External Audit Completion 2025/26

Rushcliffe borough Council External Audit Completion Report 2024

Reported to Governance Scrutiny Group - 24 September 2026

Dear Committee Members,

Audit Completion Report – Year ended 31 March 2026

I am pleased to present our Audit Completion Report (“ACR”) for Rushcliffe Borough Council (“the Council”) for the year ending 31st March 2026. The purpose of this report is to summarise our audit findings and conclusions.

This report is intended solely for the Governance Scrutiny Group for the purpose of communicating certain matters that, in our professional judgement, are relevant to your oversight of the financial reporting process.

We appreciate the courtesy and co-operation extended to us by Rushcliffe Borough Council throughout our audit. We would be happy to discuss the contents of this report, or any other matters regarding our audit, with you in more detail.

Yours faithfully
Mark Surridge
Forvis Mazars LLP

Contents

Executive summary
Status of our audit
Audit approach and risk summary
Significant findings
Summary of misstatements
Fraud considerations
Value for money

Appendix A: Internal control conclusions

Appendix B: Draft management representation letter

Appendix C: Draft audit report

Appendix D: Confirmation of our independence

Appendix E: Other communications

Our reports are prepared in the context of the ‘PSAA Statement of Responsibilities of Auditors and of Audited Bodies’ and the ‘Appointing Person Terms of Appointment’ issued by Public Sector Audit Appointments Limited. This document is to be regarded as confidential to Rushcliffe Borough Council. It has been prepared for the sole use of the Governance Scrutiny Group as the appropriate sub committee charged with governance. To the fullest extent permitted by law Forvis Mazars LLP accepts no responsibility and disclaims all liability to any third party who purports to use or rely for any reason whatsoever on the report, its contents, conclusions, any extract, reinterpretation, amendment and / or modification. Accordingly, any reliance placed on the report, its contents, conclusions, any extract, reinterpretation, amendment and / or modification by any third party is entirely at their own risk.

1. Executive summary

Scope

We have been engaged to audit the financial statements of Rushcliffe Borough Council for the year ended 31 March 2026 which are prepared in accordance with the 2025/26 Code of Practice on Local Authority Accounting.

We have conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs’), relevant ethical and professional standards, our own audit methodology and an accordance with the Code of Audit Practice.

Audit status

Our audit procedures are now substantially complete.

Please refer to the ‘Status of our audit’ section for a list of significant audit matters outstanding at the date of this report. We will provide an update to you on completion of those outstanding matters by way of a follow up letter.

Areas of focus and audit approach, and significant findings

We have not made any changes to our initial risk assessment and planned audit approach that was communicated to you in our Audit Strategy Memorandum.

Our significant risks and other areas of focus are set out in the ‘Audit approach and risk summary’ section, with a summary of our audit approach over those areas. Significant findings from our audit are set out in the ‘Significant findings’ section.

Audit misstatements

A summary of the adjusted and unadjusted misstatements above our reporting threshold we have identified to date is set out in the ‘Summary of misstatements’ section.

Significant control deficiencies

We did not identify any significant deficiencies in internal control.

The non-significant control observations that we have identified to date are set out in ‘Appendix A: Internal control conclusions’.

Audit opinion

At the time of issuing this report and subject to the satisfactory conclusion of our remaining audit work, we anticipate issuing an unqualified opinion, without modification, as set out in Appendix C.

Value for Money

We anticipate having no significant weaknesses in arrangements to report in relation to the arrangements that the Council has in place to secure economy, efficiency and effectiveness in its use of resources. Further details have been provided in the ‘Value for Money’ section of this report.

Wider reporting powers

Local Audit and Accountability Act 2014 (‘the 2014 Act’) requires us to give an elector, or any representative of the elector, the opportunity to question us about the accounting records of the Council and to consider any objection made to the accounts.

Reporting to the group auditor

We have not yet received group instructions from the National Audit Office in respect of our work on the Council’s WGA submission. We are unable to commence our work in this area until such instructions have been received.

Qualitative aspects of the Council's accounting practices

We have reviewed the Council’s accounting policies and disclosures and conclude that they comply with the 2025/26 Code of Practice on Local Authority Accounting, appropriately tailored to the Council’s circumstances.

Draft accounts were received from the Council on 4th June 2026 and were of a good quality.

Significant matters discussed with management

During our audit, we communicated the following significant matters to management:

The 2025/26 Code update on how to apply accounting changes relating to the indexation of operational land and buildings held at current value.
Developments in the Council strategy and financial planning processes.
Local Government Reorganisation in Nottingham and Nottinghamshire.

Significant difficulties during the audit

We have not encountered any significant difficulties, and we have had the full co-operation of management.

Other matters of significance

We encountered no significant difficulties during our audit and had no significant disagreements with management. There was effective co-operation and communication between Forvis Mazars, management, and you during our audit. All requested information and explanations were provided to us.

Other matters we are required by ISA (UK) 260 Communication with Those Charged with Governance to communicate to you have been set out in Appendix E.

2. Status of our audit

Our audit work is substantially complete and there are currently no matters of which we are aware that would require modification of our audit opinion, subject to the satisfactory resolution of the outstanding matters set out below.

Valuation of the Net Defined Benefit Pension Asset / Liability - Status Amber

Action to resolve: We are waiting to receive assurance from the auditor of Nottinghamshire Pension Fund. This is expected in September 2026

Responsibility: Forvis Mazars

Quality control - Status Amber

Action to resolve: We will perform quality control checks over the work performed and judgements reached, including assessment of any audit adjustments.

