Scottish Parliamentary Corporate Body
Annual Accounts 2010-11
SG/2011/189
Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
Contents
Page
Management Commentary 3
Remuneration Report 10
Statement of the SPCB’s and the Clerk 15 and Chief Executive’s Responsibilities
Statement on Internal Control 16
Independent Auditor’s Report 18
Schedule 1 – Summary of Resource Outturn 20
Schedule 2 – Statement of Comprehensive Net Expenditure 21
Schedule 3 – Statement of Financial Position 22
Schedule 4 – Statement of Cash Flows 23
Schedule 5 – Statement of Changes in Taxpayers’ Equity 24
Schedule 6 – Statement of Resources by Departmental 25 Aim and Objective
Notes to the Resource Accounts 26
Accounts Direction 40
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
Management Commentary
The accounts have been prepared in accordance with the Direction by The Scottish Ministers given on 17 January 2006 in accordance with section 19(4) of the Public Finance and Accountability (Scotland) Act 2000.
HISTORY AND STATUTORY BACKGROUND
The Scottish Parliamentary Corporate Body (SPCB) was established in May 1999 under Section 21 of The Scotland Act 1998 (the Act). The SPCB comprises the Presiding Officer, and four other members of the Scottish Parliament elected by the Parliament. The SPCB has appointed a Clerk (who is also the Chief Executive) in accordance with section 20 of the Act, and other staff of the Parliament. The SPCB is independent of the Scottish Government.
PRINCIPAL ACTIVITIES
The Parliament exists to determine, debate, decide and legislate on issues of importance to the people of Scotland. In doing so, it holds the Scottish Government to account and is answerable to the people of Scotland.
The SPCB has a duty to provide the Scottish Parliament, or ensure the Parliament is provided with the property, staff and services required for this purpose. The Parliament may also give general or specific directions for the purpose of, or in connection with the SPCB’s functions.
The SPCB provides the infrastructure (including the Holyrood Building) and pays the salaries of members and reimburses the legitimate expenses which enable them to undertake their duties both at the Parliament and in their local offices. It provides the facilities and staff to allow the Parliament and its Committees to meet and to encourage public awareness of and engagement with the parliamentary process.
The staff of the Scottish Parliamentary Services (SPS) are employed to enable the SPCB to fulfil its duty.
THE SPCB AND SENIOR MANAGERS
The Members of the SPCB during 2010-11 were: Appointed
Alex Fergusson MSP, Presiding Officer 14-May-07 Alex Johnstone MSP 24-May-07 Tricia Marwick MSP 24-May-07 Tom McCabe MSP 24-May-07 Mike Pringle MSP 24-May-07
On 10 May 2011, the Parliament elected Tricia Marwick MSP as the new Presiding Officer at which date she also became chair of the SPCB. On 25 May 2011, Linda Fabiani MSP, Liam McArthur MSP, Mary Scanlon MSP and David Stewart MSP were elected by Parliament as the new members of the SPCB, replacing Tricia Marwick, Mike Pringle, Alex Johnstone and Tom McCabe.
The SPCB has agreed portfolio arrangements whereby members take a lead interest in specific issues. During 2010-11 these were as follows:
Alex Johnstone MSP - Technology and facilities management issues including building maintenance, IT and local office support
Tricia Marwick MSP – Access and information issues covering visitor services, events, public information, education and outreach, as well as broadcasting and the broader aspects of media relations; the Scottish Parliament Information Centre (SPICe) and the editorial content of the website and the intranet
Tom McCabe MSP– Resources and governance issues covering Procurement, Allowances and Finance Offices.
Mike Pringle MSP – Corporate issues (including governance, equalities and Personnel issues) and Office Holders/Commissioners.
Revised portfolio arrangements were operational from 25 May 2011 as follows: 3
Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
Linda Fabiani MSP – Building management and related services
Liam McArthur MSP – Finance and Officeholders
Mary Scanlon MSP – Business support, information and engagement strategy
David Stewart MSP – HR and Technology
A Register of Members' Interests is published on the Parliament's website.
The senior management employed by the SPCB, including Lynda Towers who was on secondment from the Scottish Government, during the 2010-11 financial year were:
Paul Grice Clerk to the Parliament/Chief Executive Stewart Gilfillan Assistant Clerk/Chief Executive Ian Leitch Assistant Clerk/Chief Executive Bill Thomson Assistant Clerk/Chief Executive Lynda Towers Solicitor to the Parliament
The Remuneration Report contains information about the salary and pension entitlements of the named individuals.
From 1 April 2011, as part of a corporate change programme, the number of Assistant Clerks/Chief Executives was being reduced from three to two. As a result of this process Ian Leitch volunteered to leave the service on 15 April 2011. The Solicitor to the Scottish Parliament also formed part of the Strategic Leadership Team. From April 2011, along with a new organisational structure, a new Leadership Group which superseded the Strategic Leadership Team and the Operational Management Group became fully operational which reduced the overall number of senior management from thirteen to eleven. The group heads now part of the Leadership Group at the time of signing the accounts are:
Alan Balharrie Head of Business Information Technology and Broadcasting Colin Chisholm Head of Human Resources and Security Derek Croll Head of Financial Resources Jerry Headley Head of Facilities Management, Events, Exhibitions and Visitor Services Michelle Hegarty Head of Communications and Research Ken Hughes Head of Committees and Outreach David McGill Head of Chamber & Reporting
A further part of the corporate change programme was a voluntary early severance/voluntary early retirement scheme open to all staff in 2010-11. Costs of the scheme are included in note 2 to the accounts.
The Clerk/Chief Executive and Assistant Clerks/Chief Executives hold their appointments on a permanent basis.
At the end of the financial year 14 staff (19 staff in 2009-2010) were on secondment from other organisations.
RELATED PARTIES
A related party is a person or entity that is related to the entity that is preparing its financial statements. The listing of SPCB members above includes a reference to the Register of Members’ interest which is published and further information is contained in the Notes to the Accounts (note 18).
REVIEW OF THE PRINCIPAL ACTIVITIES
The principal activities of the SPCB and its staff during the year were the continued support of the work of the Parliament and its members.
The strategic plan sets out the four main delivery areas of this work. These were delivered through a combination of core service provision and a portfolio of developmental projects and programmes, including the corporate change programme mentioned above. Significant developments through the year are listed below, under each of the four headings. 4
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More detail on the SPCB’s main activities is available in the SPCB’s Annual Report, and further information is contained in the Scottish Parliament Annual Report 2010-11 (also available in Gaelic language version) which is available on The Scottish Parliament website, www.scottish.parliament.uk.
(1) Parliamentary Business – Chamber and Committee business that takes place as scheduled and is resilient to disruptions and threats
In the course of the parliamentary year which ran from 9 May 2010 to 22 March 2011, eleven bills were introduced by the Scottish Government, covering areas such as wildlife and natural environment, private rented housing, double jeopardy and long leases. Eight Member's bills were introduced covering areas such as autism, domestic abuse, palliative care and protection of workers. No Committee bills were introduced. All of these were scrutinised by the Parliament, in accordance with the 3 stage process laid down in Standing Orders. Twenty six bills received royal assent to become Acts of the Scottish Parliament between 9 May 2010 and the end of April 2011. A detailed listing of all Bills introduced and Acts is available within the Scottish Parliament Annual Report 2010-2011.
The Parliament held debates in the Chamber on a wide range of issues, including debates on matters raised by committees and members. Subjects covered included annual fisheries negotiations, Curriculum for Excellence, Scottish variable rate of income tax, zero waste plan, winter resilience, care home costs, renewable energy, protecting public services.
The Parliament's committees undertook major inquiries on topics such as the public sector’s support for Scottish exporters, international trade and the attraction of inward investment, purpose of an enterprise agency and the success of the recent reforms, migration and people trafficking, preventative spending and the relationship between transport and land use policies. Committees also scrutinised bills and subordinate legislation, the Scottish Government’s budget proposals and considered over 290 petitions. The Parliament has continued to hold committee meetings throughout Scotland, involving local people in issues that affect them.
(2) Supporting Members – The necessary facilities, technology and support services to enable Members to carry out their parliamentary and representative functions and roles as employers
The SPCB continued to support Members through the continued successful administration of the Reimbursement of Members’ Expenses Scheme, including the implementation of the revisions to the Scheme agreed by Parliament on 24 March 2010 following an independent examination of the Scheme by Sir Neil McIntosh CBE.
As part of its future resource planning activity (discussed in more detail under Section 4 below), the Corporate Body engaged extensively with Members to identify mutually agreeable ways to achieve the required budget savings while minimising any negative impact on parliamentary services. Key outcomes included a proposed pay and expenses freeze for MSPs to 31 March 2013, worth £1.5m in real terms.
The SPCB continued to deliver high level support to Members as employers, including detailed consultation over staff employment and potential redundancy issues relating to the 2011 Scottish Parliament election. In addition, the Corporate Body agreed and disseminated detailed guidance for Members and their staff on acceptable and unacceptable use of parliamentary resources in connection with the election campaign.
(3) Engagement – Increased public awareness of the Parliament and engagement with the parliamentary process in Scotland
In May 2010, teachers from around Scotland came to Holyrood for a new, week-long Inside Parliament course. More than 200 young people, representing 40 Scottish organisations and schools, took part in a special day at the Festival of Politics in August 2010. The innovative Community Partnerships Project continued into its second phase with partners from Mid Argyll Youth Project, Multi Ethnic Aberdeen Limited, Ownership Options in Scotland and South Ayrshire Youth Forum. A Gaelic Day was held at the Scottish Parliament in November 2010. This included the annual BT Gaelic Schools Debate, as well as tours and public events.
The Presiding Officer once again undertook a programme of visits around Scotland during the summer recess in 2010. The main aim of the programme was to listen to and learn from local people and groups about how best the Parliament can communicate and engage with them. This year the programme was focussed around the Western Isles and Central Scotland. However, during the course of this third session, the Presiding Officer visited all eight Scottish Parliament electoral regions.
