JC18 2025 Annual Accounts Appendix 1

Unaudited Annual Accounts

Year to 31 March 2025

Tayside Contracts Joint Committee (during 2024/25)

ANGUS COUNCIL

Councillor Brenda Durno

Councillor Serene Cowdy

DUNDEE CITY COUNCIL

Councillor Steven Rome

Councillor Christina Roberts

Councillor Martin Shepherd

CouncillorBill Duff

Councillor RossGreig

Councillor Craig Fotheringha m

Councillor LynneShort

PERTH AND KINROSS COUNCIL

Councillor Wendy Scullen

Councillor PeteShears

Councillor Craig Duncan

Councillor GrantLaing

Councillor JackWelch

Councillor SheilaMcCole Councillor CarolineShiers Councillor AngusForbes

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Councillor Dave Cuthbert

Management Commentary

Foreword to the Annual Accounts

Introduction

TheJointCommittee’sfinancialperformancefortheyearended31March2025isassetout intheComprehensiveIncome&ExpenditureStatementandthefinancialpositionisasset outintheBalanceSheetandCashFlowStatement.

These annual accounts have been prepared in line with the Code of Practice on Local AuthorityAccountingintheUnitedKingdom2024/25(theCode).

TheStatementofAccountsexplainstheJointCommittee’sfinancesduringthefinancialyear 2024/25and itsfinancialpositionattheendofthat year. Itfollowsapprovedaccounting standardsandisnecessarilytechnicalinparts.

AccountingPolicies

TheStatementofAccountingPoliciessetsoutthebasisuponwhichtheannualaccountshave beenpreparedandexplainstheaccountingtreatmentofbothgeneralandspecificitems.

StatementofResponsibilitiesfortheStatementofAccounts

Thisstatement,assetoutonpage27,setsoutthemainfinancialresponsibilitiesoftheJoint CommitteeofTaysideContractsandtheProperOfficer.

TheAccountingStatements

MovementinReservesStatement

This Statement, as set out on page 31, shows the movement in the year on the different reservesheldbytheJointCommittee,analysedinto'usablereserves'(i.e.,thosethatcanbe appliedtofundexpenditure)andotherreserves. The'Deficitonprovisionofservices'line shows the cost of providing the Joint Committee's services and the contributions to the constituent Councils, more details of which are shown in the Comprehensive Income and ExpenditureStatement(CIES).

ComprehensiveIncomeandExpenditureStatement(CIES)

This statement, as set out on page 33, shows the income and expenditure in the year of providingservicesinaccordancewithgenerallyacceptedaccountingpractices.

Balance Sheet

TheBalanceSheet,assetoutonpage34,showsthevalueasattheBalanceSheetdate,of theJointCommittee'sassetsandliabilities.Thenetassets/(liabilities)oftheJointCommittee (assets less liabilities) are matched by the reserves held. Reserves are reported in two categories.Thefirstcategoryofreservesareusablereserves,i.e.,thosereservesthatmaybe usedtofundexpenditure,subjecttotheneedtomaintainaprudentlevelofreservesandany

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Management Commentary

Foreword to the Annual Accounts

statutorylimitationsontheiruse(forexample,theCapitalReceiptsReservethatmayonlybe usedtofundcapitalexpenditureorrepaydebt).Thesecondcategoryofreservesisthosethat theJointCommitteeisnotabletousetofundexpenditure. Thiscategoryincludesreserves thatholdunrealisedgainsandlossesandreservesthatholdtimingdifferencesshowninthe MovementinReservesStatementline‘Adjustmentsbetweenaccountingbasisandfunding basisunderregulations’.

CashFlowStatement

The Cash Flow Statement, as set out on page 35, shows the changes in cash and cash equivalentsoftheJointCommitteeduringthereportingperiod.Thestatementshowshow theJointCommitteegeneratesandusescashandcashequivalentsbyclassifyingcashflows asoperating,investing andfinancing activities.Theamount of net cashflowsarisingfrom operating activities is a key indicator of the extent to which the operations of the Joint Committee are funded by way of services provided by the Joint Committee. Investing activitiesrepresenttheextenttowhichcashoutflowshavebeenmadeforresourceswhich areintendedtocontributetotheJointCommittee’sfutureservicedelivery.Cashflowsarising fromfinancingactivitiesareusefulinpredictingclaimsonfuturecashflowsbyprovidersof capital(i.e.borrowing)totheJointCommittee.

MaterialChangesinAccountingPolicy

Tayside Contracts continues to adopt the accounting policies required by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authorities (Scotland) AccountsAdvisoryCommittee(LASAAC). During2024/25wereviewedourproceduresfor accountingfornon-currentassetsinlinewithIAS16–Property,Plant&Equipment.Wehave reviewedtheusefullifeofalltheassetsandmadethenecessarychangestotheircarrying amounts.

Acknowledgements

IwouldliketothankallMembersoftheJointCommitteeandstaffofTaysideContractsfor theirsupportthroughoutwhathasagainbeenachallengingbutsuccessfulyear. Inparticular, Iwouldliketothankallofthefinancestafffortheircommitmentandhardworkthroughout theyearandfortheircontributiontothefinalisationofTaysideContracts2024/25Statement ofAccounts.

PaulThomsonCPFA ProperOfficer TaysideContracts

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Management Commentary

Foreword to the Annual Accounts

Purpose

Thepurposeofthismanagementcommentaryistoprovideallourstakeholdersandthepublic therelevantstrategicandfinancialinformationontheperformanceofTaysideContractsfor thefinancialyear2024/25.

Italsoidentifiestheprincipalrisksandchallengestheorganisationwillbefacinggoingforward andgivesdetailsingeneraltermsonhowthesewillbemitigated.

Aboutus

Tayside Contracts Joint Committee (“Tayside Contracts” or “the Joint Committee”) is an excellentexampleoflocalauthoritiesworkingtogethertothebenefitofthepublic.

ItisacommercialtradingorganisationofAngus,DundeeCityandPerthandKinrossCouncils being constituted under a Minute of Agreement entered into by the three constituent Councilsin1996,followinglocalgovernmentreorganisation. TheMinuteofAgreementwas lastrevisedin2018.

TaysideContractsoperatesunderaJointCommittee,comprisingof18electedmembers: -6electedmembersfromAngusCouncil -6electedmembersfromDundeeCityCouncil -6electedmembersfromPerthandKinrossCouncil

TaysideContractsenablestheconstituentCouncilstobenefitfromtheeconomiesofscale andretentionofspecialistserviceswhichtheorganisationoffers.Ourmainbusinessactivities are the provision of catering, cleaning, facilities management, roads maintenance, winter maintenance,constructionandfleettransportrelatedservices.WealsooperateaQuarryand Signshop.

Inaddition,yearonyearTaysideContractshasdemonstratedwhatcanbeachievedthrough Councilssharingresources. TaysideContractsclearlymeetsthestatedaimsoftheScottish GovernmentandUKGovernment’sreformagendaofsharedserviceswithinthepublicsector beingthepreferredwayforwardforthefuture.

TaysideContracts:

 Isuniquewithin Scotlandasajoint localauthoritytradingorganisationand shared service.

 Employsaround2,500peoplein3,300posts,withanumberofemployeesfillingmore thanonepost.

 Hasanannualturnoverofover£98million.

 ReturnssurplusestothethreeconstituentCouncilsforreinvestmentinservices. Since 1996ithasreturnedover£33.8milliontotheCouncilsintheformofsurpluses,for

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Management Commentary

Foreword to the Annual Accounts

theCouncilstoreinvestinlocalpublicservices.Thisrepresentsanaveragereturnto theCouncilsof£1.2millionperanum.

OurmaincustomersarethethreeconstituentCouncils,andthemainusersofourservices aretheresidentsandbusinesseswholiveandoperateintheTaysidearea.

Strategy

TheBusinessPlanfortheorganisationcoveringtheperiod2024-27,wasapprovedbythe JointCommitteeinAugust2024andissubjecttoannualreview.Thisisacriticaldocument forthesuccessofTaysideContracts,asitsetstheorganisation’sdirectionforthenextthree years.

The Business Plan reflects the highly dynamic environment in which we are operating, particularlytheextremelychallengingfinancialfuturefacinglocalgovernment.ThePlanalso buildsontheinternalstrengthsoftheorganisation,andtheopportunitiesavailable;whilst counteringtheweaknessesandthreatsfacingTaysideContracts.

TheBusinessPlanbenefittedbybeingcreatedjointly,throughextensiveengagementwitha widerangeofstakeholders:-

1) EngagementSessionswithmembersoftheJointCommittee.

2) Engagement session with the Governance and Strategy Group (GSG). The GSG consistsofaseniorofficerofeachoftheconstituentCouncilsandmembersofthe TaysideContractsCorporateLeadershipTeam (CLT).

3) EngagementsessionwithaffiliatedTradeUnions.

4) DevelopmentsessionswithmanagersacrossallareasofTaysideContracts,and engagementsessionswithmembersofstaff.

Thecontributionandadvicefromthesestakeholdergroupswereinvaluableinproducinga Business Plan which is ambitious, and which aligns with the expectations of the Joint CommitteeandconstituentCouncils,whilstdrawingonthepassioncreativityandexperience ofourstaffwithintheorganisation.

Ourvision forTaysideContractsistobe:

“A high performing andexpanding shared service; proud of what we do and chosen for how we do it’”.

TheBusinessPlanisbuilton5StrategicPriorities(the5‘Cs’):

Management Commentary

Foreword to the Annual Accounts

 CollaborationandSharing

 ContinuousImprovementandPerformance

 Communities,CouncilsandCustomers

ActionsandperformanceindicatorshavebeenincorporatedintotheBusinessPlan,andare monitored,andreportedtotheJointCommittee.

AfullcopyoftheapprovedBusinessPlancanbefoundonourwebsite - business_plan_2024 bytaysidecontracts-Issuu

Results

Forthefinancialyear2024/25,TaysideContractsachievedadistributablesurplusof£813k, reflectingstrongperformanceacrosstheorganisation.

2024/25presentedsignificantchallengesforTaysideContractsanditsconstituentCouncils, primarilydrivenbyanothersubstantialpayaward,whichplacedconsiderablepressureon budgets.Althoughotherinflationarypressureshavebeguntostabilise,theyremained abovepre-pandemiclevelsthroughouttheyear.Despitethesehurdles,robustfinancial managementandstrategicplanningenabledustosustainapositivefinancialoutcome.

Thesurpluswasgeneratedfromincomeof£97,857k,representingadecreaseof£1,953k (2%)comparedtothe2023/24incomeof£99,810k.Withinthis,theConstructionDivision’s turnoverdeclinedby£3,683k,whiletheFacilitiesServicesDivisionsawanincreaseof £1,730k.

TheComprehensiveIncomeandExpenditurestatementreportsaSurplusonProvisionof Servicesof£298k.Aftervariousaccountingadjustments,includingthoserelatedtoIAS19 pensionobligations,thedistributablesurplusstandsat£813k.ExcludingtheimpactofIAS 19adjustments,bothtradingdivisions(theConstructionandFacilitiesServicesDivisions) wouldhavemettherequirementsoftheLocalGovernmentinScotlandAct2003by achievingabreak-evenpositionoverarollingthree-yearperiod.