Responsibility: Forvis Mazars

Subsequent event review - Status Green

Completion of subsequent events review up to the date of signing the Audit Report.

Responsibility: Forvis Mazars, those charged with governance, management

Financial Statements / Annual Governance Statement - Status Green

To be approved and signed at the meeting of the Governance Scrutiny Group.

Responsibility: those charged with governance, management

Management Representation Letter - Status Green

To be approved and signed at the meeting of the Governance Scrutiny Group.

Responsibility: those charged with governance, management

Audit Report - Status Green

To be issued on receipt of the signed financial statements.

Responsibility: Forvis Mazars

Note: Likelihood to result in a material adjustment or significant change to disclosures

Red status: likely
Amber status: potentially
Green status: not considered likely

3. Audit approach and risk summary

Changes to our audit approach

There have been no changes to the audit approach we communicated in our Audit Strategy Memorandum (ASM), issued on 24 March 2026.

Materiality

Our provisional materiality at the planning stage of the audit was set using a benchmark of 2% of gross revenue expenditure at surplus / deficit level. This meant an overall materiality of £930,000 and performance materiality of £744,000.

Based on the final financial statement figures, the final overall materiality we applied was £904,000 (final performance materiality: £723,000; final clearly trivial threshold: £27,000).

Internal audit

No reliance has been placed on internal audit for the 2025/26 financial audit.

Enquiries have been undertaken to aid our understanding of the overarching control environment at the Council

Use of experts

Management makes use of experts in specific areas when preparing the Council’s financial statements. We also use experts to assist us to obtain sufficient appropriate audit evidence on specific items of account. No changes to those outlined in our ASM.

Item of account: Property, Plant & Equipment and Investment Property

Management expert: Nick Berry and Leanne Ashmore (Internal Valuers)
Auditor's expert: None. Third party evidence is provided via the National Audit Office (NAO) to support our challenge of valuation assumptions.

Item of account: Pensions

Management expert: Barnett Waddingham (Actuary for Nottinghamshire Pension Fund)
Auditor's expert: PwC - Consulting actuary appointed by the NAO

Item of account: Financial Instruments disclosures

Management expert: Arlingclose (Treasury Management Advisors)
Auditor's expert: None

Use of service organisations

International Auditing Standards (UK) (ISAs) define service organisations as third-party organisations that provide services to the Council that are part of its information systems relevant to financial reporting. We are required to obtain an understanding of the services
provided by service organisations as well as evaluating the design and implementation of controls over those services. The table below summarises the service organisations used by the Council and our planned audit approach. There have been no changes to our approach since we issued our ASM.

Item of account: Employee Benefits Expenses

Service Organisation: Gedling Borough Council - The payroll entries included in Rushcliffe Borough Council’s statement of accounts are significant. These disclosures derive from monthly payroll runs processed and administered by Gedling Borough Council.
Audit approach: We performed substantive testing of information held within Rushcliffe Borough Council and did not rely on controls / assurance from the service organisation.

Audit approach and risk summary

Significant risks

Management override of controls

Fraud risk - Yes
Judgement - Yes
Error - No
Substantive audit procedures - Yes
Tests of controls - No
Misstatement identified - No
Control recommendations - Yes

Conclusion

Through the audit work completed, we have not identified any issues regarding management override of controls. However, as part of our journal entry testing, we have raised a control recommendation in Appendix A: Internal control conclusions.

Valuation of Investment Property

Fraud risk - No
Judgement - Yes
Error - Yes
Substantive audit procedures - Yes
Tests of controls - No
Misstatement identified - No
Control recommendations - No

Conclusion

Through the audit work completed, we have not identified any misstatement or control recommendations in this area.

Valuation of LGPS Defined Benefit Pension

Fraud risk - No
Judgement - Yes
Error - Yes
Substantive audit procedures - Yes
Tests of controls - No
Misstatement identified - Yes
Control recommendations - No

Conclusion

Through the audit work completed, we have not identified any misstatement or control recommendations in this area. However, we
are awaiting assurance from the auditor of Nottinghamshire Pension Fund.

Other key areas of judgement, and enhanced risks

Valuation of Property, Plant & Equipment (Land + Buildings)

Fraud risk - No
Judgement - Yes
Error - Yes
Substantive audit procedures - Yes
Tests of controls - No
Misstatement identified - Yes
Control recommendations - No

Conclusion

We have identified one unadjusted misstatement which is detailed below.

4. Significant findings

Significant findings, including key areas of management judgement

The significant findings from our audit include our conclusions regarding the significant risks we identified and other key areas of judgement, which are set out in this section.

Significant Risks

Management override of controls

Description of the risk

In all entities, management at various levels within an organisation are in a unique position to perpetrate fraud because of their ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Due to the unpredictable way in which such override could occur, we consider there to be a risk of material misstatement due to fraud and thus a significant risk on all audits.

How we addressed this risk

We addressed this risk through performing audit work over:

Accounting estimates impacting amounts included in the financial statements;
Consideration of identified significant transactions outside the normal course of business; and
Journal entries recorded in the general ledger and other adjustments made in preparation of the financial statements

Audit conclusion

Through the audit work completed, no issues have been identified that would need to be brought to the attention of members. However, we have raised a control recommendation (non-significant) in Appendix A: Internal control conclusions.

Valuation of Investment Properties

Description of the risk

Investment Properties are a significant balance on the Council’s balance sheet. The valuation of these properties is complex and is subject to a number of management assumptions and judgements. Due to the high degree of estimation uncertainty associated, we have determined there is a significant risk in this area.

