Title
Contents
Performance Report Overview
Objectives
Performance Report Performance Analysis
Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report Annual Report & Accounts Annual For the year ended Accounts 31 March 2020 transport.gov.scot Annex 2 | Contents
Title Contents
Contents
Our year in numbers 3 Performance Report Annual Accounts 81 Objectives 30 Statement of Comprehensive Case study 1 Our Social and Community Issues 42 Net Expenditure 82 Performance A Transport Vision for Scotland 4 Forward Look 44 Statement of Financial Position 83 Report Case study 2 Our Financials 45 Cash Flow Statement 85 Overview Working Together 5 Sources of Funding 46 Statement of Changes in Financial performance and Taxpayers’ Equity 87 Foreword by Chief Executive 6 use of resources 47 Notes to the Accounts 89 Outturn Analysis 48 Performance Report Sustainability 51 Annex 132 Objectives Overview 8 Transport Scotland Direction by Our Key Risks and Challenges 10 Accountability Report The Scottish Ministers 133 Performance Summary 15 Introduction and Corporate Governance 54 Glossary 134 Performance The National Transport Strategy Directors Report 55 Report for Scotland 2020 16 Statement of Accountable Officer’s Performance Our Vision and What We Do 17 Responsibilities 56 Analysis Governance Statement 57 Strategic Objectives Accountability Introduction 19 Remuneration & Staff Report 66 Report Strategic Transport Planning Staff Report 67 Corporate and Governance 20 Remuneration Report 69 Governance Environmental Sustainability 21 Parliamentary Accountability Report 75 Maintaining and Developing Scotland’s Independent Auditor’s Report 76 Transport Networks 22 Report on the audit of Accountability New Infrastructure 23 financial statements 76 Report Moving Freight 24 Report on the regularity of Remuneration & Moving People 25 expenditure and income 79 Staff Report Improving Communications, Report on other requirements 79 Travel Choices, Resilience and Safety 26 Use of my report 80 Procurement, Asset and Contract Management 27 Annual Who We Are and How We Operate 28 Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 3 | Our year in numbers
Title Our year in numbers
Transport Scotland’s aim is to help deliver the Scottish Government Strategy Contents of creating a fairer, wealthier, safer, stronger and greener Scotland, with opportunities to flourish through increasing sustainable growth. Performance Report Overview
Operational Highlights Financial Highlights
Net Operating Costs New National Transport Objectives Strategy published £2.3 billion 1,221 responses received during the consultation Roads: £533 million Rail: £996 million Performance Bus & Concessionary Travel: £275 million Ferry: £215 million Report period, lasting from July until October 2019. Low Carbon and other Transport Initiatives: £260 million Performance Analysis
Royal Assent DEL Underspend Accountability £7.5 million Report received Strategic Partnerships set up, £64 million Corporate Governance Our teams led the journey ensuring Scotland has access Total underspend through Parliament of the to a world-leading Electric Vehicle new Transport (Scotland) (EV) charging network. £94 million Accountability Act, 2019. Report Remuneration & Staff Report Net Assets A further £4 million to support £18 million the uptake of Ultra-Low Capital Expenditure Invested in public, Emission Vehicles (ULEV’s) £20.4 billion private and domestic across Scotland, and over £11 £238 million Road Asset Base million to incentivise uptake Annual charging installations Accounts across Scotland. across public and private fleets. £20.9 billion
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 4 | Highlights
Title Case study 1:
A Transport Vision for Scotland Contents The new National Transport Strategy 2020 Performance Report Overview
• The National Transport Strategy (NTS2) for • A comprehensive consultation exercise was Scotland, was published on 5 February 2020. undertaken on the draft Strategy in the This was the culmination of an extensive summer of 2019, and our teams welcomed review of Scotland’s transport needs, and the responses received from individuals was based on significant collaborative work and organisations and incorporated these Objectives with partner bodies and engagement with into the final Strategy. stakeholders and communities. This work Performance involved all Directorates of Transport • Our Policy Teams also gathered evidence Report Scotland and liaison with the wider and performed detailed analyses to Performance Scottish Government. demonstrate how we will address the Analysis challenges and achieve our Priorities. • The Strategy serves as a catalyst for We set out our plans to establish a change, and sets out a compelling vision for Transport Strategy Delivery Board and Accountability transport in Scotland over the next twenty Transport Citizens’ Panels. Report years. It was developed in the context of Corporate wider work on the Transport (Scotland) Act • We have developed a range of Policies to Governance 2019 which, for the first time, placed the act as drivers of change and contribute Strategy on a statutory footing. to a range of cross-cutting themes such as Accountability ‘climate action’ and ‘health and wellbeing’. Report • Our Teams worked with an extensive Remuneration & network of partners from urban, rural and • For our work on the National Transport Staff Report island settings and reached out to groups Strategy we were commended in the and communities across the length and Collaboration category at the CIHT breadth of Scotland to hear the views of Awards 2020. a wide range of users and non-users of the transport system. Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 5 | Highlights
Title Case study 2:
Working Together Contents The Solheim Cup Performance Report Overview
• In September 2019 Scotland hosted the • Rail: We worked with ScotRail to provide Solheim Cup at Gleneagles and we played travel by rail to Gleneagles Railway Station, a pivotal role in its success, with initial making use of a bespoke temporary planning discussions starting over 3 years footbridge to cross the A9 directly into in advance of the event. the venue within minutes. Objectives
• Our Events Resilience Team, supported • Car: We ensured temporary car parks Performance by colleagues from all Directorates within were provided to allow attendees to Report Transport Scotland, created, tested and drive directly to the venue. Performance implemented the Transport Plan, designed Analysis to ensure safe, efficient and effective travel • Active Travel: We ensured the venue for over 90,000 attendees throughout the was easily accessible by foot and provided week, and over 30,000 attendees on the locations to secure bicycles. Accountability key competition days. Report • The 2019 Solheim Cup was the best ever Corporate • We helped set up a Steering Group attended women’s golf event in the UK and Governance containing representatives from the Scottish the long-term benefits to the area and to Government, Perth & Kinross Council, Scotland as a whole included the promotion Accountability Stirling Council, Police Scotland, British and showcasing of Scotland as a leading Report Transport Police, Stagecoach, ScotRail, event host; the economic benefits from Remuneration & Gleneagles Hotel, Traffic Scotland, BEAR 90,000 attendees and increased activity Staff Report and AMEY, which met to share information during the event; the promotion of the and ensure every mode of transport health benefits of playing a sport to a operated effectively. younger generation; and the promotion of equality by indirectly encouraging • Bus Park & Ride: We secured the land more females to play sport. Annual and worked in partnership with Stagecoach Accounts East to provide this service from Stirling and from Perth for the duration of the event.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 6 | Foreword
Title Foreword by Chief Executive
Contents
I am pleased to present Transport Scotland’s The on-going challenges of this response are The latter is now recognised as the UK’s most Annual Report and Accounts for 2019-20, likely to be with us for some time as we move comprehensive network outside of London. which sets out our performance against the to transition and restart Scotland’s economy Performance objectives contained in our corporate plan for and re-focus our efforts in achieving our long The past year has also seen the completion Report 2017-20. These reflect the key contribution term ambitions. of a number of projects including the £220 Overview we make to improving transport for the million electrification of the railway between people of Scotland, in line with the Scottish The new National Transport Strategy for Stirling, Dunblane and Alloa, the £31 million Government strategic objectives, which Scotland l (NTS2) laid before the Scottish A737 Dalry Bypass, which opened to traffic were heavily influenced by the Climate Parliament in February 2020, sets our vision seven months ahead of schedule in Change Emergency declared during the for our transport system for the next 20 May 2019, and the £5 million A737 Den Objectives year. This has consequently prioritised years, one which will protect our climate Realignment which was also opened to our contribution to Scotland’s transition and improve the lives of the people of traffic ahead of schedule in December 2019. to a low carbon economy. Scotland. Our work during the year has also Performance included preparing for and supporting the It’s been another challenging year, with Report Towards the end of this year, we responded passage of the Transport (Scotland) Bill 2019, much delivered across the breadth of the Performance to the impact of COVID-19. This dramatically which received Royal Assent in November organisation. I am immensely grateful to Analysis changed our immediate priorities in 2019. The Act contains measures such as low all colleagues involved and to our partners supporting the public transport system, and emission zone schemes, changes to local across Scotland who continue to work Accountability indeed the way in which we were engaged in authority powers in relation to bus and smart with us to deliver positively for the people Report doing so. We are a key part of the Scottish ticketing schemes, discretionary powers for of Scotland. Corporate Government COVID-19 support network and, a work place parking levy and pavement and Governance like most of the rest of Scottish Government, double parking prohibitions, all of which will many of our staff are working from home. make a significant contribution to the global This was possible due to our recent move to climate emergency. Accountability smarter working, with all staff using laptops Report and other mobile devices and further support During 2019-20, our focus has remained Remuneration & to enable modifications to ensure health and on supporting the development of a low Staff Report safety is maintained in this new work carbon economy and this has been environment. With the impact of the demonstrated in our efforts in the continuing new working conditions and COVID-19 development of rail electrification, bus environment, the team have adapted prioritisation, accessibility and active travel Annual and performed well. and investment in low emission vehicles Roy Brannen Chief Executive Accounts and charging networks. Transport Scotland
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 7 | Performance Report Overview
Title
Contents
Performance Report Overview
Objectives
Performance Report Performance Analysis
Accountability Report Corporate Governance
Performance Accountability Report Remuneration & Report Staff Report
Annual Overview Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 8 | Performance Report Overview
Title Performance Report Overview
Contents This Performance Report presents a review of our achievements during Performance 2019-20. We set out, across a range of key indicators, our progress Report against our objectives and highlight our vision for the future of transport Overview in Scotland and the risks and challenges faced during the year.
Objectives
Performance Report Performance Analysis
Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 9 | Performance Report Overview
Title Overview
Contents
We are an Agency of the Scottish The Chief Executive is the Accountable Our Business Model Government, responsible for the policy and Officer for the Agency, appointed by the provision of transport in Scotland and Permanent Secretary to the Scottish Our purpose is to support and advise Performance accountable to Parliament and the Public Government. He is supported by a senior Scottish Ministers on strategy and policy Report through Scottish Ministers. We oversee the management team comprising eight options for Transport in Scotland, and to Overview operation and improvement of the trunk Executive Directors. Each director is increase sustainable economic growth road, ferry, canal and railway networks in delegated specific responsibilities for through the development of national Scotland; Highlands and Islands and transport modes, corporate services and/or transport projects. Prestwick airports; the provision of rail and policy with responsibility delegated further ferry services; and are responsible for to a range of teams supporting specific Our aim is to help create an accessible Objectives securing air routes for Scotland, the national functions. We also support Scottish Ministers Scotland, with a safe, integrated and concessionary travel schemes and the in prioritising future transport policy, strategy reliable transport network. provision of network traffic and travel and investments and the delivery of a low Performance information services. carbon economy. Our core principles are: Report • To strive for continuous improvement in Performance transport delivery both nationally and Analysis internationally; Accountability • To promote transport integration; Report Corporate • To support the transition to active and Governance more sustainable forms of transport;
• To maintain a clear outward focus on Accountability the needs of transport users; Report Remuneration & • To work in partnership with transport Staff Report providers, communities and wider government in our planning and delivery;
• To make the most efficient use of public Annual resources, and equip our staff to do the Accounts best possible job.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 10 | Performance Report Overview
Title Our Key Risks and Challenges
Contents
Our overarching risks relate to the provision These risks, and the principal risks, in relation of, and financial investment in, rail, ferry, to Rail, Ferries, Low Carbon and Climate bus and air services, the maintenance of the Change, can also be seen in Figure 1. Performance road, rail and the Highlands and Islands air Report networks and major infrastructure projects. Other inherent risks relate to performance Overview by contractors, sponsored bodies and grant Additional challenges in 2019-20 related recipients, which can also be affected by to the wider political and economic outside factors (such as adverse weather). uncertainties associated with the preparation Our overall approach to Risk Management for, and potential impact of, EU Exit and is also highlighted within the Governance Objectives towards the end of the year, the impact of Statement, and Figure 1 summarises COVID-19. The latter changed our immediate an example of the key risks faced during priorities in supporting the public transport 2019-20, the mitigating actions taken and Performance system and our method of engagement, further actions planned. Report and has had a massive impact on the Performance transport sector. Reduced passenger Analysis numbers across all transport modes, consequential reductions in revenue, Accountability coupled with increased costs incurred to Report help make public transport safe, were Corporate accompanied by the financial and operational Governance repercussions of a pause in all non-essential construction and road works. The pandemic also continues to present a significant Accountability challenge for the aviation industry and for Report Scotland’s overall connectivity as we plan Remuneration & our economic recovery. The Transport Staff Report Transition Plan, launched in May 2020 is a continuously evolving document that sets out our plan for the transition through, and recovery from, the COVID-19 pandemic. Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 11 | Performance Report Overview
Title Our Key Risks and Challenges
Contents
Figure 1: Key Risks and mitigations during 2019-20 Key Risk Mitigating Actions
Failure to provide sufficient public transport capacity Engage with operators to support provision Performance to safely meet demand during move to recovery of public transport according to capacity required Report from impact of COVID-19. with on-going review of demand and impact of Overview on-going restrictions.
Objectives
Performance Failure to achieve investment required to support Review proposals to ensure they continue to Report economic recovery due to uncertainty of the be achievable based on the latest modelling Performance on-going impact of restrictions. of the impact of restrictions and engage with Analysis Ministers and officials to secure funding.
Accountability Report Corporate Governance
Accountability Inability to meet all of the committed transport Detailed forecasting regularly updated and reviewed Report obligations within the budget allocated. with appropriate action taken should issues arise. Regular dialogue with Ministers and SG colleagues Remuneration & regarding budget pressures. Engagement with DG Staff Report Economy and Executive Team regarding staffing resource requirements.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 12 | Performance Report Overview
Title Our Key Risks and Challenges
Contents
Figure 1: Key Risks and mitigations during 2019-20 Key Risk Mitigating Actions
Delivery of the A96 and A9 Dualling Programmes Continue to manage and monitor consultants Performance to time & within environmental, statutory and performance against agreed objectives. Robust Report financial constraints. public engagement to resolve issues early. Overview Ensure that design proposals offer VFM solutions. Continue to develop funding and procurement options, appoint specialist advisors, liaise with SG and Scottish Ministers on procurement strategy and key decisions. Ensure delivery planning team is sufficiently resourced with appropriate governance. Objectives
Performance Achievement of Committed Obligations and Monitor ScotRail’s forecasting, link with technical Report Financial Performance by ScotRail Franchise. advisors, conduct due diligence. Franchise Performance Management to identify potential measures Analysis within the Franchise Agreement to place the franchise on a more sustainable long-term footing. Accountability Report Corporate Governance
Accountability Failure to deliver successful Northern Isles Arrangements to extend the current contract Report procurement exercise within required timescales. to provide continuity of service provision and full connectivity to and from the Northern Isles. Remuneration & Work with Serco to ensure service commencement Staff Report in June 2020.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 13 | Performance Report Overview
Title Our Key Risks and Challenges
Contents
Figure 1: Key Risks and mitigations during 2019-20 Key Risk Mitigating Actions
Climate Change Reputational risks associated Engagement with Ministers to define nature and Performance with efforts to reduce emissions. scale of challenge. Support Directors participation Report in Programme Boards and develop positive Overview case studies that show demonstrable progress. Engagement with policy leads to develop measures to address issues identified.