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(4) Organisational Health – An organisation that works efficiently, effectively and progressively towards a shared aim, secures value for money, minimises negative environmental impacts and operates in a safe and secure environment
As the likely impact of the economic downturn became clear, the SPCB undertook a detailed planning exercise to prepare for an anticipated reduction in available resources to 2014-15. To ensure that the Parliament continued to play its full part in responding to the financial pressures facing public sector finances, the SPCB stated that it intended to reduce its budget in line with any percentage reduction in the Scottish Consolidated Fund. Consequently, a detailed budget proposal was proposed to the Finance Committee in November 2010 setting out plans to deliver a 12% real terms reduction in the SPCB’s annual budget by 2014-15. In addition to the freeze on Members’ pay and expense to 2013, key elements of the proposal included:
• a proposed pay freeze for Parliament staff until 31 March 2013 worth £1.0m in real terms, accompanied by a guarantee of no compulsory redundancies over the same period. • reductions already identified in the overall Parliament staff complement of around 50 staff by 31 March 2013; and • reductions in Commissioners’ and Ombudsman’s officeholder budgets in line with overall SPCB savings.
To facilitate these agreed savings, the SPCB ran a Voluntary Early Retirement/Early Severance Scheme to deliver the bulk of the agreed staff savings, which in turn allowed the guarantee of no compulsory redundancies to be offered. Approximately 34 staff have left, or will leave, the Scottish Parliamentary Service under the voluntary scheme.
A Change Management Programme was commenced in January 2011 to facilitate the delivery of the agreed savings. A Change Management Board was set up to oversee the Programme, which is scheduled to run to March 2012. The role of the Board is to:
• establish the overall savings target for each group within the SPS, taking into account savings already made in 2011-12; • confirm the overall programme of savings options to be delivered in future financial years; • oversee a programme of service reviews for the whole organisation – both cross-cutting and at office level – to help support the changes required and to ensure that staffing structures and resources are deployed in the most effective way possible; and • monitor and track delivery of savings against the corporate targets.
The programme remained on track as at 31 March 2011.
A review of senior management roles and responsibilities was undertaken in 2010-11, reporting to the Clerk/Chief Executive in October 2011. The SPCB agreed the recommendations of this review to move to a single tier Leadership Group, and to reduce the senior management complement by two. The cost savings delivered as a consequence of the review were reflected in the wider resource planning work discussed above.
The SPCB agreed a long term carbon management plan in 2009, with targets to reduce carbon emissions by 20% by 2015 from 2005/06 levels, and by 42% by 2020. An environmental awareness and information campaign entitled the RACE – Real Action on Climate Change – has been launched to support this work. Lastly, the SPCB maintained ISO 14001 certification for its environmental management system and became the first public sector organisation to meet the requirements of CEMARS (Certified Emissions Measurement and Resource Scheme) certification having measured its greenhouse gas emissions in compliance with the requirements of ISO 14064- 1:2006.
POSITION AT END OF YEAR
The net operating cost for 2010-11 was £78.8m including £2m restructuring costs and a credit release of £4m net from the Members’ pension fund for a change in the basis of pension payments (see note 3) (2009-10 restated £84.7m). Salaries of parliamentary staff, MSPs and other office holders accounted for £36.6m (2009-10 £34.4m) of this total as disclosed in Note 2 to the Accounts. The reimbursement of Members’ Expenses, which enables MSPs to secure staff and accommodation to assist them in the discharge of their Parliamentary duties, was £11.4m (2009-10 £11.2m) as disclosed in Note 4 to the Accounts. Information on the financial position is contained in Schedules 1-6 with further disclosure in the Notes to the Accounts. 6
Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
The Holyrood building was completed and occupied in the 2004-05 financial year. An independent valuation was completed in 2004-05 and reflected in our accounts. A further full independent valuation was carried out in 2009- 10 following RICS guidance and appropriate accounting rules and was reflected in our accounts. The building was valued on the basis of a depreciated replacement cost at £306.5m. Capital expenditure in 2010-11 amounted to £3.0m (2009-10 £2.5m) and is detailed in Notes 6 and 7 to the accounts.
Although the Commissioners and Ombudsman function independently of the SPCB, the SPCB is responsible for funding their activities. Funding paid is set out below:
Organisation Funding 2010-11 Funding 2009-10 £’000 £’000 Scottish Public Services Ombudsman 3,168 3,251 Scottish Information Commissioner 1,637 1,594 Commissioner for Children and Young People 1,318 1,338 Scottish Commission for Human Rights 999 998 Commissioner for Public Appointments in Scotland 400 408 Scotland’s Futures Forum Limited 112 96 Scottish Parliamentary Standards Commissioner 93 70
All of these, apart from the Scottish Parliamentary Standards Commissioner, are responsible for preparing their own accounts and full details of their expenditure can be found via these organisations’ web sites. Further detail is contained in Note 18 to the Accounts.
INDICATION OF LIKELY FUTURE DEVELOPMENTS
A Strategic Plan for the parliamentary session to March 2016 has been developed by the Leadership Group and will be submitted to the Corporate Body for final approval later in 2011. Associated Key Performance Indicators will be developed alongside the plan.
The Change Management Programme is scheduled to continue to March 2012, ensuring the successful delivery of agreed budget savings to 2014-15.
With the election of a new Corporate Body following the 2011 Scottish Parliament election, a key focus will be for officials and SPCB members to work in partnership to set and deliver the Corporate Body’s aims for the new parliamentary session.
The SPCB’s budget for 2011-12 is split between a net revenue budget of £74.0m (2010-11 £75.7m), a capital budget of £1.3m (2010-11 £3.0m) and £12.7m (2010-11 £12.8m) for capital charges.
RISKS AND UNCERTAINTIES
Following a review of central corporate functions as part of the Change Management Programme, responsibility for risk management will be transferred to the Head of Internal Audit as of July 2011. This is intended to provide a better fit between related areas of governance and compliance, and to provide a direct link to the Advisory Audit Board (AAB) on issues around strategic risk.
The Head of Internal Audit will invite the Leadership Group to consider specific proposals on the future approach to risk management later in 2011. It has been agreed, however, that quarterly monitoring of strategic risks by the Leadership Group, SPCB and AAB should continue, and that the organisation’s approach to risk management should be subject to annual review.
EQUALITY
Equality is one the Parliament’s four founding principles and plays an essential role in delivering SPCB functions including providing support to Members; promoting good employment practices and services; and access to the building. The SPCB has a strong commitment towards advancing equality and staff are encouraged to promote equality in their everyday work so that everyone, from all walks of life, can participate and engage in the Scottish Parliament.
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Where there are barriers to participation, positive steps are taken through a programme of continuous improvement to identify any barriers and to remove these where they exist. As part of this programme, the SPCB produces an annual review report on its progress towards advancing equality. The most recent report is published on the Scottish Parliament website.
The SPCB gave evidence to the Parliamentary Equal Opportunities Committee’s on how it has taken account of equalities in the last year. Mike Pringle MSP, along with SPCB officials, gave evidence to the Committee highlighting the success of the SPCB’s equalities work including its commitment to engagement and in meeting the requirements of the Equality Act 2010.
With the introduction of the new Equality Act, the SPCB also took the opportunity to review its Equality Framework. The SPCB agreed to a new Framework incorporating a strategy and action plan which extends to all protected groups identified under the Act.
PENSION LIABILITIES
The SPCB has implemented full IAS 19 adoption of pension scheme accounting for the Members Pension Fund (Scottish Parliamentary Contributory Pension Fund). This means the net position for the scheme assets and liabilities is reflected in the SPCB Statement of Financial Position (notes 3 & 13). The treatment of pension liabilities and details of the relevant pension schemes, including Principal Civil Service Pension Scheme (PCSPS) for staff, are set out in the statement of accounting policies (note k).
SUPPLIER PAYMENT POLICY
The SPCB's policy is to comply with the Confederation of British Industry’s Prompt Payers Code. The target is for payment to be made within agreed payment terms or 30 days of receipt of invoices not in dispute for goods and services received. Average payment performance achieved for 2010-11 was 99.8% (2009-10 99.5%). In 2008-09 a voluntary initiative was introduced to further improve payment and support business. Under this initiative, introduced in SPCB in December 2008, we aim to make payment within 10 days of receipt of invoice to the supplier. In 2010-11 SPCB paid 97.5% of its invoices within 10 days (93.5% of its invoices paid within 10 days for 2009-10).
IMPORTANT EVENTS OCCURRING AFTER YEAR END
No important events have occurred since the year end that require disclosure or adjustment under the terms of IAS 10, Events after the Statement of Financial Position Date. In accordance with the requirements of IAS 10 events after the statement of Financial Position date are considered up to the date on which the accounts are authorised for issue. This is interpreted as the date on which the Independent Auditor’s report is signed.
HEALTH AND SAFETY
The SPCB is committed to promoting health and safety as a priority issue. Its aim is to comply with, and where possible exceed legal requirements and take appropriate and reasonable steps to ensure that it conducts its business in such a way that employees and other people who may be affected by its work are not exposed to risks to their health and safety.
To deliver this policy, the SPCB has established a Health and Safety Committee and a Fire Safety Committee; developed procedures necessary to form a robust Health and Safety management system; and has delivered a comprehensive training programme to enable all staff and other users of the Parliament accommodation to meet their Health and Safety responsibilities.
SICKNESS ABSENCE DATA
For the twelve month period from 1 April 2010 to 31 March 2011, an average of 8.1 (2009-10 8.7) working days per member of staff were lost as a result of sickness absence.
PERSONAL DATA RELATED INCIDENTS
There have been no investigations into personal data related incidents during 2010/11.
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ENVIROMENTAL MATTERS AND SOCIAL AND COMMUNITY ISSUES
The SPCB encourages public awareness and engagement with the parliamentary process. Since Her Majesty the Queen formally opened the Holyrood building on 9 October 2004, over 2,600,000 people have visited the Parliament with 401,000 of those visiting during the financial year 2010-11.