In the 2025/26 statement accounts these items amounted to £24,178,000

How we addressed this risk

Critically assessing the scope of work, qualifications, objectivity and independence of the Council’s valuer to carry out the required programme of revaluations;
Considering whether the overall revaluation methodologies used by the Council’s valuers are in line with industry practice, the CIPFA code of practice and the Council’s accounting policies;
Testing a sample of valuations carried out in the year to confirm they have been carried out on the correct basis and that the underlying judgements are based on relevant inputs and are reasonable; and
Assessing whether valuation movements are in line with market expectations by considering valuation trends;

Audit conclusion

From the work performed, we did not identify any misstatements or significant control weaknesses in respect of our testing of Investment Properties.

Valuation of the LGPS defined benefit pension

Description of the risk

Rushcliffe Borough Council is an employer in the Local Government Pension Scheme, administered on a local level by the Nottinghamshire Pension Fund. The defined benefit assets and liabilities are significant items in the Council's balance sheet. In the 2025/26 statement of accounts these amounted to:

Present value of defined benefit obligation - £84,493,000
Fair value of plan assets - £89,256,000
Impact of Asset Ceiling - £4,778,000

The Council engages an actuary to perform an annual valuation in accordance with the requirements of IAS 19 Employee Benefits. Due to the high degree of estimation uncertainty associated with this valuation, we have identified a significant risk in this area.

How we addressed this risk

Critically assessing the competency, objectivity and independence of the Nottinghamshire Pension Fund’s Actuary;
Liaising with the auditors auditors of the Nottinghamshire Pension Fund to gain assurance that the controls in place at the Pension Fund are operating effectively. This will include the processes and controls in place to ensure data provided to the Actuary by the Pension Fund for the purposes of the IAS19 valuation is complete and accurate;
Reviewing the appropriateness of the pension asset and liability valuation methodologies applied by the Pension Fund Actuary, and the key assumptions included within the valuation. This will include comparing them to expected ranges, utilising information by PwC and consulting actuary engaged by the National Audit Office; and
Agreeing the data in the IAS 19 valuation report provided by the Fund Actuary for accounting purposes to the pension accounting entries disclosures in the Council’s financial statements. In the event of a pension surplus arising in 2024/25, its accounting treatment will require specific consideration under IFRIC 14.

Audit conclusion

Our work in this area is substantially complete and no matters have arisen from work performed to date. However we are waiting to receive assurance from the auditor of Nottinghamshire Pension Fund in order to be able to conclude on this matter.

Other key areas of management judgement / enhanced risks

Description of the risk

Property, Plant and Equipment (Land and Buildings) represents a significant balance on the Council’s balance sheet. In previous years, it had been identified as a significant risk of material misstatement for the purposes of our audit.

However, the 2025/26 CIPFA code introduces a requirement for property, plant, and equipment valuations to be conducted once every five years or on a five-year rolling basis, supported by indexation in intervening years. From our initial planning and risk assessment we have established that, in line with this updated guidance, the Council will be applying indexation in 2025/26.

The Council engaged a valuation expert to support this work, which will require the use of judgement to identify an appropriate index and combined with the first-time application of this approach by the Council, the inherent risk of material misstatement is judged to be ‘enhanced’, but not ‘significant’ for 2025/26.

How we addressed this risk

Critically assessing the scope of work, qualifications, objectivity and independence of the Council’s valuer to carry out the required programme of revaluations;
Considering whether the choice of indices selected by the Council, in consultation with its valuation expert, is in line with industry practice, the CIPFA code of practice and the Council’s accounting policies;
Critically assessing the indices applied to the Land and Buildings for 2025/26 by asset type; and
Reperforming uplift calculations to confirm mathematical accuracy.

Audit conclusion

We have concluded our audit work in this area. We have identified an unadjusted misstatement which is reported in more detail below.

Wider responsibilities

Our powers and responsibilities under the 2014 Act are broad and include the ability to:

issue a report in the public interest;
make statutory recommendations that must be considered and responded to publicly;
apply to the court for a declaration that an item of account is contrary to law; and
issue an advisory notice under schedule 8 of the 2014 Act.

We have not exercised any of these powers as part of our 2025/26 audit.

The 2014 Act also gives rights to local electors and other parties, such as the right to ask questions of the auditor and the right to make an objection to an item of account. No such objections have been raised.

5. Summary of misstatements

Unadjusted misstatements

Our overall materiality, performance materiality, and clearly trivial (reporting) threshold were reported in our Audit Summary Memorandum, issued to management in March 2026. Any subsequent changes to those figures are set out in the ‘Executive summary’ section of this report.

Management has assessed the misstatements in the table below as not being material, individually or in aggregate, to the financial statements and does not plan to adjust. We only report to you unadjusted misstatements that are either material by nature or which exceed our reporting threshold.

Unadjusted misstatements
Details of adjustment	Nature	Comprehensive Income and Expenditure Statement Debtor	Comprehensive Income and Expenditure Statement Creditor	Balance Sheet Debtor	Balance Sheet Creditor
Debtor: Property, Plant and Equipment - Land and Buildings Creditor: Revaluation Reserve From our review of indexation applied to operational land and buildings in year, we identified that: February 2026 rather than March 2026 indices was used as latest available at time of valuation, which meant the full year effect of indexation was not included in the calculations, resulting in an understatement variance of £101,000 A transposition error on an index resulted in a mathematical error of £10,000	Estimate	-	-	£111,000	£111,000
Aggregate effect of unadjusted misstatements	-	-	-	£111,000	£111,000

We will obtain written representations confirming that, after considering the unadjusted misstatements, both individually and in aggregate, in the context of the financial statements taken as a whole, no adjustments are required.

