drug-related deaths. As a result, The New Harbour Project was established to provide intensive housing-led support for people affected by alcohol and/or drug use who are experiencing, or at risk of, homelessness. Building on the success of the My Life Ahead programme, the project is aiming to improve housing stability, strengthen engagement with treatment and recovery services, and support overall wellbeing. Delivered by Renfrewshire Council's Housing Support Team, the project is expected to support around 100 households over two years, with a particular focus on providing trauma-informed support for women with complex needs Funding from both the ADP and Renfrewshire Council will enable the project to operate until the end of 2027. Routes to Recovery The ADP Needs Assessment also highlighted opportunities to further strengthen access to support, particularly through enhanced community engagement, clearer pathways into services, and greater use of peer-led approaches. In response, the ADP commissioned Blue Triangle to deliver Routes to Recovery. A dedicated Peer Volunteer Co-ordinator has been recruited to develop a network of trained peer volunteers who will engage with individuals in their communities, build trusting relationships, and provide a barrier-free route into treatment and recovery support. The project will actively seek to engage people who are not currently accessing services through referrals from key points of contact, including the Community Safety Hub, the Scottish Ambulance Service, the Royal Alexandra Hospital, and individuals newly referred to treatment services. Peer volunteers will provide practical and emotional support as individuals navigate treatment and recovery services, helping to improve engagement, reduce drop-out rates, and encourage re- engagement following periods of relapse. An independent evaluation will assess the impact of the project. Renfrewshire Alcohol and Drug Partnership 20 Page 364 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Alcohol Brief Interventions Alcohol Brief Interventions (ABIs) remain a key component of Renfrewshire ADP’s prevention and early intervention approach to reducing alcohol-related harm. The ADP continues to strengthen ABI delivery by increasing workforce confidence, improving recording practices and expanding opportunities for alcohol- related conversations across a wider range of settings. To support this, refresher training is being delivered to practitioners who have previously completed ABI training, ensuring staff feel confident initiating non-judgemental conversations about alcohol use and accurately recording interventions. This targeted workforce development activity is expected to improve the consistency and quality of ABI delivery, contributing to increased recording rates and greater reach across the population. The ADP has also increased local training capacity, with two team members completing Train-the-Trainer qualifications. This investment will enable the delivery of sustainable, locally-led training and support the implementation of a comprehensive ABI Action Plan. The Action Plan will focus on increasing ABI delivery, strengthening recording and reporting arrangements, broadening staff training opportunities, and embedding routine alcohol conversations across health, social care and community services. Provision of Naloxone Kits Renfrewshire ADP continues to prioritise the distribution of Take- Home Naloxone (THN) and overdose prevention training as part of its commitment to reducing drug-related harm and deaths. In 2025/26, services distributed 1,288 naloxone kits, an increase from 1,023 in 2024/25, significantly exceeding the annual target of 720 kits. A Naloxone Training for Trainers (T4T) programme has been developed to support individuals and organisations across Renfrewshire who are interested in delivering Naloxone training to individuals accessing local services. This session had been developed and was piloted in December 2025, with four staff members participating from Renfrewshire Alcohol and Drug Recovery Service and Street Connect. Renfrewshire Alcohol and Drug Partnership 21 Page 365 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level In Renfrewshire, there were 17 probable suicides in 2024, a decrease from 19 in 2023. In the same period, there were 704 probable suicides registered in Scotland, a reduction of 84 from the previous year. Probable Suicides in Renfrewshire, 2014 to 2024 Age-standardised mortality rates of probable suicide deaths by council area, 2020-2024 For the period 2020-2024, Renfrewshire had the seventh lowest rate of deaths per 100,000 population which is below the Scottish average. Suicide Prevention: Probable Suicides - Analysis of Current Trends NOTE: Data for 2025 not available until mid September 2026. 22 24 21 16 23 13 16 22 25 33 19 17 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Page 366 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Suicide Prevention The Renfrewshire Strategic Suicide Prevention Group The multi-agency group has been paused, and a short life working group (SLWG) has been established to refresh the terms of reference for the strategic group. The SLWG will have a focused approach and take a deep dive into the data and identify any actionable areas. Following completion of the SLWG the terms of reference will be refreshed for the RSPSG which will continue to support the key actions from "Creating Hope Together". Data Analysis Subgroup The subgroup has now been established, and local data is being collated and analysed to develop an understanding of the local context. Those deaths by suicide who are known to services will be formally reviewed through existing processes, while those deaths not known to services are now being informally reviewed by the co-chairs of this group. Ensure early intervention for those most at risk of having thought of suicide Distress Brief Interventions (DBI) – RAMH have been commissioned by Renfrewshire to deliver DBI on the HSCPs behalf. There is an implementation plan underway to facilitate the referral process and pathways to support DBI. The main priority is to ensure police officers have received level 1 induction which allow them to refer direct to RAMH for a level 2 intervention to be delivered. The Community Safety Service daily hub meeting provides a platform for mental health referrals to be made direct and provides a clear pathway for communication between Police Scotland and health care professionals by identifying those within the community who are at risk due to their mental health. This process allows the concerns raised to be addressed in a timely manner and supporting a positive outcome and reducing the calls to Police Scotland. 