Objectives
Performance Impact of no UK agreement for EU withdrawal. Resilience Group response. Regular dialogue Report Impact on rights of UK registered airlines, hauliers, with UK Department for Transport (DfT) and Performance buses/coaches etc to operate to and in the EU, and Scottish and UK Government Resilience teams. Analysis potential disruption to Scottish transport services. EU Exit Action Plan development and execution. Contingency Planning reviewed, and Scottish Transport Logistics Intelligence Group established. Accountability Report Corporate Governance
Accountability Financial and operational risk associated with Regular communication regarding progress Report the delivery of new vessels 801 and 802. with Caledonian Maritime Asset Ltd (CMAL) and Ferguson Marine Engineering Ltd (FMEL), Remuneration & continued stakeholder engagement, advisor Staff Report reviews and updates provided to ministers. Progress work plan to secure the most effective delivery of the public sector vessels currently under construction in the yard. Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 14 | Performance Report Overview
Title Our Key Risks and Challenges
Contents
Figure 1: Key Risks and mitigations during 2019-20 Key Risk Mitigating Actions
Programme for Government (PfG) commitments Progression of LEZ’s as part of Transport Act 2019, Performance on air quality and low emission zones (LEZ’s) supported funding for local authorities and bus Report not delivered. operators. Stakeholder engagement maintained, Overview funding profiled, LEZ consultation prepared, integrated impact assessments, legal discussions and engagement with DVLA, Scottish Government and SEPA. Agreement on local authority enforcement, testing and timetabling. Objectives
Performance Failure to achieve Scottish Minister’s road casualty Focused meetings with Road Safety Strategic Report reduction targets. Partnership Board and Operational Partnership Performance Groups. Review of Road Safety performance and Analysis annual accident statistics. Review priority progress on 2020 casualty reduction targets. Focus on motorcyclists and roadside safety, revision of safety camera handbook criteria and engage with high Accountability level European Groups to share best practice. Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 15 | Performance Report Overview
Title Performance Summary
A global, inclusive & Contents Respect sustainable Open & human rights, economy connected, Our Corporate Plan 2017-20 sets out how eliminate positive we will help deliver the Scottish Government Discrimination international Strategy of creating a fairer, wealthier, contribution Performance safer, stronger and greener Scotland, Report with opportunities to flourish through Overview increasing sustainable growth. Creative, Tackling vibrant, poverty by A combined Corporate and Business Plan diverse sharing for 2020-21 is being prepared with cultures opportunities & wealth Corporate Plan for 2021-24 to follow in Our Purpose: Objectives spring 2021. These documents were subject Create a successful country, to delays in the latter part of 2019-20 as a with opportunities for all, increased well-being, consequence of the COVID-19 pandemic. economic growth Performance Report Performance The focus of our Corporate Planning Value, Inclusive, Analysis continues to be on how we will support the protect & Our Values: empowered, Transport focused National Outcomes within enhance Treat everyone with kindness, resilient dignity and compassion, the National Performance Framework (NPF) environment communities respect the law, Accountability and the Programme for Government (PfG). be transparent Report
Figure 2 highlights the purpose and values Corporate of the NPF, and our work involves developing Governance new policies and projects, as well as supporting existing ones. Accountability Healthy Growing up Figure 2: The National Performance & active to realise full Report Framework living potential Remuneration & Staff Report
Innovative Well businesses, educated, high quality skilled, able jobs to contribute Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 16 | Performance Report Overview
Title The National Transport Strategy for Scotland 2020
Contents
The new National Transport Strategy, published in February 2020, was developed through an extensive collaborative approach Performance involving a wide range of partners and Report stakeholders, including individuals, Overview businesses and third sector organisations. It sets out a vision for the kind of transport system we all want for Scotland over the next twenty years - one that protects our climate and improves lives, delivering a Objectives sustainable, inclusive, safe and accessible transport system and a healthier, fairer and more prosperous Scotland for communities, Performance businesses and visitors. Report Performance The Strategy contributes to the Analysis Government’s Purpose and has been mapped against the National Outcomes, Accountability contributing to 9 National Outcomes Report and to all of the 17 Key UN Sustainable Corporate Development Goals. Governance COVID-19 has had a significant immediate impact on transport, creating new Accountability opportunities as well as challenges. Report We remain cognisant that, in order to aid Remuneration & recovery, our future transport system will Staff Report need to encompass all of the priorities in the National Transport Strategy within the new post-pandemic context. We also continue to actively pursue options to maintain the Annual positive travel behavioural changes which Accounts have emanated from the pandemic.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 17 | Performance Report Overview
Title Our Vision and What We Do
Contents
Our Vision We will have a sustainable, inclusive, safe and accessible transport system, helping deliver a Figure 3 demonstrates our Vision, which healthier, fairer and more prosperous Scotland for communities, businesses and visitors. is underpinned by four Priorities, each with Performance three associated Outcomes. These form Report the heart of the Strategy and will be the Reduces inequalities Overview basis upon which we take decisions and evaluate the success of Scotland’s transport • Will provide fair access to services we need policies going forward. • Will be easy to use for all • Will be affordable for all Our purpose is to focus on creating a more Objectives successful country with opportunities for all of Scotland to flourish through increased wellbeing, and sustainable and inclusive Take climate action Performance economic growth. Inclusiveness and equality • Will help deliver our net-zero target Report are key ingredients of our new Strategy. Performance • Will adapt to the effects of climate change Analysis Figure 3: Our Vision • Will promote greener, cleaner choices Accountability Report Helps deliver inclusive economic growth Corporate Governance • Will get people and goods where they need to get to • Will be reliable, efficient and high quality • Will use beneficial innovation Accountability Report Remuneration & Staff Report Improves our health and wellbeing • Will be safe and secure for all • Will enable us to make healthy travel choices Annual • Will help make our communities great places to live Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 18 | Performance Report Overview
Title Our Vision and What We Do
Contents
What we do Maintaining Strategic Our Corporate Plan, and the supporting and Developing Transport Environmental Annual Business Plans, set out our key Scotland’s Performance Planning and Sustainability Report priorities and how we will support the 11 Transport Governance Overview national outcomes shown in Figure 2. Networks Within our Corporate Plan, we identify nine delivery themes and key objectives, as shown in Figure 4.
The section on ‘Strategic Objectives’ shows Objectives how we performed against these objectives and the Performance Analysis section on pages 30-52 reports on progress as at the Performance end of March 2020 on these Strategic New Moving Moving Report objectives, and how we delivered them. Infrastructure Freight People Performance Analysis Figure 4: Strategic Objectives Accountability Report Corporate Governance
Improving Communications, Procurement, Accountability Who We Are and Report Travel Choices, Asset and Contract How We Operate Remuneration & Resilience and Management Staff Report Safety
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 19 | Objectives
Title
Strategic Contents
Performance Objectives Report Overview The following pages detail our 2019/20 objectives and highlights actions on Objectives how we delivered them Performance Report Performance Analysis
Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 20 | Objectives Find out more on Strategic Transport Planning p30-31 Title and Governance Contents
Prepare for the implications for the Manage Parliamentary passage Continue to support the Maritime Consult on and publish a successor transport sector in Scotland, of the of the Transport Bill. Sector in Scotland. to the National Transport Strategy. UK's withdrawal from the EU. Performance • Engagement with internal teams • Development of Scottish Maritime • New National Transport published in Report • Development of communication and external stakeholders Strategy for ‘Year of Coast and February 2020 and laid before the Overview protocols and planning models Waters’ Scottish Parliament by the Scottish • Conducted impact assessments, Ministers under section 3 (1) (b) of • Contribution to Scottish drafted supporting documents • Engagement with industry bodies the Transport (Scotland) Act 2019 Government's advisory publications and attended appropriate at numerous events, and in day to on EU withdrawal for Scottish people Parliamentary Committees to day business and businesses assist the Bill’s passage Objectives • Supported Scottish Maritime Cluster • Ensured Scottish Parliamentary (SMCat London International scrutiny of seven UK EU Exit Shipping Week and at the Chamber Performance Statutory Instruments of Shipping event in Edinburgh Report Performance • Set up and operated EU Exit • Supported British Ports Association Analysis resilience function and a Scottish and UK Chamber of Shipping Transport Logistics & Intelligence Group Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 21 | Objectives Find out more on Environmental p32-33 Title Sustainability Contents
Support sector transition toward Incentivise the uptake of ULEVs Work with partners to put in Grow Scotland’s global reputation a low carbon transport system, while supporting wider sustainable place Low Emission Zones into in low carbon mobility and including through skills transport outcomes and inclusive the four biggest cities by 2020. establish distinctive propositions Performance development, while minimising growth. Take forward actions to support for trade and investment. Report unnecessary disruption. the Scotland Climate Change Plan Overview • £11 million for “Switched on Fleets” and support low carbon travel • Development of the Michelin • New skills initiative with industry and transport. Scotland Innovation Park to attract and Skills Development Scotland, • £4 million to aid the transition of inward investment and creation of a and a new Safe Working with Local Authority and Community • £8.8 million available to support globally significant hub for innovation Electric Vehicles (EV) programme Fleets bus operators retrofit buses to in mobility the Euro VI diesel standard Objectives • £0.164 million for ‘Safe Working with • £2 million to the emergency services • The Transport Decarbonisation EV’ Project to transition the blue light fleets by • £7.8 million available through the Alliance – December 2019 – to help Public Transport Provision Fund, develop a proposal for a Zero- Performance • 8 EV training modules and training • £1 million to support transition of to local authorities and regional Emission Vehicle Community Report for 10 college staff, events to raise other public sector fleets transport partnerships to establish Performance awareness of training opportunities LEZ related projects in their areas Analysis for EV repair and maintenance • £2 million to local authorities for the transition of heavy fleet vehicles or • LEZ Support Fund focused on retrofit • Skills Baselining Project with Skills equivalent heavy machinery support for the taxi sector Accountability Development Scotland to assess Report the skills necessary to facilitate • £47 million for 1000 interest free • LEZ back-office enforcement regime, Corporate mass-EV uptake in Scotland low carbon loans DVLA engagement on data sharing Governance
• £0.5 million to Housing Associations • LEZ communications marketing to develop car club services campaign established Accountability Report • Delivery of actions outlined in the Remuneration & Crieff Air Quality Action Plan Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 22 | Objectives Find out more on Maintaining and Developing p34-35 Title Scotland’s Transport Networks Contents
Continue to support the Ensure Scottish EV owners benefit Develop our strategy and plans development of air services from one of Europe’s most for reinvigorating and exploiting within Scotland. Continue to comprehensive and reliable the potential of the Scottish rail Performance support the development of charging network. network. Influence external Report Scottish international air routes. relationships for the benefit Overview • £18 million for public, private and of our railway. • New Delta Airlines route between domestic charging installations Edinburgh and Boston • Participation in dialogue with all the • £4 million to local authorities to bidders for the West Coast franchise, • New easyJet service from Glasgow contribute to delivery of 20 ‘electric securing a 50% increase in calls at to Barcelona towns’ across Scotland by 2025 Motherwell station on services which Objectives operate between Glasgow and • Air Discount Scheme renewed London Euston until December 2020 Performance • Supported TransPennine Express’s Report • Four year £21 million contract with introduction of train services Performance LoganAir to operate subsidised air between Glasgow/Edinburgh Analysis services from Glasgow to and Liverpool Campletown, Tiree and Barra • Engagement with Network Rail Accountability on route electrification, with an Report accelerated rolling programme of Corporate efficient electrification over the next Governance 25 years, to contribute towards making Scotland’s rail passenger services carbon free by 2035 Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 23 | Objectives Find out more on New Infrastructure p36 Title
Contents
Coordinate strategic investment in Take forward the construction of the charging network that major road improvement projects, supports wider energy and including the A737 Dalry Bypass, Performance transport system benefits. the A77 Maybole Bypass, the A9 Report Berriedale Braes, the A737 The Overview • £7.5 million Strategic Partnership to Den, and the A92/A96 Haudagain ensure Scotland has access to a Improvement project. world-leading Electric Vehicle (EV) charging network • A737 Dalry Bypass opened to traffic seven months ahead of schedule in • Evidence led, accelerated model for May 2019 Objectives co-ordinating EV charging and electricity network infrastructure • A737 The Den opened to traffic ahead of schedule in December 2019 Performance • Comprehensive analysis of data to Report inform investment decisions on • A9 Berriedale Braes to open in Performance future of the network August 2020 Analysis
• A77 Maybole Bypass contract awarded and site works progressed Accountability Report • A92/96 Haudagain Improvement Corporate Scheme progressing, expected Governance to open 2021
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 24 | Objectives Find out more on Moving Freight p37 Title
Contents
Continue delivering the Traffic Scotland service including utilising multiple technology platforms to Performance target reduced journey times, Report inform on issues, alternative Overview routes and methods of travel to minimise transport disruption.
• Continued support for moving freight from road through Freight Facilities grants, and work with Network Rail Objectives and Train Operating Companies to better support the movement of freight by rail Performance Report • £25 million strategic rail freight fund Performance – 5 year rail investment to 2024 Analysis
• Targeted food and drink industries with Highland Spring rail freight Accountability project to help achieve modal shift Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 25 | Objectives Find out more on Moving People p38 Title
Contents
Put active travel at the heart of Work with other public authorities Continue to support Community • New Bus Low Emission Vehicle our transport planning for all. and transport providers to deliver Transport and the National incentive system introduced April accessible travel for disabled Concessionary Travel Scheme, 2019 Performance • £1.3 million to date for ‘Bikeability people. ensuring the NCTS’ sustainability. Report Schemes’ and Social Housing • £3 million Scottish Ultra Low Emission Overview Projects • Working with Sustrans and local • Pilot Scheme for free bus travel for Bus Scheme launched February 2020 authorities to agree new proposals Modern Apprentices (in Shetland, following engagement with bus • Active Travel Outcomes Framework and manage existing infrastructure Aberdeen and Aberdeenshire) operators and internal assurances developed and published in plans through the Places for concluded February 2020 December 2019. Active Travel Everyone Programme • Free bus travel element of the Evaluation and Evidence group with • Fund and Support community 2019 Young Carers Grant being Objectives TS and delivery partners set up • £73 million to infrastructure place transport providers. 49 new drivers progressed making projects supported to achieve the D1 driver • Delivery Plan for the Active Travel qualification for minibuses for Performance Taskforce published in June 2019 voluntary sector Report Performance Analysis
Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 26 | Objectives Find out more on Improving Communications, p39 Title Travel Choices, Resilience and Safety Contents
Improve Resilience across all Work jointly with partners to • Progression of Road Safety Plan transport Networks. achieve Scotland’s casualty focussing on motorcycle safety, reduction milestones and take better integration of maintenance Performance • Transport Resilience Teams forward the action plan set out and casualty reduction investment Report continued to strengthen in Scotland’s Road Safety and prioritised investment in casualty Overview Framework to 2020. reduction schemes • Additional Winter Service and Events enhancements • Continued funding of the Scottish • Road Safety Framework Annual Safety Camera Programme Report published on Transport Scotland website in mid-2019. New • Average speed camera systems Evaluation Fund launched mid-2019 Objectives across the A77, A9 and A90 Trunk sections of average speed cameras • Developing with CoSLA a strategy to operating effectively roll out more 20mph speed limits Performance consistently across Scotland Report • New Average speed system Performance deployed February 2020 on A82/A85 Analysis between Lix Toll and Tyndrum
Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 27 | Objectives Find out more on Procurement, Asset and p40 Title Contract Management Contents
Procure a new contract for the Progress design and development Progress design and development • £1 million ground investigation Northern Isles Ferry services, work on the A9 dualling between work on a range of major road contract awarded in August 2019, serving Orkney and Shetland. Perth and Inverness and the A96 improvement projects including to inform on the preferred option Performance dualling between Inverness and the A82 between Tarbet and for the Longman Junction Report • New contract awarded for the Aberdeen, and continue the Inverarnan, the grade separation Overview Northern Isles Ferry Services, construction of the A9 dualling of Sheriffhall Roundabout on the • £31.2 million Design and Build serving Orkney and Shetland Luncarty to Pass of Birnam project. A720, Longman Roundabout on contract for the A737 Dalry Bypass the A9/A82 and the junction at opened to traffic seven months • Construction work progressing on Laurencekirk on the A90. ahead of schedule in May 2019 the second section of the A9 Dualling Programme – Luncarty to Pass of • Draft Orders for the A9/A96 Inshes • £5 million A737 Den Realignment Objectives Birnam. New bridges being to Smithton scheme published in improvement opened to traffic constructed over the A9 September 2019 ahead of schedule in December 2019 Performance • Design work progressing for A9 • Draft Orders published for A90/A937 Report Dualling Perth to Inverness. Laurencekirk Junction and A720 Performance Statutory process underway for Sheriffhall Roundabout projects in Analysis eight of the remaining nine schemes. December 2019 for formal comment Procurement strategy progressing • Design progressing on A9/A82 Accountability Longman Junction and A82 Report Tarbet to Inverarnan projects Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 28 | Objectives Find out more on Who We Are and How We Operate p41 Title
Contents
We will ensure that we have the Invest and develop our people knowledge, understanding, staff, in line with SG2020 and our skills, structure and controls in People Strategy. Performance place to deliver and support Report our business. • Continuing Development of Overview Corporate systems and Smarter • Awarded the highest score across Working principles central government for procurement activity • Improve video conferencing. New cloud-based audio and • Community Benefits delivered video conferencing solution Objectives through sustainable procurement practices. Savings of £1 million by • New HR Online service was using collaborative frameworks launched in February 2020 Performance Report • Stakeholder engagement and • Cyber Plus Accreditation and Performance knowledge sharing on project Cyber Resilience profile Analysis Bank Accounts • Actions from Staff Survey Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 29 | Performance Report Performance Analysis
Title
Contents
Performance Report Overview
Objectives
Performance Report Performance Analysis
Performance Accountability Report Corporate Governance
Report Accountability Report Remuneration & Performance Staff Report
Annual Analysis Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 30 | Performance Report Performance Analysis
Title Strategic Transport Planning and Governance
Contents
Preparation for Impact of EU withdrawal Transport Act During 2019-20, we have placed significant The Transport (Scotland) Act 2019, includes focus on planning for the impact on Transport provisions on Low Emission Zone schemes Performance in Scotland of the UK’s withdrawal from the (LEZs), changes to local authority powers to Report European Union (EU). Our work has involved regulate the bus market and to set up smart Overview the continuing development of ticketing schemes, work place parking levy, communication protocols and planning pavement and double parking prohibitions, models to ensure that the transport network a national transport strategy and new powers in Scotland continues to function efficiently in relation to road works. Many of these and effectively. We have also sought to plan measures will also contribute to addressing Objectives mitigating actions for potential critical and the global climate emergency. longer term adverse impacts of the withdrawal process. We made a significant Our work during the year has involved Performance contribution to the Scottish Government’s engaging with internal teams and external Report advisory publication “Information on the UK’s stakeholders, conducting impact Performance exit from the European Union (Brexit) and assessments, drafted supporting documents Analysis how it may affect people and businesses in and attending Parliamentary Committees to Scotland”, which was issued in October 2019. assist the Bill’s passage. Accountability Report Our work is continuing in order to ensure The Act received Royal Assent in Corporate that Scottish transport legislation is operable November 2019. Governance on exit from the European Union. This involves laying Statutory Instruments in Parliament where necessary, and ensuring Accountability that the seven UK EU Exit Statutory Report Instruments, which involved devolved Remuneration & aspects of transport, were subject to the Staff Report Scottish Parliament’s scrutiny process.