Adjusted misstatements

The misstatements in the table below have been adjusted by management. We report all individual misstatements above our reporting threshold that we identify during our audit and which management had adjusted and any other misstatements we believe you should be made aware of.

Adjusted misstatements
Misstatement	Comprehensive Income and Expenditure Statement Debtor	Comprehensive Income and Expenditure Statement Creditor	Balance Sheet Debtor	Balance Sheet Creditor
Debtor: Cash and Cash Equivalents Debtor: Creditors Creditor: Debtors We identified transactions relating the year end bank reconciliation that had been posted in error. This related to adjustments made when performing the reconciliation of the cash management system to the general ledger.	-	-	£1,209,000 £614,000 -	- - £1,823,000
Aggregate effect of adjusted misstatements	0	0	£256,000	£256,000

Disclosure misstatements

We identified the following disclosure misstatements during our audit that have been corrected by management:

Financial statement area and description of amendment

Narrative Report: “Net transfer to reserves of £8,420,000" was corrected to £8,142,000
Annual Governance Statement (AGS): The AGS was updated to reflect the recent Local Government Reorganisation (LGR) decision
Note 8 - Property, Plant and Equipment, and Note 36 Accounting Policies (PPE): Wording in the paragraph on revaluations was updated to reflect the new requirements from 2025/26 to revalue relevant assets every 5 years and apply indexation in the intervening periods
Note 13 - Debtors: “Provision for impairment losses” wording adjusted to “Expected Credit Loss”
Note 32 - Defined Benefit Pension Schemes: A correction was made to the table showing the reconciliation of the effect of the asset ceiling
Collection Fund Statement: The prior year surplus/deficit line was updated from 2023/24 to 2024/25
The multiplier for standard properties in 2025/26 was updated from 55.9p to 55.5p
Note 36 - Accounting Policies: Some accounting policies were not numbered and therefore corrected
Note 38 - Critical Judgements in Applying Accounting Policies: Narrative was added to discuss the use of judgement regarding the new requirements from 2025/26 to revalue relevant assets every 5 years and apply indexation in the intervening periods.
Note 39(b) - Assumptions Made About the Future and Other Major Sources of Estimation: "The provisions amounted to £130,000 [...] for sundry debtors“ was correctly adjusted to £301,000
Note 39(f) - Assumptions Made About the Future and Other Major Sources of Estimation: This was amended to reflect the most up to date information regarding Local Government Reorganisation (LGR) decision made in July 2026.
Note 41 - Events After the Reporting Date: Updated to reflect July 2026 LGR decision, as the draft accounts stated that the decision is expected in July 2026

Disclosure misstatements (unadjusted)

We have not identified any disclosure misstatements during our audit that have not been corrected by management.

6. Fraud considerations

We have a responsibility to plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error.

Your responsibilities

Management has primary responsibility for the prevention and detection of fraud. It is important that management, with your oversight, place a strong emphasis on fraud prevention, which may reduce opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud because of the likelihood of detection and punishment. This involves a commitment to creating a culture of honesty and ethical behaviour which is reinforced by your active oversight.

Our responsibilities

We have a responsibility for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether due to fraud or error. The distinguishing factor between fraud and error is whether the underlying action that results in a misstatement is intentional or unintentional. Two types of intentional misstatements are relevant to us – misstatements resulting from fraudulent financial reporting, and misstatements resulting from the misappropriation of assets.

ISA presumed fraud risks

As set out in the ‘Audit approach and risk summary’ section, the risks of fraud in management override of controls were identified as significant risks.

Other fraud risks

Risk of fraud in management override of controls was the only fraud risk identified for the 2024/25 audit.

Our overall approach to fraud

Inquired with management, the Governance Scrutiny Group, and internal audit
Assignment and supervision of appropriate audit personnel
Evaluated the selection and application of accounting policies
Obtained written representation from management
Incorporated elements of unpredictability into our audit procedures
Maintained professional scepticism

Our overall conclusion

We did not identify any actual or suspected fraud involving management, employees with significant roles in internal control or others, where the fraud resulted in a material misstatement in the financial statements.

7. Value for money

Approach to Value for Money

We are required to form a view as to whether the Council has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources. The NAO issues guidance to auditors that underpins the work we are required to carry out in order to form our view and sets out the overall criterion and sub-criteria that we are required to consider.
We have undertaken our value for money (VFM) work under the 2024 Code of Audit Practice (‘the Code’). Our responsibility remains to be satisfied that the Council has proper arrangements in place, and to report in the auditor’s report where we are not satisfied that arrangements are in place. Where we have issued a recommendation in relation to a significant weaknesses this indicates we are not satisfied that arrangements are in place. Separately we provide a commentary on the Council ’s arrangements in the Auditor’s Annual Report.

The Code requires us to issue our Auditor’s Annual Report for the year ending 31st March 2026 to you in draft by the 30th November 2026. This is required whether our audit is complete or not. Should our work not be complete, we will report the status of our work and any findings to up to that point (and since the issue of our previous Auditor’s Annual Report).

The Code requires us to structure our commentary to report under three specified criteria:

Financial sustainability - How the Council plans and manages its resources to ensure it can continue to deliver its services;
Governance - How the Council ensures that it makes informed decisions and properly manages its risks; and
Improving economy, efficiency and effectiveness - How the Council uses information about its costs and performance to improve the way it manages and delivers its services.