Overthisthree-yearperiod,thestatutorytradingsurplusesrecordedwere£2,684kforthe ConstructionDivisionand£361kfortheFacilitiesServicesDivision.However,onceIAS19 EmployeeBenefitsadjustmentsareappliedtoreflectfuturepensionliabilities,achargeis madeagainstthetradingaccounts.ThisresultsintheFacilitiesServicesDivisionshowinga deficitof£4,018k,whiletheConstructionDivisionmaintainsaprofitof£558k.

TradingPerformance

Construction Division

TheConstructionDivisionencompassesroadandwintermaintenance,streetlighting, quarryoperations,thesignshop,andfleetservices.In2024/25,incomeexceededbudget expectationsby£3,439k.However,associatedcosts,includinglabour,materials,plant,and

Management Commentary

Foreword to the Annual Accounts

Overall,theConstructionDivisionhadasuccessfulyear.KeycontributorsincludedScottish Governmentfundedactivetravelprojectsandsignificantadditionalworkfromprivate customersandnewconstituentCouncils.Thequarryalsobenefitedfromsubstantialsales linkedtotheCrossTayLinkRoadprojectinPerth&Kinross.Thesefactors,combinedwith operationalimprovements,efficiencymeasures,andoverheadsavings,helpedgeneratethe surplus.

Facilities Services Division

TheFacilitiesServicesDivisioncomprisesFacilitiesManagement(FM)andCateringUnits, bothofwhichcontinuetodemonstratesolidoperationalandfinancialperformance.

Schoolmealnumbersincreasedsteadilyduringtheyear,althoughlengthyteacherstrikesin 2024,particularlyinPerth&Kinrosswheretendaysoftradingwerelost,andsevere weatherdisruptionsnegativelyaffectedmealvolumes.IncomefortheFacilitiesServices Divisionexceededbudgetby£135k,butcostsincreasedby£185k,resultingina distributablesurplusof£205k,whichis£50kbelowbudget.

Overall Financial Performance

TaysideContractsdeliveredatotalsurplusof£813kfromaturnoverof£97,857k, outperformingthebudgetedsurplusof£670k.

Expenditure and Funding Analysis

TheExpenditureandFundingAnalysis(Note5)outlineshowTaysideContracts'annual expenditureisutilisedandfunded,comparingthiswiththeincomeandresources recognisedinaccordancewithgenerallyacceptedaccountingpractices(GAAP).Italso illustrateshowexpenditureisallocatedbetweenTaysideContracts’tradingoperationsfor internaldecision-makingpurposes.Amoredetailedpresentationofincomeand expenditureunderGAAPisprovidedintheComprehensiveIncomeandExpenditure Statement(CIES).

Note10reconcilesthetradingaccountdeficitswiththedistributablesurplusfortheyear andshowstherespectivecontributionsoftheConstructionDivisionandFacilitiesServices Division.Forfurthercontext,Note9explainshowtradingaccountoutcomesare incorporatedintotheCIES.

Balance Sheet

Asat31March2025,TaysideContracts'BalanceSheetcontinuestobesignificantly influencedbyitspensionposition,measuredinaccordancewithIAS19–EmployeeBenefits. Thepensionliabilityisreportedat£2,023k,areductionfrom£2,287kin2023/24,reflecting theactuarialvaluationfortheyear.

9 of 72 subcontractors,increasedby£3,246k,resultinginadistributablesurplusof£608k,whichis £193kabovebudget.

Management Commentary

Foreword to the Annual Accounts

Property,plant,andequipmentincreasedby£13,500kto£29,583k,largelyduetothe implementationofInternationalFinanceReportingStandard(IFRS)16–Leases.Capital investmentof£3.7kinnewassetswaspartiallyoffsetbydepreciationandassetdisposals. Long-termliabilities,excludingtheIAS19pensionliability,roseby£1,208kto£10,930k.

Provisionsreducedslightlyby£6kto£1,063k.Thesearereviewedannuallytoensure appropriatecoverageforallknownliabilities.

At31March2025,thebankbalancestoodat£6,573k,asignificantimprovementcompared totheoverdraftof£2,089kat31March2024.

Usablereservestotalled£1,079k,comprisingsolelyoftheGeneralFund.

Cash Flow

The Cash Flow Statement records a net cash increase of £8,662k during 2024/25. This movementwasdrivenprimarilybyaninflowof£13,108kfromoperatingactivities,partially offset by capital and financing outflows totalling £4,446k. As a result, the year end bank balanceimprovedto£6,573kfromanoverdraftof£2,089kthepreviousyear.

Debt Management

Effectivedebtmanagementremainsapriority,particularlyinlightofongoingchallengesin theConstructionsector.Therobustcreditcontrolproceduresintroducedinpreviousyears continuetobeeffective,resultinginaminimalbaddebtprovisionfor2024/25.

Surplus Distribution

InlinewiththecommitmentoutlinedinourBusinessPlan,TaysideContractsaimstoreturn aminimumannualsurplusof£750ktoitsconstituentCouncils, Angus,DundeeCity,and Perth&Kinross.For2024/25,adistributablesurplusof£813khasbeenachieved,fulfilling thisobligation.

SurplusdistributionisbasedontheturnoverpercentagesofeachCouncilintheprevious financialyear,asapprovedbytheJointCommitteeon18November2024.Accordingly,the 2024/25surpluswillbesharedasfollows:

 AngusCouncil:29%

 DundeeCityCouncil:30%

 Perth&KinrossCouncil:41%

The Market

In 2024/25, 93% of Tayside Contracts’ income was derived from its constituent Councils throughamixofpartneringagreements,awardedworks,andcompetitivetendersbasedon eachCouncil’sbestvalueapproach.Theremaining7%wasmainlysourcedfromexternalwork performedbytheConstructionDivisionandsalesofmaterialsfromCollaceQuarry.

Management Commentary

Foreword to the Annual Accounts

Key Performance Indicators (KPIs)

ThetablebelowoutlinesthetargetKPIsfor2024/25.Performanceagainsttheseindicatorsis monitoredbytheJointCommitteethroughtheAnnualPerformanceReport.

FurtherinformationisavailableinourpublishedAnnualPerformanceReportsonourwebsite: https://www.tayside-contracts.co.uk/publications

2024/252023/24

ConfidenceTrust& Relationships

Number of Complaints 55complaintswere receivedduring 2024/25,significantly morethanthetarget offewerthan26. Whilethisrepresents anotableincrease, ourcomplaints processplaysavital roleinidentifying areasfor improvement, enablingusto enhanceservice delivery,boost customersatisfaction, andstrengthen operational performance

Confidence, Trust andRelationships Works requiring remedial action Alowernumberof worksrequiring remedialaction againsttargetwas achieved.Alowrate ofremedialwork demonstratesstrong qualitycontrol

Commercial Approach

Income from external sources

Actual 55 26 Target <26

Actual 10of600 works 12of600 works

Target <12of 600 works

£6.9mturnoverwas achievedthrough externalsources, £1.4mmorethan target,demonstrating Actual

Management Commentary

Foreword to the Annual Accounts

strongcommercial growthandimproved marketperformance

Collaboration & Sharing Increased shared service Collaborative turnoverwas£5.3m morethantarget, reflectingstrong partnershipworking

Collaboration & Sharing Increased uptake of schoolmeals

Collaboration & Sharing Increased uptake of free school meals

Communities, Councils & Customers

Ourtargetwasto increaseschoolmeal uptakebymorethan 54%.Theactual uptakeachievedwas 54%,meaningwemet thetargetthreshold butfelljustshortof exceedingit.We recognisethisasa positivestepforward andwillcontinueto buildonthis momentumtodrive furthergrowthin futureperiods

Ourtargetwasto increasetheuptakeof freeschoolmealsto morethan58%.This wasexceeded,with actualuptake reaching61%.This positiveoutcome reflectsongoing effortstopromote theserviceand ensurethateligible pupilsareaccessing thesupportavailable

Localprocurement spendexceededthe 43%target,with actualspendreaching 51%.Thishighlights

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Management Commentary

Foreword to the Annual Accounts

ourpositiveimpacton localeconomic developmentandour commitmentto communitybenefits

Communities, Councils & Customers Living wage employer

Leadership Management performance

Leadership Positive leadership results

Weretainedour targetofLivingWage Accreditedemployer duringtheyear, reinforcingour commitmenttofair employmentpractices

Thetargetwasfor morethan85%of employeestobe assessedas competentor excelling.Theactual outcomewas85%, indicatingthatthe targetwasmet, thoughitfell marginallyshortof thethreshold. Continuedfocuswill beplacedon maintainingand enhancinghigh standardsof employee performanceacross theorganisation

Positiveleadership,as measuredthrough InvestorsinPeople andinternal employeesurveys, achievedan81% satisfactionrating, meetingthetargetof exceeding80%.This resultreflectsastrong andsupportive

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Management Commentary

Foreword to the Annual Accounts

leadershipculture acrossthe organisation

People Decrease in sickness absence

People Decrease in employee turnover

People Decrease in RIDDOR accidents

Financial Management, Governance&Risk

Surpluslevel

Financial Management, Governance&Risk

Compliance with governance frameworks

Thetargetwasto reducesickness absencetolessthan 6.3%.Theactual resultwas6.3%, meetingthethreshold withamarginal margin.Thisrequires continuedfocuson employeewellbeing andattendance

Theemployee turnoverrateof 14.5%metthetarget ofstayingbelow 14.9%,indicating positiveprogressin retentionefforts

13RIDDORaccidents wererecordedagainst atargetoffewerthan 16,demonstrating effectivesafety performanceand progressinmanaging workplacerisks

Financialtargetswere achieved,withthe organisation delivering distributionsof£813k, exceedingthetarget of£750k.This demonstratesstrong financialmanagement

Weachieveda97% complianceratewith corporategovernance standards,exceeding themorethan88%

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Management Commentary

Foreword to the Annual Accounts

target.Thisreflects highgovernance standards

Technology Cyber essentials

AchievingCyber Essentialscertification confirmsthatwehave implemented essential cybersecuritycontrols toprotectagainst commonthreats.It strengthensour securityposition, demonstratesour commitmenttodata protection,andbuilds trustwith stakeholders

Actual Achieved Target Achieve

Technology Security incidents

Havingnosecurity incidentsduringthe yearreflectsthe strengthofour cybersecurity controls,user awarenessand proactiverisk management

Our Employees

ThesuccessofTaysideContractsisreliantonouremployees. Thishasbeennoexception duringthelast12months,withouremployeesworkingtirelessly,underthemostdifficult circumstances. Withoutthiscommitmentanddedicationmanyofthecoreservicesthatour stakeholdershavebeenrequiredtodelivertosupportourschoolsandcommunities,aswell askeepingtheroadnetworkservicedandmaintainedinvariousweatherconditions,would nothavebeenpossible.

Outlook:budget,principalrisks,uncertaintiesandopportunities

TaysideContractsenteredthe2024/25financialyearfacingsustainedandsignificantfinancial pressures. The ongoing constraints on public sector funding, coupled with the residual impactsofhighinflationandthecontinuingglobalinstability,particularlyinUkraineandthe Middle East, created a highly challenging operating environment. Pay awards,particularly thosethatarebottomloadedtoaddresswageinequality,haveincreasedourexpenditure

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Management Commentary

Globalsupplychaindisruptionsremainakeyriskand continuetoimpactavailabilityand pricingofessentialgoodsandservices,puttingstrainonouroperationalbudgets.Despite thesepressures,inflationarytrendshavebeguntostabilisetomoretypicallevels,offering potentialreliefinthemediumterm.Inthemeantime,proactivefinancialmanagement, closepartnershipworkingwithlocalauthorities,andacommitmenttoinnovationinservice deliveryremaincrucialtomitigatingtheserisks.