We set up an EU Exit resilience function and established a Scottish Transport Logistics Annual & Intelligence Group to engage and share Accounts information with transport stakeholders.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 31 | Performance Report Performance Analysis
Title Strategic Transport Planning and Governance
Contents
Maritime Strategy Our efforts have also continued in-year to We have been working to develop a Scottish engage with industry bodies and we have Maritime Strategy, in line with the ‘Year of forged strong links with the Scottish Maritime Performance Coast and Waters’. This aims to support Cluster (SMC), which brings together Report training and career development and explore Scotland’s world-class shipping, ports, Overview opportunities in the industry so that the shipbuilding, equipment and maritime service sector can continue to grow and to enterprises to drive economic growth in the contribute to our economy. Our focus is on global maritime market. We provided support a variety of aspects of the maritime sector, to the SMC at London International Shipping including offshore energy, training, the Week and at the Chamber of Shipping event Objectives cruise industry, ports and ship management. in Edinburgh. We also provided support at We have also engaged extensively with the annual reception hosted by the British colleagues working on environmental issues, Ports Association and UK Chamber of Performance apprenticeship/skills development, Oil & Gas, Shipping, a long running event which Report Renewables, Tourism, Agriculture and Ports recognises the major contribution of ports Performance in a sustained effort to ensure our Strategy and shipping to the Scottish economy. Analysis will adequately reflect the sector’s diversity. Accountability Our Strategy will dovetail with other specific Report Scottish Government strategies such as the Corporate National Marine Plan and the Ferries Plan. Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 32 | Performance Report Performance Analysis
Title Environmental Sustainability
Contents
Support transition to low carbon Through the Project Steering Group, whose We have provided £3.6 million to aid the transport through skills development members include the Scottish Motor Trade transition of Local Authority and Community We have provided £0.2 million of funding for Association, the Institute for Motor Industry, Fleets and £1.9 million to the emergency Performance the ‘Safe Working with Electric Vehicles (EV’s) Skills Development Scotland, Scottish services for the transition to blue light Report Project’, which is being delivered by the Enterprise, and ourselves, we continue fleets. We have transformed the Scottish Overview Energy Skills Partnership. So far, this has to work with a range of partners to ensure Government fleet through the allocation facilitated the purchase of 8 training modules, we have input from industry and skills of £1.2 million and supported the transition which can be shared between colleges, and delivery partners. of heavy fleet vehicles or equivalent heavy used to deliver training to students and machinery through the allocation of £2.5 college staff, along with three events, Incentivise the uptake of Ultra Low million to local authority and public Objectives attended by 50 attendees to raise awareness Carbon Vehicles (ULEV’s) and support sector areas. of training opportunities for EV repair and sustainable transport outcomes and maintenance to local automotive businesses. inclusive growth In addition we have provided £47 million of Performance We have invested in excess of £11 million funding to support transition in consumers, Report We are also working with Skills Development in our “Switched on Fleets” initiative, thus businesses and taxi fleets through the Performance Scotland to deliver a Skills Baselining Project, incentivising the uptake of ULEVs across provision of over 1,000 interest-free low Analysis which will assess the skills necessary to public and private fleets while supporting carbon transport loans. facilitate mass-EV uptake in Scotland; wider sustainable transport outcomes. Accountability and the extent to which these exist or Over 6% of cars newly registered in Scotland We also delivered the second tranche of Report are developing in the Scottish economy. this year were low carbon, and there has the “Plugged in Households” Programme, Corporate The Project is considering EV repair and been a 40% growth in registrations of ultra- providing funding of £0.5 million to Housing Governance maintenance skills, EV sales skills, charge low emissions cars in Scotland over the past Associations and third sector organisations point repair and maintenance, emergency year, whilst petrol and diesel cars have to develop car club services which can be services skills, and roadside assistance decreased by 7%. offered to tenants and residents in order Accountability and recovery. to promote ULEV driving and uptake. Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 33 | Performance Report Performance Analysis
Title Environmental Sustainability
Contents
Low Carbon Mobility and Low Emission Zones (LEZ’s) The National Low Emission Framework trade and investment Planning for the introduction of LEZs into appraisals of all Scottish Air Quality We have been working with Economic Scotland’s 4 major cities by the end of 2020 Management Areas have been undertaken by Performance Development colleagues to develop the continues through the application of Traffic local authorities in 2019-20, with the results Report Michelin Scotland Innovation Park to attract Regulation Conditions. to be published in the summer of 2020. Overview inward investment and creation of a globally significant hub for innovation in mobility In 2019-20, we have also provided £4.5 million We have continued to engage with Perth & and we signed up to the Transport through the Public Transport Provision Fund, Kinross Council around the delivery of actions De-Carbonisation Alliance in December 2019. to local authorities and regional transport outlined in the Crieff Air Quality Action Plan, We have worked with the Under2 Coalition partnerships in order to establish LEZ related and remote air quality monitors were Objectives to develop a proposal for a Zero-Emission projects in their areas and provided £0.5 deployed at locations on the trunk road Vehicle Community which Scotland will million to local authorities to progress their network around Edinburgh during October lead. These activities continue to raise our LEZ designs. The LEZ Support Fund also 2019 and February 2020, with over 300,000 Performance global profile as a “front-runner” in low provided £0.2 million on retrofit support for emission data points collected for analysis. Report carbon mobility. the taxi sector during 2019/20. Performance Analysis Developing a low carbon transport We have also commenced discussions supply chain with local authorities on the development Accountability We have established an Industry Advisory of a LEZ back-office enforcement regime Report Group on the growth of Scotland’s and engaged with DVLA on the need for a Corporate automotive sector. Our aim is to develop an data-sharing agreement between them, Governance international specialism in supply chains for ourselves and local authorities in order to heavy vehicles, with emphasis on hydrogen facilitate the use of DVLA data. A LEZ fuel cells, and energy/transport system communications marketing campaign has Accountability integration, and we are working with the also been established, with a pilot marketing Report Energy Technology Partnership to establish scheme set up in Glasgow by Big Partnership, Remuneration & Scotland’s first specific academic network culminating in full roll out in March 2020. Staff Report for sustainable transport. We are also The low emission zones Scotland website working with Scotland’s electricity distribution has been improved, with a vehicle checker network companies to identify how tool to better inform members of the innovation and smarter management of our public on future car buying decisions. Annual electricity networks can reduce the need for www.lowemissionzones.scot Accounts grid upgrade and reinforcement, and any associated costs and disruption.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 34 | Performance Report Performance Analysis
Title Maintaining and Developing Scotland’s Transport Networks Contents
Aviation Rail We participated in extensive dialogue with all We have continued to work in partnership We have continued to oversee ScotRail and the bidders for the West Coast franchise and with Scotland’s airports to secure new routes Caledonian Sleeper services improvement were successful in securing a 50% increase in Performance that are important for business connectivity in performance and passenger satisfaction. calls at Motherwell station on services which Report and/or inbound tourism. A number of new The moving annual average for the Public operate between Glasgow and London Overview routes were launched in 2019-20 including Performance Measure (PPM) for ScotRail, Euston. We also supported TransPennine Delta Air Lines service between Edinburgh improved from 87.4% at the end of March Express’s introduction of train services and Boston, as well as easyJet’s new service 2019 to 88.5% at March 2020. We have also between Glasgow/Edinburgh and Liverpool. from Glasgow to Barcelona. developed options for bringing the benefits of High Speed Rail investment to Scotland, We have commissioned Network Rail to Objectives We are committed to the continuation of including progressing initial business case identify, develop and design a programme of the Air Discount Scheme, which has been development work and extensive seven Scottish routes to be electrified over renewed until 31 December 2020, to ensure engagement with DfT, HS2 Ltd, Network Rail the next 5-7 years and we have agreed to the Performance more affordable travel for those in remote and other stakeholders in the design of route development of an indicative rolling Report and rural communities, whilst in October 2019 options as well as providing evidence to the programme of efficient electrification over Performance we awarded Loganair the contract to operate Oakervee Review, the UK Government’s the next 25 years that will contribute towards Analysis subsidised air services from Glasgow to independent review on HS2. our commitment to make Scotland’s rail Campbeltown, Tiree and Barra. The four passenger services carbon free by 2035. Accountability year contract runs until 2023 and is worth The past year has also seen the significant Report £21 million. expansion of the rolling stock fleet, including Corporate the introduction of Class 385 electric trains, Governance the most reliable new train in Britain, and the complete renewal of Caledonian Sleeper rolling stock fleet. Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 35 | Performance Report Performance Analysis
Title Maintaining and Developing Scotland’s Transport Networks Contents
Investment in the Charging Network Over 1,200 publicly available chargers are With our partners, the Scottish Government, now on the CPS network, and this is SP Energy Networks (SPEN) and Scottish and recognised by the Department of Transport Performance Southern Electricity Networks (SSEN), we are as the UK’s most comprehensive network Report members of the £7.5 million Strategic outside of London. Through the CPS network Overview Partnership, which was announced by the we also provide information on the location First Minister in August 2019. The Partnership and status of charging points, a 24hr helpline will ensure Scotland has access to a world- to help diagnose and resolve faults and leading Electric Vehicle (EV) charging network administration of public access to the and the electricity infrastructure needed to network and payment methods. Objectives support it. Our “Switched on Towns and Cities Initiative” We have undertaken a comprehensive continues to support the uptake of Ultra-Low Performance analysis of ChargePlace Scotland (CPS) data Emission Vehicles in Scotland’s Towns and Report to inform investment decisions and aid Cities, and we provided a further £4 million Performance strategic decisions on the future of the of funding to Local Authorities in 2019-20 Analysis network. During 2019-20 we invested with a view to achieving the delivery of 20 £18 million in public, private and domestic ‘electric towns’ across Scotland by 2025. Accountability charging installations. We have provided funding to over 1,600 Report Scottish households and almost 200 Scottish Corporate business to install charge points at home Governance or at the workplace to encourage the uptake of low-emission vehicles in the public and private sector. Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 36 | Performance Report Performance Analysis
Title New Infrastructure
Contents
Major Road Construction Construction work has progressed well during the year on the second section of the Performance A9 Dualling Programme, from Luncarty to Report Pass of Birnam. This project will widen the A9 Overview over a length of 9.5km, to provide 15km of continuous dual carriageway between Inveralmond roundabout in Perth and the Pass of Birnam. Objectives The £31.2 million Design and Build contract for the A737 Dalry Bypass opened to traffic seven months ahead of schedule Performance in May 2019, and the £5 million A737 Report Den Realignment improvement was also Performance opened to traffic ahead of schedule in Analysis December 2019. Accountability Design work is continuing to progress on Construction is also continuing on numerous Construction works are also progressing on Report the A96 Dualling Programme. In October other road infrastructure projects across the the A92/A96 Haudagain Improvements which Corporate 2019 we awarded two ground investigation country. The £6 million A9 Berriedale Braes will on completion, relieve congestion on the Governance contracts on the scheme, each worth £1.2m, continues to provide better journey time existing roundabout which is operating over which will help inform the development of reliability for motorists and HGV’s. The £29 capacity, thus improving journey time the preferred option on the section between million A77 Maybole Bypass contract was also reliability and decreasing congestion Accountability Hardmuir and Fochabers. Route options awarded and works are progressing on site. in this area. Report assessment work is also well underway on When complete this will improve key travel Remuneration & the section between east of Huntly and links in South Ayrshire, including to the port Draft Orders were issued during 2019 for the Staff Report Aberdeen. of Cairnryan, and beyond. A9/A96 Inshes to Smithton, A90/A937 Laurencekirk Junction and A720 Sheriffhall Roundabout projects, and design work is on the A9/A82 Longman Junction and A82 Annual Tarbet to Inverarnan projects. Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 37 | Performance Report Performance Analysis
Title Moving Freight
Contents
Modal Shift In May 2019, The Cabinet Secretary for Transport, Infrastructure and Connectivity Performance announced a £25 million Strategic Rail Freight Report Fund, for the five year rail investment period Overview to 2024. This fund will complement the broader pipeline projects and help to unlock opportunities for rail freight across the country. To date it has funded train trials on the Highland Main Line to test the Objectives infrastructure’s capacity to run longer trains and freight enhancements at Craiginches (Aberdeen) and Inverness. Performance Report We have targeted key markets capable of Performance modal conversion, including the food and Analysis drink and timber industries. Highland Spring’s rail freight project at Blackford Accountability sees ourselves, the rail industry and third Report party investors working together to Corporate achieve modal shift to rail. Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 38 | Performance Report Performance Analysis
Title Moving People
Contents
Sustainable and Active Travel Bus and Community Transport We provided additional funding of £0.2 million We delivered a three month pilot of free bus in 2019-20 for the ‘Bikeability Scheme’, and travel for Modern Apprentices (in Shetland, Performance an additional £0.3 million to Social Housing Aberdeen and Aberdeenshire), which Report projects, bringing the totals so far to over concluded in February 2020 and evaluation is Overview £1 million for each project. on-going. We are also working with Scottish Government colleagues on the commitment The Delivery Plan for the Active Travel to free bus travel for Young Carers during Taskforce was published in June 2019 the course of 2020-21. and owners have been identified for each Objectives of the actions. We have also developed the The new Low Emission Vehicle incentive Active Travel Outcomes Framework, which aspect of the Bus Services Operator Grant was published in December 2019, with our (BSOG) was introduced in April 2019, following Performance active travel partners, and set up an Active significant work with colleagues in the Report Travel Evaluation and Evidence Group to bus industry; and a £3 million Rapid Scottish Performance develop and monitor appropriate Ultra Low Emission Bus Scheme (SULEBS) Analysis performance indicators. launched in February 2020, following engagement with bus operators. This was Accountability Our Active Travel Team have also led on not completed in 2019-20, as a consequence Report supporting the Active Nation Commissioner of the COVID-19 pandemic, but consideration Corporate in her first year in the role. The focus this and evaluation has been continued into Governance year has been on stakeholder engagement 2020-21 as part of our support to the across the health, climate, social justice and bus industry. transport portfolios and on developing her Accountability priorities and objectives for 2020. The Programme for Government announced Report over £500 million of long term capital Remuneration & We continue to work closely with Sustrans investment in bus priority infrastructure, Staff Report and local authorities to agree new proposals with £10 million allocated for 2020-21, and and manage existing infrastructure plans we will lead engagement with stakeholders through the ‘Places for Everyone Programme’, around structuring of the Fund. with £73.1 million allocated to infrastructure, Annual place making projects and e-bike grants in Accounts 2019-20.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 39 | Performance Report Performance Analysis
Title Improving Communication, Travel Choices, Resilience and Safety Contents
Scotland’s casualty reduction milestones We continue to monitor and report road We also promoted a variety of road safety and Road Safety Framework to 2020 safety casualty information to the Road issues, including ‘driving country roads’, We continue to fund the operations of the Safety Framework 2020 governance bodies ‘motorcycling’, ‘drink-driving’ and ‘in-car Performance Scottish Safety Camera Programme which and to co-ordinate resultant agreed actions. child safety’. A new strategy for young drivers Report aims to reduce the number of casualties on Interim casualty and accident data is – ‘Drive like Gran’s in the Car’, focused on Overview Scotland’s roads by encouraging improved reported in June each year, followed by speed, in-car distraction (“mobiles and driver behaviour. The annual safety site the publication of verified figures each mates”) and drug-driving. In addition, selection process for 2019 was completed, October. We also continue to monitor and we worked with Police Scotland and major leading to an approximate 10 fold increase in support the delivery of Road Safety car rental companies in Scotland, to develop new site identification. A plan has been Framework 2020 commitments, including the ‘Drive on the Left’ campaign. Objectives created to inform the delivery of these sites. those of our road safety partners.