23 Page 367 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Unpaid work and personal placements Work has progressed to expand the use of personal placements within unpaid work, supporting a more flexible and person- centred approach to Community Payback Orders. Engagement with third sector and employability partners has helped increase awareness and identify a broader range of placement opportunities. This approach is supporting improved engagement and completion of unpaid work, while enabling individuals to build confidence, develop skills and establish routine. It also strengthens links between justice services and local communities, creating pathways into volunteering, training and employment. Health Alignment Work is underway to better understand how individuals involved in justice services access and experience alcohol, drug and wellbeing support, recognising the complexity of needs and the breadth of available services. While there are positive partnerships and effective practice in place, feedback highlights that services can sometimes be experienced as fragmented.A whole-system approach is being developed to map pathways, identify gaps and improve coordination, supporting more consistent and person-centred responses that makes best use of available capacity. Engagement in HMP Barlinnie Engagement within HMP Barlinnie has provided valuable insight into the experiences of individuals in custody linked to Renfrewshire, helping to inform improvements to throughcare and transitions. Feedback from themed sessions highlights challenges around housing stability, access to employability support and navigating services. Learning from this work will inform the next phase of system analysis, supporting partners to identify gaps, strengthen coordination and improve outcomes for individuals. Community Justice 24 Page 368 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level CONTEST Following revision by the Scottish Government Strategic Board, it was agreed that there will be a three-year Local CONTEST Delivery Strategy for each local authority. PREVENT Self Assessment The Council undertook a robust self-assessment as part of a revised approach to how PREVENT is working across Scotland. The self-assurance was then reviewed by Home Office officials who highlighting the following areas of best practice: • Senior oversight and prevent partnership –strong governance structures in place to ensure senior management is well informed and Prevent features in multiple organisational and multi-agency forums allowing for appropriate reporting • Training – Prevent training is mandatory for all staff and hosted on the Local Authority learning platform ensuring the workforce is aware of their statutory duty • Referral pathway – clear information available to staff about how to make a referral, utilising intranet and external web pages direct members of the public on how to report concerns Areas of development included: formalising arrangements in relation to venue hire; further enhancing risk assessment methods and ensure dynamic recording of risks is undertaken. Serious Organised Crime and Trading Standards- Tobacco and Nicotine Vapour Products (NVPs) The sale and supply of single-use nicotine vapour product (vapes) came into force in Scotland from June 1, 2025. The Trading Standards team provided advice to all 240 registered businesses registered to sell vape products, including online sellers and trade suppliers. Work around the supply of illicit Tobacco and illegal Nicotine Vapour Products (NVPs or Vapes) continues to be the focus of the Trading Standards and Licensing team and enforcement visits were conducted, utilising the tobacco detection dog as part of Operation CECE; part of a UK-wide partnership initiative between HMRC and Trading Standards services, to remove illicit tobacco products from the marketplace. Illicit products are regularly being recovered with traders becoming more sophisticated in their approach to avoiding detection. Renfrewshire Trading Standards also led on a national project investigating the prevalence of - and detriment caused by – short weight solid fuel products. The cost-of-living crisis has increasingly seen citizens investigate and use alternative sources of energy as gas and electricity prices have increased. Public Protection 25 Page 369 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Community Safety Firework Control Zones Applications were sought from community groups between November 2025 and January 2026. With no applications being received during this window, no FCZs have been taken forward for consultation this year. The same application window will be open for groups to apply during 2026/27. Operation Moonbeam As with previous years, Officers from across the Community Safety Partnership were engaged in a number of support activities under the banner of Operation Moonbeam (Police Scotland lead) on Bonfire Night. Dried Up Private Water Supplies As a result of a dry spring in 2025, the Service supported users of five private water supplies which had dried up through provision of over 1200 litres bottled water (received from Scottish Water) for cooking, drinking and washing. This has been an annual occurrence over recent years. Service Reviews The Community Support Service (Wardens) and the Public Space CCTV review remained ongoing through 2025/26, with the new operating model designed to ensure that the services are aligned with current demand. Public Protection 26 Page 370 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Environmental Health Radon Compliance Monitoring Programme Officers undertook a radon monitoring programme, issuing monitoring kits to ground-floor Council homes, 10 operational workplaces and five schools/early learning centres within potential affected areas. Results have been very positive, with no remedial action having been identified. Tenants were informed of their results, and periodic re-testing requirements are embedded into business processes. A new Radon Policy has been developed to support ongoing monitoring arrangements. Health and Safety Interventions Officers conducted a number of interventions relating to carbon monoxide poisoning from gas installations, and the risks of explosion from use of LPG cylinders within relevant premises. Appropriate enforcement action was taken by Officers to remove any identified risks. Recruitment With Environmental Health Officers