At the planning stage of the audit, we undertake work to understand the arrangements that the Council has in place under each of the reporting criteria and we identify risks of significant weaknesses in those arrangements. Although we describe this work as planning work, we keep our understanding of arrangements under review and update our risk assessment throughout the audit to reflect emerging issues that may suggest significant weaknesses in arrangements exist.

The table overleaf outlines the risks of significant weaknesses in arrangements that we have identified, the risk-based procedures we have undertaken, and the results of our work.

Where our risk-based procedures identify actual significant weaknesses in arrangements we are required to report these and make recommendations for improvement. Where such significant weaknesses are identified, we report these in the audit report by exception. We will also highlight emerging issues or other matters that do not represent significant weaknesses but still require attention from the Council.

The primary output of our work on the Council arrangements is the commentary on those arrangements that forms part of the Auditor’s Annual Report. This commentary will provide a summary of the work we have undertaken and our judgements against each of the specified reporting criteria. We intend to issue the Auditor's Annual Report in November 2026.

Status of our work

We have completed our work in respect of the Council‘s arrangements for the year ended 31 March 2026 and we have not identified any significant weaknesses in arrangements that have required us to make a recommendation. Our draft audit report at Appendix C confirms that we have no matters to report in respect of significant weaknesses. As noted above, our commentary on the Council‘s arrangements will be provided in the Auditor’s Annual Report in November 2026.

Appendix A: Internal control conclusions

Other deficiencies in internal control

A deficiency in internal control exists if:

A control is designed, implemented, or operated in such a way that it is unable to prevent, detect, and/ or correct potential misstatements in the financial statements; or
A control that is necessary to prevent, detect, and/ or correct misstatements in the financial statements on a timely basis is missing.

The purpose of our audit was to express an opinion on the financial statements. As part of our audit, we have considered Rushcliffe Borough Council’s internal controls relevant to the preparation of the financial statements to design audit procedures to allow us to express an opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Rushcliffe Borough Council’s internal controls or to identify any significant deficiencies in their design or operation.

The matters reported in Appendix A are limited to those deficiencies and other control recommendations that we have identified during our normal audit procedures and which we consider to be of sufficient importance to merit being reported. If we had performed more extensive procedures on internal control, we might have identified more deficiencies to report or concluded that some of the reported
deficiencies need not in fact have been reported. Our comments in Appendix A should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made.

This Appendix sets out the internal control observations that we have identified as at the date of this report. These control observations are not, in our view, significant control deficiencies but have been reported to management directly and are included in this report for your information. In our view, there is a need to address the deficiencies in internal control set out in this section to strengthen internal
control or enhance business efficiency. Our recommendations should be actioned by management in the near future

Backing evidence for accruals and estimates

Description of deficiency - We could not obtain detailed supporting calculations for the estimate of a sampled debit
transaction relating to deferred income for planning applications.
Potential effects - While we consider it correct to make the adjustment for deferred income in this case, lack of formal documentation for estimates may result in issues around accuracy of estimates made. We reviewed the ledger and did not identify any additional planning application deferred income transactions.
Recommendation - We recommend that the Council maintains more formal supporting documentation over estimates made, such as how the estimate was calculated and relevant evidence over any percentages used within such calculations.
Management response - Although accruals for deferred income should be calculated using consistent estimation methods, in this instance the planning department’s estimate was based on management’s assessment of the proportion of prepaid planning applications expected to be delivered in the following financial year. The resulting deferred income balance is not material to the Statement of Accounts and does not affect cash received. The Council will ensure that future calculations are supported by a documented estimation methodology.

Journals review process

Description of deficiency - When performing our checks to ensure journals more than £10,000 have been reviewed by the Assistant Director of Finance, we noticed that some sampled journal lines above materiality were not included in the monthly spreadsheet showing which journals had been reviewed. This is because the journals reviewed by the Assistant Director of Finance are based on the cumulative amount as per the cost centre or account code (for example, if a journal consisted of 2 lines to the same cost centre with a Debit of £800,000 and a Credit of £795,000, the cumulative impact is £5,000 and therefore not reviewed by the Assistant Director of Finance) The report produced for the review process does not allow for journals to be shown on a line-by line basis.
Potential effects - Journals with a net effect on the cost centre of below £10,000, but which are still material on a line-by-line basis are likely to be missed by Sarah Whittaker.
Recommendation - As discussed with the finance team, we recommend that the Council has controls in place regarding more "critical" journals (i.e. journals with line items over a certain amount).
Management response - Future journal reports provided to the Assistant Director of Finance for review will include all individual entries over £10,000. Although such entries were not included in the journals reviewed for 2025/26, a number of compensating controls are in place to reduce the risk of error, including budget and variance monitoring, monthly ledger balance reviews by the finance team and Assistant Director of Finance, and scrutiny of account balances by budget holders.

Follow up on previous internal control points

We set out below an update on internal control points raised in prior periods

Fully-depreciated assets

Description of deficiency (as per 2024/25 ACR): We identified a number of assets within the Council’s fixed asset register which should have been removed as they were no longer in use or had been disposed of. Other assets which were still in use were fully depreciated.
Current year update: As part of our testing on PPE and Investment Properties for 2025/26, we have not identified any such instances.