Lookingfurtherahead,whilefiscalconstraintsareexpectedtopersist,thereiscautious optimismforamorestableeconomiclandscape,withnationalinflationarypressures expectedtoease.ThiswillprovideTaysideContractswithgreaterpredictabilityinfinancial planning.andthepotentialtoreinvestinserviceimprovements.

Weseerealopportunitiesinkeystrategicdevelopments,suchastheTayCuisineCentral ProductionUnit.Thisinitiativenotonlyenablescostefficienciesinschoolmealprovisionbut positionsTaysideContractstoexpandservicesinalignmentwiththeScottishGovernment’s commitmenttouniversalfreeschoolmeals.Theremayalsobefutureopportunitiesfor cross-councilcollaborationandexternalcommercialgrowth.

Digitaltransformationandprocessautomationalsoofferlongertermopportunitiesto increaseefficiency,reducemanualtasks,andenhancevalueformoney.However,thiswill requireupfrontinvestmentandcarefulchangemanagement.

TaysideContractsissupportedbyexperiencedandresilientleadership,withrobust strategiesinplacetoresponddynamicallytochangingconditions.Weremainfocusedon maintainingserviceexcellence,deliveringbestvalue,andidentifyingsustainablegrowthand improvementopportunitiesdespitethecontinuingeconomicchallenges

DouglasMcKay PaulThomsonCPFA ManagingDirector ProperOfficer TaysideContracts TaysideContracts

Foreword to the Annual Accounts Page 16 of 72 pressures,withthe2024/25awardaloneadding£1millioninadditionalcosts.Thereisahigh likelihood of further increased national settlements in 2025/26, which will require careful financial planning and continued engagement with our constituent councils to maintain servicedeliveryandvalueformoney.

CouncillorStevenRome Convener TaysideContractsJointCommittee

Annual Governance Statement

ScopeofResponsibility

TaysideContractsJointCommitteeisresponsibleforensuringthatitsbusinessisconducted inaccordancewiththelawandappropriatestandardstherebyensuringthatpublicfundsand assets at its disposal are safeguarded, properly accounted for and used economically, efficiently and effectively. The Joint Committee also has a duty to secure continuous improvementinthewayitsservicesaredelivered.

Indischargingtheseresponsibilities,electedmembersandseniorofficersareresponsiblefor implementing effective arrangements for governing the Joint Committee’s affairs and facilitatingtheeffectiveexerciseofitsfunctions,includingarrangementsforthemanagement ofrisk.

To this end, the Joint Committee has approved and adopted a local Code of Corporate GovernancethatisconsistentwiththeprinciplesoftheCIPFA/SOLACEframeworkDelivering Good Governance in Local Government. Tayside Contracts’ Chief Finance Officer (Proper Officer) complies with the principles set out in CIPFA's Role of the Chief Financial Officer (2016). This statement explains how Tayside Contracts Joint Committee delivers good governanceandreviewstheeffectivenessofthesearrangements.

TheJointCommittee’sGovernanceFramework

Thegovernanceframeworkcomprisesthesystems,processes,culturesandvaluesbywhich the Joint Committee isdirected and controlled. It also describes the way it engages with, accounts to and leads the local community through the services it provides to the three constituent Councils. It enables the Joint Committee to monitor the achievement of its objectivesandconsiderwhetherthoseobjectiveshaveresultedinthedeliveryofappropriate, costeffectiveservices.

TheLocalCodeofCorporateGovernanceissupportedbydetailedevidenceofcompliance whichisreviewedbytheManagingDirectorandtheCorporateLeadershipTeam.

Withintheoverallcontrolarrangements,thesystemofinternalfinancialcontrolisintended toensurethatassetsaresafeguarded,transactionsareauthorisedandproperlyrecorded, and material errors or irregularities are either prevented or are detected within a timely period. Itisbasedonaframeworkofregularmanagementinformation,financialregulations, administrativeprocedures(includingsegregationofduties),managementsupervisionanda systemofdelegationandaccountability.

Theoverallcontrolarrangementsinclude:

 Identifying the Joint Committee’s objectives in the Business Plan, subsequently translatedintoactionsincorporate,divisionalandunitserviceimprovementplans

 Monitoring of objectives and service performance by Senior Officers and the Joint Committee

Annual Governance Statement

 Comprehensiverevenueandcapitalbudgetingsystems

 Settingtargetstomeasurefinancialandotherperformance

 Preparation of regular financial monitoring reports which indicate actual and projectedexpenditureagainstbudget

 Annualfinancialreportswhichindicateactualfinancialperformanceagainstbudget

 Clearly defined Standing Orders, Scheme of Delegation, Financial Regulations and TenderProcedures

 Formalprojectappraisaltechniquesandprojectmanagementdisciplines

 Acodeofpracticeonmanagingtheriskoffraudandcorruption;Anti-BriberyandAntiCorruptionpolicyandFraudPolicy

 RegularreportingofperformanceandprojectedoutcomestotheJointCommittee

 PublicperformancereportingbymeansofanAnnualPerformanceReport

 ITSecuritypolicy

 EmployeeCodeofConduct

 EffectiveHumanResourcespolicies

 Annualperformanceappraisals(TayReviews)

 RiskManagementStrategy

ReviewofEffectiveness

Members and officers of the Joint Committee are committed to the concept of sound governanceandtheeffectivedeliveryofservices,andconsiderrecommendationsmadeby external auditors and other review agencies and inspectorates. The effectiveness of the governance framework is reviewed annually by the Managing Director and the Corporate Leadership Team, including the use of a self-assessment tool involving completion of a checklistcoveringeightkeyareasofgovernance:

 ServicePlanningandPerformanceManagement

 InternalControlEnvironment

 FraudPreventionandDetection

 Budgeting,AccountingandFinancialControl

 RiskManagementandBusinessContinuity

 AssetManagement

Annual Governance Statement

 Partnerships

 InformationGovernance

Thisself-assessmentindicatesastronglevelofcompliance.

TheJointCommitteeoperatesarangeofcorporatefinancialsystems,whicharesubjectto reviewbybothinternalauditandbytheexternalauditor,AuditScotland.AuditScotlandwas appointedasexternalauditorsforthefiveyearperiodfrom2016/17to2020/21.Thishas subsequently been extended through the Accounts Commission’s auditor appointment process for another 5yrs commencing in 2023/24. Henderson Loggie was appointed as internal auditors for 2 years from 2023/24 and has been extended for a further year to 2025/26.Astrategicinternalauditplanwasdevelopedfromwhichtheauditplanfor2023/26 wasformulatedandapprovedbytheJointCommittee.

The internal audit service operates in accordance with the Public Sector Internal Audit Standards2017andtakescognisanceofthestandardspromotedbyCIPFAandotherexternal organisationssuchasAuditScotland.InternalauditscomplywithCIPFARoleoftheHeadof InternalAuditguidance.Inundertakingitsduties,theinternalauditservicehasunrestricted accesstoalldataandrecordsandisresponsibleforprovidinganindependentopiniontothe JointCommitteeontheeffectivenessoftheinternalcontrolenvironmentandthedegreeto whichitsupportsandpromotestheachievementoftheJointCommittee’sobjectives. The key thrust of internal audit work is to objectively examine, evaluate and report on the adequacyofinternalcontrolasacontributiontotheproper,economic,efficientandeffective useofresources.

Thekeyareascoveredinthe2024/25internalauditprogrammewere:

 Estimating/JobCostingledger

 Debtors/Income

 ExternalRelations

AllagreedareasforimprovementidentifiedbyInternalAuditareprogressedtoappropriate timescales,asareactionsbroughtforwardfrompreviousyears’audits.Mostoftheremaining agreed actions brought forward are either fully implemented or partly/substantially complete.

ContinuousImprovement

During2024/25,TaysideContractsimplementedarangeofimprovementsdesignedto enhanceoperationalefficiency,generateadditionalincome,andstrengthengovernance.

Keyachievementsinclude:

• Wecontinuedtogrowouroperations,generatingadditionalincome,anddelivering moreefficientservices.Examplesinclude:

Annual Governance Statement

 ProvisionofdepotandwintermaintenanceservicestotheNorthEast ScotlandTrunkRoadoperator(Amey)

• DeliveryofbussheltercleaningservicesforDundeeCityCouncil

• SupplyofcoatedanduncoatedstonematerialfromCollaceQuarryto themajorCrossTayLinkRoadProject

• Throughour‘FutureThinking’programme,weundertookacomprehensivereviewof ourorganisationalstructure.Thishassignificantlyreshapedourmanagementand supportservices,resultinginannualrecurringsavingsof£500k.Therestructure ensuresweremainfitforpurposeandstrategicallypositioned,withexperiencedand dynamicindividualsinkeyleadershiproles.

• WecontinuedtodeliverourCommunityFundprogramme,supportinglocal communityandcharitygroupswithinitiativessuchassignageprovision,meal servicesandminorconstructionworks.TheseprojectsarefundedbytheCommunity Fund,whichreceivescontributionsfrom Brakes,akeynationalfoodsupplier,aspart oftheircommunitybenefitobligationundernationalprocurementarrangements.

• Ourongoingchangeplan programme,whichsystematicallyidentifiesopportunities for transformation, efficiency improvements, income generation, and service realignment,hasdeliveredcumulativefinancialsavingsofapproximately£3.5,since 2022/23.

Inconclusion,wearesatisfiedthattheannualreviewofgovernance,supportedbythework ofinternalandexternalauditorsandtheapplicationofagovernancechecklistcompletedby ourcorporateleaders,providessufficientassurancethattheprinciplesofgoodgovernance havebeeneffectivelymaintained.WeconfirmthattheJointCommitteecontinuestocomply with the Local Code of Corporate Governance in all significant respects. Further enhancements to governance arrangements will be pursued during 2025/26, focusing on areasidentifiedforimprovement.

DouglasMcKay CouncillorStevenRome ManagingDirector Convener TaysideContracts TaysideContractsJointCommittee

Annual Remuneration Report

Introduction

Tayside Contracts is required to prepare and publish within its Statement of Accounts an Annual Remuneration Report under the Local Authority Accounts (Scotland) Regulations 2014. The following report has been prepared in accordance with the aforementioned Regulations.

ThereportsetsouttheremunerationandaccruedpensionbenefitsoftheSeniorEmployees of the organisation. The report also provides information on the number of employees (including Senior Employees) whose total actual remuneration was £50,000 or more; this informationbeingdisclosedinsalarybandingsof£5,000.

Tayside Contracts’ExternalAuditorisrequiredto auditcertain partsoftheRemuneration ReportandgiveaseparateopinioninhisreportastowhethertheRemunerationReporthas beenproperlypreparedinaccordancewiththeRegulations. Thetables“GeneralDisclosure by Pay Band”, “Remuneration for Relevant Persons” and “Exit Packages” along with the PensionBenefitssectionaresubjecttoaudit,andtheremainderofthereportissubjectto review.

RemunerationArrangements

The salaryof senior employeesisset byreferencetonationalarrangements.TheScottish JointNegotiatingCommittee(SJNC)forLocalAuthorityServicessetsthesalariesfortheChief ExecutivesofScottishlocalauthoritiesandCircularIR11-23bsetstheamountofsalaryfor theperiod1April2024–31March2025.