being challenging to recruit, the Service completed a phase of recruitment to bring in new Technical Officers to support the team and also supported a trainee Food Safety Officer and Trainee Environmental Health Officer in successfully passing their professional exams. The service continues to review recruitment (and development) opportunities for professional staff within the challenges faced by both Environmental Health and Trading Standards to successfully recruit into these professions. Public Protection 27 Page 371 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level NHSGGC Public Protection Service During 2025–2026, significant progress was made in delivering the NHS Greater Glasgow and Clyde Public Protection Strategy, Safeguarding: It Matters to Us 2023–2026, with continued commitment to reducing the risk of harm to unborn babies, children, young people and adults across our communities. All measures within the NHS GGC Public Protection Quality Assurance Framework have been mapped to the relevant strategic aims and included in the Public Protection Strategy Delivery Plan 2023–2026. For each of the six aims, the plan sets out associated goals, outcome measures, objectives and time-bound actions. Substantial progress was made during 2025–2026. Key areas of progress include: Digital Improvements: Digital improvement activity has progressed through the eHealth improvement bundle, including development of a referral and management IRD application. West Dunbartonshire HSCP continues to pilot an electronic solution to test feasibility and inform wider implementation. A customised Public Protection Service alert icon is also being developed with acute and TrakCare colleagues to support real- time communication, patient safety and information sharing. Interagency Referral Discussion / Child Protection: Over the last 11 months, 3,067 IRDs were requested and 3,902 outcomes recorded, as more than one outcome can be selected.Of these recorded outcomes 78 resulted in no further action (2%); 1,550 (51%) progressed to single-agency investigations; 821 (27%) to joint investigative interviews, and 700 (23%) to joint investigations.The remaining outcomes related to other recorded actions. This indicates that IRD discussions support proportionate decision-making and help identify the appropriate response to reduce the risk of harm to children and families. Most IRDs relate to school-aged children, with emotional care concerns and neglect the most common presenting issues. Between 01/04/2025 and 31/03/2026, 3,452 IRDs were held, showing the first decrease since the Child Protection dashboard was introduced in 2021. The reasons for this reduction are not yet clear and are being explored, including consideration of current thresholds. Learning and Education: Funding has been secured for two fixed- term posts within the PPS to support delivery of Level 3 Child and Adult Support and Protection training, scope learning needs across care groups and develop a sustainable, budget-aligned training model. Public Protection 28 Page 372 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level NHSGGC Public Protection Service Advice Line calls: Public Protection Nurse Advisors continue to provide specialist advice through the Advice Line, available to staff across NHSGGC, including independent contractors. Emotional and physical neglect remain the most common reasons for child protection calls. Between August 2025 and June 2026, 1,266 child protection calls were received, compared with 163 Adult Support and Protection calls. Adult calls covered concerns including sexual abuse, emotional abuse and self-neglect, indicating relatively low use of this route. Prevent: Referrals requiring background health information are directed to the Public Protection Service through the dedicated PREVENT mailbox. Current activity focuses on improving staff awareness of PREVENT and how to make a referral. Adult Support and Protection: Adult Support and Protection processes are being developed in line with established child protection arrangements, including use of IRD and advice forms. Activity is recorded and reported through MicroStrategy in Clinical Portal. Introduced in February 2026, MicroStrategy supports robust data reporting and scrutiny of ASP activity across NHSGGC. Child Protection Supervision: During 2025–2026, a review of Child Protection Supervision across NHS Greater Glasgow and Clyde was undertaken using an appreciative inquiry approach. Feedback showed strong commitment to supervision and broad agreement on its value in supporting reflective practice, professional confidence and decision-making. Preferred models varied according to practitioner experience, local context and individual preference rather than consensus on a single model. The findings provide assurance on existing strengths and identify opportunities to improve consistency, quality assurance and continuous improvement. SAER/Learning Reviews: The Public Protection Service supports SAER and learning review activity, with progress reported through the NHS GGC public protection governance structure. The NHSGGC Cross-HSCP Quality Improvement Group monitors open and closed Child Protection SAERs to support Board-wide learning. The second annual SAER/Learning Review thematic report will be presented to the Child Protection Forum in September 2026. Assessment of Care Toolkit: During 2025–2026, work focused on supporting practitioners to use the Assessment of Care Toolkit. Public Protection 29 Page 373 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Since 2022 the Migration and Resettlement Strategic Group has co-ordinated our local response to asylum dispersal and refugee resettlement. This has enabled us to regularly and routinely share information, and the identification and rapid response to issues as they emerge. Ukrainian Displaced Persons (UDPs) The Council’s resettlement team currently support Ukrainian Displaced Persons across Renfrewshire between hosts and the community, social and private sector. The Ukraine Permission Extension Scheme (UPE) opened on 4 February 2025, which enables UDPs to apply for an extension when their current visa has 28 days remaining until expiry. If an application is made after their current permission expires, even if their application for UPE is successful later, the individual will have no recourse to public funds (NRPF). This means they will lose their current entitlements to work, rent and receive benefits. These entitlements may be reinstated if you later receive a positive response to your UPE application. As