The average speed camera systems across We have supported CoSLA in developing Performance the A77, A9 and A90 continue to operate a strategy for rolling out more 20mph Report effectively, and a new average speed system speed limits consistently across Scotland, Performance was deployed on a 16 mile stretch of the and promoting good road user behaviours Analysis A82/A85 between Lix Toll and Tyndrum in by investing in education and publicity February 2020. This technology is expected resources and undertaking social marketing Accountability to deliver a range of benefits already in priority focus areas. As well as enhancing Report experienced elsewhere on our road network. our suite of learning resources for 3-18 Corporate year-olds, we have made significant Governance Specific work is also being undertaken on investment in promoting our Early Years active travel safety, speed management Resource (‘Go Safe With Ziggy’). and roadside protection, and we continue Accountability to conduct research into improved speed Report management approaches, risk mapping Remuneration & and route scoring, all of which will support Staff Report climate change and active travel outcomes.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 40 | Performance Report Performance Analysis
Title Procurement, Asset and Contract Management
Contents
Procurement Ferry Services The Scottish Government Procurement and The contract to provide ferry services to the Commercial Improvement Programme (PCIP) Northern Isles has been awarded to Serco Performance is designed to evaluate the performance of NorthLink Limited. The ferry services provide Report procurement activity within public sector essential lifeline connections from the Overview organisations. In November 2019, we mainland to Orkney and Shetland. They achieved an evaluation score of 92%, the support all aspects of island life, including highest score across all central government the healthcare, fishing, aquaculture, tourism, bodies who participated, thus providing agriculture, and oil and gas sectors, thereby assurance that our procurement activity is ensuring the socio-economic sustainability Objectives robust and compliant with European and of the islands. Scottish procurement legislation. Performance Our project procurement strategies Report incorporate sustainable practices and Performance facilitate the delivery of significant Analysis community benefits and opportunities for small medium enterprises, supported Accountability businesses and social enterprises. We also Report use collaborative frameworks to secure Corporate a range of benefits and savings, where Governance feasible, and in 2019-20 we achieved savings in excess of £1 million by following these collaborative practices and working with Accountability supply chains to identify savings and Report incorporating contract clauses to deliver Remuneration & value for money for the public purse. Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 41 | Performance Report Performance Analysis
Title Who We Are and How We Operate
Contents
Developing our Corporate Processes, These advancements are facilitating our drive We have been granted Cyber Essential Skills and People to reduce non-essential travel and lower our Plus accreditation and continue to work We continue to work to improve corporate own carbon footprint. closely with information technology Performance processes and ensure that appropriate colleagues at core Scottish Government Report budgets are allocated to fund the agreed The increased use of technology was also to ensure we remain at the forefront of Overview commitments, and that they reflect robust at the forefront of our response to the initiatives which seek to benefit the wider projections within our long-term financial COVID-19 pandemic, and significant work Scottish Government. plan. We continue to review Directorate was undertaken to ensure all networks updates of long term forecasts in order to and systems were able to cope with inform budget setting for future years and increased usage in order to guarantee Objectives ensure that they reflect agreed Directorate that staff remained connected whilst and Ministerial commitments and options. working from home. Performance We conducted two of Best Value ‘self- We continue to raise awareness around Report assessment’ exercises in 2019-20 that were mental health, and a significant number of Performance presented for approval, to the TS Audit and our staff have now completed training as Analysis Risk Committee. The programme of these mental health first aiders, and we now have reviews is agreed to cover processes within a team of 25 across the organisation. Accountability all Directorates to provide assurance in We have our own Mental Health Action Plan, Report respect of Best Value principles and seek which we monitor during the year and feed Corporate recommendations for further improvement. into wider Scottish Government programmes Governance such as ‘Project You’, which encourages Our approach to ‘Smarter Working’ allows a people to take steps to improve their flexible approach to how staff deliver their wellbeing and resilience and make changes Accountability objectives and we have improved our to lead healthier lives in the longer term. This Report technology and wireless connections to area also increased in prominence with the Remuneration & facilitate improved information sharing onset of the pandemic, and we continue to Staff Report between both staff and other partners and ensure that staff welfare remains a priority. stakeholders, including a new cloud-based audio and video conferencing solution – Vscene – which connects people who are Annual using different devices and conferencing Accounts systems, both inside and outside of the Scottish Government.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 42 | Performance Report Performance Analysis
Title Our Social and Community Issues
Contents
We aim to work in partnership with • We have continued to work with partners • Through our work on the A9 Dualling: communities and to deliver social benefits to ensure the provision of a strong skills Luncarty to Pass of Birnam project, we are across Scotland as a consequence of our base for the maintenance and repair of well on the way to achieving our target of Performance work. We have been able to demonstrate electric vehicles. creating 30 new jobs over the anticipated Report this in a number of ways during 2019-20: two-year duration of the works, and we are Overview • Our Academy9 programme seeks to working to ensure that the majority of the Supported Businesses prepare pupils for local jobs which the A9 opportunities created by this project are • We held 2 events in Glasgow - in June and Dualling programme will create. We have filled by workers from the local area. October 2019 with a view to the promoting now engaged with over 6,500 students To date, 99% of project spend has been the use of Supported Businesses in our and over 850 teachers to raise awareness on subcontracts within Scotland and 64% Objectives procurement activities. These events were of civil engineering careers while promoting of this with Small and Medium Enterprises attended by a range of organisations who STEM subjects. (SMEs). provide goods and services to us. Performance Report Performance Analysis
Accountability Report Corporate 99% Governance of project spend subcontracted within Scotland Accountability 64% Report 6,500 with small and Remuneration & students and medium enterprises Staff Report 850 teachers engaged
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 43 | Performance Report Performance Analysis
Title Our Social and Community Issues
Contents
• The A9 Dualling: Luncarty to Pass of • The design work on the A96 Dualling • The A737 Dalry project awarded 32 of the Birnam project is being delivered with continues to support over 450 engineering 36 sub-contracts to SMEs and provided an unprecedented focus on community related jobs in Scotland, including over 110 employment for 130 people at the peak of Performance benefits and a commitment to bring graduate and apprentice jobs. Nearly 18,000 construction. It has supported the provision Report meaningful and measurable change to people have visited engagement events. of at least 2 vocational and 2 professional, Overview the communities surrounding the project. site-based training opportunities. The A737 These have included; 4,000 pupils and • It is estimated that the AWPR/B-T project saw 16 sub-contracts valued at £575,000, students engaged; 7 work placements for will generate over £6 billion in economic being awarded to SME’s. secondary school pupils; 2 foundation benefits and create an additional 14,000 apprentices; 44 new jobs created and 4 jobs jobs over the next 30 years. • The Contact and Education Centre at South Objectives created through Surestart; 6 placements https://www.transport.gov.scot/ Queensferry, which served as a focal point for rehabilitated offenders and in excess media/9501/interim-stag-report.pdf for community engagement and education of £5,000 of monetary donations and during the construction of the Queensferry Performance over £4,000 of benefit-in-kind donations Crossing, continues to provide an excellent Report to local charities/groups. learning environment with detailed bridge Performance models, exhibition panels, audio-visual Analysis resources and interactive learning facilities. Accountability Report Corporate Governance
450 Accountability engineering £6b Report jobs supported in economic Remuneration & 18,000 Staff Report people visited benefits engagement events.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 44 | Performance Report Performance Analysis
Title Forward Look
Contents
As a delivery agency of the Scottish Our new National Transport Strategy Additional funding to support public Government we make a key contribution to announces our ambitions for the future, transport remobilisation and increased its Programme for Government, which sets linking with our work to develop our second service levels during 2020-21 is expected Performance out the progressive actions which seek to Strategic Transport Projects Review (STPR2), to fund additional costs of operating Report make Scotland a good place to grow up, and our Aviation Strategy, and Islands increased services and severely reduced Overview learn, work and live. The focus will be on Connectivity Plan. Ministers have given farebox income due to reduced demand supporting Scotland’s journey to net zero commitment to improving connectivity and capacity constraints. This is anticipated emissions as part of the climate change between our cities through the dualling of as additional Consequential Funding related emergency. Our actions will include continued the A9 and A96. We will continue to develop to further funding provided to Whitehall investment in improved bus priority plans to respond the challenge of the UK departments for similar measures adopted Objectives infrastructure to tackle the impacts of leaving the European Union and to mitigate in respect of devolved functions. congestion on bus services and raise bus any potential risks to transport in Scotland. usage, and the reduction of emissions from Performance Scotland’s railways to zero by 2035 through Clearly the impact of COVID-19 has given us Report the continued electrification of the network, further challenges to deal with, in particular Performance the procurement of electric and dual fuel continuing to support the operation of public Analysis battery trains and exploration of the potential transport in a safe and sustainable way. of hydrogen-powered trains in Scotland. We are also continuing to consider the extent Accountability We are also providing significant support to which infrastructure investment can help Report for ultra-low emission vehicles (ULEVs) Scotland’s economic recovery from this crisis Corporate through our Low Carbon Transport Loan and the work continues on the preparation Governance scheme, while expanding the scheme to of the Infrastructure Investment Plan and include used electric vehicles. Capital Spending Review. Our long term aspirations remain the same as those set Accountability out in our National Transport Strategy. Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 45 | Performance Report Performance Analysis
Title Our Financials
Contents
The financial statements for the year ended Significant accounting policies Recognition and the valuation of 31 March 2020 have been prepared in The areas where accounting judgements provisions accordance with the Accounts Direction given have significant impact are outlined below: Due to the long term nature of our road Performance by the Scottish Ministers in pursuance of the and rail improvement schemes certain Report Public Finance and Accountability (Scotland) Valuation of the Trunk Road Network assumptions and judgements are required Overview Act 2000, and in accordance with The HM The trunk road network is valued on the basis to be made for the estimated cost of land Treasury Financial Reporting Manual (FReM). of current replacement cost, adjusted to acquisition and compensation claims. The financial statements are consolidated reflect the current condition of the road This is due to the often protracted within the Scottish Government Consolidated component and the depreciation of negotiation periods involved and the initial Resource Accounts. structures and communications assets. uncertainty over both the financial value and Objectives This valuation reflects assumptions, the final payment date of any compensation. The accountable officer authorised these estimates and professional judgement that financial statements for issue on are incorporated in the data input to the Valuation of accruals Performance 20 November 2020. model used to produce the valuation known Due to the timing and availability of final year Report as the Road Authorities Asset Valuation end information from external suppliers for Performance The Scottish Government Consolidated System (RAAVS). This model is currently Concessionary Travel, Rail and Roads Analysis Resource Accounts are published at provided by WS Atkins using standard costs maintenance, certain assumptions and https://www.gov.scot/policies/ to value the individual components of the judgments are required to be made when Accountability government-finance/financial-reports- network asset and indices to revalue these determining final expenditure incurred. Report and-accounts/#scottish-government- on an annual basis through a joint contract Corporate consolidated-accounts with the other UK Road Authorities. Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 46 | Performance Report Performance Analysis
Title Our Financials Sources of Funding
Contents
Public Private Partnerships (PPP) Rail Infrastructure We have five Public Private Partnerships (PPP) Our responsibility for rail includes setting agreements: three in the form of Private strategic outcomes for Network Rail in Performance Finance Initiative (PFI) contracts (M77- relation to the Operation, Maintenance, Report Connect, M6 DBFO-Autolink and M80 Renewal and Enhancement of the rail Overview Highway Management (Scotland) Limited). infrastructure in Scotland, as well as the These arrangements meet the definition services to be delivered through the rail of Service Concession Arrangements in franchises we are responsible for, agreeing accordance with the disclosure requirements the projected expenditure and securing the of IPSAS 32. funding required to support this. Objectives
The remaining two PPP agreements are in Network Rail outputs and associated funding the form of Non-Profit Distributing (NPD) for Control Period 6 from 1 April 2019 to 31 Performance contracts for the M8/M73/M74 Motorway March 2024 was determined by the Office of Report Improvements Project, with Scottish Roads Rail and Road (ORR). Transport Scotland Performance Partnership (SRP) and with Aberdeen Roads manage Network Rail delivery and funding of Analysis Limited (ARL) for AWPR/B-T. Both SRP and specified outputs on the Scottish rail network ARL are contractually obliged to provide the under a Memorandum of Understanding Accountability infrastructure and related services to the agreed with the UK Government following Report public on our behalf. We have reviewed the reclassification, with regulatory oversight Corporate degree of control exercised by each of the from the ORR. The funding for these activities Governance parties in existing PPP contracts and is payable directly to Network Rail by conclude that the degree of control we retain Transport Scotland under the terms of a satisfies the requirements that the related Network Grant. The major projects specified Accountability assets created are required to be accounted by Scottish Ministers for Network Rail to Report for on our Statement of Financial Position undertake are determined by Transport Remuneration & (SFP). Details of the accounting treatment Scotland. The funding for these activities Staff Report can be found in notes 1 and 16 to the is payable directly to Network Rail by annual accounts. Transport Scotland under the terms of an Enhancement Grant. For details of the differences between Annual NPD and PFI contracts, see the Accounts Scottish Futures Trust website at www.scottishfuturestrust.org.uk
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 47 | Performance Report Performance Analysis
Title Financial performance and use of resources
Contents
During the year, our budget can be subject to A total of £2,486 million of budget cover The £127 million ODEL budget (2018-19: revision and adjustment via the Scottish was allocated from the Scottish £154 million) funds expenditure in respect Government Autumn Budget Revision (ABR) Government Departmental Expenditure of PPP projects. This is scored against Performance and Spring Budget Revision (SBR). The table Limit (DEL) budget (2018-19: £2,222 million). resource and includes payments for the Report below shows the movement in our budget Annually Managed Expenditure (AME) AWPR/BT, M8/73/74, M77, M80 and M6 Overview and comparison with the outturn for 2019-20. relates to movement in provisions for schemes. These form part of the overall More detail on performance can be found in both land compensation claims and budget of the Scottish Government. our Performance Analysis section. orders for investment in land required to progress projects. Resources to fund our operating costs and Objectives capital investment programme were allocated in the Scottish Government Budget Original ABR SBR Revised Outturn Variance 2019-20. The choice between public and Budget Adjust Adjust Budget 2019-20 Performance private funding is governed by suitability 2019-20 2019-20 Report for alternative forms of finance (including £000’s £000’s £000’s £000’s £000’s £000’s Performance Analysis value for money). The policy decision set Rail Services 990,880 - (1,700) 989,180 996,734 (7,554) out in the 2019-20 budget is to maximise Concessionary Travel 272,860 - 7,630 280,490 275,689 4,801 investment by utilising all available forms Accountability of finance (whilst working within a 5% Motorways & Trunk Roads 669,083 500 90 669,673 599,963 69,710 Report affordability envelope for revenue financed Ferries 233,138 - (1,500) 231,638 245,074 (13,436) Corporate schemes) in light of significant capital Air 58,156 - 10,000 68,156 63,573 4,583 Governance constraints. Other Sustainable Transport 183,950 12,636 8,150 204,736 198,799 5,937 Local Authority Grants (RTP and 42,500 - - 42,500 42,138 362 Accountability Cycling) / Support for Active Travel Report / Inter Island Ferries Remuneration & Total DEL 2,450,567 13,136 22,670 2,486,373 2,421,970 64,403 Staff Report AME Resource ------AME Capital - - - - (20,799) 20,799 ODEL PFI Resource 146,200 - (18,650) 127,550 121,490 6,060 ODEL PFI Capital - - - - (2,977) 2,977 Annual Accounts Total 2,596,767 13,136 4,020 2,613,923 2,519,684 94,239
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 48 | Performance Report Performance Analysis
Title Outturn Analysis
Contents
The DEL underspend of £64.4 million, These pressures have been offset in year The underspend on non-cash is a result comprises a cash underspend of £18.4 million by lower expenditure on Major Projects of lower than anticipated depreciation of and a non-cash underspend of £46 million. Capital Land and Works (£58 million); Network the road network. The AME outturn reflects Performance The cash underspend reflects the net Rail enhancement grant (£50 million); LEZs the fact that provisions that were initially Report position, with savings and slippages being (£20 million); PPP ODEL classed as resource estimated were not required in year, with Overview partially offset by a number of pressures in the HM Treasury budget (£6 million); the negative expenditure representing a experienced over various directorates. Ferries - Piers and Harbours (£4 million); net overall reduction in these provisions. The most significant pressures have been Bus Services (£4 million); Clyde and Hebrides The ODEL resource underspend reflects within Rail franchise, where additional Ferry Services (£5 million); low carbon loans the delay in the completion of the M8 and revenue support of some £31 million was (£6 million); and other minor underspends the Aberdeen Western Peripheral Route/ Objectives provided in response to COVID-19; Ferries, (£2 million). Balmedie to Tipperty (AWPR/B-T) Projects, in relation to a vessel purchase (£37 million); coupled with changes in the forecast compensation claims in relation to AWPR lifecycle maintenance on the M77, M80 Performance (£65 million) and increased payments to HIAL, and M6 projects. Report to fund a budget shortfall in year (£4 million). Performance Analysis
Accountability Report Transport Scotland Budget Actual Variance £000’s Corporate 2019-20 £000’s £000’s £000’s Net Operating Costs per SoCNE 2,281,650 Governance Resource – Operating Costs 812,833 839,935 (27,102) Add: Additions to Intangible Assets (note 7) - Resource – Investment 1,213,438 1,220,085 (6,647) Add: Additions to PPE (note 6) 165,820 Accountability Report Resource Depreciation (non-cash) 146,100 100,140 45,960 Add: Additions to Investments (note 9) 83,124 Remuneration & Capital 314,002 261,810 52,192 Less: Disposals of PPE (note 6) (1,449) Staff Report Total DEL 2,486,373 2,421,970 64,403 Less: Repayments of Investments (note 9) (9,384) AME Capital 0 (20,799) 20,799 Less: Disposals on Assets held for Sale (note 8) (77) PFI Resource (ODEL) 127,550 121,490 6,060 Outturn per Management Commentary 2,519,684 PFI Capital (ODEL) 0 (2,977) 2,977 Annual Accounts Total 2,613,923 2,519,684 94,239
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 49 | Performance Report Performance Analysis
Title Outturn Analysis
Contents
The total underspend of £94 million (2018-19: £235.8 million) represents approximately 4% (2018-19: 9%) of the overall budget. Performance Report The Statement of Comprehensive Net Overview Expenditure (SoCNE) on page 82 identifies net operating costs of £2,282 million. Capital expenditure is not accounted within the SoCNE, but the following table provides a reconciliation of overall outturn to SoCNE. Objectives The majority of our budget is spent, either directly or indirectly, with external suppliers. Performance Only 1% is utilised on the on-going Agency Report running costs. The chart below shows the Performance percentage spent on each of the main areas Analysis of service provision identified in the budget. Accountability The total asset base is £21.8 billion, the Report majority of which relates to the trunk road Corporate network. Additions to the value of the asset Governance include historic revaluations of Aberdeen Western Peripheral Route, M8, Dalry Bypass and A9 dualling from Kincraig to Dalraddy. Accountability Report Remuneration & Staff Report
Roads Resource Concessionary Travel Resource Air Services Annual Roads Net Investment Concessionary Travel Net Investment Administration Accounts Capital Expenditure Other Transport Resource Scottish Futures Fund Rail Resource Other Transport Net Investment Grants to local autority Rail Net Investment Ferry Services AME Capital
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 50 | Performance Report Performance Analysis
Title Outturn Analysis
Contents
Relationship with suppliers Fraud Detection and Prevention Future Spending Plans We are committed to prompt payment of bills Transport Scotland has a dedicated Fraud The Scottish Draft Budget 2020-21, provides for goods and services and aim to settle all Prevention Officer who is responsible for details of our spending plans that will help Performance undisputed invoices within contract terms reporting prevention and detection of fraud, deliver sustainable economic growth. Report and also in line with the Scottish Government engaging with the Scottish Government These allocations are included in the table Overview 10 day payment policy. We settled 95% of Fraud Prevention Team. Our fraud prevention below for the coming financial year. invoices within this timescale (2018-19: 96%). plan is updated with relevant legislative The amount owed to trade creditors at the changes as they occur, and provides clear 2020-21* year-end as a proportion of the aggregate guidance on our approach to, and £000’s amount invoiced during the year, represented methodology for, anti-corruption, bribery, Resource – Operating Costs 1,173,150 Objectives 10.1 days in proportion to the total number of whistle blowing and cyber-crime. Resource – Investment 1,518,968 days in 2019-20 (2018-19: 18.2 days). Additional information can be found at Non-Cash 100,900 https://www.gov.scot/publications/ Performance scottish-public-finance-manual Capital 287,244 Report Total 3,080,262 Performance Analysis ODEL 131,026 Total 3,211,288 Accountability *Source – Scottish Draft Budget 2019-20 Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 51 | Performance Report Performance Analysis
Title Sustainability
Contents
The Climate Change (Scotland) Act 2009 When compared to the baseline year, This equates to an overall combined requires us to report on corporate emissions Network Energy emissions have been emissions reduction of 67% compared across activities such as office energy use reduced by 70%, surpassing the target to the baseline. Performance and business travel. Collectively, these by 45%. Operational Emissions reduced Report actions underpin the commitments in our by 29%, surpassing the target by 9%. Overview Carbon Management Plan (CMP).