The SPCB recognises that its activities may have both positive and negative environmental impacts in Scotland and further afield. In 2010-11 the SPCB continued to implement its environmental policy and to work towards its environmental targets. Significantly, the SPCB implemented a number of projects included in the Carbon Management Plan to help ensure its ambitious targets to reduce carbon emissions by 2015 are achieved. In 2010- 11 the targets to reduce carbon emissions, electricity and gas were achieved. There is further information in the annual environmental report – http://www.scottish.parliament.uk/vli/holyrood/building/Sustainability.htm
STAFF COMMUNICATIONS
The focus of staff communications in 2010-11 was on the effective communication of the future resource planning activity and subsequent Change Management Programme. In particular, there was a coordinated communication exercise to advise staff of local and global savings targets, and of the rationale behind these.
As part of the review of central corporate functions within the Change Management Programme, it has been agreed that responsibility for corporate communications should be transferred in full to the Chief Executive’s Office. This is intended to improve the coordination of communications by placing responsibility in a single office. Previously, internal communications responsibilities were shared between the Chief Executive’s Office and the former Strategy and Development Office.
AUDIT
The Accounts are audited by auditors appointed by the Auditor General for Scotland in accordance with the Public Finance and Accountability (Scotland) Act 2000. The audit costs for 2010-11 were £72,900 (2009-10 £76,500).
DISCLOSURE OF RELEVANT AUDIT INFORMATION
As Principal Accountable Officer, I have taken all necessary steps to ensure that I am aware of any relevant audit information and to establish that the auditors are also aware of this information.
ADVISORY AUDIT BOARD (AAB)
The SPCB’s Advisory Audit Board supports the Principal Accountable Officer in monitoring and reviewing corporate governance, risk management and control systems. Membership of the AAB was three independent external members to help ensure objectivity, one of which has the role of Chair, and two members from the SPCB. Both Tricia Marwick MSP and Tom McCabe MSP stood down in 2011-12 and were replaced by Linda Fabiani and Liam McArthur from 29 June 2011. Members during the year to 31 March 2011 were:
Ian Robertson CA, CCMI (Chair from 1 July 2009) Edward Murray CA Kevin Sweeney MA, LLB, CA Tricia Marwick MSP Tom McCabe MSP
P E GRICE Date: 28 September 2011 Clerk to the Parliament and Chief Executive
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Remuneration Report
Remuneration policy
The remuneration of SPCB’s Assistant Clerk/Chief Executives and the Clerk/Chief Executive is set by the SPCB taking into account their roles and responsibilities.
Under a resolution of the Scottish Parliament MSPs salaries are set at 87.5% of the level determined for MPs at Westminster. In 2010-11 this equated to a salary excluding Employers National Insurance and pension contributions of £57,521 (2009-10 £56,671). Pension benefits for MSPs and Office Holders are payable from the Scottish Parliamentary Contributory Pension Fund (SPCPF), and separate annual accounts are published for this on the Scottish Parliament website at www.scottish.parliament.uk.
The SPCB comprises 4 MSPs and the Presiding Officer. The MSPs are elected by the Parliament and the Presiding Officer has membership in accordance with the Scotland Act. The SPCB members receive no additional remuneration for this role. Similarly, MSPs serving as Conveners to Parliamentary Committees do not receive any additional remuneration. The Presiding Officer and two Deputy Presiding Officers receive additional salary for delivery of their roles.
In respect of Ministers in the Scottish Government, the salary for their services as an MSP along with the supplementary element for ministerial appointment, are both paid by the SPCB. Disclosure on the ministerial element of salary and pension entitlements is contained within the Scottish Government Consolidated Accounts which can be accessed at www.scotland.gov.uk. These also include disclosure details on the two Law Officer appointments within Scotland (the Lord Advocate and the Solicitor General for Scotland).
Under the various statutes establishing the offices of Commissioners and Ombudsmen (and the Auditor General for Scotland) the SPCB is responsible for determining the salaries of each officeholder. Details of the salaries of each officeholder are available in their own accounts. In relation to the Scottish Parliamentary Standards Commissioner, his salary details are set out in Note 18 to the accounts. Salaries for these officeholders are uprated on an annual basis in line with the Review Board recommendations for the senior civil service annual pay award.
Service contracts
Appointments of SPCB staff, on terms and conditions set by the SPCB, are made in accordance with SPCB recruitment policy which requires appointment to be on merit on the basis of fair and open competition but also includes the circumstances when appointments may otherwise be made. These principles are set out in our recruitment process and more information is available on the SPCB recruitment pages at www.scottish.parliament.uk.
SPCB staff are not classified as civil servants but pension benefits are provided through the Civil Service Pension Scheme Arrangements.
Any recommendation for the reappointment of an individual to an office, where it is provided for by an enactment, is for the SPCB to recommend to the Parliament in accordance with Rule 3.11A of Standing Orders. During this reporting year, Jim Martin was reappointed as the Scottish Public Services Ombudsman for a 6 year term (1 May 2011 to 30 April 2017) and Tam Baillie was reappointed as the Commissioner for Children and Young People for Scotland for a further 6 years (18 May 2011 to 17 May 2017).
Parliament’s Standing Orders (rule 3A.1) provide for the SPCB to appoint or reappoint, with the agreement of Parliament, the Scottish Parliamentary Standards Commissioner. Stuart Allan was reappointed with effect from 1 April 2011 for a further 3 years.
On 1 April 2011, the Commission for Ethical Standards in Public Life in Scotland was established. It is a merger of the Chief Investigating Officer and Scottish Parliamentary Standards Commissioner with the Commissioner for Public Appointments in Scotland. It is a body corporate with 2 members: Stuart Allan, the Public Standards Commissioner for Scotland (merger of the Scottish Parliamentary Standards Commissioner and Chief Investigating Officer posts) and Karen Carlton, the Public Appointments Commissioner for Scotland (previously called the Commissioner for Public Appointments in Scotland).
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During this reporting period Matt Smith OBE, was appointed by the SPCB as a part-time member of the Scottish Commission for Human Rights. He took up post on 1 September 2010.
Unless otherwise stated below, officials covered by this report hold appointments which are open-ended. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme. All SPCB senior staff are directly employed by the SPCB with the exception of Lynda Towers who is on secondment from the Scottish Government.
Salaries and pension entitlements (Audited)
The following sections provide details of the remuneration and pension interests of senior staff and office holders. These are presented in banding ranges for salary and pension. The information in this section of the Remuneration Report covering salary and pension entitlements is subject to audit.
Name and Salary Salary Real increase in Total accrued CETV at CETV at Real increase title 2010/11 2009/10 pension and pension at age 60 31/3/11 31/3/10 in CETV as related lump sum and related lump funded by at age 60 sum at 31/3/11 employer £’000 £’000 £’000 £’000 £’000 £’000 £’000 SPCB senior staff Paul Grice 120-125 120-125 0-2.5 35-40 623 560 13 Clerk to the plus lump sum of plus lump sum of 115- Parliament 2.5-5 120 and Chief Executive Stewart 100-105 95-100 0-2.5 40-45 790 714 12 Gilfillan plus lump sum of plus lump sum of Assistant 0-2.5 85-90 Clerk/Chief Executive Ian Leitch * 100-105 95-100 0-2.5 20-25 452 419 21 Assistant plus lump sum of plus lump sum of 60- Clerk/Chief 2.5-5 65 Executive Bill Thomson 100-105 95-100 0-2.5 45-50 1,004 923 10 Assistant plus lump sum of plus lump sum of Clerk/Chief 0-2.5 140-145 Executive Lynda 95-100 85-90 0-2.5 30-35 626 537 43 Towers plus lump sum of plus lump sum of Solicitor to the 5-7.5 95-100 Scottish Parliament Scottish Parliament office holders Name and Salary Salary Real increase in Total accrued CETV at CETV at Real increase title 2010/11 2009/10 pension pension at age 65 31/3/11 31/3/10 in CETV and related lump sum at 31/3/11 Alex 40-45 40-45 0-2.5 20-25 N/A N/A N/A Fergusson Presiding Officer Trish 25-30 25-30 0-2.5 0-5 87 73 15 Godman Deputy Presiding Officer Alasdair 25-30 25-30 0-2.5 0-5 45 31 14 Morgan Deputy Presiding Officer
* Ian Leitch retired from the Scottish Parliamentary Corporate Body under Compulsory Early Retirement terms on 15 April 2011. The capitalised cost of the package he received was £80-85,000.
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• Details of pensions and cash equivalent transfer values are disclosed based on information supplied by the Department of Works and Pensions for Senior Management and Scottish Public Pensions Agency for Scottish Parliament Officeholders. • CETV values are based on salary and service information. The opening figures may be different from the closing figures in last year’s accounts. This is due to the CETV factors being updated to comply with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008.
Salary
Salaries in the above table are the amount earned in the financial year and include, where applicable, reserved rights, recruitment and retention allowances. They do not include National Insurance or Superannuation contributions. There are no performance bonuses as the scheme for payment of these ended in 2005/06. Salary disclosed in the table above for Scottish Parliament Office Holders excludes the MSP element and relates solely to the office.
Cash Equivalent Transfer Values
A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any spouse’s pension contingently payable from the scheme. A CETV is the amount payable by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which the disclosure applies. The figures include the value of any pension benefit in another scheme or arrangement which the individual has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the scheme member as a result of their purchasing additional years of pension service in the scheme at their own cost. CETV’s are worked out within the guidelines and framework prescribed by the Institute and Faculty of Actuaries and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.
Real Increase in CETV
CETV movement may comprise of a number of components such as the age of the individual, inflation, contributions by the employer and the employee and performance of the fund where relevant. The real increase in CETV reflects the increase effectively funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.
Benefits in kind
No benefits in kind are paid to the Chief Executive, Assistant Clerk/Chief Executive, the Presiding Officer or the Deputy Presiding Officers.