of March 2026, all Ukrainian households in Renfrewshire had applied for the UPE. Asylum Dispersal The Council regularly meets with representatives from the Home Office, Mears and Migrant Help in relation to people being supported through the asylum process in Renfrewshire. Whilst the Council has no direct role to play in terms of support during the process, there is a core focus on safeguarding issues, community support and cohesion. There has been a steady increase in the number of individual properties being utilised over the last 6-12 months. The Council and Police Scotland are informed of the potential procurement of a property by Mears and are asked to comment on location suitability only in terms of an environmental scan undertaken by Mears. Limited information is available on actual utilisation of properties and by whom. Migration and Asylum 30 Page 374 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Police Scotland, Renfrewshire Performance Incidents Recorded Common Assault Overall Dishonesty Domestic Abuse Overall Violent Crime Sexual Crime Missing People Housebreaking Road Traffic Casualties Disorder Complaints Unless otherwise stated, all data provided within this report is for the period 1 April 2025 - 31 March 2026, with comparisons made against the same period in the 2024/2025 period. All statistics are provisional and should be treated as management information. All data have been extracted from Police Scotland internal systems and are correct as at 20/04/2026. - 6.2% + 4.5% - 1.1% + 8.2% - 3.3%+ 11.3% + 5.4%- 5.8% - 23.5% - 27.5% 48,180 1,910 3,646 1,441 194 5,871 490 136 723 2,288 Total Crime + 13.4% 17,167 Page 375 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Police Scotland Total Recorded Crime Recorded crimes and offences increased by 13.4% in Renfrewshire in 2025/26 (17,167). Although an increase was noted across most crime categories (except crimes of dishonesty), the rise can largely be attributed to an increase in proactivity. Crimes against society (including proactive crimes such as bail offences, drug and weapon carrying offences) increased by almost 16%, while road traffic offences rose by over 13%. These two crime categories account for 83% of the variance between 2024/25 and 2025/26 figures. Violence Recorded violent crimes in Renfrewshire increased by 5.4% compared to the previous year (2,288), with the majority (over 83%) of recorded crimes of violence being common assault (including against emergency workers). Almost 67% of these involved assault to no injury to victims. Meanwhile, crimes of serious violence (including serious assault, robbery, attempted murder and murder) collectively rose by almost fourteen 14% on the previous year, with 14 more victims. Paisley Northwest continues to be the multi- member ward with the highest number of recorded crimes of violence occur. The volume of violent crimes committed within private space has risen by 4.2% on the previous year, with almost half of violent crime occurring within dwelling houses. Weapons Offences A total of 485 offensive/bladed weapons offences were recorded in Renfrewshire during the reporting period, marking a 17.4% increase on the previous year. The detection rate for weapon-related crimes fell from 82.3% to 80.2%, however, a proactive approach to tackling the issue of weapon-carrying has led to a 14% increase in the number of detections for these crimes (n=49). Approximately 43% of weapons were classed as sharp/bladed, with the remainder consisting of other weapon categories including blunt weapons, improvised or household items and tools. Police in Renfrewshire continue to work with partners to educate young people about the risks and consequences of carrying weapons, as well as to divert them away from criminal activity. Hate Crime During 2025/26, 277 hate crimes were recorded in Renfrewshire, with a detection rate of 70.4%. Race continues to be the most targeted protected characteristic (61%). Threatening and abusive behaviour and hate aggravated conduct (including stirring up hatred) are the most-commonly reported hate crimes. Other reported hate crimes include common assault, vandalism and breach of the peace. A significant proportion of the victims of hate crime are police officers. 32 Page 376 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Police Scotland Disorder and Antisocial Behaviour (ASB) Recorded crimes of damage and reckless conduct in Renfrewshire rose by 1.5% compared to the previous year, with vandalism increasing by approximately five percent. Meanwhile, crimes of wilful fireraising fell by over 35%, with 80 crimes recorded. However, the detection rate for this crime type fell significantly, falling from 43.5% last year, to 20% in the current reporting period. A significant proportion (approximately half) of wilful fire-raising crimes involved vehicles being set alight. Public-reported incidents of anti-social behaviour and disorder dropped by 3.3%, with 5,871 incidents recorded. Police in Renfrewshire continue to engage in a multi-agency response to ASB, building on the proactive work carried out through the Partnership Hub and ensuring effective plans are in place to address community risks. Sexual Crime 490 sexual crimes were recorded in Renfrewshire in the reporting period - an increase of 8.2% on the previous year (n=453). While contact offences rose by approximately 20%, non-contact offences fell by 1.6% - with many of these being cyber-enabled sexual offences such as indecent communications or sending indecent images. Just over a quarter of sexual crimes recorded involved non-recent reporting, with specific challenges associated with the investigation and detection of such crimes, due to the passage of time and resulting loss of various forensic opportunities. The detection rate was 54.7%, compared to the national rate of 61.1%. In 2025/26 there were 36 repeat offenders (compared to 42 in 2024/25) and 63 repeat victims of sexual crime. Missing People Ongoing collaboration with partner agencies has contributed to a reduction of 27.5% in the total number of missing person reports in Renfrewshire. 725 incidents were recorded in 2025/26, compared to 994 in the previous year. A total of 323 individuals were reported missing - with 96 of these individuals being repeat missing people (i.e. being reported missing on multiple occasions). 77% of missing persons reports related to young people, with over 47% of all reports involving care-experienced young people. Police Scotland continue to engage with appropriate partners to safeguard and reduce threat risk and harm to our most vulnerable people, especially when they go missing. 