Approval of journals posted by the Head of Finance

Description of deficiency (as per 2024/25 ACR follow-up letter): We identified some instances in 2024/25 where journals above £10k posted by the Head of Finance were not reviewed/approved by a second authoriser.
Current year update: As part of our journal entry testing for 2025/26, we did not identify any journals posted by the Head of Finance that were above £10k, therefore we did not identify any self-approved journals of this type

Appendix B: Draft management representation letter

Forvis Mazars
First floor,
Two Chamberlain Square,
Birmingham
B3 3AX

Rushcliffe Borough Council- Audit for Year Ended 31 March 2026

This representation letter is provided in connection with your audit of the financial statements of Rushcliffe Borough Council for the year ended 31 March 2026 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view in accordance with the CIPFA / LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (the Code), and applicable law.

I confirm that the following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience (and, where appropriate, inspection of supporting documentation) sufficient to satisfy ourselves that I can properly make each of the following representations to you.

My responsibility for the financial statements and accounting information

I believe that I have fulfilled my responsibilities for the true and fair presentation and preparation of the financial statements in accordance with the Code, as amended by the Code Update and applicable law.

My responsibility to provide and disclose relevant information

I have provided you with:

access to all information of which I am aware that is relevant to the preparation of the financial statements such as records, documentation and other material;
additional information that you have requested from us for the purpose of the audit; and
unrestricted access to individuals within the Council you determined it was necessary to contact in order to obtain audit evidence.

I confirm as Director of Finance and Corporate Services that I have taken all the necessary steps to make me aware of any relevant audit information and to establish that you, as auditors, are aware of this information.

As far as I am aware there is no relevant audit information of which you, as auditors, are unaware.

Accounting records

I confirm that all transactions that have a material effect on the financial statements have been recorded in the accounting records and are reflected in the financial statements. All other records and related information, including minutes of all Council and committee meetings, have been made available to you.

Accounting policies

I confirm that I have reviewed the accounting policies applied during the year in accordance with International Accounting Standard 8 and consider these policies to faithfully represent the effects of transactions, other events or conditions on the Council’s financial position, financial performance and cash flows.

Accounting estimates, including those measured at current and/or fair value

I confirm that the methods, significant assumptions and the data used by the Council in making the accounting estimates, including those measured at current or fair value, are appropriate to achieve recognition, measurement or disclosure that is in accordance with the applicable financial reporting framework.

I confirm that I am satisfied that the actuarial assumptions underlying the valuation of pension scheme liabilities for IAS19 disclosures are consistent with my knowledge. I confirm that all settlements and curtailments have been identified and properly accounted for. I confirm that all significant retirement benefits have been identified and properly accounted for (including any arrangements that are statutory, contractual or implicit in the employer’s actions, that arise in the UK or overseas, that are funded or unfunded.

I confirm I have assessed the impact of any asset ceiling to be calculated on pension scheme assets and ensured, where applicable, that accounting adjustments have been made.

Contingencies

There are no material contingent losses including pending or potential litigation that should be accrued where:

information presently available indicates that it is probable that an asset has been impaired or a liability had been incurred at the balance sheet date; and
the amount of the loss can be reasonably estimated.

There are no material contingent losses that should be disclosed where, although either or both the conditions specified above are not met, there is a reasonable possibility that a loss, or a loss greater than that accrued, may have been incurred at the balance sheet date.

There are no contingent gains which should be disclosed.

All material matters, including unasserted claims, that may result in litigation against the Council have been brought to your attention. All known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to you and accounted for and disclosed in accordance with the Code, as amended by the Code Update and applicable law.

Laws and regulations

I confirm that I have disclosed to you all those events of which I am aware which involve known or suspected non-compliance with laws and regulations, together with the actual or contingent consequences which may arise therefrom.

The Council has complied with all aspects of contractual agreements that would have a material effect on the accounts in the event of non-compliance.

Fraud and error

I acknowledge my responsibility as Director of Finance and Corporate Services for the design, implementation and maintenance of internal control to prevent and detect fraud and error and I believe I have appropriately fulfilled those responsibilities.

I have disclosed to you:

all the results of my assessment of the risk that the financial statements may be materially misstated as a result of fraud;
all knowledge of fraud or suspected fraud affecting the Council involving:
- management and those charged with governance;
- employees who have significant roles in internal control; and
- others where fraud could have a material effect on the financial statements.

I have disclosed to you all information in relation to any allegations of fraud, or suspected fraud, affecting the Council’s financial statements communicated by employees, former employees, analysts, regulators or others.

Related party transactions

I confirm that all related party relationships, transactions and balances, have been appropriately accounted for and disclosed in accordance with the requirements of the Code, as amended by the Code Update and applicable law.

I have disclosed to you the identity of the Council’s related parties and all related party relationships and transactions of which I am aware.

Impairment review

To the best of my knowledge, there is nothing to indicate that there is a permanent reduction in the recoverable amount of the property, plant and equipment and intangible assets below their carrying value at the balance sheet date. I have carried out an assessment of council buildings for Reinforced Autoclaved Aerated Concrete (RAAC) and confirmed an impairment review is not considered necessary.

Charges on assets

All the Council’s assets are free from any charges exercisable by third parties except as disclosed within the financial statements.

Future commitments

The Council has no plans, intentions or commitments that may materially affect the carrying value or classification of assets and liabilities or give rise to additional liabilities.

Subsequent events

I confirm all events subsequent to the date of the financial statements and for which the Code, as amended by the Code Update and applicable law, require adjustment or disclosure have been adjusted or disclosed.

Should further material events occur after the date of this letter which may necessitate revision of the figures included in the financial statements or inclusion of a note thereto, I will advise you accordingly.