Office Holders
In respect of office holders, the salary shown is that for the appointment itself together with related pension. Scottish Ministers’ disclosure is contained within the Scottish Government’s accounts. The Presiding Officer’s pension is payable from the Scottish Consolidated Fund and is equal to one half of the Presiding Officer’s salary in payment immediately before ceasing to hold that office. The Presiding Officer’s pension is non contributory and non transferable so no cash equivalent transfer value (CETV) is available. Additionally, there is no option of commutation, i.e. the Presiding Officer may not commute (give up) some of his pension to provide a lump sum. The pension scheme rules in respect of the Presiding Officer pension arrangements were replaced from 1 September 2009 with the same rules for pension provision as for all other office holders. However, existing and former Presiding Officers continue to qualify for the original terms under separate transitional arrangements. The Deputy Presiding Officers’ pension benefits are paid from the SPCPF in respect of their offices and accrue at the rate of 1/40th of final pensionable earnings for each year that the office is held. There is no automatic lump sum but these officers may commute some of their pension to provide a lump sum. Alex Fergusson stood down as Presiding Officer on 11th May 2011 and is in receipt of his pension from that date.
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Pensions
Pension benefits for SPCB employees are provided through the Principal Civil Service Pension Scheme (PCSPS) arrangements. From 30 July 2007, SPCB employees have access to one of four defined benefit schemes; either a ‘final salary’ scheme (Classic, Premium or Classic Plus); or a ‘whole career’ scheme (Nuvos). These statutory arrangements are unfunded with the costs of benefits met by monies voted by the UK Parliament each year. Pensions payable under Classic, Premium, Classic Plus and Nuvos are increased annually in line with changes in Pensions Increase legislation. Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a ‘money purchase’ stakeholder pension with a significant employer contribution (partnership pension account).
The PCSPS is an unfunded multi-employer defined benefit scheme and the Scottish Parliamentary Corporate Body is unable to identify its share of the underlying assets and liabilities. The scheme actuary valued the scheme as at 31 March 2007. Details can be found in the resource accounts of the Cabinet Office: Civil Superannuation (www.civilservice-pensions.gov.uk). For 2010-11, employer contributions are at one of the four rates in the range 16.7% to 24.3% of pensionable pay which remains unchanged from 2009-10, however, the salary bands on which these were based were revised. The scheme’s Actuary reviews employer contributions every four years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2010-11 to be paid when the member retires, and not the benefits paid during this period to existing pensioners.
Employee contributions are set at the rate of 1.5% of pensionable earnings for Classic and 3.5% for Premium, Classic Plus and Nuvos. Benefits in Classic accrue at the rate of 1/80th of the pensionable salary for each year of service. In addition, a lump sum equivalent to three years’ pension is payable on retirement. For Premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike Classic, there is no automatic lump sum, but members may commute some of their pension to provide a lump sum. Classic Plus is essentially a hybrid with benefits in respect of service before 1 October 2002 calculated broadly as per Classic and benefits for service from October 2002 calculated as in Premium. In Nuvos a member builds up a pension based on pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. In all cases members may opt to give up (commute) pension for lump sum up to the limits set by the Finance Act 2004.
The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 3 and 12.5% (depending on the age of the member) into a stakeholder pension product chosen by the employee. The employee does not have to contribute but where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.8% of pensionable salary to cover the cost of centrally-provided risk benefit cover (death in service and ill health retirement).
The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of Classic, Premium and Classic Plus and 65 for members of Nuvos.
Commissioners and Ombudsman are members of the PCSPS.
Further details about the Civil Service pension arrangements can be found at the website http://www.civilservice.gov.uk/my-civil-service/pensions/index.aspx
The pension scheme rules for MSPs and office-holders (including the Lord Advocate and the Solicitor General for Scotland) were initially set out in The Scotland Act 1998 (Transitory and Transitional Provisions)(Scottish Parliamentary Pension Scheme) Order 1999 (“the 1999 Order”). The 1999 Order was subsequently replaced by the Scottish Parliamentary Pensions Act 2009 (“the 2009 Act”) from 1 September 2009 and the replacement pension scheme rules are now set out under Schedule 2 of the 2009 Act.
The main benefits of the scheme are an immediate pension of 1/50th or 1/40th of final salary for each year of service on retirement at age 65. Pensions are increased annually in line with changes in the Retail Prices Index. Members accruing benefits at the rate of 1/40th pay a contribution equivalent to 11% of their MSP/office-holder salary. Members accruing benefits at the rate of 1/50th pay a contribution equivalent to 6% of their MSP/office-holder salary. The SPCB pays the employer contribution representing the balance of cost as advised by the Government Actuary. For 2010-11 the contribution rate was 21% of pensionable salary (21% 2009-10). 13
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P E GRICE Date: 28 September 2011 Clerk to the Parliament and Chief Executive
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Statement of the SPCB’s and the Clerk and Chief Executive's Responsibilities
The Clerk and Chief Executive has prepared the statement of accounts in accordance with the Direction by the Scottish Ministers and with the accounting principles and disclosure requirements set out in the Government Financial Reporting Manual. The Resource Accounts are prepared on an accruals accounting basis and give a true and fair view of the SPCB's state of affairs at the year-end, the net resource outturn, resources applied to objectives, statement of comprehensive net expenditure and cash flows for the financial year.
In preparing the accounts the Clerk and Chief Executive has:
• Observed the accounts direction issued by Scottish Ministers; • Observed relevant accounting and disclosure requirements, and applied suitable accounting policies on a consistent basis; • Made judgements and estimates which are reasonable and prudent; • Stated whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, subject to any material departures disclosed and explained in the accounts; and • Prepared the accounts on a going concern basis.
The Clerk to the Parliament and Chief Executive is, by virtue of his appointment, Principal Accountable Officer for the SPCB. The responsibilities of the Principal Accountable Officer, including the responsibility for the propriety and regularity of the public finances for which the SPCB is answerable, for keeping of proper records and for safeguarding the SPCB’s assets, are set out in section 16 of the Public Finance and Accountability (Scotland) Act 2000.
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Statement on Internal Control
Scope of responsibility
As Principal Accountable Officer of the SPCB, I acknowledge my responsibility for ensuring that an effective system of internal control is maintained and operated to safeguard the public funds and assets for which I am personally responsible in accordance with the responsibilities assigned to me.
Purpose of the system of internal control
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve the organisation’s policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness.
The system of internal control is based on an ongoing process designed to identify the principal risks to the achievement of the organisation’s policies, aims and objectives, to evaluate the likelihood of those risks being realised, and to manage them efficiently, effectively and economically. This process has been in place in the SPCB for the year ended 31 March 2011 and up to the date of approval of the annual accounts and accords with guidance from the Scottish Public Finance Manual (SPFM).
Control framework and management of risk
The SPCB operates a risk management strategy which includes maintenance of an organisation wide risk register in line with the requirements of the SPFM and in accordance with relevant guidance issued by the Scottish Ministers. As such the risk management strategy forms an integral part of the corporate governance arrangements for which the Accountable Officer is responsible. The strategic risk register is reviewed quarterly by the Leadership Group and subject to review and challenge by the AAB and SPCB, with the review including new risks as well the impact of existing risks. Additionally, a risk framework document is in development, setting out the organisation’s wider approach to the identification and management of risks.
Review of effectiveness
As Principal Accountable Officer, I have responsibility for reviewing the effectiveness of the system of internal control. The following processes and institutional arrangements have been established:
• The AAB met 3 times in the year ended 31 March 2011. During 2010-11, membership of the AAB was three independent external members, one of which has the role of Chair. There are also two members of the Corporate Body on the AAB. The AAB receives reports from both external and internal auditors and provides guidance to the Principal Accountable Officer on corporate governance issues.
• The Leadership Group meets monthly to consider the plans and strategic direction of the organisation.
• Regular reports are presented to the Leadership Group and the AAB by the Head of Internal Audit as an independent opinion on the adequacy and effectiveness of the system of internal control together with recommendations for improvement.
• The AAB reviews and approves the Internal Audit Plan each year.
• Regular reports from managers on the steps they are taking to manage risks in their areas of responsibility including progress reports on key projects.
• A policy on fraud prevention and fraud prevention guidance.
• The SPCB formally complies with the principles of the Scottish Public Finance Manual.
• The SPCB has a dedicated set of Standing Financial Instructions based on the Scottish Public Finance Manual which contain financial policies and procedures that are specific to the SPCB.
• The AAB reviews and recommends the accounts for approval including the Statement on Internal Control. • The SPCB approves the accounts including the Statement on Internal Control. 16
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The SPCB is responsible for funding a number of Commissioner and Ombudsman bodies. These bodies were created by Acts of the Scottish Parliament and operate independently from the SPCB. I rely on the Accountable Officer for each of these bodies to be responsible for ensuring that an effective system of internal control is maintained and operated to safeguard the public funds and assets for which they are personally responsible.
My review of the effectiveness of the system of internal control is informed by the work of the internal auditors and the senior managers within the organisation who have responsibility for the development and maintenance of the internal control framework. I am also informed by our external auditors, Audit Scotland, on matters of internal control through their management letters and reports.
P E GRICE Date: 28 September 2011 Clerk to the Parliament and Chief Executive
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Independent Auditor’s Report
Report of the Auditor General for Scotland to the Scottish Parliament
I have audited the financial statements of the Scottish Parliamentary Corporate Body for the year ended 31 March 2011 under the Public Finance and Accountability (Scotland) Act 2000. These comprise the Summary of Resource Outturn, the Statement of Comprehensive Net Expenditure, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Taxpayers’ Equity, the Resources by Aim and Objectives and related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union, and as interpreted and adapted by the 2010/11 Government Financial Reporting Manual (the 2010/11 FReM).
This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Act 2000 and for no other purpose. In accordance with paragraph 123 of the Code of Audit Practice which was prepared by Audit Scotland and approved by me, I do not undertake to have responsibilities to Scottish Parliamentary Corporate Body members or officers, in their individual capacities, or to third parties.