The financial year 2019/20 was the final year of our current Carbon Management Plan - 3rd Edition (CMP). This section of the Objectives report focuses on our carbon reduction performance against the baseline set in the CMP (2015/16). Performance Report The CMP set two targets to reduce our Performance operational emissions by 20% on a baseline Analysis of 2015/16 and reduce our Network Energy emissions by 25% on a baseline of 2015/16. Accountability Annual progress towards these targets have Report been reported via the mandatory Public Corporate Bodies Climate Change Duties Reporting. Governance During the course of the financial year 2019/20 our combined emission have Accountability decreased by 23% when compared to Report the previous year. Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 52 | Performance Report Performance Analysis
Title Sustainability
Contents
Corporate Carbon Emissions (2019/20)
Element Metric Baseline in Actual in Actual in % change compared Performance 2015/161 2018/191 2019/201 to previous year Report Overview Total Emissions - tCO2e 22,222 9,389.9 7,222.8 -23% Network Energy Electricity tCO2e 20,847 8,319 6,247 -24% Energy (Scope 1&2 Electricity tCO2e 764.98 481.7 447 -7% GHG emissions) Gas tCO2e 265.26 256.9 250 -2.6% Travel (Scope 3 GHG Business Travel tCO2e 187.72 249.2 169.952 -31% Objectives emissions) Travel (Scope 3 GHG Commute Travel tCO2e 154.5 74 101 36% emissions) Performance Report Water Water tCO2e 3.13 3.1 2.6 -16% Performance Waste Waste (BH) tCO2e 2.02 5.6 5.3 -5% Analysis
1: tCO2e figures are based on the UK Department for Business and Industrial Strategy GHG conversion factors, figures from 2019/20 have been calculated using the 2019 GHG conversion factors, 2018/19 use the 2018 factor and the CMP 3rd Edition (2016) used the 2015 GHG conversion factors. Accountability Energy: In the last financial year emissions Waste: Emissions from waste disposal Report associated with electricity at our offices have decreased by 45%. Corporate have decreased by 7%. Gas consumption Governance emissions have decreased by 2.6%. Commute Travel: Emissions associated with commute travel have increased by 36%. Accountability Water: Consumption emissions have Report decreased by 16%. Business Travel: Emissions attributed to Remuneration & business travel have decreased by 31% Roy Brannen Staff Report when compared to the previous year. Chief Executive 20 November 2020
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 53 | Accountability Report Corporate Governance
Title
Contents
Performance Report Overview
Objectives
Performance Report Performance Analysis
Accountability Accountability Report Corporate Governance
Report Accountability Report Remuneration & Corporate Staff Report
Annual Governance Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 54 | Accountability Report Corporate Governance
Title Accountability Report
This demonstrates how we meet accountability requirements to Contents Parliament. Our auditors have reviewed it for consistency with the Performance information contained in the financial statements for 2019-20 and Report their opinion, provided on pages 76-80 covers these disclosures. Overview Corporate Governance Report Objectives This explains our composition and governance structure and Performance how that supports the achievement of our objectives. Report Performance Analysis
Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 55 | Accountability Report Corporate Governance
Title Directors Report
Contents
The Chief Executive is the Accountable Current Directors Directors and Non-Executive Officer for the Agency, appointed by the • Roy Brannen; Chief Executive Members Interests Permanent Secretary to the Scottish • Michael Baxter; Finance and Directors’ and Audit & Risk Committee Non Performance Government. He is supported by a Senior Corporate Services (left 3 January 2020) Executive Members’ interests are recorded Report Management Team comprising eight • Lee Shedden; Temporary Appointment on the electronic HR system. The 2019-20 Overview Executive Directors. – Finance (from 5 January 2020) statements of assurance completed by • Donald Carmichael; Directors in post as at 31 March 2020 also During the year we continued to review our Low Carbon Economy (left 6 January 2020) confirmed that no conflict of interest arose governance structure to ensure it was • Stuart Greig; in the exercise of their duties. Details of flexible, efficient and well placed to deal with Low Carbon Economy (from 17 February 2020) Directors interests are published on our Objectives the challenges going forward, including: the • Hugh Gillies; Roads website together with disclosures required delivery of major infrastructure projects; • Alison Irvine; Transport Strategy under the Public Sector Reform Act. tackling poor air quality; promoting active and Analysis Performance travel; improving accessibility and moving • Laura Murdoch; Bus, Accessibility Appointed Auditors Report to a low carbon economy, all of which are and Active Travel The financial statements for 2019-20 are Performance underpinned by the development of the • Frances Pacitti; Aviation, Maritime, audited by auditors appointed by the Auditor Analysis new National Transport Strategy and the Freight and Canals General for Scotland. Audit Scotland carried assessment of Scotland’s transport needs • Chris Wilcock; Aviation, Maritime, Freight out this audit and the notional fee for this Accountability and priorities for the next 20 years. and Canals (from 21 January 2019 until 31 December 2019) service was £181,630, which related solely Report • Bill Reeve; Rail to the provision of the statutory audit service. Corporate The Accountable Officer is also supported • Michelle Rennie; Major Projects There were no payments made for non-audit Governance by an Audit and Risk Committee, chaired by (seconded to COP26 from 31 January 2020) work in the year. a non-executive member (John Matheson • Alasdair Graham; Temporary Appointment has held this position since July 2017), and – Major Projects (from 3 February 2020) Personal Data Related Incidents Accountability including two further external members. There were no personal data related Report Bill Bound and Pamela Mclauchlan served incidents in the 2019-20 (2018-19: none). Remuneration & as non-executive members during 2019-20. Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 56 | Accountability Report Corporate Governance
Title Statement of Accountable Officer’s Responsibilities
Contents
In accordance with section 19(4) of the In preparing the accounts, the Agency is The Principal Accountable Officer for the Public Finance and Accountability (Scotland) required to: Scottish Administration has designated Act 2000, the Scottish Ministers have the Chief Executive of Transport Scotland Performance directed Transport Scotland to prepare • observe the accounts direction issued by as the Accountable Officer for the Agency. Report a statement of accounts for each financial the Scottish Ministers, including the relevant The Accountable Officer’s relevant Overview year in the form and on the basis set out accounting and disclosure requirements responsibilities include the propriety and in the Accounts Direction. The Accounts and apply suitable accounting policies on regularity of the public finances for which Direction is reproduced at Annex to these a consistent basis; he is accountable, keeping proper records financial statements. and safeguarding the Agency’s assets, as set • make judgements and estimates on a out in the Memorandum to Accountable Objectives The accounts are prepared on an accruals reasonable basis; Officers issued by the Scottish Government. basis and must show a true and fair view of the Agency’s state of affairs at the year-end • state where applicable accounting The Accountable Officer has taken all the Performance and of its income and expenditure, changes standards have been followed and disclose necessary steps to make himself aware Report in taxpayers’ equity and cash flows for the and explain any material departures in the of any relevant audit information and to Performance financial year. financial statements; and establish that the body’s auditors are Analysis aware of that information. There is no • prepare the financial statements on relevant audit information of which the Accountability the going concern basis unless it is body’s auditors are unaware. Report inappropriate to presume that Transport Corporate Scotland will continue in operation. The annual report and accounts as a Governance whole are fair, balanced and understandable, the Accountable Officer takes personal responsibility for the annual report, and Accountability accounts and the judgements required Report for determining that it is fair, balanced Remuneration & and understandable. Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 57 | Accountability Report Corporate Governance
Title Governance Statement
Contents
The Governance Statement explains Accountable Officer’s scope of Transport Scotland Audit and our approach to corporate governance, responsibilities Risk Committee which is vital to effective financial and Our role is to oversee the operation and The Audit and Risk Committee non-executive Performance risk management. improvement of the trunk road, ferry, inland members bring independent judgement and Report waterway and railway networks in Scotland; challenge to the governance of the Agency. Overview The Scottish Public Finance Manual (SPFM) the air facilities and routes in the Highlands The Committee meets four times a year, summarises the purpose of the Governance and Islands; the air passenger facilities at although the Chair may convene additional Statement as being to provide a clear Prestwick; bus services and sustainable and meetings, and regularly meets myself and understanding of the organisation’s internal active travel; the national concessionary the Director of Finance and Corporate control structure and its management of travel schemes and the provision of travel Services to keep abreast of developments. Objectives resources. The Statement should provide a information services. We also support Audit and Risk Committee meetings will sense of how successfully the organisation Scottish Ministers in prioritising future normally be attended by myself as has coped with challenge and risk. transport policy, strategy and investments Accountable Officer, the Director of Finance Performance and the delivery of a low carbon economy. and Corporate Services, a representative of Report This Governance Statement describes how Internal Audit and a representative of Performance our governance structures work, how they As Accountable Officer for the Agency, external audit (Audit Scotland). In addition, Analysis have performed, and provides an assessment I have responsibility for maintaining a sound the Audit and Risk Committee asks other of how the Agency has been managed, system of internal control that supports the Transport Scotland officials to attend to assist Accountability including the effectiveness of the systems achievement of Transport Scotland’s policies, it with its discussions where specific input or Report of internal control, risk management and aims and objectives set by Scottish Ministers, expertise is required. Corporate accountability. Transport Scotland complies whilst safeguarding the public funds and Governance with all governance related guidance in the departmental assets for which I am The Audit and Risk Committee advises on SPFM, the Civil Service Code and relevant responsible, in accordance with the SPFM. strategic processes for risk, control and elements of the Good Governance Standard I am supported in that role by a Senior governance; the accounts of the organisation, Accountability for Public Services, produced by the Management Team of eight Directors and including the process for review of the Report Independent Commission on Good an Audit and Risk Committee, chaired by a accounts post audit and prior to sign off Remuneration & Governance in Public Services. non-executive member and including two by myself as Accountable Officer; and Staff Report further non-executive members. assurances relating to the corporate governance requirements.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 58 | Accountability Report Corporate Governance
Title Governance Statement
Contents
The Audit and Risk Committee receives Principles of Corporate Governance in Performance Review copies of minutes of the monthly Directors Transport Scotland All members of the Senior Management meetings, as well as monthly finance reports, Corporate Governance is the system by Team are subject to annual objectives and Performance and also meets directors individually twice which organisations are directed and year end performance appraisals, which are Report a year. In addition, the Committee also controlled and is concerned with the both formally recorded. These are focussed Overview meets with Internal Audit separately once structures and processes for decision-making on Transport Scotland’s delivery priorities, a year and external audit separately, and accountability. All public bodies must which are closely linked to the Government’s in private session, once a year. have a group which is responsible for: National Outcomes.