33 Page 377 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Police Scotland Domestic Abuse Domestic abuse incidents in Renfrewshire rose by 3.2% compared to the previous year, totalling 2,163 incidents. We assess the increase is highly likely attributable to increased usage of the DASA legislation and improved investigative practices to identify abuse as part of a course of conduct rather than individual/isolated acts. Of domestic abuse incidents, 43.6% led to a recorded crime, with related crimes rising by 11.3% to 1,441. The detection rate has fallen slightly, falling from 68.9% to 68.6%. The Multi-Agency Tasking and Coordination and Multi-Agency Risk Assessment Conferences frameworks remain vital in safeguarding victims, providing tailored support, coordinating partnerships, and ensuring agency accountability. We continue to work together with partners to ensure that victim centred approach adopting the most suitable support to victims and families. (Refer to Equally Safe Section). Road Casualties In the reporting period, there were 136 road casualties in Renfrewshire, a decrease of 42 compared to the previous year. This includes five less road fatalities (2) and 39 less slight road injuries (73). However, eleven more serious road injuries occurred (64), including an increase of two serious child road injuries (8). A slight increase in road casualties aged 66+, highlighting the increase in threat and risk of harm to older members of Renfrewshire’s communities. Police Scotland remains committed to reducing road casualties through ongoing enforcement and education efforts. The dedicated Road Policing Unit continues to support local policing through a range of road safety and crime prevention campaigns. Road Traffic Offences Reflective of an increase (+14.3%) at the national level, recorded road traffic offences in Renfrewshire have risen by 41.1% on 2024/25 figures, totalling 4,613 in the reporting period. The detection rate for these offences is 88.9%, which remains closely comparable to the previous year’s rate (86.8%) and the national rate (87.5%). As part of the road safety strategy within the Division, proactivity has significantly increased with a key priority to tackle the issue of use of illegal electric vehicles, including e-scooters and electric motorcycles. 34 Page 378 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Police Scotland Acquisitive Crime A total of 3,646 crimes of dishonesty were recorded in Renfrewshire, a decrease of 1.1% on the previous year. The detection rate was 38.9%, exceeding the national rate of 36.6%. Shoplifting accounts for over 43% of all recorded crimes of dishonesty, with crimes of this type rising by 6.3% on the previous year. Excluding this type of crime, crimes of dishonesty have fallen by just over 6%, with crimes of housebreaking falling by 5.8% and common theft by 21.7%. Problem-solving initiatives are underway including a National Retail Crime Task Force. This dedicated unit supports police officers in delivering prevention activities and targeting repeat offenders. Fraud remains a key concern due to evolving tactics used both online and offline – with recorded crimes increasing by 4% on the previous year. In Renfrewshire, consumer and retail fraud and banking/credit industry fraud constitute a significant proportion of recorded fraud crime, with other fraud methods in the reporting period including advance fee payment frauds and bogus/doorstep crime. Police in Renfrewshire continue to engage with the community to raise awareness of emerging fraud methods and provide practical advice to help individuals protect themselves from financial harm. Cyber and Digital Crime Cyber-enabled crime remains a significant concern for communities in Renfrewshire. Fraud continues to be the most recorded cyber- enabled crime in terms of number of reports received, with over 28% of all recorded frauds being perpetrated online. We continue to address this issue through local partnerships and national collaboration with the Cyber Scotland Partnership and the financial sector to raise awareness of online fraud. Threats and extortion are another key cyber-threat in Renfrewshire, with the majority (81%) of recorded extortion crimes being cyber-enabled ‘sextortion’ crimes. Offenders (who are commonly located out-with the UK) build trust through social media or messaging platforms before making demands - often resulting in serious emotional and financial consequences for victims. Sexual offences constitute a significant proportion of cybercrimes, with crimes such as communicating indecently, viewing sexual activity or images, indecent photos of children and threats to disclose intimate images. To combat online child sexual abuse and exploitation, Police Scotland engage with specialist national units and partner agencies to promote preventative awareness. 35 Page 379 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Scottish Fire and Rescue Service, Renfrewshire Activity Fires False Alarms Total no. of Incidents First Aid /Hospital Treatment (all incidents) - 2.3% - 1% + 11.9% - 2.9% - 41% Road Traffic Collisions * Data above is year on year change Summary 2025-26 The activity totals and other statistics quoted within this report are published in the interests of transparency and openness. They are provisional in nature and subject to change as a result of ongoing quality assurance and review. Because all statistics quoted are provisional there may be a difference in the period totals quoted in our reports after local publication which result from revisions or additions to the data in our systems. The Scottish Government publishes official statistics each year which allow for comparisons to be made over longer periods of time. 734 1165 66 2458 92 Page 380 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Scottish Fire and Rescue Service, Renfrewshire Activity Page 381 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Scottish Fire and Rescue Service Community Safety and Engagement Community safety and engagement activity continued to support SFRS prevention priorities. Engagement activity aligned with broader partnership objectives, supporting vulnerable individuals and reducing the risk of future incidents. The sustained delivery of preventative interventions reinforces SFRS’s commitment to early intervention, risk reduction and long-term community resilience. In partnership with the Scottish Ambulance Service and Save a Life for Scotland CPR awareness sessions continue