The salary of Tayside Contracts’ Managing Director is based on a comparison with Chief Officials within other local authorities and takes account of the unique additional responsibilitiesofthispost comparedtothat oftheseposts.Thiswasagreed bytheJoint Committeeatitsmeetingon27January2003,reportnumberJC1/2003entitled“Reviewof ChiefOfficers’Salaries”refers.

GeneralDisclosurebyPayBand

Thetablebelowdetailsthenumberofemployeeswhoseremunerationwas£50,000or more.

Annual Remuneration Report

RemunerationforRelevantPersons

Thisfollowingtableprovidesdetailsoftheremunerationforthoseemployeesdesignatedas being“SeniorEmployees”withintherelevantlegislativeguidance.

Thesenioremployeesincludedinthereportincludeanyemployeewhohasresponsibility formanagementoftheorganisationtotheextentthatthepersonhaspowertodirector controlthemajoractivitiesoftheorganisation(includingactivitiesinvolvingtheexpenditure ofmoney),duringtheyeartowhichtheReportrelates,whethersolelyorcollectivelywith otherpersons,andassuch,constitutesthemembersoftheExecutiveOfficersTeamof TaysideContracts.ThereisnoremunerationpaidinrespectofCouncillorsbyTayside Contracts

Annual Remuneration Report

PensionBenefits

TheLocalGovernment(DiscretionaryPaymentsandInjuryBenefits)(Scotland)Regulations

1998 make provision for authorities to make discretionary payments to local government employeestopaycompensationforprematureretirement.Apersonwhohasbeengranted acreditedperiodisentitledtoreceivecompensationintheformofalumpsumandisalso entitledtoreceiveannualcompensation.Whereapplicable,boththelumpsumandannual compensationisincludedwithinthecompensationforlossofemploymentcategory.

Pensiondisclosure

Pension benefits for local government employees are provided through the Local GovernmentPensionScheme(LGPS).

Forlocalgovernmentemployeesfrom1April2015thisisacareeraveragepensionscheme. Priortothisitwasafinalsalarypensionscheme.Theschemesretirementageforemployees isthenormalpensionage(statepensionage).

At1April2009afivetiercontributionsystemwasintroducedwithcontributionsfromscheme membersbeingbasedonhowmuchpayfallsintoeachtier.Thiswasdesignedtogivemore equality between the costs and benefits of scheme membership as prior to that the contributionsratesweresetat6%forallnon-manualemployees.

Themarginalratesofpensioncontributionpaidbymembers,includingSeniorEmployees,are shown in the table below. The contributions to the pension scheme made by the Senior Employeesincludedinthisreportin2024/25amountedto£38k(2023/24:£33k).

WholeTimePay

Onearningsuptoandincluding£27,000 (2023/24:upto£25,300)

Onearningsabove£27,001to£33,000(2023/24:£25,301to £31,100)

Onearningsabove£33,001to£45,300(2023/24:£31,101to £42,500)

Onearningsabove£45,301to£60,400(2023/24:£42,501to £56,600)

Onearningsabove£60,401andabove(2023/24:above£56,601) 12.00%

Ifapersonworkspart-timetheircontributionrateisworkedoutonthewhole-timepayrate for the job, with actual contributions paid on actual pay earned. There is no automatic entitlementtoalumpsum.Membersmayopttogiveup(commute)pensionforlumpsum uptothelimitsetbytheFinanceAct2004.From1April2015theschemeisacareeraverage scheme;priortothisitwasafinalsalarybasedschemewheretheaccrualrateguaranteesa pensionbasedon1/60thoffinalpensionablesalaryandyearsofpensionableservice.(Prior

Annual Remuneration Report

to2009theaccrualrateguaranteedapensionbasedon1/80thandalumpsumbasedon 3/80thoffinalpensionablesalaryandyearsofpensionableservice).

AssumptionsandContextualInformation

Thevalueoftheaccruedbenefitshasbeencalculatedonthebasisoftheageatwhichthe personwillfirstbecomeentitledtoreceiveapensiononretirementwithoutreductionon account of its payment at that age; without exercising any option to commute pension entitlementintoalumpsum;andwithoutanyadjustmentfortheeffectsoffutureinflation. Thepensionfiguresshownrelatetothebenefitsthatthepersonhasaccruedasconsequence oftheirtotallocalgovernmentservice,andnotjusttheircurrentappointment.

PensionBenefitsofSeniorEmployees

ThepensionentitlementsofSeniorEmployeesfortheyearto31March2025areshownin thetablebelow,togetherwiththecontributionmadebytheJointCommitteetoeachSenior Employees’pensionduringtheyear.

In considering the accrued pension benefits figures the following contextual information shouldbetakenintoaccount:

(i) thefiguresforpensionandlumpsumareillustrativeonlyinlightoftheassumptions setoutaboveanddonotnecessarilyreflecttheactualbenefitsthatanyindividualmay receiveuponretirement.

Annual Remuneration Report

(ii) theaccruedbenefitsfiguresarereflectiveofthepensioncontributionsthatboththe employerandtheschemememberhavemadeoveraperiodoftime.In2024/25,the schememembereffectivecontributionrateforSeniorEmployeeswasintherangeof 5.0%to10.0%ofpensionablepay.In2024/25,theemployercontributionratewas 15.5%ofpensionablepayforallmembers,includingSeniorEmployees.

Exitpackages

Duringtheyear,anumberofexitpackageswereagreed.Thetotalcostperbandandtotal costofallexitpackagesaresetoutinthetablebelow:

2023/24 2024/25 2023/24 2024/25

DuringtheyearanumberofemployeeswereTradeUnionRepresentatives. Theemployee number,percentageofworkinghoursonfacilitytimeandpercentageofthetotalpaycost aresetoutinthetablebelow:

Annual Remuneration Report

DouglasMcKay CouncillorStevenRome ManagingDirector Convener TaysideContracts TaysideContractsJointCommittee

Statement of Responsibilities for the Annual Accounts

TheResponsibilitiesoftheJointCommittee

TheJointCommitteeisrequiredto:

 Makearrangementsfortheproperadministrationofitsfinancialaffairsandtosecurethat theproperofficeroftheauthorityhasresponsibilityfortheadministrationofthoseaffairs (section95oftheLocalGovernment(Scotland)Act1973).Inthisauthority,thatofficeris theExecutiveDirectorofCorporateServices,DundeeCityCouncilasProperOfficerfor this purpose, while the daily management of the financial affairs is conducted by the ManagingDirectorofTaysideContracts.

 Manage its affairs to secure economic, efficient and effective use of resources and safeguarditsassets.

 Ensure the Annual Accounts are prepared in accordance with legislation (The Local AuthorityAccounts(Scotland)Regulations2014),and sofarasiscompatiblewiththat legislation, in accordance with proper accounting practices (section 12 of the Local GovernmentinScotlandAct2003).

 ApprovetheauditedAnnualAccountsforsignature.

IconfirmthattheseAnnualAccountswereapprovedforsignaturebytheJointCommitteeat itsmeetingon 17November2025.

SignedonbehalfofTaysideContracts

CouncillorStevenRome

Convener,TaysideContractsJointCommittee

TheResponsibilitiesoftheProperOfficer

The Proper Officer is responsible for the preparation of Tayside Contracts’ Statement of AccountsintermsoftheCIPFA/LASAACCodeofPracticeonLocalAuthorityAccountinginthe UnitedKingdom(‘theCodeofPractice’).

InpreparingtheseAnnualAccounts,theProperOfficerhas:

 Selectedsuitableaccountingpoliciesandthenappliedthemconsistently.

 Madejudgementsandestimatesthatwerereasonableandprudent.

 Compliedwithlegislation.

 CompliedwiththeCodeofPractice.

TheProperOfficerhasalso:

 Keptproperaccountingrecordswhichwereuptodate

 Takenreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

Statement of Responsibilities for theAnnualAccounts

IcertifythattheauditedAnnualAccountsgiveatrueandfairviewofthefinancialpositionof TaysideContractsatthereportingdateandthetransactionsofTaysideContractsfortheyear ended31March2025.

PaulThomson,CPFA ProperOfficer,TaysideContracts 17November2025

Page 30 of 72

Movement in Reserves Statement

Adjustmentsbetweenaccountingbasisandfundingbasisunderregulations(Note14)432-432(432)-

--010,23110,231

---11,00611,006

Page 32 of 72

Comprehensive Income & Expenditure Statement

TheTotalComprehensiveIncomeand(Expenditure)statementshowstheaccountingcostinyear,ofprovidingservicesinaccordancewithrelevant InternationalFinancialReportingStandards.

Page 33 of 72

Thenotesonpages36-71formanintegralpartofthesefinancialstatements.

PaulThomsonCPFA ProperOfficer

Theunauditedannualaccountswereissuedon23June2025,andtheauditedaccounts wereauthorisedforissueon17November2025

Cash Flow Statement

Adjustmentsforitemsincludedinthenetsurplus/(deficit)ontheprovisionof

Thenotesonpages36-71formanintegralpartofthesefinancialstatements.

Notes to the Financial Statements

1. StatementofAccountingPolicies

GeneralPrinciples

TheStatementofAccountssummarisestheJointCommittee’stransactionsforthe2024/25 financial year and its position at the year end of 31 March2025. The Joint Committee is required to prepare an annual Statement of Accounts by the Local Authority Accounts (Scotland)Regulations2014,whichsection12oftheLocalGovernmentinScotlandAct2003 requires to be prepared in accordance with proper accounting practices. These practices primarilycomprisetheCodeofPracticeonLocalAuthorityAccountingintheUnitedKingdom 2023/24 supported by International Financial Reporting Standards (IFRS) and statutory guidanceissuedundersection12ofthe2003Act. TheStatementshavebeenpreparedin accordance with the fundamental accounting principles of relevance, reliability, comparability, understandability, materiality, accruals, going concern and primacy of legislativerequirements.TheaccountingconventionadoptedintheStatementofAccountsis principallyhistoricalcost.

SummaryofSignificantAccountingPolicies

AccrualsofIncomeandExpenditure

Activityisaccountedforintheyearthatittakesplace,notsimplywhencashpaymentsare madeorreceived.Inparticular:

 RevenuefromthesaleofgoodsisrecognisedwhentheJointCommitteetransfersthe significantrisksandrewardsofownershiptothepurchaser,anditisprobablethat economicbenefitsorservicepotentialassociatedwiththetransactionwillflowtothe JointCommittee.

 RevenuefromtheprovisionofservicesisrecognisedwhentheJointCommitteecan measurereliablythepercentageofcompletionofthetransaction,anditisprobable thateconomicbenefitsorservicepotentialassociatedwiththetransactionwillflow totheJointCommittee.

 Suppliesarerecordedasexpenditurewhentheyareconsumed–wherethereisagap betweenthedatesuppliesarereceivedandtheirconsumption,theyarecarriedas inventoriesontheBalanceSheet.

 Expensesinrelationtoservicesreceived(includingservicesprovidedbyemployees) are recorded as expenditure when the services are received rather than when paymentsaremade.

 Interest receivable on investments and payable on borrowings is accounted for respectivelyasincomeandexpenditureonthebasisoftheeffectiveinterestratefor therelevantfinancialinstrumentratherthanthecashflowsfixedordeterminedby thecontract.

 Whereincomeandexpenditurehavebeenrecognisedbutcashhasnotbeenreceived orpaid,adebtororcreditorfortherelevantamountisrecordedintheBalanceSheet. Wheredebtsmaynotbesettled,thebalanceofdebtorsiswrittendownandacharge madetorevenuefortheincomethatmightnotbecollected.