Respective responsibilities of the Scottish Parliamentary Corporate Body, the Clerk and Chief Executive and Auditor General
As explained more fully in the Statement of the Scottish Parliamentary Corporate Body’s and the Clerk and Chief Executive’s Responsibilities, the Clerk and Chief Executive is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and is also responsible for ensuring the regularity of expenditure and receipts. My responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice which was prepared by Audit Scotland and approved by me. Those standards require me to comply with the Auditing Practices Board’s Ethical Standards for Auditors. I am also responsible for giving an opinion on the regularity of expenditure and receipts.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts, disclosures, and regularity of expenditure and receipts in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the body’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Clerk and Chief Executive; and the overall presentation of the financial statements. In addition, I read all the financial and non-financial information in the Annual Accounts to identify material inconsistencies with the audited financial statements. If I become aware of any apparent material misstatements or inconsistencies I consider the implications for my report.
Opinion on financial statements
In my opinion the financial statements:
• give a true and fair view in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers of the state of affairs of the Scottish Parliamentary Corporate Body as at 31 March 2011, the net resource outturn, net cash requirement and resources applied to aim for the year then ended;
• have been properly prepared in accordance with IFRSs as adopted by the European Union, as interpreted and adapted by the 2010/11 FReM; and
• have been prepared in accordance with the requirements of the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers.
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Opinion on regularity
In my opinion in all material respects:
• the expenditure and receipts in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers, the Budget (Scotland) Act covering the financial year and sections 4 to 7 of the Public Finance and Accountability (Scotland) Act 2000; and
• the sums paid out of the Scottish Consolidated Fund for the purpose of meeting the expenditure shown in the financial statements were applied in accordance with section 65 of the Scotland Act 1998.
Opinion on other prescribed matters
In my opinion:
• the part of the Remuneration Report to be audited has been properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers; and
• the information given in the Management Commentary included in the Annual Accounts for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which I am required to report by exception
I am required to report to you if, in my opinion:
• adequate accounting records have not been kept; or
• the financial statements and the part of the Remuneration Report to be audited are not in agreement with the accounting records; or
• I have not received all the information and explanations I require for my audit; or
• the Statement on Internal Control does not comply with Scottish Government guidance.
I have nothing to report in respect of these matters.
Robert Black Auditor General for Scotland 110 George Street Edinburgh EH2 4LH
Date 30 September 2011
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Schedule 1 Summary of Resource Outturn 2010-11
For the year ended 31 March 2011
2010-11 2009-10 Restated BUDGET OUTTURN Net total outturn compared Gross Income NET Gross Income NET with Prior year Expenditure TOTAL Expenditure TOTAL Budget Outturn
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
NET OPERATING COST 89,270 (800) 88,470 79,440 (608) 78,832 9,638 84,668
NET CASH REQUIREMENT 78,720 75,361 3,359 77,092
Reconciliation of Total Resources to Net Cash Requirement
£ ' 000 Note £ ' 000 £ ' 000
Net Operating Cost (i) 88,470 78,832 84,668
Capital: Purchase of fixed assets (ii) 3,000 6,7 2,976 2,458
Adjustments: Depreciation (12,670) 6,7 (9,822) (11,679) Non-cash items (80) 4 3,837 (221) Artwork additions credited to reserves - (112) Movements in working capital other than cash - 8,9,11 (462) 1,978
Net Cash Requirement (Schedule 4) (iii) 78,720 75,361 77,092
Explanation of the variation between Budget and Outturn Total Resources:
(i) £6,765k of the variance represents non cash items: - £2,848k of variance is represented by reduced depreciation following the independent valuation ; £3,910k represents non cash past service costs which arise when an employer undertakes to provide a different level of benefits than previously promised; and £7k represents auditor’s remuneration. It was announced in the Budget on 22 June 2010 that the Government will adopt the Consumer Price Index (CPI) rather than the Retail Price Index (RPI), for the indexation of public service pension schemes from April 2011. The Government Actuary’s Department have taken this change into account for accounting purposes as a past service charge resulting in a credit release from the pension reserve. Of the remaining £2,873k Commissioners and Ombudsman accounted for £441k, members’ costs for £1,267k and the remaining variation occurred within the parliamentary service spend.
Explanation of the variation between Budget and Outturn Purchase of fixed assets
(ii) There was only a small underspend against budget.
Explanation of the variation between Budget and Outturn Net Cash Requirement:
(iii) The variation is due to timing differences.
The notes on pages 26 to 39 form part of these accounts
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Schedule 2
Statement of Comprehensive Net Expenditure
For the year ended 31 March 2011
2009-10 2010-11 Restated
Note £ ' 000 £ ' 000 Administration Costs
Staff costs 2 36,635 34,376 Other administration costs 4 25,256 31,582 Depreciation 6,7 9,822 11,679 Other related parties 18 7,727 7,755
Gross Administration Costs 79,440 85,392
Operating income 5 (608) (724)
Net Operating Cost 78,832 84,668
Other Comprehensive Expenditure
Net (gain)/loss on indexation of property, plant and equipment (14,146) 7,713
Net (gain)/loss in respect of realised element of revaluation reserve – Holyrood Fit Out 135 -
Net (gain)/loss on pension reserves (2,885) 5,895
Total Comprehensive Expenditure 61,936 98,276
The notes on pages 26 to 39 form part of these accounts
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
Schedule 3 Statement of Financial Position As at 31 March 2011
31 March 2011 31 March 2010
Note £ ' 000 £ ' 000 £ ' 000 £ ' 000
Non current assets: Property, plant and equipment 6 316,766 310,565 Intangible assets 7 1,799 700
Total non current assets 318,565 311,265
Current assets Inventories 8 179 165 Trade and other receivables 9 1,085 979
Cash and cash equivalents 10 1,876 937
Total current assets 3,140 2,081 Total assets 321,705 313,346
Current Liabilities
Trade and other payables (within 1 year) 11 (8,669) (7,794)
Total current liabilities (8,669) (7,794)
Non current assets less net current liabilities 313,036 305,552
Non current liabilities
Provisions 12 (1,191) (545)
Pension Liabilities 13 (3,145) (9,940)
Total non current liabilities (4,336) (10,485)
Assets less liabilities 308,700 295,067
Taxpayers' Equity General Fund 271,396 278,569
Revaluation Reserve 40,131 26,120
Pension Reserve (3,145) (9,940)
Donated Asset Reserve 318 318
Total Taxpayers Equity 308,700 295,067
The financial statements on pages 20 to 25 were approved by the Scottish Parliamentary Corporate Body on 28 September 2011 and were signed on its behalf by:
P E GRICE Clerk to the Parliament and Chief Executive 28 September 2011 The notes on pages 26 to 39 form part of these accounts 22
Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
Schedule 4
Statement of Cash Flows
For the year ended 31 March 2011
Note 2010-11 2009-10 Restated
£ ' 000 £ ' 000
Cash Flow from operating activities
Net operating cost (78,832) (84,668)
Adjustments for non cash items
Notional charges 19 (3,837) 221
Depreciation on tangible and intangible fixed assets 6,7 9,822 11,679
Artwork additions credited to reserves - 112
Movements in working capital
(Increase)/decrease in inventories 8 (14) (77)
(Increase)/decrease in trade and other receivables 9 (106) (122)
Increase/(decrease) in trade payables 10,11 (64) (1,719)
Movements in provisions
Increase/(decrease) in provisions 12 646 (60)
Net cash outflow from operating activities (72,385) (74,634)
Cash Flows from investing activities
Purchase of property, plant and equipment 6 (1,915) (2,262) Purchase of intangible assets 7 (1,061) (196)
Net cash outflow from investing activities (2,976) (2,458)
Net cash requirement (75,361) (77,092)
Cash flows from financing activities
Financing from the Consolidated Fund 76,300 77,750
Net increase/(decrease) in cash and cash equivalents 939 658
Cash and cash equivalents as at 1 April 2010 10 937 279 Cash and cash equivalents as at 31 March 2011 10 1,876 937
The notes on pages 26 to 39 form part of these accounts
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Schedule 5
Statement of Changes in Taxpayers’ Equity for the year ended 31 March 2011
General Revaluation Pension Donated Asset Total Note Fund Reserve Reserve Reserve Reserves £'000 £'000 £'000 £'000 £'000
Balance at 31 March 2009 285,924 34,005 (3,901) 146 316,174 Adjustments for change in accounting policy
Reduction in Statement of Comprehensive Net Expenditure – cost of capital charge (10,970) (10,970)
Reduction in General Fund – cost of capital charge 10,970 10,970
Restated balance at 1 April 2009 285,924 34,005 (3,901) 146 316,174
Changes in taxpayers’ equity for 2009-10 Net movement in Pension Reserves 13 (5,895) (5,895)
Net (loss)/gain on revaluation of property, plant and equipment 6 (7,959) 134 (7,825) Artwork additions 74 38 112 Non cash charges – auditor remuneration 19 77 77 Movement in cash balances 10 (658) (658) Net operating cost (84,524) (144) (84,668) Net funding 77,750 77,750
Balance at 31 March 2010 278,569 26,120 (9,940) 318 295,067
Restated balance at 1 April 2010 278,569 26,120 (9,940) 318 295,067
Changes in taxpayers’ equity for 2010-11
Indexation of property, plant and equipment 6 14,146 14,146
Transfer in respect of realised element of revaluation reserve – Holyrood Fit Out 135 (135)
Net movement in Pension Reserves 13 2,885 2,885 Non cash charges – auditor remuneration 19 73 73 Movement in cash balances 10 (939) (939) Net operating cost (82,742) 3,910 (78,832) Net funding 76,300 76,300
Balance at 31 March 2011 271,396 40,131 (3,145) 318 308,700
The notes on pages 26 to 39 form part of these accounts
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Schedule 6
Resources By Departmental Aim And Objectives
For the year ended 31 March 2011
2009-10 2010-11 Restated
Gross Income Net Gross Income Net £'000 £'000 £'000 £'000 £'000 £'000
Aim
The Parliament exists to determine, debate, decide and legislate on issues of importance to the people of Scotland. In doing so, it holds the Scottish Executive to account and is answerable to the people of Scotland.