to be delivered. The engagement helped build staff confidence in recognising cardiac arrest and performing effective hands only CPR, strengthening our ongoing partnership working. The Electrical Safety Campaign took place throughout January and February. Community Action Team has incorporated both Register My Appliance Week and Electrical Fire Safety Week into our ongoing prevention activities, in line with the SFRS Community Safety Calendar. These themes continue to support our local engagement work and help raise awareness of key safety messages across our communities. Our school engagement programme continues to engage with Primary and Secondary Schools throughout Renfrewshire as part of a structured programme created to deliver safety advice to young people. Home Fire Safety Visits During 2025-26, 725 home fire safety visits (HFSVs) to homes across Renfrewshire were completed. These visits involve SFRS staff engaging with individuals within the home environment, to identify potential fire risks and to provide appropriate advice and education to improve their fire safety in the home. We have introduced new software for the recording of HFSVs and will launch a new Partner Referral App which will make it easier and more secure for our valued partners to make a referrals for HFSVs to SFRS, for their clients. Partner referrals are important as we know from experience that individuals involved in fatal and serious fires are often known to our partner organisations but not to SFRS. 38 Page 382 of 392
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Title can go here • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level Strategic Focus 2026/27 COG will continue to regularly scrutinise and monitor performance across all areas of community protection activity, focusing in on areas where there are ratings are poor, there’s changes in referrals, incidents or concerns reported, or where national research or legislation suggests improvements or change to practice or multi-agency working. COG will seek to ensure that performance and practice are scrutinised at a strategic level, to identify what works well, to highlight any areas for improvement, and to consider where further opportunities for early intervention and prevention activity would achieve improved outcomes for local people. Moving forward COG will identify several specific priorities to be progressed during 2026/27, in addition to ongoing activity. Our agenda will be flexible and dynamic to incorporate any new or emerging areas of focus via spotlight sessions. 39 Page 383 of 392
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PUBLIC To: Council On: 24 September 2026 __________________________________________________________________ Report by: Chief Social Work Officer __________________________________________________________________ Heading: Sustainable Future Programme – Renfrewshire Health and Social Care Partnership __________________________________________________________________ 1. Summary 1.1. On 22 June 2026 Council “instructed the Chief Social Work Officer to deliver a report to the next full Council meeting detailing the specific risks to service users in Renfrewshire following the June 19th IJB cost-cutting decisions, primarily driven by the Health and Social Care Partnership’s (HSCP) persistent structural 14-million-pound funding deficit”. 1.2. Renfrewshire Council has delegated adult social care to Renfrewshire Health and Social Care Partnership (RHSCP). NHS Greater Glasgow and Clyde (NHSGGC) has delegated a range of health services to RHSCP. The governance arrangements in relation to the delivery of these delegated rests with the Integrated Joint Board (IJB). Renfrewshire Council nominated four elected members to service on the IJB and NHGGGC appointed four members to the IJB. 1.3. Renfrewshire IJB agreed its sustainable futures approach at its meeting on 31 March 2023. The sustainable futures approach includes the modernisation of services as well as achieving a sustainable budget position for the future. 1.4. A range of Sustainable Futures proposals were presented on 19th June 2026. Prior to their consideration, members of the IJB considered a report on the implications of financial recovery for RHSCP and the community it serves. The IJB was advised that a combination of increased demand and increasing costs had resulted in RHSCP requiring to utilise financial reserves over the previous three-year period in order to deliver a balanced budget. It noted that the reserves were likely to be exhausted in the next financial year (2027/28) if action was not taken to address the funding gap. Item 10 Page 385 of 392
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PUBLIC 1.5. The sustainable futures agenda was developed over a significant period by the IJB and involved a range of engagement events with users of services, carers, staff and members of the IJB. The IJB recognised that the impact of the sustainable futures agenda was not neutral but included elements of redesign of services which would also deliver savings. 1.6. In developing the sustainable futures savings options, the IJB was provided with a detailed integrated impact assessment (IIA) for each of the proposals. The integrated impact assessments included an Equality Impact Assessment, a Fairer Scotland Duty Assessment and contained a view from professional leads across social work and care and health services. The IIAs also reflected feedback from consultation with key stakeholders. 1.7. This report provides information on the specific risks to service users following the decision by the IJB to agree to the recommendation to proceed with the sustainable futures approach and the mitigations in place. __________________________________________________________________ 2. Recommendations 2.1. Council is asked to note: [a] the sustainable futures approach was developed over a significant period of time and agreed by the IJB after consideration of detailed integrated impact assessments; and [b] the sustainable futures approach was informed by extensive consultation with users of services and carers. __________________________________________________________________ 3. Background 3.1. Renfrewshire Health and Social Care Partnership (RHSCP) operates a range of health services, adult social work and social care services delegated by NHS Greater Glasgow and Clyde and Renfrewshire Council. The governance arrangements in relation to the delivery of these delegated rests with the Integrated Joint Board (IJB). Renfrewshire Council nominated four elected members to serve on the IJB and NHGGGC appointed four members to the IJB. 3.2. RHSCP has faced increased demand on services and increased cost of care pressures over a number of years. Over the past three years RHSCP has required to utilise significant elements of financial reserves to ensure a balanced budget. The financial pressures and increasing demands are not unique to RHSCP and are a factor for HSCPs and other public bodies across Scotland. Audit Scotland noted the context for IJBs in its finance bulletin published in February 2026. 3.3. The Renfrewshire IJB was presented with a number of options in September 2024 under the sustainable futures approach. The IJB was not able to agree to the options presented and after discussion it was agreed the senior leadership team within RHSCP should continue to develop the approach and present options at a future meeting of the IJB. Page 386 of 392