Notes to the Financial Statements

CashandCashEquivalents

Cashisrepresentedbycashinhandanddepositswithfinancialinstitutionsrepayablewithout penaltyonnoticeofnotmorethan24hours. Cashequivalentsareinvestmentsthatmature in lessthanthree months fromthedateof acquisition andthat arereadily convertibleto knownamountsofcashwithinsignificantriskofchangeinvalue.

IntheCashFlowStatement,cashandcashequivalentsareshowninclusiveofbankoverdrafts that are repayable on demand and form an integral part of the Joint Committee’s cash management.

ExceptionalItems

When items of income and expense are material, their nature and amount is disclosed separately,eitheronthefaceoftheComprehensiveIncomeandExpenditureStatementorin thenotestotheaccounts,dependingonhowsignificanttheitemsaretoanunderstandingof theJointCommittee’sfinancialperformance.

PriorPeriodErrors

Priorperiodadjustmentsmayariseasaresultofachangeinaccountingpoliciesortocorrect amaterialerror. Changesinaccountingestimatesareaccountedforprospectively,i.e.inthe current and future years affected by the change and do not give rise to a prior period adjustment.

Changesinaccountingpoliciesareonlymadewhenrequiredbyproperaccountingpractices orthechangeprovidesmorereliableorrelevantinformationabouttheeffectoftransactions, other events and conditions on the Joint Committee’s financial position or financial performance. Whereachangeismade,itisappliedretrospectively(unlessstatedotherwise) byadjustingopeningbalancesandcomparativeamountsforthepriorperiodasifthenew policyhadalwaysbeenapplied.

Materialerrorsdiscoveredinpriorperiodfiguresarecorrectedretrospectivelybyamending openingbalancesandcomparativeamountsforthepriorperiod.

ChargestoRevenueforNon-CurrentAssets

Services,supportservicesandtradingaccountsaredebitedwiththedepreciationattributable totheassetsusedbytherelevantservicetorecordthecostofholdingnon-currentassets duringtheyear.

TheJointCommitteeisnotrequiredtofunddepreciationandimpairmentlossesthroughits revenue streams. However, it is required to make an annual contribution from revenue towards the reduction in its overall borrowing requirement equal to loans fund principal charges. Depreciationandimpairmentlossesarethereforereplacedbythecontributionin theGeneralFundBalanceforloansfundprincipal,bywayofanadjustingtransactionwithin

Notes to the Financial Statements

the Capital Adjustment Account and in the Movement in Reserves Statement for the differencebetweenthetwoamounts.

EmployeeBenefits

BenefitsPayableduringEmployment

Short-termemployeebenefitsarethoseduetobesettledwithin12monthsoftheyearend. Theyincludesuchbenefitsaswagesandsalaries,paidannualleaveandpaidsickleaveand non-monetarybenefitsforcurrentemployeesandarerecognisedasanexpenseforservices intheyearinwhichemployeesrenderservicetotheJointCommittee. Anaccrualismadefor the cost of holiday entitlements (or any form of leave e.g. time off in lieu) earned by employeesbutnottakenbeforetheyearendwhichemployeescancarryforwardintothe next financial year. The accrual is made at the wage and salary rates applicable in the followingaccountingyear,beingtheperiodinwhichtheemployeetakesthebenefit. The accrualischargedtoSurplusorDeficitontheProvisionofServices,butthenreversedout through the Movement in Reserves Statement so that holiday benefits are charged to revenueinthefinancialyearinwhichtheholidayabsenceoccurs.

TerminationandPostEmploymentBenefits

TerminationbenefitsareamountspayableasaresultofadecisionbytheJointCommitteeto terminateanofficer’semploymentbeforethenormalretirementdateoranofficer’sdecision toacceptvoluntaryredundancyandarechargedonanaccrualsbasistotheComprehensive IncomeandExpenditure

StatementwhentheJointCommitteeisdemonstrablycommittedtotheterminationofthe employment of an officer or group of officers or making an offer to encourage voluntary redundancy.

Where termination benefits involve the enhancement of pensions, statutory provisions require the General Fund balance to be charged with the amount payable by the Joint Committeetothepensionfundorpensionerintheyear,nottheamountcalculatedaccording to the relevant accounting standards. In the Movement in Reserves Statement, appropriationsarerequiredtoandfromthePensionsReservetoremovethenotionaldebits andcreditsforpensionenhancementterminationbenefitsandreplacethemwithdebitsfor thecashpaidtothepensionfundandpensionersandanysuchamountspayablebutunpaid attheyearend.

TheLocalGovernmentPensionScheme

TheLocalGovernmentSchemeisaccountedforasadefinedbenefitscheme:

 The liabilities of the Tayside Pension Fund attributable to the Joint Committee are includedintheBalanceSheetonanactuarialbasisusingtheprojectedunitmethod–i.e. anassessmentofthefuturepaymentsthatwillbemadeinrelationtoretirementbenefits earned to date by employees, based on assumptions about mortality rates, employee turnoverrates,etc,andprojectionsofprojectedearningsforcurrentemployees.

Notes to the Financial Statements

 Liabilities are discounted to their value at current prices, (the discount rate being the annualisedyieldatthe19-yearpointontheMerrillLynchAAratedcorporatebondcurve whichhasbeenchosentomeettherequirementsofIAS19andwithconsiderationofthe durationoftheEmployer’sliabilities).

 TheassetsoftheTaysidePensionFundattributabletotheJointCommitteeareincluded intheBalanceSheetattheirfairvalue:

• quotedsecurities–currentbidprice.

• unquotedsecurities–professionalestimate

• unitisedsecurities–currentbidprice

• property–marketvalue.

Inrelationtoretirementbenefits,statutoryprovisionsrequiretheGeneralFundbalanceto bechargedwiththeamountpayablebytheJointCommitteetothepensionfundordirectly topensionersintheyear,nottheamountcalculatedaccordingtotherelevantaccounting standards. IntheMovementinReservesStatement,thismeansthatthereareappropriations toandfromthePensionsReservetoremovethenotionaldebitsandcreditsforretirement benefitsandreplacethemwithdebitsforthecashpaidtothepensionfundandpensioners andanysuchamountspayablebutunpaidattheyearend. Thenegativebalancethatarises onthePensionsReservetherebymeasuresthebeneficialimpacttotheGeneralFundofbeing requiredtoaccountforretirementbenefitsonthebasisofcashflowsratherthanasbenefits areearnedbyemployees.

DiscretionaryBenefits

TheJointCommitteealsohasrestrictedpowerstomakediscretionaryawardsofretirement benefitsintheeventofearlyretirements. Anyliabilitiesestimatedtoariseasaresultofan awardtoanymemberofstaffareaccruedintheyearofthedecisiontomaketheawardand accounted for using the same policies as are applied to the Local Government Pension Scheme.

EventsaftertheBalanceSheetDate

Eventsafterthebalancesheetdatearethoseevents,bothfavourableandunfavourable,that occurbetweentheendofthereportingperiodandthedatewhentheStatementofAccounts isauthorisedforissue.Twotypesofeventscanbeidentified:

 thosethatprovideevidenceofconditionsthatexistedattheendofthereportingperiod –theStatementofAccountsisadjustedtoreflectsuchevents.

 those that are indicative of conditions that arose after the reporting period – the Statement of Accountsisnot adjusted toreflectsuchevents,but whereacategoryof eventswouldhaveamaterialeffect,disclosureismadeinthenotesofthenatureofthe eventsandtheirestimatedfinancialeffect.

Events taking place after the date of authorisation for issue are not reflected in the Statementof Accounts.

InventoriesandLong-TermContracts

Notes to the Financial Statements

ConstructionandvehiclemaintenanceinventoriesareincludedintheBalanceSheetatthe lower of average cost and net realisable value. Catering stock has been included at replacement value from suppliers’ list prices (this value is not significantly different from originalcost).

Workinprogressismeasuredatthecostofworknotinvoicedat31March.

Leases

Leasesareclassifiedasfinanceleaseswherethetermsoftheleasetransfersubstantiallyall therisksandrewardsincidentaltoownershipoftheproperty,plantorequipmentfromthe lessortothelessee. Allotherleasesareclassifiedasoperatingleases.

Arrangementsthatdonothavethelegalstatusofaleasebutconveyarighttouseanasset in return for payment are accounted for under this policy where fulfilment of the arrangement is dependent on the use of specific assets. Tayside Contracts has no arrangementsofthisnatureofsignificantvalueinplace.

FinanceLeases

Property,plantandequipmentheldunderfinanceleasesisrecognisedontheBalanceSheet atthecommencementoftheleaseatitsfairvaluemeasuredatthelease’sinception(orthe presentvalueoftheminimumleasepayments,iflower). Theassetrecognisedismatchedby aliabilityfortheobligationtopaythelessor. InitialdirectcostsoftheJointCommitteeare addedtothecarryingamountoftheasset. Premiumspaidonentryintoaleaseareapplied towritingdowntheleaseliability.

Leasepaymentsareapportionedbetween:

 a charge for the acquisition of the interest in the property, plant or equipment –appliedtowritedowntheleaseliability,and

 a finance charge (debited to the Financing and Investment Expenditure line in the ComprehensiveIncomeandExpenditureStatement).

Property,Plant andEquipmentrecognisedunderfinanceleasesisaccountedforusingthe policiesappliedgenerallytosuchassets,subjecttodepreciationbeingchargedoverthelease termifthisisshorterthantheasset’sestimatedusefullife(whereownershipoftheasset doesnottransfertotheJointCommitteeattheendoftheleaseperiod).

OperatingLeases

Rentals paid under operating leases are charged to the Comprehensive Income and Expenditure Statement as an expense of the services benefitting from use of the leased property,plantorequipment. Chargesaremadeonastraight-linebasisoverthelifeofthe lease,evenifthisdoesnotmatchthepatternofpayments.

Notes to the Financial Statements

Property,PlantandEquipment

Assetsthathavephysicalsubstanceandareheldforuseintheproductionorsupplyofgoods orservices,forrentaltoothers,orforadministrativepurposesandthatareexpectedtobe usedduringmorethanonefinancialyearareclassifiedasProperty,PlantandEquipment.

Recognition

Expenditureontheacquisition,creationorenhancementofProperty,PlantandEquipment is capitalised on an accruals basis, provided that it is probable that the future economic benefitsorservicepotential associatedwiththeitemwillflowtotheJointCommitteeandthecostoftheitemcanbe measuredreliably. Expenditurethatmaintainsbutdoesnotaddtoanasset’spotentialto deliverfutureeconomicbenefitsorservicepotential(i.e.repairsandmaintenance)ischarged asanexpensewhenitisincurred.

Measurement

Assetsareinitiallymeasuredatcost,comprising:

 thepurchaseprice.

 anycostsattributabletobringingtheassettothelocationandconditionnecessaryfor ittobecapableofoperatinginthemannerintendedbymanagement.

The Joint Committee does not capitaliseborrowing costs incurred whilst assets are under construction.

Thecostofassetsacquiredotherthanbypurchaseisdeemedtobeitscurrentvalueunless theacquisitiondoesnothavecommercialsubstance(i.e.itwillnotleadtoavariationinthe cash flows of the Joint Committee). In the latter case, where an asset is acquired via an exchange,thecostoftheacquisitionisthecarryingamountoftheassetgivenupbytheJoint Committee.

Wherethereisnomarket-basedevidenceofcurrentvaluebecauseofthespecialistnatureof anasset,depreciatedreplacementcost(DRC)isusedasanestimateofcurrentvalue.Where non-propertyassetsthathaveshortusefullivesorlowvalues(orboth),depreciatedhistorical costbasisisusedasaproxyforcurrentvalue.