Objective To provide the Scottish Parliament, or ensure the Parliament is provided with the property, staff and services required for this purpose. 79,440 (608) 78,832 85,392 (724) 84,668
NET OPERATING COSTS 79,440 (608) 78,832 85,392 (724) 84,668
The notes on pages 26 to 39 form part of these accounts
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Notes to the accounts
1. Statement of accounting policies
The accounts have been prepared in compliance with the principles and disclosure requirements of the IFRS based Government Financial Reporting Manual (iFReM), which follows generally accepted accounting practice as defined in International Financial Reporting Standards (IFRS) as adopted by the European Union, International Financial Reporting Interpretation Committee (IFRIC) Interpretations and the Companies Act 2006 to the extent that it is meaningful and appropriate in the public sector context. The accounting policies adopted are described below. They have been applied consistently in dealing with items considered material in relation to the accounts. a. Accounting Convention
The accounts have been prepared under the historical cost convention modified to account for the revaluation of property, plant and equipment, financial instruments and inventories where material, at their value by reference to their current costs. b. Property, Plant and Equipment (PPE)
The SPCB hold the legal title to all land and buildings shown in the accounts.
For land and buildings, the minimum level for capitalisation of spend is the greater of £10,000 or 0.5% of asset value, provided it is probable that the spend will bring future economic benefits. For other asset categories, the minimum level for capitalisation of spend is £5,000, including grouped value of related asset purchases. From 1 April 2010 furniture, fixtures and fittings assets are no longer capitalised. Land and buildings have been valued on a depreciated replacement cost basis for specialised buildings and will be revalued at current cost using professional valuations every 5 years. Appropriate indices will be used in intervening years. The first valuation occurred during 2004-05, when the Holyrood complex became operational and was professionally valued on a depreciated replacement cost (DRC) basis. During 2009-10, the second professional valuation of the Holyrood complex on a DRC basis took place and was conducted in line with RICS guidance on DRC valuations. From 1 April 2007, other plant and equipment assets are no longer revalued using indices but are reported at depreciated historic cost. c. Depreciation
Land, historic documents and records and works of art are not depreciated. Depreciation is provided at rates calculated to write off the valuation of buildings and PPE assets by equal instalments over their estimated useful lives which are normally in the following ranges:
Holyrood building 50 years Holyrood fixed plant 5-20 years Equipment 5 years Machinery and motor vehicles 5 years Computers, Telecom systems and Broadcasting Equipment 3 years
Historic assets which are donated are capitalised at current value on receipt but are not depreciated and therefore there is no release to the statement of comprehensive net expenditure from reserves. d. Donated Assets
Donated assets are capitalised at their valuation on receipt and this value is credited to the Donated Asset Reserve. Subsequent revaluations are also accounted for in this reserve. Due to the nature of the donations, depreciation is not charged, consistent with our approach on works of art. No further revaluation will be carried out to these assets unless they are judged sufficiently material. e. Intangible assets
Intangible assets are valued initially at cost and subsequently at fair value using the revaluation model.
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Where an active market does not exist, income generating assets are valued at the lower of depreciated replacement cost and value in use. Non income generating assets are carried at depreciated replacement cost. These valuation methods are considered to be a proxy for fair value.
Future economic benefit has been used as the criteria in assessing whether an intangible asset meets the definition and recognition criteria of IAS 38 where assets do not generate income. IAS 38 defines future economic benefit as, ‘revenue from the sale of products or services, cost savings, or other benefits resulting from the use of the asset by the entity.’ f. Realised element on depreciation of revaluation reserve
Depreciation is charged to the statement of comprehensive net expenditure on the revalued amount of the relevant assets. An element of depreciation arises from the increase in valuation and is in excess of the depreciation that would be charged on the historic cost of the relevant assets. The amount relating to this excess is the realised gain on revaluation and is transferred from the revaluation reserve to the general fund. g. Change of accounting policy
HM Treasury, under the Clear Line of Sight (Alignment Project) removed the cost of capital charge from budgets and accounts from 1st April 2010. The cost of capital charge is therefore no longer applicable. The removal of the cost of capital charge is a change in accounting policy under IAS 8. Applying paragraph 31 of IAS 1 and, noting that the removal of the cost of capital charge has no effect on the balance sheets, a specific disclosure is not required. The impact on the prior-year outturn statement/statement of comprehensive expenditure is shown below.
Restated 2009-10 2009-10 Adjustment £ ' 000 £ ' 000 £ ' 000
Administration Costs
Staff costs 34,376 34,376 Other administration costs 42,552 31,582 (10,970) Depreciation 11,679 11,679 Other related parties 7,755 7,755
Gross Administration Costs 96,362 85,392 (10,970)
Operating income (724) (724)
NET OPERATING COST 95,638 84,668 (10,970)
h. Inventories
All inventories held are stated at the lower of cost and net realisable value
i. Foreign Exchange
Transactions which are denominated in a foreign currency are translated into sterling at the exchange rate ruling on the date of each transaction, except where rates do not fluctuate significantly, in which case an average rate for a period is used. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive net expenditure.
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j. Pensions
The Civil Service Pension Arrangements
Staff employed directly by the SPCB and the Parliamentary Commissioners and their staff are members of the Principal Civil Service Pension Scheme (PCSPS). The PCSPS is an unfunded multi-employer defined benefit scheme and the SPCB is unable to identify its share of the underlying assets and liabilities. A full actuarial valuation was carried out as at 31 March 2010. Details can be found in the separate scheme statement of the PCSPS Cabinet Office: Civil Superannuation (www.civilservice-pensions.gov.uk).
The Scottish Parliamentary Pension Scheme (SPPS)
Originally, the pension scheme for the Members of the Scottish Parliament and Office Holders was established under the Scotland Act 1998 (Transitory and Transitional provisions) (Scottish Parliamentary Pension Scheme) Order 1999 (S.I. No.1082). Due to a number of significant legislative changes affecting all UK pension schemes a new Scottish Parliamentary Pensions Act 2009 was established with new scheme rules, coming into force from 1 September 2009. The scheme is a defined benefit scheme, and applies to the salary of members, to any ministerial salary and the salary of the Lord Advocate and Solicitor General for Scotland. The cost of pension cover provided for the MSPs is by payment of charges calculated on an accruing basis, with liability for payment of future benefits charged to the Scottish Parliamentary Contributory Pension Fund (SPCPF). Any liabilities of the fund arising from a deficit on assets will be met through increased funding. The liability for this will be met by the SPCB through the Scottish Consolidated Fund. k. Leases
Where substantially all the risks and rewards of ownership of a leased property are borne by the entity, it should be recorded as a non-current asset and a corresponding creditor recorded in respect of the debt due to the lessor, with the interest element of the finance lease payment charged to the outturn statement. Rentals payable in respect of operating leases should be charged to the outturn statement on a straight line basis over the term of the lease. l. Value Added Tax (VAT)
The SPCB is treated as a Crown Body for the purposes of the Value Added Tax Act 1994 and accordingly for the purposes of Section 41 of that Act (application to the Crown) it is treated as a government department, and is exempt for VAT on the provision of parliamentary goods and services. The SPCB is standard rated for VAT on its trading activities, such as the Parliament shop. Where output tax is charged or input VAT is recoverable, the amounts are stated net of VAT.
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2. Members and Staff Numbers and Costs
A. Pay costs consist of: 2010-11 2009-10
£ ' 000 £ ' 000 £ ' 000 £ ' 000 £ ' 000 £ ' 000
Members & Members & Total Staff Office Bearers Total Staff Office Bearers Salaries SPCB 25,638 18,217 7,421 25,476 18,111 7,365 Seconded staff 768 768 - 737 737 - Ministers 805 - 805 776 - 776 Social security costs SPCB 2,073 1,346 727 2,049 1,341 708 Seconded staff 66 66 - 70 70 - Ministers 99 - 99 97 - 97 Other pension costs SPCB 4,884 3,358 1,526 4,867 3,344 1,523 Seconded staff 152 152 148 148 - Ministers 150 - 150 146 - 146 Restructuring Scheme 2010-11 (1) 2,000 2,000 - 10 10 -
Total Salary Cost per Statement of Comprehensive Net Expenditure 36,635 25,907 10,728 34,376 23,761 10,615
(1) During 2010-11 there was a voluntary early retirement/voluntary early severance scheme for all staff. In addition, there were a number of departures under compulsory terms. Reporting of the cost of £1,667,000 for exit packages by banding are disclosed below. In addition, the restructuring scheme includes provision of £333,000 for costs associated with Office Reviews. The movement on the provision created for these costs is reflected in note 12:
Reporting of Civil Service compensation scheme – exit packages. Note there is no comparative data for 2009-10.
Exit package cost band Number of compulsory Number of other Total number of exit redundancies departures agreed packages by cost band <£10,000 2 2 £10,000-£25,000 17 17 £25,000-£50,000 1 7 8 £50,000-£100,000 1 5 6 £100,000-£150,000 2 2 £150,000-£200,000 0 0 £200,000-£250,000 1 1 2 Total number of exit packages 3 34 37 Total resource cost (£’000) 305 1,362 1,667
£213k has been paid in 2010-11 and £1,787k will be paid in 2011-12 and future years.
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
B. The average number of whole-time equivalent persons employed (including senior management) during the year was as follows:
2010-11 2009-10
Total Staff Members & Total Staff Members & Office Office Bearers Bearers
SPCB 598 485 113 606 493 113 Seconded staff 16 16 - 14 14 - Ministers (including 2 Law Officers) 18 - 18 18 - 18 Scottish Parliamentary Standards Commissioner 0.5 - 0.5 0.5 - 0.5
The Commissioner works on a part time basis.
C. The number of Members of the Scottish Parliament is 129.
D. The SPCB is, as defined in the Scotland Act 1998 S.21, the Presiding Officer and 4 elected Members (see Management Commentary for detail). Apart from the Presiding Officer, they do not receive remuneration for carrying out the functions of the SPCB. All senior managers are the staff of the SPCB.
3. Pensions
a. Members of the Civil Service Pension Arrangements - see accounting policies.