The Audit and Risk Committee also • giving leadership and strategic direction; Performance against our objectives within Objectives produces an Annual Report, which supports • defining control mechanisms to safeguard the Corporate Business Plan is monitored this Governance Statement. The report public resources; throughout the year and measured against summarises the committee’s work over • supervising the overall management of the targets at year-end. Progress on key Performance the past year and assesses: body’s activities; and achievements is highlighted. In addition, Report • reporting on stewardship and performance. every Directorate within the Agency sets Performance • the reliability and comprehensiveness key performance indicators for the service Analysis of assurances received; Within Transport Scotland, that group is the it provides and progress against these • issues pertinent to this governance Senior Management Team which adheres is reviewed at Senior Management level. Accountability statement; closely to robust principles of Corporate We have a robust process of financial Report • financial reporting; Governance, as follows. management, which is undertaken within Corporate • the quality of both internal and external the context of the broader Scottish Governance audit; and Government, including the achievement of • its view of its own effectiveness. forecast outturn where those are required to support the overall SG financial position. Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 59 | Accountability Report Corporate Governance
Title Governance Statement
Contents
Accountability Financial Management Gateway Reviews and other appropriate The Senior Management Team ensures The Senior Management Team reviews external reviews are undertaken at relevant that the Scottish Public Finance Manual financial performance monthly as well as stages to ensure that projects are capable Performance is applied, with appropriate arrangements ensuring the timely production of the Annual of delivering their stated objectives. As Report in place to ensure that the public funds Report and Accounts, in compliance with Accountable Officer, I am the nominated Overview they are accountable for are properly relevant standards of Corporate Governance. Investment Decision Maker. I am supported safeguarded and used economically, Monthly financial reports considered by by an Investment Decision Making Board, efficiently and effectively. the Senior Management Team are shared made up of senior managers, in reviewing with External Audit and Audit and Risk and approving the key stages in all of Delegated Authority Committee Members. Our budgets are set Transport Scotland’s major projects and Objectives I, as Chief Executive and Accountable Officer in the context of the Scottish Government’s procurements. for Transport Scotland, formally delegate annual budget process, and forecast financial management responsibilities to each expenditure, in addition to internal financial Directors within Transport Scotland Performance Director for the propriety, regularity and management and reporting within Transport undertake regular review processes to Report management of expenditure within their Scotland, is continuously monitored with ensure that improvement in the assurance Performance Directorate. This delegation is formally Scottish Government Finance Directorate, and control environment within Transport Analysis recorded and reviewed each year by the including monthly reports to DG Economy. Scotland is monitored closely and, where Finance and Corporate Services Directorate. appropriate, actions are in place to address Accountability Programme and Project Management any weaknesses identified to ensure the Report Sponsored Bodies All investment projects are overseen by a continuous improvement of the system. Corporate Our sponsored bodies each have their own Project Board, chaired by the Project Sponsor, Governance governance arrangements, management incorporating appropriate procurement, boards, auditors and Audit and Risk legal, technical and financial expertise. Committees. Sponsor team officials attend In addition, non-executive members of the Accountability board meetings to retain an awareness of Audit and Risk Committee are included on Report governance issues and report annually to the Boards of the most significant projects. Remuneration & me on the sponsorship position of these The Project Board’s role is to oversee the Staff Report bodies and highlight any issues. I report delivery of the projects, including associated this annually to our own Audit and Risk risk management. This includes the Committee to inform of any audit issues development and approval of associated in sponsored bodies and advise on how business cases in line with the requirements Annual they are managing risks. of the Scottish Public Finance Manual. Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 60 | Accountability Report Corporate Governance
Title Governance Statement
Contents
The System of Internal Control Assurance is provided by Directors’ annual The Performance Audit Group (Turner and The system of internal control is designed certificates of assurance covering their areas Townsend working in association with to manage rather than eliminate the risk of responsibility. This is underpinned by an PriceWaterhouseCoopers) audits, monitors Performance of failure to achieve our policies, aims and internal control checklist, covering all areas and reports on an independent basis on the Report objectives. Consequently, reasonable and of corporate governance. The content of financial, technical and performance aspects Overview not absolute assurance of its effectiveness this checklist is reviewed each year. of the work carried out by the Trunk Road can be provided. The system of internal Operating Companies, and this provides control is based on an on-going process In addition we maintain an assurance map, external assurance for trunk road designed to identify and prioritise risks, to which sets out both corporate and maintenance. evaluate their likelihood and impact and to directorate processes that provide assurance Objectives manage them efficiently, economically and on achievement of our objectives and In their role as external auditors, Audit effectively. This system of internal control has identifies officers responsible for ensuring Scotland assess the extent to which it can been in place for the year ended 31 March these are accurate and up to date. This place reliance on the individual reviews Performance 2020 and up to the date of approval of document is shared with internal and undertaken by Internal Audit to inform their Report the Annual Report and Accounts. It is in external audit, and reviewed by the Audit opinion on the financial statements, Performance accordance with the guidance from and Risk Committee. depending on their direct relevance to Analysis Scottish Ministers. their work on the statements. Alongside Our internal auditor is provided by the this, each year Audit Scotland undertakes Accountability Review of Effectiveness Scottish Government Internal Audit a review of our internal Audit arrangements. Report I, as the Accountable Officer, have Directorate and they submit regular reports Corporate responsibility for reviewing the effectiveness to the Audit and Risk Committee on the Governance of the system of internal control. This is adequacy and effectiveness of the informed by the work of Internal Audit, organisation’s system of internal control, the managers within the Agency, the together with any recommendations for Accountability Audit and Risk Committee and the improvement. Follow up work is carried Report external auditors in their reports. out to confirm the effective implementation Remuneration & of recommendations agreed as a result of Staff Report the audits.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 61 | Accountability Report Corporate Governance
Title Governance Statement
Contents
Internal Audit Reports 2019-20 Best Value Follow up reviews were also conducted Audit Area & Scope Outcome All public bodies in Scotland are responsible on Challenge and Improvement and Risk for achieving Best Value through ensuring Management. Significant progress continues Performance 1. Grant Funding Assurance Provided: sound governance, good management, to be made in these areas and all actions Report Arrangements Reasonable public reporting on performance and a from previous reviews have been taken Overview 2. Team Scotland Assurance Provided: focus on improvement. Best Value provides forward. We continue to demonstrate Governance Substantial a common framework for continuous Best Value in these areas. Arrangements improvement in public services in Scotland, 3. Contract Monitoring Assurance Provided: and is a key foundation of the Scottish In 2020-21, it is the intention to conduct a for Scottish Trunk Road Substantial Government’s Public Service Reform agenda. further Best Value review, utilising the toolkit Objectives Network Management We demonstrate achievement of best on Vision and Strategic Direction. Contracts value through undertaking reviews of our 4. Response to Climate Assurance Provided: achievement or specific areas of it each Risk Management Performance Change Emergency Reasonable year, using the Audit Scotland self- Risks are managed at the level most able to Report Declaration assessment toolkit. deal with them, with the most serious risks Performance being escalated to the Senior Management Analysis The overall work undertaken in 2019-20 A Best Value review on Performance Team. The Director of Finance and Corporate and the assurance opinions for each of the Management was undertaken in 2019-20, Services is the Transport Scotland Risk Accountability assurance reviews, alongside the results which demonstrated a robust and forward Champion and Chairperson of the TS Risk Report from a number of Gateway reviews and looking approach to the area and made Management Group. Each Directorate has Audit Scotland reports, the implementation Corporate a number of key recommendations for a designated risk co-ordinator who is Governance of audit recommendations and the general further improvement. These related to responsible for facilitating an effective TS management approach and engagement, the continuous review and improvement and regular review of risks to the delivery has resulted in Internal Audit providing of performance reporting tools, the of objectives. Accountability ‘Substantial’ Assurance in respect of development of key performance indicators Report Transport Scotland’s risk management, and the continued enhancement of Remuneration & control and governance arrangements. colleagues Learning and Development Staff Report plans. All of this will be progressed further in 2020-21.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 62 | Accountability Report Corporate Governance
Title Governance Statement
Contents
There is a robust framework of responsibility A systematic approach is in place to help The most significant risks currently identified for risk management in accordance with the colleagues identify risks and to link them to by the Agency include the impact of SPFM. The system for assessment and Corporate Planning and Objectives. The Risk COVID-19 on Transport Provision, including Performance control of risk is as follows: Framework provides additional guidance on the ability to meet obligations within budget Report assessing risks and their impact, with a and achieve investment in economic Overview • I, as Chief Executive, in conjunction with the scoring system weighted towards impact. recovery, the preparation for EU exit, the Directors, review the strategic and Colleagues are also provided with advice on funding and delivery of major road, rail and operational risks to the Agency’s business how to assess risk appetite and review ferries programmes, the financial position of throughout the year, and this is a regular mitigating actions. Awareness sessions rail franchises and the delivery of the item at the monthly Senior Management continue to be held for both management Programme for Government commitment on Objectives Team meetings; and staff and all Risk Registers continue to air quality. These are also highlighted in • the Audit and Risk Committee provides be reviewed and revised to ensure they Figure 1 on pages 11-14. oversight of the Agency’s risk management consistently comply with guidance. Performance processes and strategy and Corporate Risk Managing information and Report Register throughout the year; The Risk Management Group (Chaired by information security Performance • managers identify and evaluate risks to the Director of Finance and Corporate We are committed to ensuring information Analysis successfully deliver the Agency’s objectives Services) is responsible for developing and is managed and valued, with appropriate when they prepare and monitor directorate maintaining the Corporate Risk Register and protection and use of our information assets. Accountability and business management plans; and for facilitating the on-going production and The handling of data and information carries Report • I, as Chief Executive, hold regular meetings management of risk registers within project significant risks and we take information Corporate with Ministers where both strategic and teams and Directorates and for enhancing security very seriously, in compliance Governance operational risks are discussed. the management of risk across all areas with Scottish Government sponsored and of the business. The group comprises adopted Security Frameworks and Data Our overall Risk Strategy sets out a representatives from each directorate Handling policies. Accountability consistent approach to the implementation and meets quarterly with appropriate Report of risk management at strategic, programme communication between meetings. Remuneration & and project levels. The Risk Management Minutes of the meetings are shared with Staff Report Framework continues to be reviewed and Directors and the Audit and Risk Committee. enhanced (in line with arrangements put in place across the Scottish Government) to assist with the increasing number of Annual challenges facing the Agency and the Accounts continued drive for transparency.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 63 | Accountability Report Corporate Governance
Title Governance Statement
Contents
In addition, we follow the Scottish We also have a designated Fraud Officer Details of cases of actual or attempted fraud Government key principles for good and a Fraud Response Plan in place to that come to light during the financial year information management that: ensure that timely and effective action is (one in 2019-20 (2018-19: nil)) are reported Performance taken in the event of a fraud. The Plan is within the Fraud Log and reported to the Report • We treat information as a Scottish reviewed on an annual basis and it includes Audit and Risk Committee, together with the Overview Government resource; detailed guidance which is designed to response and any further mitigation. • We are all responsible for our information; increase awareness of both ‘bribery and • We make information accessible to others corruption’ and ‘whistleblowing in the public There are no specific outstanding concerns who have a need to use it; sector’, and these are also subject to regular to highlight. Details are also shared with • We keep records of what we do; staff notices and awareness sessions. Police Scotland where this is deemed Objectives • Our information is accurate and fit for appropriate. We actively participate in the purpose; The plan includes guidance on Cyber fraud alerts system run by the National • Our information complies with regulations Resilience, which reflects its increasing Fraud Authority, which seeks to share Performance and legal requirements. importance. The Cyber Resilience Team intelligence about specific fraud risks Report review and develop best practice, improve encountered across Government. Performance All our users of Information Technology must staff awareness and monitor our information Analysis comply with the Scottish Government Code systems. The Cyber Steering Group oversees There is a separate Concessionary Fares of Conduct. the Cyber Resilience Plan. We achieved Fraud Team due to its unique operating Accountability Cyber Essentials accreditation once again environment. We participate in the National Report Counter Fraud / Review of risk of in February 2020, followed by Cyber Fraud Initiative (NFI) in Scotland, led by Corporate financial loss Essentials Plus accreditation in May 2020. Audit Scotland. This is a data matching Governance All cases of actual or suspected fraud are process to help public sector bodies to investigated promptly and appropriate action We continued to increase the level and prevent and detect fraud and error in their is taken, in accordance with our fraud, bribery profile of training on Fraud identification financial systems, using computerised Accountability and whistleblowing procedures which specify and prevention, and encourage all staff techniques to compare information about Report how cases will be dealt with and how staff to undertake training and review regular individuals held by different public bodies Remuneration & can report suspicions or concerns. updates and staff notices distributed by on different systems. Staff Report the Fraud Officer to raise awareness of fraud identification and prevention.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 64 | Accountability Report Corporate Governance
Title Governance Statement
Contents
Business Continuity Towards the end of 2019-20, the focus of Most staff have been working at home since Our Business Continuity Plan has been resilience efforts became the response to March 2020. To ensure good financial and reviewed during 2019-20. The objectives of the Coronavirus pandemic. A framework governance arrangements were maintained Performance the plan are: of resilience and business continuity during this period, we reviewed our control Report responsibility was implemented, with processes to ensure they were operating well Overview • to identify risks; individual Directorates forming support on a remote basis. We also followed specific • to establish clear areas of responsibility; cells to take forward emergency planning processes for Accountable Officers to obtain • to ensure Transport Scotland continues to measures, to support the continued provision Scottish Government approval and funding provide essential functions and services; of transport services across Scotland and to for additional measures proposed to respond • to identify measures to recover/ repair deal with the impact of the pandemic on to the impact of COVID-19. Our Senior Objectives assets damaged or lost; and these services, but also to support staff Management Team also met virtually on a • to identify a medium and long-term through the crisis. These cells report to the daily basis to review the latest position and recovery strategy. Transport Hub that provides information agree the development of our response. Performance to the Economy Hub as part of the SG The Audit and Risk Committee also met Report Transport Scotland’s Resilience Team framework of reporting within the Scottish virtually in Spring and maintained regular Performance continue to work on preparation for the Government Resilience Response contact by correspondence on the emerging Analysis impact of EU withdrawal, with the focus arrangements. Our Business Continuity position and completion of Internal Audit on managing the coordination and Corporate Plan and Directorate Plans were reports. Our Internal Auditors will provide Accountability communications between Ministers, successfully deployed and demonstrated advice on our resilience arrangements and Report Scottish Government, UK Government to operate effectively, with lessons learned recommendations for management and the Corporate and key partners in the process. Transport reflected in updated plans. Audit and Risk Committee members to Governance will have a key role in any forward planning consider. These arrangements have allowed and a bespoke Resilience Team for this us to respond to the initial and transition purpose has been set up by the Agency, phases and agree measures required to Accountability comprising of a range of staff from across ensure sufficient public transport services Report all Directorates with wide ranging skill sets. and infrastructure were provided throughout. Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 65 | Accountability Report Remuneration & Staff Report
Title
Contents
Performance Report Overview
Objectives
Performance Report Performance Analysis
Accountability Accountability Report Corporate Governance
Report Accountability Report Remuneration & Remuneration Staff Report
Annual & Staff Report Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 66 | Accountability Report Remuneration & Staff Report
Title Accountability Report
Remuneration & Staff Report Contents This shows our remuneration policy for Directors and reports on how it Performance has been implemented, along with the amounts awarded to Directors. Report There is also information on staffing structures, staff composition and Overview policies and details on staff numbers and staff related expenditure.
Objectives
Performance Report Performance Analysis
Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 67 | Accountability Report Remuneration & Staff Report
Title Staff Report
Contents
Equal opportunities and diversity In addition, Transport Scotland recognises We recognise that the success of any Our equal opportunities and diversity policy that everyone is entitled to basic rights and organisation depends largely on the effective aims to ensure that each and every member freedoms and, as such, we seek to create an performance and full attendance of all its Performance of staff feels comfortable, valued, and free to inclusive Scotland that protects, respects, employees. People are a valued resource, Report contribute fully and to the best of their ability. promotes and implements internationally and as an employer, our attendance Overview Transport Scotland is committed to recognised human rights. management procedures are designed increasing the diversity of staff within the to maintain a happy, well-motivated and organisation. We continually develop our staff The table below identifies the gender split healthy workforce. and we will positively value their different within Transport Scotland for the year perspectives and skills and make full use of 2019-20. The procedures are aimed to: Objectives these in our work. It is our aim to have an • be supportive and positive; organisation that is fully reflective of the The Department for Work and Pensions is • promote fair and consistent treatment people of Scotland. We are an equal responsible for developing, formulating for everyone; Performance opportunities employer with policies in place and disseminating equal opportunities • encourage, assist and make it easy Report to guard against bullying, harassment or guidance for the Civil Service as a whole, for people to stay in work; and Performance discrimination and to ensure against barriers but operational responsibility rests with • explain employees’ entitlements and Analysis to employment or advancement. We are also individual departments. roles and responsibilities committed to meeting our duties under the Accountability Equality Act 2010, and to ensuring that all Staff relations In 2019-20 an average of 9.0 working days Report staff are treated equally irrespective of their We give a high priority to the development (2018-19: 7.9) were lost due to sickness Corporate sex, marital/civil partnership status, of all our staff. Training, development and absence per staff year for Transport Scotland. Governance maternity/paternity status, age, race, ethnic learning opportunities are all regularly origin, sexual orientation, disability, religion or reviewed, content checked and updated belief, working pattern, employment status, to reflect valued staff feedback. Accountability gender identity (transgender), caring Report responsibility, or trade union membership. Remuneration & Staff Report
2019-20 2018-19 Gender Chief Executive Employees Total Chief Executive Employees Total and Directors and Directors Annual Female 3 244 247 4 214 218 Accounts Male 6 345 351 6 346 352
Figures based on Agency numbers at the end of March 2020.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 68 | Accountability Report Remuneration & Staff Report
Title Staff Report
Contents
Health and Safety Employment of disabled persons In addition we incurred £8.7 million in We are committed to promoting the highest We are a “Disability Confident Leader professional consultancy costs in 2019-20 standards of health and safety for our staff, Employer”, which recognises our commitment (2018-19: £7.1 million) in relation to specialist Performance visitors, contractors and others who could be and our positive attitude towards our services required in the procurement of key Report affected by our acts or omissions. We seek to disabled applicants and staff. projects and the delivery of specific Overview promote positive health and safety climates objectives. and culture, seeking continuous improvement In doing so, we offer interviews to all disabled through relevant and compulsory training applicants and staff who meet the minimum At the end of financial year 2019-20 our and e-learning, with the support of the Health criteria for any post; reminding line managers headcount totalled 598, analysed in the & Safety Adviser and Health & Safety Liaison of their management responsibilities; helping following table. The full time equivalent (FTE) Objectives Officers. Our health and safety management staff balance their work and their disability; figure of Permanent staff was 462.2. system and health and safety policy manual and offering advice and training to staff and are in alignment with Scottish Government managers about issues related to disability. Staff Category Headcount at Headcount at Performance Occupational Health & Safety strategies. 31 March 2020 31 March 2019 Report Performance The number of staff as at 31 March 2020 who Permanent 479 459 Staff Side Partnership Working had declared a disability employed by Staff Analysis Transport Scotland values strong employee Transport Scotland was 51 (2018-19: 46). Agency Staff 33 29 relations and has a Partnership Board in Accountability place. Our Partnership Agreement sets out Staff Costs Consultants 86 82 employed Report the terms of reference for the Board in Details of Agency staff numbers and costs for Corporate Total 598 570 matters affecting staff. the year are contained within Note 2 to the Governance Accounts. We incurred £23.7 million in staff The Board itself is made up of Transport costs (2018-19: £21.3 million). Of this, £22.4 Pension liabilities Scotland management, with a representative million was in relation to permanent staff, The pension entitlements of the Executive Accountability from Transport Scotland Human Resources who are civil servants with an employment Directors of Transport Scotland are contained Report as well as representatives from the Scottish contract with Transport Scotland (2018-19: within the remuneration report. An indication Remuneration & Government Trade Unions. The Board meets £20.3 million). The balance of £1.3 million of how pension liabilities are treated in the Staff Report on a quarterly basis throughout the year, or related to agency staff (2018-19: £1.0 million). accounts, and references to relevant pension additionally on request by Board members. schemes, are also contained within the Remuneration Report and in Note 2 to the Accounts. Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 69 | Accountability Report Remuneration & Staff Report
Title Remuneration Report
Contents