Impairment

Assets are assessed 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 recoverableamountoftheassetisestimatedand,wherethisislessthanthecarryingamount oftheasset,animpairmentlossisrecognisedfortheshortfall.

Notes to the Financial Statements

Whereimpairmentlossesareidentified,theyareaccountedforbythecarryingamountof theassetbeingwrittendownagainsttherelevantDivisionintheComprehensiveIncomeand ExpenditureStatement.

Whereanimpairmentlossisreversedsubsequently,thereversaliscreditedtotherelevant DivisionintheComprehensiveIncomeandExpenditureStatement,uptotheamountofthe originalloss,adjustedfordepreciationthatwouldhavebeenchargedifthelosshadnotbeen recognised, with corresponding entries made as appropriate to the Capital Adjustment Account.

Depreciation

DepreciationisprovidedforonallProperty,PlantandEquipmentassetsbythesystematic allocation of their depreciable amounts over their useful lives. An exception is made for assetswithoutadeterminablefiniteusefullife(i.e.freeholdland)andassetsthatarenotyet availableforuse(i.e.assetsunderconstruction)

Depreciationiscalculatedonthefollowingbases:

 buildings–straightlineallocationovertheusefullifeoftheproperty. Buildingsat Collace Quarry are depreciated over the remaining economic life of the quarry as estimatedatthedateofacquisitionorconstructionofthebuilding.

 vehicles,plant and equipment – straight lineallocationovertheusefullifeof each class of assets, ranging from 2 to 20 years, typically between 5 to 10 years to the estimatedresalevalueofanassetinthatgroupandofreasonablecondition.Thiswill bereviewedevery3yearsandifasignificantvariancehasarisentheresidualvalues willbeupdated.

WhereanitemofProperty,PlantandEquipmentassethasmajorcomponentswhosecostis significant in relation to the total cost of the item, the components are depreciated separately.

Disposals

Whenanassetisdisposedofordecommissioned,itscarryingamount(whetherclassified underProperty,PlantandEquipmentorAssetsHeldforSale)iswrittenofftheBalance SheetandchargedtotheOtherOperatingExpenditurelineintheComprehensiveIncome andExpenditureStatement(CIES)aspartofthegainorlossondisposal.

AnyreceiptsfromthedisposalofassetsarecreditedtothesamelineintheCIES,alsoas partofthegainorlossondisposal,effectivelyoffsettingthecarryingvalueoftheassetat thetimeofdisposal.

TheremainingbalanceofreceiptsiscreditedtotheCapitalReceiptsReserveandmayonly beusedtofundnewcapitalinvestment.

Notes to the Financial Statements

Provisions,ContingentLiabilitiesandContingentAssets

Provisions

ProvisionsaremadewhereaneventhastakenplacethatgivestheJointCommitteealegalor constructiveobligationthatprobablyrequiressettlementbyatransferofeconomicbenefits orservicepotential,andareliableestimatecanbemadeoftheamountoftheobligation. For instance,theJointCommitteemaybeinvolvedinacourtcasethatcouldeventuallyresultin themakingofasettlementorthepaymentofcompensation.

Provisions are charged as an expense to the appropriate Division in the Comprehensive IncomeandExpenditureStatementintheyearthattheJointCommitteebecomesawareof the obligation and are measured at the best estimate at the balance sheet date of the expenditurerequiredtosettletheobligation,consideringrelevantrisksanduncertainties.

Whenpaymentsareeventuallymade,theyarechargedtotheprovisioncarriedintheBalance Sheet. Estimated settlements are reviewed at the end of each financial year – where it becomeslessthanprobablethatatransferofeconomicbenefitswillnowberequired(ora lowersettlementthananticipatedismade),theprovisionisreversedandcreditedbacktothe relevantservice.

Wheresomeorallofthepaymentrequiredtosettleaprovisionisexpectedtoberecovered fromanotherparty(e.g.fromaninsuranceclaim),thisisonlyrecognisedasincomeforthe relevant service if it is virtually certain that reimbursement will be received if the Joint Committeesettlestheobligation.

ContingentLiabilities

AcontingentliabilityariseswhereaneventhastakenplacethatgivestheJointCommitteea possibleobligationwhoseexistencewillonlybeconfirmedbytheoccurrenceorotherwiseof uncertainfutureeventsnotwhollywithinthecontroloftheJointCommittee.

Contingentliabilitiesalsoariseincircumstanceswhereaprovisionwouldotherwisebemade buteitheritisnotprobablethatanoutflowofresourceswillberequired,ortheamountof theobligationcannotbemeasuredreliably.

ContingentliabilitiesarenotrecognisedintheBalanceSheetbutdisclosedinanotetothe accounts.

ContingentAssets

AcontingentassetariseswhereaneventhastakenplacethatgivestheJointCommitteea possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not whollywithin the control of the Joint Committee. Contingent assetsarenotrecognisedintheBalanceSheetbutdisclosedinanotetotheaccountswhere itisprobablethattherewillbeaninflowofeconomicbenefitsorservicepotential.

Notes to the Financial Statements

Reserves

Reserves are split between Usable and Unusable reserves in the Balance Sheet. Usable ReservesrepresentfundsavailabletotheJointCommittee. UnusableReservesarekeptin order to manage accounting processes for non-current assets, retirement and employee benefitsanddonotrepresentusableresourcesfortheJointCommittee.

RevenueExpenditureFundedfromCapitalunderStatute

Expenditureincurredduringtheyearthatmaybecapitalisedunderstatutoryprovisionsbut thatdoesnotresultinthecreationofanon-currentassethasbeenchargedasexpenditure totherelevantserviceintheComprehensiveIncomeandExpenditureStatementintheyear. WheretheJointCommitteehasdeterminedtomeetthecostofthisexpenditurefromexisting capitalresourcesorbyborrowing,atransferintheMovementinReservesStatementfrom theGeneralFundBalancetotheCapitalAdjustmentAccountthenreversesouttheamounts chargedsothatthereisnoimpactonthelevelofrevenueexpenditure.

VAT

VATpayableisincludedasanexpenseonlytotheextentthatitisnotrecoverablefromHer Majesty’sRevenueandCustoms. VATreceivableisexcludedfromincome.

Borrowing

Borrowing representsthe outstanding principalrepayable (plus accrued interest) on loans arrangedwithDundeeCityCounciltofinancecapitalexpenditure.Interestischargedannually totheComprehensive

Income and Expenditure Statement in accordance with loan agreements. Loan terms are arrangedtomatchtheusefullivesofassetsfinanced.

TreatmentofSurpluses/Deficits

Anelementofprofitisincludedineachtenderwherepossibleandanyprofitmadeattheend oftheyearisusedtofundcapitalexpenditure(CFCR),transferredtotheconstituentCouncils atanagreedamountandanyremainingsurplustransferredintoreserves.

AnyshortfallinsurplusagainsttheagreeddistributiontotheconstituentCouncilsismetfrom reserves. Intheeventofadeficitarising,itwouldbemetfirstfromanyavailablereserves andsecondlybyacontributionfromeachconstituentCouncil.

GoingConcern

Thefinancialstatementshavebeenpreparedonagoingconcernbasis.

TheJoint Committee’sBalanceSheetasat31March2025showsaNetAssetof£12,220k (2023/24:NetAssetof£1,214k).ThesignificantfactorinthisistheIAS19PensionLiabilityof

Page 44 of 72

Notes to the Financial Statements

£2,023k(2023/24:PensionLiabilityof£2,287k)whichisbasedona“snapshot”at31March 2025andisparticularlysensitivetothevagariesoftheequitiesmarketandthediscountrate appliedtodeterminethepresentvalueoffutureliabilities. TheIAS19PensionAsset/Liability isanotionalfigureanddoesnotrequiretobefunded. AnyprojectedliabilityontheTayside Pension Fund is currently recouped by increased employer’s contributions. The IAS 19 Pension Liability does not impact on the Joint Committee’s General Fund or budget requirementsanddoesnotaffecttheJointCommittee’sabilitytocontinuetradingasagoing concern.

2. AccountingStandardsthathavebeenissuedbutnotyetbeenAdopted.

Therearenoaccountingstandardsthathavenotbeenissuedoradopted.

3. CriticalJudgementsinApplyingAccountingPolicies

InapplyingtheaccountingpoliciessetoutinNote1,theJointCommitteehastomakecertain judgementsaboutcomplextransactionsorthoseinvolvinguncertaintyaboutfutureevents. TherewerenocriticaljudgementsmadeinpreparingtheStatementofAccounts.

4. Assumptionsthathavebeenmadeaboutthefuture Pensions

Estimationofthenetliabilitytopaypensionsdependsonanumberofcomplexjudgements relatingtothediscountrateused,therateatwhichsalariesareprojectedtoincrease,changes inretirementages,mortalityratesandexpectedreturnonpensionfundassets. Afirmof actuariesisengagedbythepensionfundadministratorstoprovidetheJointCommitteewith expertadviceregardingtheassumptionstobeapplied.

Please refer to Note 34 for a sensitivity analysis for each significant actuarial assumption made.

5. Expenditure&FundingAnalysis

TheCIESandFundingAnalysisarereportedonthebasisofhowourservices(Construction and Facilities) are structured and how they operate, monitor and manage financial performance.

Netincome/ (expenditure) chargeableto theGeneral Fund Adjustments between Fundingand Accounting Basis(seeNote 14) Netincome/ (expenditure) inCIES

Fortheyearended31March2024

ConstructionDivision 1,229(571)1,800

Surplus/(deficit)onContinuingOperations1,621(155)1,776

OtherOperatingIncome -(147)147 FinancingandInvestmentIncome/(Expenditure)(557)(832)275 ContributionstoConstituentCouncils(1,064)-(1,064)

Surplus/(deficit)onProvisionofServices-(1,134)1,134

DecreaseinGeneralFund

GeneralFundbalanceasat1April20231,079

GeneralFundbalanceasat31March20241,079

Fortheyearended31March2025

ConstructionDivision 94152889 FacilitiesServicesDivision 4091,000(591)

Surplus/(deficit)onContinuingOperations1,3501,052298

OtherOperatingIncome -(40)40 FinancingandInvestmentIncome/(Expenditure)(537)(580)43 ContributionstoConstituentCouncils(813)-(813)

Surplus/(deficit)onProvisionofServices(0)432(432)

DecreaseinGeneralFund(0)

GeneralFundbalanceasat1April20241,079

GeneralFundbalanceasat31March20251,079

6. ConstructionDivisionStatutoryTradingAccount

Notes9and10providereconciliationsoftheStatutoryTradingAccounttotheComprehensive Income&ExpenditureStatementandthemovementintheGeneralFundbalancerespectively.