Impacts of Russian Forces entering Ukraine

I confirm that I have carried out an assessment of the potential impact of Russian Forces entering Ukraine on the Council, including the impact of mitigation measures and uncertainties, and any disclosure in the Narrative Report fairly reflects that assessment

Brexit

I confirm that I have carried out an assessment of the impact of the United Kingdom leaving the European Union, including the impact of the Trade and Cooperation Agreement, and any disclosure in the Narrative Report fairly reflects that assessment.

Current banking crisis

We confirm that we have assessed the impact on Rushcliffe Borough Council of the on-going Global Banking challenges, in particular whether there is any impact on the Council’s ability to continue as a going concern, and on the post balance sheet events disclosures.

We confirm that our exposure where applicable (either direct cash exposure or direct / indirect through investments) with Silicon Valley Bank, Credit Suisse, Signature Bank or any other bank in a distress situation, is not material.

Going concern

To the best of my knowledge there is nothing to indicate that the Council will not continue as a going concern in the foreseeable future. The period to which I have paid particular attention in assessing the appropriateness of the going concern basis is not less than twelve months from the date of approval of the accounts.

Annual Governance Statement

I am satisfied that the Annual Governance Statement (AGS) fairly reflects the Council’s risk assurance and governance framework and I confirm that I am not aware of any significant risks that are not disclosed within the AGS.

Narrative Report

The disclosures within the Narrative Report fairly reflect my understanding of the Council’s financial and operating performance over the period covered by the financial statements.

Unadjusted misstatements

We confirm that the effects of the uncorrected misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is attached to this letter as an Appendix.

Arrangements to achieve economy, effectiveness and efficiency in Use of Resources (Value for Money arrangements

I confirm that I have disclosed to you all findings and correspondence from regulators for previous and ongoing inspections of which I am aware. In addition, I have disclosed to you any other information that would be considered relevant to your work on value for money arrangements.

Yours faithfully,
Director of Finance and Corporate Services / s151 officer

Appendix C: Draft audit report

Independent auditor’s report to the members of Rushcliffe Borough Council

Report on the audit of the financial statements

Opinion on the financial statements

We have audited the financial statements of Rushcliffe Borough Council (“the Council) for the year ended 31 March 2025, which comprise the Comprehensive Income and Expenditure Statement, the Movement in Reserves Statement, the Balance Sheet, the Cash Flow Statement, the Collection Fund statement, and notes to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and the CIPFA / LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2025/26.

In our opinion, the financial statements:

give a true and fair view of the financial position of the Council as at 31 March 2026 and of its expenditure and income for the year then ended; and
have been properly prepared in accordance with the CIPFA / LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2025/26.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities section of our report. We are independent of the Council in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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

In auditing the financial statements, we have concluded that the Director of Finance and Corporate Services’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, and taking into account the requirements of the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2024/25, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Council's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Director of Finance and Corporate Services with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Statement of Accounts, other than the financial statements and our auditor’s report thereon. The Director of Finance and Corporate Services is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Responsibilities of the Director of Finance and Corporate Services for the financial statements

As explained more fully in the Statement of the Director of Finance and Corporate Services Responsibilities, the Director of Finance and Corporate Services is responsible for the preparation of the Statement of Accounts, which includes the financial statements, in accordance with proper practices as set out in the CIPFA / LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2025/26, and for being satisfied that they give a true and fair view. The Director of Finance and Corporate Services is also responsible for such internal control as the Director of Finance and Corporate Services determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

The Director of Finance and Corporate Services is required to comply with the CIPFA / LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 and prepare the financial statements on a going concern basis on the assumption that the functions of the Council will continue in operational existence for the foreseeable future. The Director of Finance and Corporate Services is responsible for assessing each year whether or not it is appropriate for the Council to prepare its accounts on the going concern basis and disclosing, as applicable, matters related to going concern.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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. Based on our understanding of the Council, we identified that the principal risks of non-compliance with laws and regulations related to the Local Government Act 2003 (and associated regulations made under section 21), the Local Government Finance Acts of 1988, 1992 and 2012, and the Accounts and Audit Regulations 2015, and we considered the extent to which non-compliance might have a material effect on the financial statements.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

inquiring with management and the Governance Scrutiny Group, as to whether the Council is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
considering the risk of acts by the Council which were contrary to applicable laws and regulations, including fraud.

We evaluated the Director of Finance and Corporate Services’ incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

making enquiries of management and the Governance Scrutiny Group on whether they had knowledge of any actual, suspected or alleged fraud;
gaining an understanding of the internal controls established to mitigate risks related to fraud;
discussing amongst the engagement team the risks of fraud; and
addressing the risks of fraud through management override of controls by performing journal entry testing, reviewing accounting estimates, and testing significant transactions outside the normal course of business, or otherwise unusual.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management and the Governance Scrutiny Group. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

We are also required to conclude on whether the Director of Resources and Corporate Services’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. We performed our work in accordance with Practice Note 10: Audit of financial statement and regularity of public sector bodies in the United Kingdom, and Supplementary Guidance Note 01, issued by the National Audit Office in February 2023.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website. This description forms part of our auditor’s report.

Report on the Council’s arrangements for securing economy, efficiency, and effectiveness in its use of resources

Matter on which we are required to report by exception

We are required to report to you if, in our view we are not satisfied that the Council has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources for the year ended 31 March 2025.

We have nothing to report in this respect.

