These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Veritau Tees Valley Ltd is a private company limited by shares incorporated in England and Wales. The registered office is West Offices, Station Rise, York, North Yorkshire, YO1 6GA.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

As a result of a reorganisation, the company ceased its trading activities on 31 January 2026 and transferred its remaining trade to Veritau Public Sector Limited.true

After a detailed review of the company's reserves and forecasts, the directors are confident that the company has sufficient cash flows to meet its liabilities as they fall.

Thus, the directors to adopt the going concern basis of accounting in preparing the financial statements although had the break up basis been adopted, there would have been no material changes to the balance sheet.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Revenue from contracts with local authorities for the provision of professional services is recognised on the basis that these are for a 12 month period to cover agreed services to the end of March and the right to income is met at this point.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the

projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as

an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are

recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate,

taking into account any changes in the net defined benefit liability during the period as a result of contribution

and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on

the net defined benefit liability excluding amounts included in net interest. These are recognised immediately

in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in

subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the

present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds),

less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on

market price information, and in the case of quoted securities is the published bid price. The value of a net

pension benefit asset is limited to the amount that may be recovered either through reduced contributions or

agreed refunds from the scheme.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revenue from contracts for the provision of professional services is recognised by reference to stage of completion. Work may be completed after the end of the accounting period in which the income was received or may be completed in the accounting period but invoiced later, so to ensure income is recognised correctly an adjustment is therefore made to reflect the value of work done in later periods or completed work invoiced in later periods.

The average monthly number of persons (including directors) employed by the company during the year was:

Veritau Limited owned 50% of the shares in the company throughout the current period. Veritau Limited is owned by City of York Council and North Yorkshire Council who each own 50% of the shares in that entity throughout the current period.

Middlesbrough Council, and Redcar and Cleveland Borough Council also each owned 25% of the shares in the company throughout the current period.

Veritau Public Sector Limited is a company limited by guarantee. City of York Council, North Yorkshire Council and Redcar and Cleveland Borough Council were members of Veritau Public Sector Limited throughout the current period and Middlesborough Council became a member on 1 February 2026.

The nature of the work performed by the company is to provide internal audit services to it's shareholders and their respective connected entities. The work is all performed on an arms length basis and under normal market conditions. Any costs incurred are also on an arms length basis and under normal market conditions.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its loss for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

The company contributed to the Teeside Pension Fund. The scheme is a defined benefit scheme for the benefit of the employees. The assets of the scheme are fully administered by Middlesbrough Council in a fund independent from that of the company.

From 1 August 2024, Veritau Tees Valley Limited ceased to be an admitted body in the Teeside Pension Fund. All assets and liabilities were transferred to Redcar and Cleveland Borough Council, a participating shareholder.

As at 1 August 2024 pension assets of £796k and liabilities of £607k existed such that a net pension scheme asset of £189k was transferred to Redcar and Cleveland Borough Council as a dividend in specie.

As at 31 March 2024 there was a surplus on the scheme of £184k that had been restricted to £nil. This restriction was reversed out as an actuarial gain prior to the transfer.

On 1 August 2024, the contract to supply internal audit services Redcar and Cleveland Borough Council, who is a shareholder of the company, was transferred to Veritau Public Sector Limited, a company in which the the council is a member. Veritau Tees Valley Ltd continued to supply services to Middlesborough Council until 1 February 2026 when that contract was novated to Veritau Public Sector Limited. At this point the company became substantially dormant.

During the year income of £220,033 (2025: £227,540) was recognised in respect of this contract.