2022/232023/242024/253YearTotal

Restated £'000 Restated £'000Income£'000£'000 46,58650,511ChargestoConstituentCouncils45,906143,003 4,6333,527OtherIncome4,45012,610 --InterestReceivable7676 51,21954,03850,432155,689 Expenditure

12,79912,312DirectLabour12,89238,003 14,26113,401DirectPurchases10,92338,585 7,1499,251Sub-contractors7,07423,474 2,8843,419TransportandPlantHire3,2259,528 12,38512,158Overheads13,18137,724 2,0701,680Depreciation1,8365,586 428421DepotRentalCharges4101,259 268276InterestPayable428972 52,24452,91849,969155,131 (1,025)1,120Netsurplus/(deficit)includingIAS19Adjustments463558 (1,025)1,120463558 IAS19Adjustmentsincludedabove

ThefinancialobjectivesetbytheLocalGovernmentinScotlandAct(2003)determinesthateachStatutoryTrading accountmustbreakeveroverarollingthree-yearperiod.ThisobjectiveismeasuredafteradjustingforIAS19pension costs.However,duetothenatureofIAS19adjustments,thesignificantimpacttheyhaveonthetradingsurplusand thefactthattheyareastatutoryrequirement,tradingsurpluses/(deficits)havebeendisclosedabovebothinclusiveof andexcludingIAS19adjustments.Overthethree-yearperiod2022/23to2024/25thefinancialobjectiveforthe ConstructionDivisionhasbeenachieved,withasurplusof£558kafterapplyingIAS19adjustments.However,the measureoftheoperationaltradingperformanceisthethree-yearsurplusof£2,684kexcludingIAS19adjustmentsas shownbelow.

1,65246CurrentServiceCost2281,926 3026PastServiceCost144200 1,68272 3722,126

Notes9and10providereconciliationsoftheStatutoryTradingAccounttothe ComprehensiveIncome&ExpenditureStatementandthemovementinGeneralFund balancerespectively.

Charges to constituent councils and direct purchases have been restated due to a misclassificationofincome(Note37)

ConstructionDivision

The financial objective set by the Local Government in Scotland Act (2003) determines that each Statutory Trading Account must break even over a rolling three-year period.This objective is measured after adjusting for IAS 19 pension costs.However, due to the nature of IAS 19 adjustments, the significant impact they have on the trading surplus and the fact that they are a statutory requirement, trading surpluses/(deficits) have been disclosed above both inclusive of and excluding IAS 19 adjustments.Over the three-year period 2022/23 to 2024/25 the financial objective for the Facilities Services Division has not been achieved, with a deficit of £4,018k including IAS 19 adjustments. The measure of the operational trading performance is the three-year surplus of £361k excluding IAS 19 adjustments as shown below.

8. TradingOperations

FinancialObjectivesaremeasuredoverathreeyearperiodundertheLocalGovernmentin ScotlandAct(2003),witheachStatutoryTradingAccountrequiredtobreakevenoverthat period. NeithertheFacilitiesServicesTradingAccountnortheConstructionDivisionhavemet thisobjectiveforthethreeyears2022/23,2023/24and2024/25,duetothevolatileeffectof IAS19. Theunderlyingtradingperformance,excludingtheeffectsoftheIAS19adjustments, remainssolidwiththreeyeartotalsof£2,684kforConstructionandbreak-evenforFacilities.

9. ReconciliationofStatutoryTradingAccountstotheComprehensiveIncome& ExpenditureStatement

Theaccountingtreatmentofcertainitemsofincomeandexpenditurediffersbetweenthe Statutory Trading Accounts and the Comprehensive Income & Expenditure Statement. In particular, internal trading requires to be eliminated and interest charges are identified separatelyintheComprehensiveIncome&ExpenditureStatement.Areconciliationbetween thetwoaccountingstatementsisprovidedinthetablebelow.

ConstructionDivision

TotalperStatutoryTradingAccount(Note6)(49,969)50,432463 Adjustments:

Differencebetweennotionalandactualdepot costs 76InterestReceivable -(77)(77) InterestCharges 426-426

ComprehensiveIncome&Expenditure Statement(49,466)50,355889

NetIncome/ (Expenditure

FacilitiesServicesDivision

£'000£'000£'000

TotalperStatutoryTradingAccount(Note7)(48,233)47,579(654) Adjustments:

Differencebetweennotionalandactualdepot costs 27InterestReceivable -(77)(77) InterestCharges 113-113

ComprehensiveIncome&Expenditure Statement(48,093)47,502(591)

Notes to the Financial Statements

10. ReconciliationofStatutoryTradingAccountstoMovementintheGeneralFundBalance

FurthertothereconciliationinNote9above,anumberofaccountingadjustmentsarerequiredbytheCodetoproducetheMovementinReserves Statement.Thetablebelowprovidesreconciliationbetweenthesurplus/(deficit)reportedintheTradingAccountsandtheincreaseintheGeneral Fundbalance,withananalysisbetweentheConstructionandFacilitiesDivisions.

DeficitperTradingAccounts

1,6802081,888Depreciation&Impairment1,8351652,000

18828216Differencebetweennotionalandactualdepotcosts7627103

(214)(424)(638)DifferencebetweenIAS19andactualpensioncosts316625941 280552832IAS19pensioninterestcostandexpectedreturn145287432 (1,491)-(1,491)Repaymentofdebt(1,552)(117)(1,669) (1,105)(81)(1,186)CFCR (633)-(633) 281160441EmployeeStatutoryAdjustments (133)(38)(171) (305)(759)(1,064)ContributiontoConstituentCouncils (608)(205)(813) 433(433)(0)(Decrease)/increaseinGeneralFundBalance(92)920

Notes to the Financial Statements

11. NetAsset

The Joint Committee's Balance Sheet as at 31 March 2025 shows a net asset of £12,220k (2023/24:£1,214knetasset). ThesignificantfactorinthisistheIAS19Pensionliabilityof £2,023k (2023/24: £2,287k), which is based on a "snapshot" at 31 March 2025 and is particularlysensitivetothevagariesoftheequitiesmarketandotherinvestmentreturns,the discount rate applied todetermine thepresent value of future liabilities and assumptions regardingfutureinflationandinterestrates. TheIAS19pensionliabilityisacurrentactuarial estimateoffutureliabilitiesandwillchangeovertimewithchangestotheequitiesmarket, inflationandmortalityrates. Anyprojectedasset/liabilityontheTaysidePensionFundcan be positively affected by changes in the equities and investment market or by increased employer'scontributions.

12. ContributionstotheConstituentCouncils

For the financial year ending 31 March 2025, the constituent Councils agreed a target distributable surplus of £750k. An actual surplus of £813k was achieved and will be distributed to the constituent Councils (2023/24: £1,064k). This amount has been apportioned to the three constituent Councils in accordance with the percentage split methodagreedbytheJointCommitteeon18November2024.

13. EventsAftertheBalanceSheetDate

Therewerenoeventsthatoccurredbetween1April2025and17November2025thatwould haveanimpactonthe2024/25financialstatements. Thelaterdatewasthedatetheaudited financialstatementswereauthorisedforissuebytheJointCommittee.

14. AdjustmentsbetweentheAccountingBasisandFundingBasisunderRegulations

Adjustmentsinvolvingthecapitaladjustmentaccount2023/242024/25

ReversalofitemsdebitedorcreditedtotheCIES£'000£'000 Chargesfordepreciationandimpairmentonnon-currentassets1,8882,001 Capitalexpenditurefundedfromrevenue(1,187)(633)

Carryingamountofnon-currentassetssold -Loans/leaseprincipalrepaymentsduringtheyear(1,491)(1,670) Reductioninliabilityonexpiryoffinanceleases -InsertionofitemsnotedebitedorcreditedtotheCIES Otheradjustments --

Adjustmentsinvolvingthecapitalreceiptsreserve

Proceedsfromthesaleofnon-currentassets(147)(40)

Adjustmentsinvolvingthepensionsreserve

Reversalofitemsrelatingtoretirementbenefitsdebitedorcredited tothecomprehensiveincome&expenditurestatement(seenote 34) 5,8447,167

Employer'spensionscontributionsanddirectpaymentsto pensionerspayableintheyear (6,481)(6,222)

Adjustmentinvolvingtheemployeestatutoryadjustmentsaccount

Adjustmentsinrelationtoemployeestatutoryadjustments440(171) (1,134)432

15. OtherOperatingIncome

16. FinancingandInvestmentIncome

Expectedreturnonassets/netinterestondefined

17. PropertyPlantandEquipment

(a)ComparativeYear

Landand Buildings Vehicles,Plant &Equipment

AssetsUnder Construction Rightof UseAssets TotalFixed Assets

CostorValuation£'000£'000£'000£'000£'000

Balanceasat1April20231,62825,0185581,61928,823 Additions2501,1532,2754334,111

TransferAssetunderConstruction1961,999(2,195)--

De-recognition-Disposals-(1,877)--(1,877)

At31March20242,07426,2936382,05231,057

DepreciationandImpairment

Balanceasat1April202346814,154-9914,721 Revaluation891,976-1602,225 DepreciationCharge -(326)--(326) De-recognition-Disposals-(1,646)--(1,646) At31March202455714,158-25914,974

NetBookValue

Balanceasat31March20241,51712,1356381,79316,083

Balanceasat31March20231,16010,8645581,52014,102

(b)CurrentYear

CostorValuation

Balanceasat1April20242,07526,2936382,05231,058 Additions1502,5571,05212,70816,467

Revaluation -----

TransferAssetunderConstruction199318(517)-De-recognition-Disposals(46)(2,149)--(2,195) At31March20252,37827,0191,17314,76045,329

DepreciationandImpairment

Balanceasat1April202455714,158-25914,974 DepreciationCharge911,802-8772,770 Revaluation -----

De-recognition-Disposals(46)(1,953)--(1,999) At31March2025 60214,007-1,13615,745

NetBookValue

Balanceasat31March20251,77613,0111,17313,62329,583

Balanceasat31March20241,51712,1366371,79416,084

Inaccordancewiththestatedaccountingpolicy,ownedassetsaredepreciatedovertheir estimatedusefullife. Theusefullifeassignedtothevarioustypesofplant,vehiclesand

Notes to the Financial Statements

equipmentrangesfrom2to20years. Quarrybuildingsaredepreciatedovertheestimated remainingeconomiclifeofthequarryatthedateofacquisition,andarangeof10to16 yearshasbeenapplied. Computerequipment(largevalueservers)isdepreciatedover5 years. Assetsacquiredunderfinanceleasesaredepreciatedoverthelifeofthelease consideringanyresidualvalueattheendoftheleaseperiod.

18. CapitalExpenditure–SourcesofFinance

The totalamount of capitalexpenditureincurred in the year isshown in thetablebelow, togetherwiththeresourcesthathavebeenusedtofinanceit.

19. CapitalCommitments

At 31 March 2025 there were commitments of £725k in respect of vehicles, plant and equipmentorderedbutnotreceivedatthatdate(2023/24:£715k).

20. FinancialInstruments

Withtheexceptionofdebtors,creditorsandborrowingstofundcapitalexpenditure,analyses ofwhichareprovidedinnotes22,25and24respectively,TaysideContractsdoesnothave any financial instruments that are required to be re-measured and disclosed under InternationalAccountingStandards39and32andInternationalFinancialReportingStandard 7.

21. Inventories

Inundertakingitswork,theJointCommitteeholdsreservesofstocktogetherwithamounts of uncompleted work (work in progress). The figure shown in the balance sheet may be subdividedasfollows:

22. Debtors

23. Cash&CashEquivalents

24. Short&Long-TermBorrowing

During2024/25loansamountingto£3,094k(2023/24:£2,628k)werearrangedwithDundee CityCounciltofinancecapitalexpenditure. Thenetfutureobligationinrespectoftheseloans, togetherwithloansarrangedinpreviousyears,asat31Marchis:

25. Creditors

26. Provisions

Aprovisionhasbeencreatedinrespectofcompletedcontractsforwhichcostsassociated withremedialworksareexpectedtoariseinfutureyears. Theprovisionalsumrepresents theestimatedvalueofirrecoverablecostswhichincludeoutstandingclaims,remedialand

Notes to the Financial Statements

maintenanceexpenses. Provisionisalso madeforthefuturereinstatement ofthequarry operated by Tayside Contracts and remedial costs at the Bolshan landfill quarry site as determinedbySEPA. Otherprovisionsrelatetoongoinglegaldisputes,obsoleteorageing stockitems,restructuringandallowingforinsuranceclaimsandclaimsinrespectofovertime adjustmentstoholidaypayments.