For 2010-11, Employer’s contributions of £3,482,799 were payable to the PCSPS (2009-10 £3,454,084).
Employees joining the SPCB after 1 October 2002 can opt to open a partnership pension account, being a stakeholder pension with an employer contribution. Employers' contributions of £8,665 (2009-10 £5,939) relating to stakeholder pensions were paid to one or more of a panel of four appointed stakeholder pension providers. In addition, employer contributions of £658 (2009-10 £492), 0.8% of pensionable pay, were payable to the PCSPS to cover the cost of the future provision of lump sum benefits on death in service and medical retirement of employees with stakeholder pensions. Medical retirement is possible in the event of serious ill health. In this case, pensions are brought into payment immediately without actuarial reduction and with service enhanced as for widow(er) pensions. There was no medical retiral in 2010-11 (2009-10, one).
There were no outstanding or prepaid scheme contributions at the statement of Financial Position date.
On death, pensions are payable to the surviving spouse at a rate of half of the member's pension. On death in service, the Classic scheme pays a lump sum benefit of twice pensionable pay and the Premium scheme pays three times pensionable pay. A service enhancement is also provided in computing the spouse's pension. The enhancement depends on the length of service up to a maximum of ten years.
Staff seconded to SPCB from other organisations are members of the pension schemes operated by their respective employers.
b. Members of the Scottish Parliamentary Pension Scheme (SPPS) - see accounting policies.
The pension scheme for the Scottish Parliament Members provides benefits based on final pensionable pay. The assets of the scheme are held separately from those of the SPCB and are managed by an Investment Manager. The Government Actuary was required to produce an initial actuarial valuation of the assets and liabilities of the SPCPF as at 6 May 1999 and thereafter to conduct a full valuation at three yearly intervals. The last valuation dated 20 March 2009 covered the period 1 April 2005 to 31 March 2008.
The amounts recognised in the Statement of Financial Position are as follows:
Note 31 March 2011 31 March 2010
£000 £000
Present value of scheme liabilities 37,658 38,387
Fair value of scheme assets 34,513 28,447 Net liability (surplus) 13 3,145 9,940
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
The amounts recognised in the operating cost statement are as follows:
2010/11 2009/10
£000 £000
Current service cost 2,484 1,442
Reduction in past service cost * (4,704) 0
Total operating charge (2,220) 1,442
* Past service costs relate to services already provided. It was announced in the Budget on 22 June 2010 that the Government will adopt the Consumer Price Index (CPI) rather than the Retail Price Index (RPI), for the indexation of public service pension schemes from April 2011. The Government Actuary’s Department has taken this change into account for accounting purposes as a past service costs credit (reducing expenditure) of £4.7m.
Analysis of the amount recognised in statement of Financial Position
Interest cost 2,114 1,540
Expected return on scheme assets (2,115) (1,161)
Total cost (1) 379
Allocated in the accounts as follows:
Note 2010/11 2009/10
£000 £000 Other pension costs (contributions by employer) 2a 1,688 1,677 Pension Finance Cost (Net) 4 (3,910) 144
Total (2,222) 1,821
Analysis of amount recognised in Statement of Change in Taxpayers’ Equity (SCITE): 2010/11 2009/10 £000 £000 Actual less expected return on scheme assets 1,343 7,587 Experience adjustments on scheme liabilities 946 522 Changes in assumptions underlying the present scheme liabilities 596 (14,003) Total actuarial gains/(loss) recognised in SCITE 2,885 (5,894)
The mortality assumptions used for the actuarial statement in last year’s accounts were based on those adopted for the valuation of the scheme as at 31 March 2008. The mortality adopted for this year’s disclosures have been updated to take account of the 2008 based ONS UK population projections, whereas the previous assumptions took account of the 2006 based ONS UK population projections. These are consistent with pensions for other GAD public sector clients. Other assumptions are the same as adopted for the scheme valuation as at 31 March 2008.
Changes in the present value of the scheme liabilities are as follows:
31 March 2011 31 March 2010 £000 £000
Opening liability 38,387 21,152
Current service cost 2,484 1,442
Past service cost (4,704)
Interest Cost 2,114 1,540
Contributions by Members 854 697
Actuarial losses (1,542) 13,481
Net transfers-in, less benefits paid out 65 75
Closing liability 37,658 38,387
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
Changes in the fair value of scheme assets are as follows: 31 March 2011 31 March 2010 £000 £000 Opening fair value of scheme assets 28,447 17,251 Expected return on scheme assets 2,115 1,161 Actual return less expected return on scheme assets 1,343 7,587 Contributions by employer 1,688 1,677 Contributions by Members* 1,093 964 Benefits paid and expenses (173) (192) Closing fair value of scheme assets 34,513 28,447 * including transfers in and transfers out by members
The SPCB expects to contribute £1,720,000 to the Members’ Pension Fund in 2011-12.
Movement in deficit during the year
31 March 2011 31 March 2010 £000 £000 Deficit at 31 March 2010 (9,940) (3,901) Current service cost (net of members contributions) (2,484) (1,442) Contributions by SPCB 1,688 1,677 Past service cost 4,704 0 Other finance income 1 380 Actuarial gain 2,885 (5,894) Deficit at 31 March 2011 (3,145) (9,940)
The major categories of scheme assets as a percentage to total scheme assets are as follows:
2010/11 2009/10
Equities 91% 91%
Bonds 9% 9%
Cash - -
Principal actuarial assumptions at the statement of financial position date
31 March 2011 31 March 2010 Discount rate 5.7% 5.8% Future salary increases * 5.3% 5.4% Future pension increases 3.0% 3.9% Expected rate of return on equities 7.2% 7.4% Expected rate of return on UK Government bonds 4.2% 4.4% Expected rate of return on other Bonds 5.0% 5.2% Expected rate of return on cash 4.2% 4.4% Expectation of life at age 65 (years) Future Pensioners - Men 26.1 26.0 Future Pensioners - Women 29.2 29.1 Current Pensioners - Men 23.9 23.8 Current Pensioners - Women 27.1 27.0
* This is a long term salary increase assumption and has been derived as 1.5% per annum in excess of price inflation. This gap is based on historical evidence of the difference between increase to National Average earnings and Retail Price Inflation. As a long term measure, it is not necessarily an indication of the expected level of salary increase for MSPs in the coming years.
Further information on the Scottish Parliamentary Contributory Pension Fund can be found in the accounts for the scheme ending 31 March 2011 which are published on the Scottish Parliament web site.
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
4. Other Administration Costs
2010-11 2009-10
£ ' 000 £ ' 000 £ ' 000 £ ' 000
Reimbursement of Members’ Expenses 11,419 11,213 Rentals under operating leases 32 24 Other accommodation costs Rates 3,923 3,700 Utilities 845 973 Other 3,296 8,064 5,320 9,993
Travel and Expenses, Hospitality 565 749
Other expenditure Contractors and consultants 249 196 Equipment and IT maintenance 1,909 1,891 Postage, stationery and publications 1,828 2,069 Broadcasting 590 625 Other staff costs 576 626 Other (a) 3,861 9,013 3,975 9,382
Non cash items: Pension finance cost (net) 3 (3,910) 144 Auditor's remuneration and expenses 73 (3,837) 77 221
Total other admin cost per statement of comprehensive net expenditure 25,256 31,582
(a) - These figures include the costs incurred by Members in respect of their postage and stationery provision supplies to assist them in the discharge of their Parliamentary duties. An analysis of these costs, by individual Member, is published separately.
5. Operating Income
2010-11 2009-10
£’000 £ ' 000 Operating income analysed by classification and activity, is as follows: Income from broadcasting 6 51 Shop trading income 240 268 Income from guided tours - 43 Miscellaneous income 362 362
Total Income 608 724
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
6. Property, Plant and Equipment
2010-11 Fixtures & Assets Artwork & Land & Fittings and under Donated Buildings Equipment Vehicles IT Systems construction Assets Total Cost or valuation £ ' 000 £ ' 000 £ ' 000 £ ' 000 £ ' 000 £ ' 000 £ ' 000 At 1 April 2010 325,537 10,903 13 11,138 440 983 349,014 Additions 271 483 - 1,133 19 9 1,915 Transfers - - - 43 (459) - (416) Disposals - (9,959) - (8,569) - - (18,528)
Indexation 14,554 - - - - - 14,554
At 31 March 2011 340,362 1,427 13 3,745 - 992 346,539
Depreciation At 1 April 2010 19,037 10,194 3 9,215 - - 38,449 Charged in year 8,017 373 3 1,051 - - 9,444 Disposals - (9,959) - (8,569) - - (18,528)
Indexation 408 - - - - - 408
At 31 March 2011 27,462 608 6 1,697 - - 29,773
Net book value
At 31 March 2011 312,900 819 7 2,048 - 992 316,766
At 1 April 2010 306,500 709 10 1,923 440 983 310,565
Assets under construction refer to capital projects, mostly IT, which are not yet completed.
Note:
The principal fixed asset of the SPCB is the parliamentary building at Holyrood, Edinburgh. This was occupied in the 2004-05 financial year when the Parliament land and building were first professionally valued on a depreciated replacement cost basis as at 7 January 2005 by James Barr (Chartered Surveyors). In line with the SPCB’s fixed asset accounting policy of a full revaluation commissioned at a minimum of every five years, James Barr (Chartered Surveyors) undertook a subsequent full revaluation of the Parliament land and buildings on 7 January 2010 at £306,500,000. This included structural buildings valued at £266,663,000, a land value of £8,500,000 and £31,337,000 in respect of fixed plant. The valuation was made in accordance with the RICS Appraisal and Valuation Manual. Indices used were based on a combination of Tender Price Index (TPI) and General Building Cost Index (GBCI) between 4th quarter 2004 and 4th quarter 2009 to update the original gross replacement cost to reflect current contractor market conditions. Revaluation may result in an increase or decrease of the previous recorded value. This has reduced the Revaluation Reserve by £8,143,000.