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PUBLIC 3.4. The RHSCP senior leadership team engaged in engagement events with users of services, carers, staff and member of the IJB over a number of months. The level of engagement opportunities offered alongside the depth of access to the RHSCP senior leadership team was in my opinion amongst the most intensive I have experienced in my career and in excess of that from other HSCPs across Scotland. 3.5. The IJB was presented with two reports at its meeting on 19 June 2026 to assist it in making decisions on the sustainable futures approach. The first report on presented information on the risks of RHSCP entering financial recovery, and the second on sustainable futures. 3.6. The report on sustainable futures contained proposals, which were approved by the IJB in respect of • The redesign of older adult day services • The redesign of learning and physical disability day services • A review of the model of learning disabilities respite • The closure of Flexicare • The closure of Autism Connections • The removal of the Assertive Outreach Model • The removal of vacant health visiting posts 3.7. The report available to member of the IJB provided detail on each of the options proposed and contained detailed integrated impact assessments which set out the nature of the change proposed, the anticipated impact and risk and the mitigations in place. The integrated impact assessments included an assessment of the strategic and policy impact, an Equality Impact Assessment, a Fairer Scotland Duty Impact Assessment and a Children’s Rights and Wellbeing Impact Assessment. 3.8. As Chief Social Work Officer I was invited to contribute a professional view on each of the proposals. The integrated impact assessments also contained information on the engagement with users of services, carers, staff and trade unions. In all of the options considered I recognised there were no neutral options. It was however my view the proposals offered were considered and balanced and offered the IJB with options which were deliverable in a safe manner, protecting the wider services. It should be noted that redesign and modernisation was at the heart of a number of the proposals and the delivery of a financial saving was an additional outcome. Impact of the individual sustainable futures proposals Redesign of older adult day care services 3.9. The driver behind the redesign of older adult day care services was to modernise and reflect learning and demand from the experience of providing a service during the COVID restrictions. The review of older adult day care services identified an over provision from too many locations and the impact of a virtual option for some members of the community. Page 387 of 392
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PUBLIC 3.10. The proposal to reduce the number of locations will result in some service users requiring to change the day care service they attend. There will be some impact on the time some service users spend on transport to the new locations however this will not be significant. There will be no loss of service for individuals as the overall service provision was underoccupied. There is a potential impact on some individual unpaid carers as a result of the proposed change in the service provision. Unpaid carers will be offered an additional assessment of their own support needs in these circumstances. 3.11. As RHSCP moves forward with the implementation of the redesign individual users of the service directly impacted will be supported through a transition process to ensure their care needs continue to be met. A similar approach will be taken forward in relation to unpaid carers. The planned date for full implementation of the redesigned model of day care for older adults is 1 April 2027. Redesign of learning and physical disability day services 3.12. The proposed changes to learning and physical disability day services developed as an approach to modernise the provision, alongside integrating learning from the COVID19 pandemic. The proposed changes will create an integrated model of day care including community and complex care hubs. 3.13. The proposed changes will result in the services being focused on individuals in family-based care arrangements. There will be a realignment of locations reducing dependency on multiple buildings. The rationalisation of building will provide a financial saving for HSCP and continue to allow individuals to receive a service. 3.14. As with the older adult service there will be an implication for some individuals in that they will have to travel to an alternative location. The other individuals who are impacted is a small number who are in supported accommodation where their care arrangements. These care arrangements included provision for day care support to the individuals, and the proposed arrangement reduces duplication. 3.15. The new model will create further opportunities for community capacity building by working with partners to support links to community organisations and activities. This is a progression of the service bringing it more into line with national policy objectives. 3.16. The data provided on the use of learning disability and physical disability confirmed over provision and contributed to the need for redesign to a more modern and efficient service which will meet the policy objectives of Renfrewshire HSCP and the Scottish Government. It seeks to enhance the experience for those using the services. The issue of equity based on fair access criteria is a useful addition to the assessment process for those who perhaps need the service. 3.17. As the implementation of the redesign of learning and physical disabilities day services individual users of the service directly impacted will be supported through a transition process to ensure their care needs continue to be met. A similar approach will be taken forward in relation to unpaid carers. The planned date for full implementation of the redesigned model of day care for older adults is 1 April 2027. Page 388 of 392