Remuneration Policy Performance based pay awards are based on Service Contracts The remuneration of senior civil servants is an assessment of performance against The Constitutional Reform and Governance set in accordance with the rules set out in objectives agreed between the individual and Act 2010 requires Civil Service appointments Performance chapter 7.1, Annex A of the Civil Service line manager at the start of the reporting to be made on merit on the basis of fair and Report Management Code and in conjunction with year. Performance will also have an effect on open competition but also includes the Overview independent advice from the Senior Salaries any bonus element awarded. In line with circumstances when appointments may Review Body (SSRB). In reaching its Scottish Public Sector Pay Policy there will be otherwise be made. recommendations, the SSRB is to have no non-consolidated performance payments. regard to the following considerations: Unless otherwise stated below, the officials Further information about the work of the covered by this report hold appointments, Objectives • the need to recruit, retain and motivate SSRB can be found at: https://www.gov.uk/ which are open-ended. Early termination, suitably able and qualified people to government/organisations/review-body- other than for misconduct, would result in the exercise their different responsibilities; on-senior-salaries individual receiving compensation as set out Performance • regional/local variations in labour markets in the Civil Service Compensation Scheme. Report and their effects on the recruitment and The remuneration of staff below senior civil Performance retention of staff; service level is determined by the Scottish Further information about the work of the Analysis • government policies for improving the Government. In determining policy, account is Civil Service Commissioners can be found at public services including the requirement on taken of the need for pay to be set at a level www.civilservicecommission.org.co.uk Accountability departments to meet the output targets for which will ensure the recruitment, retention Report the delivery of departmental services; and motivation of staff. Also taken into Whilst Transport Scotland does not have a Corporate • the funds available to departments as set account is the Government’s policy on the Board with non-executive directors, the Audit Governance out in the Government’s departmental Civil Service and public sector pay and the and Risk Committee has three external expenditure limits; and need to observe public spending controls. members to ensure independent oversight • The Government’s inflation target. and challenge : John Matheson - appointed Accountability as chair in July 2017; Pamela Mclauchlan Report (appointed May 2015) and Bill Bound Remuneration & (appointed November 2016). Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 70 | Accountability Report Remuneration & Staff Report
Title Remuneration Report
Contents
Remuneration Group Directors Remuneration Remuneration for our senior civil servants is (Salary, benefits in kind and pensions) considered by the Scottish Government’s The single total figure of remuneration, Performance Remuneration Group. This Remuneration comprising the salary, the value of any Report Group has six members, two of whom are bonuses or taxable benefits in kind and the Overview non-executive Directors. Their remit is to pension benefits of the directors for the year consider: 2019-20, along with comparative figures are shown in the table overleaf. • annual pay proposals for Chief Executives and Board Members and make Objectives recommendations to Ministers; • annual guidelines for flat rate increases for Chief Executives and senior civil servants Performance and consider the Public Sector Pay policies Report which will apply for the annual pay round Performance and make recommendations to Ministers; Analysis and • pay remits which look at pay proposals for Accountability public bodies in Scotland. Report Corporate The Remuneration Group will, as a minimum, Governance report annually to the Scottish Government Strategic Board. Accountability The following section of the Report Remuneration Report pertaining to Remuneration & salaries and pensions is subject to audit. Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 71 | Accountability Report Remuneration & Staff Report
Title Remuneration Report
Contents
Single total figure of remuneration
Directors Salary Bonus Payments Benefits In Kind Pension Benefits Total Performance (To Nearest £100) (To Nearest £1,000) Report Overview 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 Mike Baxter1 55-60 75-80 - - - - 31,000 27,000 85-90 105-110 Roy Brannen 95-100 95-100 - - - - 54,000 28,000 150-155 120-125 Donald Carmichael2 55-60 75-80 - - - - 27,000 17,000 80-85 90-95 Hugh Gilles 75-80 75-80 - - - - 42,000 29,000 115-120 100-105 Objectives Alasdair Graham3 10-15 - - - - - 8,000 - 20-25 - Stuart Greig4 5-10 - - - - - 4,000 - 10-15 - Performance Alison Irvine 75-80 50-55 - - - - 30,000 20,000 105-110 70-75 Report Performance Laura Murdoch 75-80 40-45 - - - - 46,000 19,000 120-125 60-65 Analysis John Nicholls5 - 30-35 - - - - - 0 - 30-35 Frances Pacitti 70-75 45-50 - - - - 30,000 20,000 100-105 65-70 Accountability Bill Reeve 105-110 110-115 - - - - 47,000 51,000 155-160 160-165 Report Michelle Rennie6 60-65 75-80 - - - - 28,000 31,000 85-90 105-110 Corporate Governance Lee Shedden7 15-20 - - - - - 7,000 - 25-30 - Chris Wilcock8 55-60 10-15 - - - - 52,000 11,000 105-110 20-25 Accountability The value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by 20, less the contributions made by the individual. The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights. Report Remuneration & 1 Mike Baxter left post as Director of Financial and Corporate Services on 3 January 2020. The £55k-£60k represents salary to this date. Full year equivalent banding £75k - £80k.. 2 Donald Carmichael left post as Director of Low Carbon Economy on 5 January 2020. The £55k-£60k represents salary to this date. Full year equivalent banding £75k - £80k. Staff Report 3 Alasdair Graham took up post as Acting Director of Major Projects on 3 February 2020. The £10k-£15k represents salary from this date. Full year equivalent banding £75k - £80k. 4 Stuart Greig took up post as Director of Low Carbon Economy on 17 February 2020. The £5k-£10k represents salary from this date. Full year equivalent banding £75k- £80k. 5 John Nicholls left post as Director of Aviation, Maritime, Freight and Canals on 31 July 2018. The £30k-£35k represents 2018-2019 salary to this date. Full year equivalent banding £70k- £75k. 6 Michelle Rennie temporarily left post as Director of Major Projects on 31 January 2020. The £60k-£65k represents salary to this date. Full year equivalent banding £70k- £75k. 7 Lee Shedden took up post as Acting Director of Finance on 6 January 2020. The £15k-£20k represents salary from this date. Full year equivalent banding £75k- £80k. 8 Chris Wilcock took up post on Temporary Promoted appointment to Director of Aviation, Maritime, Freight and Canals on 21 January 2019 and left the post on 31 December 2019, covering for Frances Pacitti who was on maternity leave at the time. Annual Frances Pacitti returned from maternity leave in September 2019, however Chris retained Temporary SCS status until December 2019, as he still held SCS duties until this time. The £10k-£15k for year 2018-2019 represents salary from date of appointment to 31 March 2019. 2018-2019 full year equivalent banding £65k-£70k. The £55k-£60k for year 2019-2020 represents salary from 01 April 2019 to 31 December 2019. 2019-2020 full year equivalent banding £75k- £80k. Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 72 | Accountability Report Remuneration & Staff Report
Title Remuneration Report
Contents
Salary Fees The full year equivalent banded remuneration Salary and allowances cover both External members of the Audit and Risk of the highest paid director was £105k - pensionable and non-pensionable amounts Committee are entitled to receive fees for £110k (2018-19: £110k - £115k). This was Performance and include: gross salaries; overtime; regular attendance at Audit and Risk 2.8 times (2018-19: 2.8 times) the median Report recruitment and retention allowances; Committee meetings. External members’ remuneration of the workforce, which was Overview private-office allowances or other allowances expenses incurred in attending these £38,507 (2018-19: £40,305). to the extent that they are subject to meetings are also reimbursed. UK taxation. This total remuneration is In 2019-20, one (18-19: nil ) employee shown in the figures above. It does not The fees which the external members of the received remuneration in excess of the include employers’ pension contributions Audit and Risk Committee were entitled to for highest paid director. Remuneration across Objectives or amounts which are a reimbursement 2019-20 are as follows: Transport Scotland ranged from £19k - £110k of expenses directly incurred in the (2018-19: £18k - £111k). performance of an individual’s duties John Matheson £232 daily rate Performance or employers’ national insurance. Pamela Mclauchlan £232 daily rate Total remuneration includes salary, non- Report Bill Bound £232 daily rate consolidated performance related pay and Performance Where a Director has joined or left Transport benefits in kind. It does not include employer Analysis Scotland during the year, their salary reflects This is in line with core Scottish Government pension contributions and the cash only that which they received whilst a remuneration of external members. equivalent transfer value of pensions. Accountability member of the senior management team. Report Where an individual has been a member of Pay multiples Civil Service and other Corporate the senior management team for only part Reporting bodies are required to disclose Compensation Scheme Governance of the year but they have been employed by the relationship between the remuneration Within Transport Scotland, no members the Agency throughout the year, their annual of the highest paid director in the of staff agreed departures under the Civil salary has been reported on a “days served” organisation and the median remuneration Service Compensation Scheme rules in Accountability basis as well as the full year equivalent salary. of the organisation’s workforce. The median 2019-20. There were no members of staff Report calculation includes directly employed staff who agreed departures under the scheme Remuneration & Any amounts payable on early termination paid through SG Core payroll. It covers both in 2018-19. Staff Report of a contract will be in accordance with permanent staff and those on fixed term the individual’s circumstances. contracts. It does not include temporary No members of staff retired on ill health agency staff paid locally by invoice, as these grounds in 2019-20. invoices are not processed through the Annual payroll system. The ratio is calculated as Accounts the mid-point of the highest band divided by the median total remuneration.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 73 | Accountability Report Remuneration & Staff Report
Title Remuneration Report
Contents
Pensions The figures include the value of any pension Transport Scotland’s contributions to the Accrued pension represents the director’s benefit in another scheme or arrangement scheme in respect of the Senior Management total future entitlement to benefits payable which the member has transferred to the Civil Team amounted to £230,392 for the year to Performance from the Civil Service pension schemes based Service pension arrangements. They also 31 March 2020. The external members of the Report on reckonable service at 31 March 2020. include any additional pension benefit Audit and Risk Committee do not participate Overview The accrued pension includes service accrued to the member as a result of their in the Civil Service pension scheme. previous to becoming a Director and/or buying additional pension benefits at their service in other departments. own cost. CETVs are worked out in Further details on the different schemes accordance with The Occupational Pension available to employees can be found in A Cash Equivalent Transfer Value (CETV) is the Schemes (Transfer Values) (Amendment) Note 2 to the accounts. Objectives actuarially assessed capitalised value of the Regulations 2008 and do not take account of pension scheme benefits accrued by a any actual or potential reduction to benefits member at a particular point in time. The resulting from Lifetime Allowance Tax which Performance benefits valued are the member’s accrued may be due when pension benefits are taken. Report benefits and any contingent spouse’s pension Performance payable from the scheme. A CETV is a The real increase in CETV quoted in the table Analysis payment made by a pension scheme or below represents the increase that is funded arrangement to secure pension benefits in by the employer. It does not include the Accountability another pension scheme or arrangement increase in accrued pension due to inflation, Report when the member leaves a scheme and or contributions paid by employees (including Corporate chooses to transfer the benefits accrued in the value of any benefits transferred from Governance their former scheme. The pension figures another pension scheme or arrangement) shown relate to the benefits that the and uses common market valuation factors individual has accrued as a consequence of for the start and end of the period. Accountability their total membership of the pension Report scheme, not just their service in a senior Remuneration & capacity to which disclosure applies. Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 74 | Accountability Report Remuneration & Staff Report
Title Remuneration Report
Contents
The pension entitlements of the Executive Directors of Transport Scotland are shown in the following table: Performance Report Lump Sum at Real Increase Accrued Pension Real Increase CETV as at 31 CETV as at 31 Real Increase in Overview NRA as at 31 in Lump Sum at age NRA as at in Pension at March 2020 March 2019 CETV in 2019-20 March 2020 at age NRA 31 March 2020 age NRA £000 £000 £000 £000 £000 £000 £000 Mike Baxter 5-10 0-2.5 35-40 0-2.5 657 610 20 Roy Brannen 90-95 0-2.5 40-45 2.5-5.0 799 725 37 Objectives Donald Carmichael 100-105 2.5-5.0 35-40 0-2.5 845 820 28 Hugh Gillies 0 0 25-30 0-2.5 452 401 28 Performance Alison Irvine 0 0 10-15 0-2.5 165 137 16 Report Performance Laura Murdoch 0 0 20-25 2.5-5.0 274 236 22 Analysis Bill Reeve 65-70 2.5-5.0 50-55 0-2.5 1426 1296 88 Michelle Rennie 0 0 15-20 0-2.5 258 229 15 Accountability Frances Pacitti 0 0 5-10 0-2.5 76 58 10 Report Alasdair Graham 0 0 20-25 0-2.5 275 269 5 Corporate Governance Stuart Grieg 0 0 10-15 0-2.5 160 158 2 Lee Shedden 0 0 15-20 0-2.5 225 219 4 Chris Wilcock 0 0 20-25 2.5-5.0 311 268 29 Accountability Report Calculated on normal retirement age (NRA) From 2015-16, the majority of staff within the Further details about the Civil Service pension Remuneration & Staff Report where pension entitlement due at that age or civil service pension scheme changed from arrangements can be found at the website current age if over NRA. the PCSP to the Alpha scheme. Consequently, www.civilservice.gov.uk/pensions the figures included above, provided by The above pension data was supplied to MyCSP, refer to both schemes for affected Transport Scotland by MyCSP for all of the Directors – Mike Baxter, Roy Brannen and Annual Directors, with the exception of Bill Reeve, Hugh Gillies. Accounts whose information was supplied by RPMI.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 75 | Accountability Report Remuneration & Staff Report
Title Parliamentary Accountability Report
Contents
The report summarises our key Parliamentary Remote Contingent Liabilities Rural Economy and Connectivity Accountabilities, including the Audit Report The Financial Reporting Manual states that Committee for the year. where information about contingent liabilities • 15 May 2019 – Transport update Performance is not required to be disclosed because the • 11 September 2019 – Transport update Report Regularity of Expenditure likelihood of a transfer of economic benefits • 01 October 2020 [officials only] – pre- Overview The expenditure and income in the financial is considered too remote, they should be budget scrutiny on roads maintenance statements were incurred or applied in disclosed separately for parliamentary • 8 January 2020 [officials only] – accordance with any applicable enactments reporting and accountability purposes. Queensferry crossing public transport and guidance issued by the Scottish Transport Scotland has a number of these strategy Ministers, the Budget (Scotland) Act covering liabilities and they are disclosed in Note 19 (b) • 19 February 2020 – Queensferry Crossing Objectives the financial year and sections 4 to 7 of the to the Annual Accounts. Safety and Budget Scrutiny Public Finance and Accountability (Scotland) • 4 March 2020 [officials only] – Construction Act 2000; and the sums paid out of the Losses and Special Payments and procurement of ferry vessels in Performance Scottish Consolidated Fund for the purpose A full and final commercial settlement of £65 Scotland Report of meeting the expenditure shown in the million was paid to Aberdeen Roads Limited • 18 March 2020 – SSI and COVID-19 work Performance financial statements were applied in (ARL) in connection with the construction • 13 May 2020 – Response to COVID-19 Analysis accordance with section 65 of the Scotland phase of the AWPR project. This is identified • 26 August 2020 – Construction and Act 1998. within Note 23 of the Financial Statements. procurement of ferry vessels in Scotland Accountability The settlement was reached on a commercial • 02 September 2020 – Transport update Report Fees and Charges basis and without any admission of liability Corporate Transport Scotland does not raise any by any party. The details of the settlement Public Petitions Committee Governance significant income through fees and charges. agreement are commercially sensitive • 05 March 2020 – PE1540 on a Permanent and confidential. Solution for the A83 Accountability Gifts Report There were none. Remuneration & Staff Report Scottish Parliament Committee Appearances Details of appearances before Scottish Parliament committees by Transport Scotland Roy Brannen Annual officials for the year were as follows. Chief Executive Accounts 20 November 2020
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 76 | Accountability Report Remuneration & Staff Report
Title Independent Report on the audit of the Auditor’s Report financial statements
Contents
Independent Auditor’s report to Opinion on financial statements In my opinion the accompanying financial Transport Scotland, the Auditor General I have audited the financial statements in statements: for Scotland and the Scottish Parliament. the annual report and accounts of Transport Performance Scotland for the year ended 31 March 2020 • give a true and fair view in accordance with Report under the Public Finance and Accountability the Public Finance and Accountability Overview (Scotland) Act 2000. The financial statements (Scotland) Act 2000 and directions made comprise the Statement of Comprehensive thereunder by the Scottish Ministers of Net Expenditure, the Statement of Financial the state of Transport Scotland’s affairs as Position, the Cash Flow Statement, the at 31 March 2020 and of its net operating Statement of Changes in Taxpayers’ Equity costs for the year then ended; Objectives and notes to the financial statements, including a summary of significant accounting • have been properly prepared in accordance policies. The financial reporting framework with IFRSs as adopted by the European Performance that has been applied in their preparation Union, as interpreted and adapted by the Report is applicable law and International Financial 2019/20 FReM; and Performance Reporting Standards (IFRSs) as adopted Analysis by the European Union, and as interpreted • have been prepared in accordance with and adapted by the 2019/20 Government the requirements of the Public Finance Accountability Financial Reporting Manual (the 2019/20 and Accountability (Scotland) Act 2000 Report FReM). and directions made thereunder by the Corporate Scottish Ministers. Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 77 | Accountability Report Remuneration & Staff Report
Title Report on the audit of the financial statements
Contents
Basis for opinion Conclusions relating to going concern Responsibilities of the Accountable I conducted my audit in accordance with basis of accounting Officer for the financial statements applicable law and International Standards I have nothing to report in respect of the As explained more fully in the Statement of Performance on Auditing (UK) (ISAs (UK)), as required following matters in relation to which the ISAs the Accountable Officer’s Responsibilities, Report by the Code of Audit Practice approved (UK) require me to report to you where: the Accountable Officer is responsible for Overview by the Auditor General for Scotland. the preparation of financial statements that My responsibilities under those standards • the use of the going concern basis of give a true and fair view in accordance with are further described in the auditor’s accounting in the preparation of the the financial reporting framework, and for responsibilities for the audit of the financial financial statements is not appropriate; or such internal control as the Accountable statements section of my report. I was • Transport Scotland has not disclosed in the Officer determines is necessary to enable Objectives appointed by the Auditor General on 18 July financial statements any identified material the preparation of financial statements 2016. The period of total uninterrupted uncertainties that may cast significant doubt that are free from material misstatement, appointment is four years. I am independent about its ability to continue to adopt the whether due to fraud or error. Performance of Transport Scotland in accordance with the going concern basis of accounting for a Report ethical requirements that are relevant to my period of at least twelve months from the In preparing the financial statements, the Performance audit of the financial statements in the UK date when the financial statements are Accountable Officer is responsible for using Analysis including the Financial Reporting Council’s authorised for issue. the going concern basis of accounting unless Ethical Standard, and I have fulfilled my other deemed inappropriate. Accountability ethical responsibilities in accordance with Risks of material misstatement Report these requirements. Non-audit services I have reported in a separate Annual Audit Corporate prohibited by the Ethical Standard were Report, which is available from the Audit Governance not provided to Transport Scotland. I believe Scotland website www.audit-scotland.gov. that the audit evidence I have obtained uk/our-work/annual-audits, the most is sufficient and appropriate to provide significant assessed risks of material Accountability a basis for my opinion. misstatement that I identified and my Report conclusions thereon. Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 78 | Accountability Report Remuneration & Staff Report
Title Report on the audit of the financial statements
Contents
Auditor’s responsibilities for the audit of The risk of not detecting a material Other information in the annual report the financial statements misstatement resulting from fraud is higher and accounts My objectives are to obtain reasonable than for one resulting from error, as fraud The Accountable Officer is responsible for Performance assurance about whether the financial may involve collusion, intentional omissions, the other information in the annual report Report statements as a whole are free from material misrepresentations, or the override of and accounts. The other information Overview misstatement, whether due to fraud or error, internal control. The capability of the audit comprises the information other than the and to issue an auditor’s report that includes to detect fraud and other irregularities financial statements, the audited part of my opinion. Reasonable assurance is a high depends on factors such as the skilfulness the Remuneration and Staff Report, and level of assurance, but is not a guarantee of the perpetrator, the frequency and my auditor’s report thereon. My opinion that an audit conducted in accordance with extent of manipulation, the degree of on the financial statements does not cover Objectives ISAs (UK) will always detect a material collusion involved, the relative size of the other information and I do not express misstatement when it exists. Misstatements individual amounts manipulated, and the any form of assurance conclusion thereon can arise from fraud or error and are seniority of those individuals involved. I except on matters prescribed by the Auditor Performance considered material if, individually or in therefore design and perform audit General for Scotland to the extent explicitly Report the aggregate, they could reasonably procedures which respond to the assessed stated later in this report. Performance be expected to influence the economic risks of material misstatement due to fraud. Analysis decisions of users taken on the basis of In connection with my audit of the financial these financial statements. A further description of the auditor’s statements, my responsibility is to read all Accountability responsibilities for the audit of the financial the other information in the annual report Report statements is located on the Financial and accounts and, in doing so, consider Corporate Reporting Council’s website www.frc.org. whether the other information is materially Governance uk/auditorsresponsibilities. This inconsistent with the financial statements description forms part of my auditor’s report. or my knowledge obtained in the audit or otherwise appears to be materially misstated. Accountability If I identify such material inconsistencies Report or apparent material misstatements, I am Remuneration & required to determine whether there is a Staff Report material misstatement in the financial statements or a material misstatement of the other information. If, based on the work I have performed, I conclude that there is Annual a material misstatement of this other Accounts information, I am required to report that fact. I have nothing to report in this regard.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 79 | Accountability Report Remuneration & Staff Report
Title Report on regularity of Report on other expenditure and income requirements
Contents
Opinion on regularity Opinions on matters prescribed by the Matters on which I am required to report In my opinion in all material respects: Auditor General for Scotland by exception In my opinion, the audited part of the I am required by the Auditor General for Performance • the expenditure and income in the financial Remuneration and Staff Report has been Scotland to report to you if, in my opinion: Report statements were incurred or applied in properly prepared in accordance with the Overview accordance with any applicable enactments Public Finance and Accountability (Scotland) • adequate accounting records have not and guidance issued by the Scottish Act 2000 and directions made thereunder by been kept; or Ministers, the Budget (Scotland) Act the Scottish Ministers. covering the financial year and sections 4 to • the financial statements and the audited 7 of the Public Finance and Accountability In my opinion, based on the work undertaken part of the Remuneration and Staff Report Objectives (Scotland) Act 2000; and in the course of the audit: are not in agreement with the accounting records; or • the sums paid out of the Scottish • the information given in the Performance Performance Consolidated Fund for the purpose of Report for the financial year for which • I have not received all the information and Report meeting the expenditure shown in the the financial statements are prepared is explanations I require for my audit. Performance financial statements were applied in consistent with the financial statements Analysis accordance with section 65 of the and that report has been prepared in I have nothing to report in respect of these Scotland Act 1998. accordance with the Public Finance and matters. Accountability Accountability (Scotland) Act 2000 and Report Responsibilities for regularity directions made thereunder by the Conclusions on wider scope Corporate The Accountable Officer is responsible for Scottish Ministers; and responsibilities Governance ensuring the regularity of expenditure and In addition to my responsibilities for the income. I am responsible for expressing an • the information given in the Governance annual report and accounts, my conclusions opinion on the regularity of expenditure and Statement for the financial year for which on the wider scope responsibilities specified Accountability income in accordance with the Public Finance the financial statements are prepared is in the Code of Audit Practice are set out in Report and Accountability (Scotland) Act 2000. consistent with the financial statements my Annual Audit Report. Remuneration & and that report has been prepared in Staff Report accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers. Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 80 | Accountability Report Remuneration & Staff Report
Title Use of my report
Contents
This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Performance Act 2000 and for no other purpose. In Report accordance with paragraph 120 of the Code Overview of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.