Responsibilities of the Accounting Officer

The Council is responsible for putting in place proper arrangements to secure economy, efficiency and effectiveness in the Council’s use of resources, to ensure proper stewardship and governance, and to review regularly the adequacy and effectiveness of these arrangements.

Auditor’s responsibilities for the review of arrangements for securing economy, efficiency, and effectiveness in the use of resources

We are required under Section 20(1)(c) of the Local Audit and Accountability Act 2014 to satisfy ourselves that the Council has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources, and to report where we have not been able to satisfy ourselves that it has done so. We are not required to consider, nor have we considered, whether all aspects of the Council’s arrangements for securing economy, efficiency and effectiveness in its use of resources are operating effectively.
We have undertaken our work in accordance with the Code of Audit Practice, having regard to the guidance issued by the Comptroller and Auditor General

Matters on which we are required to report by exception under the Code of Audit Practice

We are required by the Code of Audit Practice to report to you if:

we issue a report in the public interest under section 24 of the Local Audit and Accountability Act 2014;
we make a recommendation under section 24 of the Local Audit and Accountability Act 2014; or
we exercise any other special powers of the auditor under sections 28, 29 or 31 of the Local Audit and Accountability Act 2014.

We have nothing to report in these respects.

Use of the audit report

This report is made solely to the members of Rushcliffe Borough Council, as a body, in accordance with part 5 of the Local Audit and Accountability Act 2014 and as set out in paragraph 44 of the Statement of Responsibilities of Auditors and Audited Bodies published by Public Sector Audit Appointments Limited. Our audit work has been undertaken so that we might state to the members of the Council those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the members of the Council, as a body, for our audit work, for this report, or for the opinions we have formed.

Delay in certification of completion of the audit

We cannot formally conclude the audit and issue an audit certificate until we have completed the work necessary to issue our assurance statement in respect of the Council’s Whole of Government Accounts consolidation pack for 2025/26.

Mark Surridge, Key Audit Partner
For and on behalf of Forvis Mazars LLP

Appendix D: Confirmation of our independence

We communicate any matters which we believe may have a bearing on the independence or the objectivity of Forvis Mazars LLP and the audit team. As part of our ongoing risk assessment, we monitor our relationships with you to identify any new actual or perceived threats to our independence within the regulatory or professional requirements governing us as your auditors.

We remain available to the Governance Scrutiny Group to discuss any matters relating to our independence, should such a discussion be required.

Confirmation of independence

We confirm that the firm, Forvis Mazars LLP, and all covered persons remain independent of Rushcliffe Borough Council in accordance with the requirements of the FRC Ethical Standard.
We confirm that no new threats to independence have been identified since issuing our Audit Strategy Memorandum and therefore we remain independent.

Relationships disclosure

A review of relationships between the firm, covered persons, and Rushcliffe Borough Council including its directors, senior management, affiliates, and connected parties, has identified no matters that bear on our integrity, objectivity, or independence during the engagement period.

Non-audit and additional services

The firm has not provided any non-audit or additional services to Rushcliffe Borough Council or its affiliates during the relevant period, and no fees have been charged in respect of such services.

Use of component auditors

We have not made arrangements for any of our activities as auditor to be conducted by another firm that is not a Forvis Mazars’ member firm.

Use of experts

For a summary of experts used in the audit, see Section 3 - Audit approach and risk summary.

Appendix E: Other communications

Other communications
Other communication	Response
Compliance with Laws and Regulations	We have not identified any significant matters involving actual or suspected non-compliance with laws and regulations. We will obtain written representations from management that all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing financial statements have been disclosed.
External confirmations	We did not experience any issues with respect to obtaining external confirmations.
Related parties	We did not identify any significant matters relating to the audit of related parties. We will obtain written representations from management confirming that: they have disclosed to us the identity of related parties and all the related party relationships and transactions of which they are aware; and they have appropriately accounted for and disclosed such relationships and transactions in accordance with the requirements of the applicable financial reporting framework.
Going Concern	We have not identified any evidence to cause us to disagree with the Chief Financial Officer that the Council will be a going concern, and therefore we have not identified any evidence to cause us to consider that the use of the going concern assumption in preparation of the financial statements is not appropriate. We will obtain written representations from management, confirming that all relevant information covering a period of at least 12 months from the date of approval of the financial statements has been taken into account in assessing the appropriateness of the going concern basis of preparation of the financial statements.
Subsequent events	We are required to obtain evidence about whether events occurring between the date of the financial statements and the date of the auditor’s report that require adjustment of, or disclosure in, the financial statements are appropriately reflected in those financial statements in accordance with the applicable financial reporting framework. We will obtain written representations from management that all events occurring subsequent to the date of the financial statements and for which the applicable financial reporting framework requires adjustment or disclosure have been adjusted or disclosed.
Matters related to fraud	Our audit was designed to obtain reasonable assurance whether the financial statements as a whole are free from material misstatement due to fraud. Please refer to the section titled ‘Fraud considerations’ for our fraud considerations and conclusion. We will obtain written representations from management and, where appropriate, the Governance Scrutiny Group, confirming that: they acknowledge their responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud; they have disclosed to the auditor the results of management’s assessment of the risk that the financial statements may be materially misstated as a result of fraud; they have disclosed to the auditor their knowledge of fraud or suspected fraud affecting the entity involving: management; employees who have significant roles in internal control; or others where the fraud could have a material effect on the financial statements; and they have disclosed to the auditor their knowledge of any allegations of fraud, or suspected fraud, affecting the entity’s financial statements communicated by employees, former employees, analysts, regulators or others.

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