In 2010-11 there were significant accounting disposals of Fixtures, Fittings and Equipment and IT Systems. From 1 April 2010 furniture, fixture and fittings assets are no longer capitalised (Notes to the Accounts 1b). Following a major technical refresh programme, fully depreciated IT Systems no longer in use have been removed from the accounts.
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
6. Property, Plant and Equipment (continued)
2009-10 Fixtures & Assets Artwork & Land & Fittings and under Donated Buildings Equipment Vehicles IT Systems construction Assets Total Cost or valuation £ ' 000 £ ' 000 £ ' 000 £ ' 000 £ ' 000 £ ' 000 £ ' 000 At 1 April 2009 361,283 10,646 13 9,631 466 557 382,596 Additions - 257 - 1,414 483 108 2,262 Transfers - - - 93 (509) - (416)
Revaluation (35,746) - - - - 318 (35,428)
At 31 March 2010 325,537 10,903 13 11,138 440 983 349,014
Depreciation At 1 April 2009 37,695 8,405 - 8,511 - - 54,611 Charged in year 8,945 1,789 3 704 11,441
Revaluation (27,603) (27,603)
At 31 March 2010 19,037 10,194 3 9,215 38,449
Net book value
At 31 March 2010 306,500 709 10 1,923 440 983 310,565
At 1 April 2009 323,588 2,241 13 1,120 466 557 327,985
7. Intangible Assets 2010-11 2009-10 £’000 £’000 Software Software Cost At 1 April 3,388 2,776 Additions 1,061 196 Transfers 416 416 Disposals (2,525) - At 31 March 2,340 3,388
Depreciation At 1 April 2,688 2,450 Charged in year 378 238 Disposals (2,525) - At 31 March 541 2,688
Net book value At 31 March 2011 1,799 700 At 1 April 2010 700 326
In 2010-11 there were significant accounting disposals of IT Software. Following a major technical refresh programme, fully depreciated IT Software no longer in use have been removed from the accounts.
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
8. Inventories
31 March 2011 31 March 2010 £ ' 000 £ ' 000 Retail 75 79 Other Stock 104 86 179 165
9. Trade Receivables and other current assets: Amounts falling due within one year
31 March 2011 31 March 2010 £ ' 000 £ ' 000 VAT 532 496 Trade Receivables 122 201 Prepayments and accrued income 254 187 Other receivables 177 95 1,085 979
10. Cash and Cash Equivalents
31 March 2011 31 March 2010 £ ' 000 £ ' 000
Balance at 1 April 937 279 Net change in cash and cash equivalents 939 658 Balance at 31 March 1,876 937
Balances at OPG - 854 Balances at GBS 1,818 31 Commercial banks and cash in hand 58 52 Total balance 1,876 937
11. Trade Payables and other current liabilities: Amounts falling due within one year
Note 31 March 2011 31 March 2010 £ ' 000 £ ' 000
Accruals 3,926 4,823 Trade Payables 121 181 Other payables 1,592 1,530 Scottish Consolidated Fund (SCF) 1,876 937 Restructuring costs 12 1,154 323
8,669 7,794
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
12. Provisions for liabilities and charges
Restructuring provision Note 2010-11 2009-10 £’000 £’000
Balance at 31 March 545 605 Established in year 2 2,000 - Utilised or released in year (213) 219
Increase in provision 13 44 Transferred to due within 1 year 11 (1,154) (323) Balance at 31 March 1,191 545
A voluntary early severance/voluntary early retirement scheme was held in 2008-09 for senior staff. A voluntary early severance/voluntary early retirement scheme open to all staff was held in 2010-11 (see note 2). Terms and conditions were under the Civil Service Compensation Scheme Arrangements.
13. Net funded Members Pension Scheme Liability
Under IAS 19, a liability of £3,145,000 is recognised for the Scottish Parliamentary Contributory Pension Fund. Further information is provided on this in note 3.
Note 2010-11 2009-10 £’000 £’000
Balance at 31 March 9,940 3,901 Change in accounting policy - - Re-stated balance at 1 April 9,940 3,901 Net movement in Pension Reserves (2,885) 5,895
Pension Finance Cost (Net) (3,910) 144 Balance at 31 March 3 3,145 9,940
In 2009-10, SPCB adopted IAS 19 pensions accounting and disclosure for the Members Pensions Fund (SPCPF) in the SPCB accounts. Details of the Members Pension Fund are contained in Note 3.
14. Capital Commitments
There are no capital commitments as at 31 March 2011 (2009-10 none).
15. Commitments under leases
Operating leases
Total future minimum lease payments under operating leases are given in the table below for each of the following periods:
2010-11 2009-10 £’000 £’000 Buildings: Not later than one year 15 14 Other: Not later than one year 100 97 Later than one year and not later than five years 0 100
115 211 Finance leases
There are no finance leases in operation.
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
16. Financial Instruments
As the cash requirements of the SPCB are met through the Scottish Consolidated Fund budgeting process, financial instruments play a more limited role in creating risk than would apply in a non public sector body of a similar size. The majority of financial instruments relate to contracts to buy non-financial items in line with the SPCB’s expected purchase and usage requirements and is therefore exposed to little credit, liquidity or market risk.
17. Contingent Liabilities a) The SPCB has provided a number of letters of indemnity for loaned artwork which is on display within the Scottish Parliament. The maximum contingent liability in respect of these indemnities is £287,000. b) Support staff employed by Members of the Scottish Parliament have contractual rights to have the equivalent of 10% of gross annual salary contributed towards a pension, but not all have exercised this right.
Amount Amount Outstanding at Outstanding at 31 March 2011 31 March 2010 £’000 £’000 Comments
Pension contributions for Support Staff who have not contributed to a pension scheme 215 299 Possible
18. Related Party Transactions
Scotland’s Futures Forum Limited was established on 16 August 2005 as a Company Limited by Guarantee. It was created by the Scottish Parliament to help its Members, along with policy makers, businesses, academics, and the wider community of Scotland, look beyond immediate horizons, to some of the challenges and opportunities in the future. All shares are owned by the Scottish Parliamentary Corporate Body. Net spending by Scotland’s Futures Forum Limited in 2010-11 was £149,270 (2009-10 £163,524), being £111,431 (2009-10 £96,487) contributed by SPCB and £37,839 (2009-10 £67,037) from other partners. The balance due to be repaid to SPCB has remained constant at £316 (2009-10 £316), and is included within Note 9 Trade Receivables and other current assets: Amounts falling due within one year. A set of the accounts is available on request.
The SPCB has a number of transactions with the Scottish Government and with other government departments and public bodies, including Historic Scotland and HM Revenue & Customs. Additionally, regular transactions take place with the Scottish Parliamentary Pension Scheme, see note 3.
In 2010-11 the Scottish Public Services Ombudsman, The Scottish Information Commissioner, the Commissioner for Children and Young People in Scotland, the Scottish Commission for Human Rights and the Commissioner for Public Appointments in Scotland were responsible for the management of their funds and preparation of their accounts. Further detail on their accounts can be found on the appropriate websites.
The Scottish Parliamentary Standards Commissioner figures are included within those of the SPCB and details of amounts paid are set out below.
Funding provided was:
2010-11 2009-10
£’000 £’000
Scottish Public Services Ombudsman 3,168 3,251 Scottish Information Commissioner 1,637 1,594 Commissioner for Children and Young People in Scotland 1,318 1,338 Scottish Commission for Human Rights 999 998 Commissioner for Public Appointments in Scotland 400 408 Scotland’s Futures Forum Limited 112 96 Scottish Parliamentary Standards Commissioner 93 70 Net Cost (Schedule 2) 7,727 7,755
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
Scottish Parliamentary Standards Commissioner
The above organisation was set up on the 1 April 2003 under the terms of the Scottish Parliamentary Standards Commissioner Act 2002. SPCB pays all salaries and expenses. The Clerk/Chief Executive of the SPCB is the Accountable Officer for the SPSC.
The following amounts were paid out: 2010-11 2009-10
£ ' 000 £ ' 000
Salaries 50 50 Other Administration Costs 43 20
Net Operating Cost 93 70
Remuneration details are set out below:
Scottish Parliamentary Standards Commissioner Name and title Salary Salary Real increase Total accrued CETV at CETV at Real increase 2010/11 2009/10 in pension and pension at age 31/3/11 31/3/10 in CETV related lump 60 and related sum at age 60 lump sum at 31/3/10 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Stuart Allan 35-40 35-40 0-2.5 5-10 115 105 7 Scottish plus lump sum plus lump sum Parliamentary of of 15-20 Standards 0-2.5 Commissioner
The Scottish Parliamentary Standards Commissioner is the only Commissioner for whom the Chief Executive of the SPCB is the Accountable Officer. The current Scottish Parliamentary Standards Commissioner, Stuart Allan took up office on 2 April 2009 and works on a part time basis.
19. Non cash charges
The following non cash charges have been included in the accounts: 2010-11 2009-10
£ ' 000 £ ' 000
Pension finance cost (net) (PYA) (3,910) 144 Auditor's Fee 73 77
20. Losses Statement
There were no individual losses or special payments in excess of £250,000 which would require separate disclosure.
21. Post statement of financial position events
There are no material post statement of financial position events that require to be adjusted in the accounts or to be disclosed.
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Scottish Parliamentary Corporate Body Annual Accounts 2010-11 ______
SCOTTISH PARLIAMENTARY CORPORATE BODY
DIRECTION BY THE SCOTTISH MINISTERS in accordance with section 19(4) of the Public Finance and Accountability (Scotland) Act 2000
The statement of accounts for the financial year ended 31 March 2007 and subsequent years shall comply with the accounting principles and disclosure requirements of the edition of the Government Financial Reporting Manual (FReM) which is in force for the year for which the statement of accounts are prepared.
The accounts shall be prepared so as to give a true and fair view of the net resource outturn, resources applied to objectives, recognised gains and losses and cash flows for the financial year, and of the state of affairs as at the end of the financial year.
This direction shall be reproduced as an appendix to the statement of accounts. The direction given on 15 July 2002 is hereby revoked.
Signed by the authority of the Scottish Ministers
Dated 17 January 2006
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