LongtermprovisionsrelatetoCollaceandBolshanquarryreinstatementcostsandCPU reinstatement.

27. UsableReserves

These are cash receipts from the sale of the Joint Committee’s assets, which have been appliedtofinancecapitalexpenditure.

28. UnusableReserves

CapitalAdjustmentAccount

The Capital Adjustment Account absorbs the timing differences arising from the different accountingarrangementinrespectofconsumptionofnon-currentassetsandthefinancing oftheacquisition,constructionorenhancementofthoseassetsunderstatutoryprovisions. The account is debited with the cost of acquisition, construction or enhancement as depreciation,impairmentlossesandamortisationsarechargedtotheComprehensiveIncome andExpenditureStatement. TheaccountiscreditedwiththeamountssetasidebytheJoint Committeeasfinanceforthecostsofacquisition,constructionandenhancement.

creditedtotheCIES

PensionsReserve

TheJointCommitteeaccountsforpost-employmentbenefitsintheComprehensiveIncome andExpenditureStatementasthebenefitsareearnedbyemployeesaccruingyearsofservice, updatingtheliabilitiesrecognisedtoreflectinflation,changingassumptionsandinvestment returnsonanyresourcessetasidetomeetthecosts.

However, statutory arrangements require benefits earned to be financed as the Joint Committeemakesemployer’scontributionstopensionfundsorpaysanypensionsforwhich it is directly responsible. The debit balance on the Pensions Reserve therefore shows a substantialshortfallinthebenefitsearnedbypastandcurrentemployeesandtheresources setasidetomeetthem. Thestatutoryarrangementswillensurethatfundingwillhavebeen setasidebythetimethebenefitscometobepaid.Thereisanequalandoppositeliabilityfor thisamountintheBalanceSheet.

Reversalofitemsrelatingtoretirementbenefitsdebitedor creditedtotheprovisionofserviceintheCIES(seeNote34) 638 (943)

TheEmployeeStatutoryAdjustmentsAccountabsorbsthedifferencesthatwouldotherwise ariseontheGeneralFundBalancefromaccruingforcompensatedabsencesearnedbutnot

Notes to the Financial Statements

taken in the year, e.g. annual leave entitlement outstanding at 31 March. Statutory arrangementsrequirethattheimpactontheGeneralFundBalanceisneutralisedbytransfers toorfromtheAccount.

29. NotestotheCashFlowStatement

29(b)CashFlowsfromInvestingActivities

29(c)CashFlowsfromFinancing

Notes to the Financial Statements

30. Members’Allowances

The Joint Committee does not make payment to members in the form of salaries and allowances. TheonlycostsrelatingtomembersincurredbytheJointCommitteearethose associatedwithattendanceatrelevantconferencesandseminars.

ConferenceandSeminars - -

TravelandSubsistence

31. ExternalAuditFees

TheexternalauditorsofTaysideContractsJointCommitteeareappointedbytheAccounts CommissionforScotland,foraperiodof5years.

ThetotalfeepayabletoAuditScotlandinrespectofthe2024/25financialyear,forexternal auditservicesundertakeninaccordancewiththeCodeofPractice,isTBC(2023/24:£49k).

During 2024/25 the external auditor did not provide any other services to the Joint CommitteeotherthanthedutiesundertakeninaccordancewiththeCodeofAuditPractice.

32. RelatedParties

TheJointCommitteeisrequiredtodisclosematerialtransactionswithrelatedpartiesbodies thathavethepotentialtocontrolorinfluenceTaysideContracts. BytheverynatureofJoint Committee structure and operations, the three constituent Councils would be considered relatedparties. WorkcarriedoutfortheconstituentCouncilsduringthefinancialyearwas valuedasfollows:

ChargesweremadebytheconstituentCouncilsforservicesprovidedtotheJointCommittee, including historical loans fund charges for the use of depots, as follows (note that these figuresexcludeprudentialloanprincipalandinterestrepayments):

Notes to the Financial Statements

The following repayments of surpluses due to the constituent Councils, including interest accruedonoutstandingbalances,weremadebyTaysideContracts:

Loan repayments to Dundee City Council in respect of sums borrowed to fund capital expenditure, including interest and loans fund expenses, are included in the accounts amountingto£1,670kin2024/25(2023/24:£1,491k).

IncludedintheBalanceSheetareanumberofbalancesrelatingtoamountsduefromandto theconstituentCouncils. Thesearesummarisedasfollows:

IncludedintheBalanceSheetarebalancesoutstandingonloansfromDundeeCityCouncil, disclosedinNote24.

Notes to the Financial Statements

33. Leases

Sixpropertiesandanumberofvehicleswereleasedat31March2024asfollows:

34. DefinedBenefitsPensionScheme

ParticipationintheLocalGovernmentPensionScheme

Aspartofthetermsandconditionsofemploymentofitsemployees,theJointCommittee offers retirement benefits. Although these benefits will not actually be payable until employeesretire,theJointCommitteehasacommitmenttomakethepaymentsthatneed tobedisclosedatthetimethatemployeesearntheirfutureentitlement.

TheJointCommitteeparticipatesintheTaysidePensionFund,administeredbyDundeeCity Council. This is a funded scheme, meaning that the Joint Committee and employees pay contributionsintoafund,calculatedatalevelintendedtobalancethepensionfundsliabilities withinvestmentassets.

TransactionsRelatingtoRetirementBenefits–CIESCharges

TheJointCommitteerecognisesthecostofretirementbenefitsintheCostofServiceson ContinuingOperationswhentheyareearnedbyemployeesratherthanwhenthebenefits areeventuallypaidaspensions.

However,thechargetheJointCommitteeisrequiredtomakeisbasedonthecashpayablein the year, and the real cost of retirement is reversed out in the adjustments between accounting basis and funding basis under regulations line, in the Movement in Reserves Statementduringtheyear.

Adjustmentsbetweenaccountingbasisandfundingbasis underregulations

Reversalofchargesmadeforretirementbenefitsin

InadditiontotherecognisedgainsandlossesincludedintheCIES,anactuariallossof £1,060k(2022/23-gainof£11,112k)wasincludedinothercomprehensiveincomeand expenditureintheCIES. Thefiveyearcumulativeamountofactuarialgainsandlosses recognisedinothercomprehensiveincomeandexpenditureisagainof£50,295k.

AssetsandLiabilitiesinRelationtoRetirementBenefits

Thechangeinthenetpensionliabilityisanalysedintovariouscomponents:

 currentservicecost–theincreaseinliabilitiesasaresultofyearsofserviceearnedthis year–allocatedintheComprehensiveIncomeandExpenditureStatementtotheservices forwhichtheemployeesworked.

 past servicecost –the increase in liabilities arising from current year decisions whose effectrelatestoyearsofserviceearnedinearlieryears–debitedtotheSurplusorDeficit ontheProvisionofServicesintheComprehensiveIncomeandExpenditureStatement

 net interest – the netdefined benefit liability (asset) multiplied by thediscount ratedebited to the Financing and Investment Income and Expenditure line in the ComprehensiveIncomeandExpenditureStatement

 expectedreturnonassets–theannualinvestmentreturnonthefundassetsattributable totheJointCommittee,basedonanaverageoftheexpectedlong-termreturn–credited to the Financing and Investment Income and Expenditure line in the Comprehensive IncomeandExpenditureStatement

 gainsorlossesonsettlementsandcurtailments–theresultofactionstorelievetheJoint Committeeofliabilitiesoreventsthatreducetheexpectedfutureserviceoraccrualof benefitsofemployees–debitedorcreditedtotheSurplusorDeficitontheProvisionof ServicesintheComprehensiveIncomeandExpenditureStatement

Notes to the Financial Statements

 remeasurementgainsandlosses–changesinthenetpensionsliabilitythatarisebecause events have not coincided with assumptions made at the last actuarial valuation or becausetheactuarieshaveupdatedtheirassumptions–debitedtothePensionsReserve

 contributionspaidtotheTaysidePensionFund–cashpaidasemployer’scontributions tothepensionfundinsettlementofliabilities;notaccountedforasanexpense.

Reconciliationofpresentvalueoftheschemeliabilities

Reconciliationofpresentvalueoftheschemeassets

expected return onschemeassetsisdeterminedby

Notes to the Financial Statements

arebasedongrossredemptionyieldsasattheBalanceSheetdate. Expectedreturnson equityinvestmentsreflectlongtermrealratesofreturnexperiencedintherespective markets.

Theactualreturnonschemeassetsintheyearshowedapositivereturnof£6,794k (2023/24:£41,257k).

TheaboveassetvaluesareatbidvalueasrequiredbyIAS19.

SchemeHistory-Analysisofschemeassetsandliabilities

Amountrecognisedinothercomprehensiveincomeandexpenditure

Historyofexperiencegainsand losses

Notes to the Financial Statements

Analysis ofprojected amount to be charged to CIESfor year to 31March2026

ThetotalcontributionsexpectedtobemadetotheTaysidePensionFundbytheJoint Committeeintheyearto31March2026is£5,863k.

Basis forestimating assetsand liabilities

Liabilitieshavebeenassessedonanactuarialbasisusingtheprojectedunitmethod,anestimate ofthepensionsthatwillbepayableinthefutureyearsdependingonassumptionsabout mortalityrates,salarylevels,etc.

Theoverallpensionassetof£102,575kaspertheactuarialvaluationhasbeendisaggregatedto distinguishbetweenfundedandunfundedobligations. Thenetliabilitypositionrelatingto fundedobligationsof£104,598khasbeenadjustedfortheassetceilingcalculationrequiredby IAS19/IFRIC14whichlimitsthemeasurementofanetdefinedbenefitscheme. Thereareno unconditionalrightstoreducedcontributionsorrefundsfromthescheme,thereforeanasset ceilinghasbeencalculatedtobringthenetvaluerelatingtofundedobligationsto£0at31 March2025(£0asat31March2024).ThereisadebitbalanceonthePensionsReservewhich reflectsthenetliabilitypositionrelatingtounfundedobligationsof£2,023k.

Thepensionfundliabilitieshavebeenassessedbyanindependentfirmofactuaries;estimates beingbasedondatapertainingtothelatestfullvaluationoftheschemeasat31March2025.

Mortalityassumptions

Longevityat65forcurrent pensioners

Men

Longevityat65forfuturepensioners

2023/242024/25

Notes to the Financial Statements

TheTaysidePensionFund'sassetsconsistofthefollowingcategories,byproportionofthetotal assetsheld:

SensitivityAnalysis

Adjustmenttopensionincreasesand

35. ContingentLiabilities

Noeventshaveoccurredthatareexpectedtoresultinthecreationofaliability.

36. ContingentAssets

Noeventshaveoccurredthatareexpectedtoresultinthecreationofanasset.

37. EffectontheComprehensiveIncome&ExpenditureStatementofaPriorYear Error

StatedGross Expenditure 2023/24

Gross Expenditur e2023/24

ConstructionDivision41,86552,23810,37343,66554,03810,3730