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PUBLIC Review of the model of learning disabilities respite 3.18. This planned review will focus on revising the current respite model at Weavers Linn, including a review of current allocations of overnight respite to align with fair access principles. The review of the model for delivering learning disabilities respite has been in planning for a number of years and was initially proposed following an independent review in 2019 which highlighted a challenge around inequitable access to services 3.19. Some users of learning disabilities respite had historically high allocations whilst others with similar needs were allocated lower levels. The review will focus on fair access to respite provision. The review aims to ensure standardised allocations for those with critical needs of 28 nights per year, and those with substantial needs of 21 nights per year which is in line with other Health and Social Care Partnerships across Scotland. This would mean a reduction in access for some individuals, whilst creating capacity for others to access respite at Weavers Linn where they are not currently able to do so and reducing the likelihood of out-of-area respite placements. It would also create capacity for an income generating bed which could be accessed by other local authorities. 3.20. The individuals who are impacted a reduced access to respite will have their care needs fully reviewed on a regular basis. Closure of Flexicare 3.21. The Flexicare service provides social support and activities for adults with learning disabilities, and some people with autism. This is in addition to core day services. The service has experienced a reduction in use by individual over the period of the development of the proposal to cease delivery of Flexicare. 3.22. Flexicare is a non-statutory service and is not delivered in any other RHSCP across Scotland. There will be 11 individuals directly impacted by the closure of the service. Individual care planning decisions will be taken forward to minimise any negative impact. Closure of Autism Connections 3.23. Autism Connections is a non-statutory service with a small staff team who provide (i) practical advice and support to service practitioners supporting adults with autism and their families; (ii) autism training to services within Renfrewshire Council and the HSCP; (iii) raising awareness and knowledge of autism within the general community; (iv) sharing best practice; and (v) providing transition support for young people with autism moving from education and Children’s Services into Renfrewshire’s Learning Disability Services. 3.24. The sustainable future plan is this service is closed. The service does not provide direct care to individuals and therefore there is no impact on care. The service provided advice and training for individuals and staff. Alternative advice option routes are available locally and families and individuals will be signposted to alternative providers including the Renfrewshire Carers Centre, Advice Works or Renfrewshire Citizen’s Advice Bureau. Page 389 of 392
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PUBLIC 3.25. The training offered by Autism Connections has influenced the programme of training delivered by the Social Work Professional Training Team. Further discussions are ongoing with other services to consider how training for the wider staff groups will be enhanced by the training previously provided by Autism Connections. Removal of assertive outreach model 3.26. This support is a non-statutory service model which is not replicated across Scotland. Assertive Outreach is a multi-disciplinary team which focuses on people on the Dynamic Support Register (DSR) and the provision of support to services users, families and providers at times of crisis or transition. Since the team was established, Delayed Transfers of Care for people with complex learning disabilities have been reduced to, and are being sustained at, a very low level achieving one of the key objectives of the model. 3.27. The proposal under sustainable futures will result in the responsibilities currently allocated within Assertive Outreach be reallocated across other Renfrewshire Learning Disabilities Services (RLDS). It is considered the wider teams within RLDS retain the expertise required to continue to meet the current objectives of the Assertive Outreach team. Removal of vacant health visiting posts 3.28. The IJB agreed to remove 3.2 WTE posts in the health visiting service which had been vacant since 2024. The health visiting service has operated without these posts for a significant period with minimum impact on overall service performance. Despite the posts being removed the Health Visiting Universal Pathway is being maintained and targeted services for the most vulnerable children remains a priority. ___________________________________________________________________ Implications of this report 1. Financial There are no direct financial implications as a result of this report. The sustainable futures approach will contribute to RHSCP achieving savings and to deliver a balanced budget in future financial years. 2. HR and Organisational Development None. 3. Community/Council Planning None 4. Legal None. 5. Property/Assets None. 6. Information Technology Page 390 of 392
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PUBLIC None. 7. Equality and Human Rights The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations as it sets out the potential implications of decisions taken by another statutory body. As noted earlier in this report, RHSCP prepared integrated impact assessments for consideration by the IJB when they reached their decisions. 8. Health and Safety None. 9. Procurement None. 10. Risk None. 11. Privacy Impact None. 12. Climate Risk None. 13. Children’s Rights None. 14. Cosla Policy Position None. List of Background Papers __________________________________________________________________ Author: John Trainer, Head of Children and Justice Social Work/Chief Social Work Officer john.trainer@renfrewshire.gov.uk 0300 300 0277 Page 391 of 392
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