Objectives
Performance Report Performance Analysis
Mark Taylor CPFA Audit Director Audit Scotland Accountability 4th Floor Report 102 West Port Corporate Edinburgh Governance EH3 9DN 20 November 2020 Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 81 | Annual Accounts
Title
Contents
Performance Report Overview
Objectives
Performance Report Performance Analysis
Accountability Report Corporate Governance
Accountability Report Remuneration & Annual Staff Report
Annual Accounts Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 82 | Annual Accounts
Title Transport Scotland Annual Accounts 2019-20
Contents
Statement of Comprehensive 2019-20 2018-19 Net Expenditure for the year £000’s £000’s £000’s £000’s £000’s ended 31 March 2020 Note Staff Costs Other Costs Income Total Total Performance Report Administration costs Overview Staff costs 2 12,082 12,082 10,580 Other administration costs 3 5,526 5,526 5,676 Total administration costs 17,608 16,256
Programme costs Objectives Staff costs 2 11,633 11,633 10,758 Other programme costs 4 2,261,634 2,261,634 1,944,861 Performance Income 5 (9,224) (9,224) (8,733) Report Performance Total programme costs 2,264,043 1,946,886 Analysis Total 23,715 2,267,160 (9,224) 2,281,651 1,963,142 Net operating costs for the year ended 31 March 2020 2,281,651 1,963,142 Accountability Report Corporate Other Comprehensive Note 2019-20 2018-19 Net Expenditure £000’s £000’s Governance Items that will not be reclassified to net operating costs: Net (gain) / loss on: Accountability Report - revaluation of property, plant and equipment 6 (78,888) (645,409) Remuneration & Staff Report - revaluation of intangibles 0 0 (78,888) (645,409) Items that may be reclassified subsequently to net operating costs: Net (gain) / loss on: Annual Accounts - revaluation of assets held for sale 8 0 0 Total comprehensive net expenditure for the year ended 31 March 2020 2,202,763 1,317,733 All income and expenditure is derived from continuing activities.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 83 | Annual Accounts
Title Transport Scotland Annual Accounts 2019-20
Contents
Statement of Financial Position 31 March 31 March as at 31 March 2020 2020 2019 Note £000’s £000’s £000’s £000’s Performance Report Non-current assets Overview Property, plant & equipment 6 21,333,172 21,349,672 Intangible assets 7 6 32 Financial assets 9 327,411 260,060
Other receivables 10 52,552 57,365 Objectives Total non-current assets 21,713,141 21,667,130 Current assets Performance Assets held for sale 8 0 0 Report Performance Financial assets 9 10,341 8,257 Analysis Trade and other receivables 10 51,810 39,694 Cash & cash equivalents 0 0 Accountability Report Total current assets 62,151 47,952 Corporate Total assets 21,775,292 21,715,082 Governance Current liabilities Trade and other payables 11 (230,319) (224,696) Accountability Report Provisions 12 (26,792) (45,360) Remuneration & Total current liabilities (257,111) (270,056) Staff Report Total assets less current liabilities 21,518,181 21,445,025
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 84 | Annual Accounts
Title Transport Scotland Annual Accounts 2019-20
Contents
Statement of Financial Position 31 March 31 March as at 31 March 2020 cont’d... 2020 2019 Note £000’s £000’s £000’s £000’s Performance Report Non-current liabilities Overview Other payables and financial liabilities 11 (1,147,985) (1,201,539) Roy Brannen Chief Executive Provisions 12 (19,631) (23,647) 20 November 2020 Total non-current liabilities (1,167,616) (1,225,186) The notes on pages 89-131 form part of these accounts. Assets less liabilities 20,350,565 20,219,839 Objectives Taxpayers' equity General fund SoCTE 12,111,517 12,001,716 Performance Revaluation reserve SoCTE 8,239,048 8,218,123 Report Performance Total taxpayers' equity 20,350,565 20,219,839 Analysis
Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 85 | Annual Accounts
Title Transport Scotland Annual Accounts 2019-20
Contents
Cash Flow Statement for the year Note 2019-20 2018-19 ended 31 March 2020 £000’s £000’s Performance Report (A) Cash flows from operating activities Overview Net operating cost SoCNE (2,281,651) (1,963,142) Adjustments for non-cash transactions 3/4 100,322 88,974 Decrease / (increase) in trade and other receivables 13 (7,303) (26,682)
Adjustment for the revaluation element of assets held for sale 8 2 0 Objectives Increase / (decrease) in trade and other payables 13 11,631 (25,113) Increase / (decrease) in provisions 13 (22,585) (8,600) Performance Adjustment for interest element of PFI contracts 4 65,816 60,977 Report Performance Net cash outflow from operating activities (2,133,769) (1,873,586) Analysis (B) Cash flows from investing activities Purchase of property, plant and equipment 6 (165,820) (180,209) Accountability Report Disposal of property, plant and equipment 6 1,318 128 Corporate Increase / (decrease) in capital accruals 13 (10,584) 54,530 Governance Voted loans and Other Funds 9 (69,435) (3,248) Net cash outflow from investing activities (244,520) (128,799) Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 86 | Annual Accounts
Title Transport Scotland Annual Accounts 2019-20
Contents
Cash Flow Statement for the year Note 2019-20 2018-19 ended 31 March 2020 cont’d... £000’s £000’s Performance Report (C) Cash flows from financing activities Overview Funding from the Scottish Government SoCTE 2,549,721 2,142,276 Inter Entity transfers SoCTE (56,637) (57,093) Capital element of payments - finance leases and On Balance Sheet 13 (48,978) (21,821) PFI contracts Objectives Interest element of PFI contracts 4 (65,816) (60,977) Net Financing 2,378,290 2,002,385 Performance Net increase / (decrease) in cash and cash equivalents in the period 0 0 Report Cash and cash equivalents at the beginning of the period 0 0 Performance Analysis Cash and cash equivalents at the end of the period 0 0
Accountability Report Corporate Governance
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 87 | Annual Accounts
Title Transport Scotland Annual Accounts 2019-20
Contents
Statement of Changes in Taxpayers’ Note General Revaluation Total Equity for the year ended 31 March 2020 Fund Reserve Reserves £000’s £000’s £000’s Performance Report Balance at 31 March 2018 11,329,833 7,881,705 19,211,538 Overview Changes in taxpayers’ equity for 2018-19 Net gain / (loss) on revaluation of property, plant and 6 0 645,409 645,409 equipment Non-current assets adjustments (44) 0 (44) Objectives Roads trunkings / de-trunkings 6 0 0 0 Roads historic value adjustment 6 240,717 0 240,717 Performance Transfers to Scottish Government 6 0 0 0 Report Realised element of the revaluation reserve 308,991 (308,991) 0 Performance Analysis Inter-Entity transfers (57,093) 0 (57,093) Non-cash charges - auditors remuneration 3 178 0 178 Accountability Net operating costs for the year SoCNE (1,963,142) 0 (1,963,142) Report Total recognised income and expense for 2018-19 (1,470,393) 336,418 (1,133,975) Corporate Governance Funding from Scottish Government 2,142,276 0 2,142,276 Balance at 31 March 2019 12,001,716 8,218,123 20,219,839 Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 88 | Annual Accounts
Title Transport Scotland Annual Accounts 2019-20
Contents
Statement of Changes in Taxpayers’ Note General Revaluation Total Equity for the year ended 31 March 2020 Fund Reserve Reserves cont’d... £000’s £000’s £000’s Performance Report Changes in taxpayers’ equity for 2019-20 Overview Net gain / (loss) on revaluation of property, plant and 6 0 78,888 78,888 equipment Non-current assets adjustments (165) (165) Roads trunkings / de-trunkings 6 (235,254) 0 (235,254) Objectives Roads historic value adjustment 6 75,493 0 75,493 Transfers to Scottish Government 6 0 0 0 Performance Realised element of the revaluation reserve 57,947 (57,798) 149 Report Inter Entity transfers (56,637) 0 (56,637) Performance Analysis Non-cash charges - auditors remuneration 3 182 0 182 Net operating costs for the year SoCNE (2,281,651) 0 (2,281,651) Accountability Total recognised income and expense for 2019-20 (2,439,920) 20,925 (2,418,995) Report Funding from Scottish Government 2,549,721 0 2,549,721 Corporate Governance Balance at 31 March 2020 12,111,517 8,239,048 20,350,565
Accountability Report Remuneration & Staff Report
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 89 | Annual Accounts
Title Notes to the Accounts
Contents 1. Statement of Accounting • IFRS 9 – Financial Instruments. This replaces Work continues on the identification, Policies IAS39, and was applicable for 2018-19. collation and review of information across This standard revises the approach to the all business areas in preparation for Performance valuation of loans and receivables and implementation, and this in itself is Report The accounts have been prepared in Overview compliance with the principles and disclosure focuses on the risk that a loan will default significant. requirements of the Government Financial rather than on whether a loss has been Reporting Manual (FReM). The particular incurred. It requires a single classification • Amendments to IAS 1, ‘Presentation of accounting policies applied by Transport and measurement methodology and financial statements’, and IAS 8, ‘Accounting Scotland are described in this section. provision for losses on a risk assessed policies, changes in accounting estimates The accounts are prepared using, where basis. Amendments to IFRS 9 during 2019, and errors’. The amendments clarify the Objectives necessary, estimation techniques which effective from 1 January 2020, referred meaning of materiality and the definition are selected as the most appropriate for to specific prepayment features, which of users of financial information. This has the purpose of giving a true and fair view allowed more assets to be measured at been reviewed and will have minimal Performance Report in accordance with the principles set out amortised cost than previously, in particular impact for Transport Scotland. some prepayable financial assets. This Performance in International Accounting Standard 8. Analysis Changes in accounting policies which do amendment has been evaluated and has • Other Standards issued, not yet effective, not give rise to a prior year adjustment are minimal impact on Transport Scotland. include IFRS17 (effective for accounting periods after 1 January 2021). This is reported in the relevant note. There is the Accountability • IFRS 16 – Leases. This replaces IAS 17. The currently being reviewed and the impact possibility that there may be outcomes within Report the next financial year that differ from those implementation of this standard has been considered, although it is anticipated Corporate made this year and consequently these may deferred for central government bodies that it will have minimal relevance to Governance require a material adjustment to the carrying and will therefore be applicable to Transport Transport Scotland. amount of an affected asset or liability. Scotland for 2021-22. The impact of this is anticipated to eliminate accounting for Accountability 1.1 Accounting Convention operating leases, and recognise the value Report of all leased and other ‘right of use’ assets Remuneration & The accounts have been prepared under Staff Report the historical cost convention, modified by specified to operators, in contracts for the the revaluation of non-current assets and provision of services in the Statement of intangible assets to fair value. New or Financial Position. The impact on Transport amended accounting standards that are Scotland Accounts is expected to relate to considered relevant and their anticipated the potential value of assets that require Annual impact on the accounts are as follows: to be accounted for in terms of right to use. Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 90 | Annual Accounts
Title Notes to the Accounts
Contents
1.2 Trunkings / Detrunkings Expenditure that does not replace or Valuation The accounts reflect ownership and enhance service potential will be Land is held at current market values, as responsibility to maintain the trunk road expensed as a charge to the Statement assessed by the Valuation Office Agency Performance network. Transfers of the responsibility for of Comprehensive Net Expenditure. (VOA). Revaluation exercises are carried out Report maintaining sections of the trunk road Where a scheme is subsequently cancelled on buildings and dwellings as part of the Overview network to/from the Local Authority network the capital costs are written off to the Scottish Government five year rolling are referred to as ‘de-trunkings’ or ‘trunkings’ Statement of Comprehensive Net programme, with indexation applied in the respectively and are treated as transfers to/ Expenditure. Any retained land or building intervening years. from other Government Departments at nil assets are transferred to the land and consideration through the General Fund. buildings category where it is not currently Other items of property, plant and equipment Objectives possible to market them for sale or to are held at current value in existing use. 1.3 Property, Plant and Equipment (PPE) Assets Held for Sale where they are being These assets have not been re-valued from All PPE assets will be accounted for as marketed for sale. their depreciated historic cost or valuation at Performance non-current assets unless they are deemed 1 April 2007, as the movement in their Report to be held-for-sale (see 1.6). Title to the Other non-current assets are capitalised relevant indices since then was considered to Performance freehold land and buildings shown in the where expenditure exceeds the following be negligible and the economic lives of the Analysis accounts of Transport Scotland is held by thresholds: assets so short that the impact of any Scottish Ministers. adjustment was not considered significant. Accountability Land & Buildings £10,000 Report 1.4 Capitalisation Policy Infrastructure Assets - the road network Leasehold Improvements £10,000 Corporate The trunk road network is recognised as a The road network is held at its depreciated Governance single infrastructure asset in accordance with Information & Communication £25,000 replacement cost based on service potential FReM, as a variation of IFRS16. However it Technology (ICT) and classed as a specialist asset for which a comprises four distinct elements that are Plant & Machinery £5,000 market valuation is not available. Land is Accountability accounted for differently: Land; Road Transport £5,000 valued at rates supplied by the VOA. Report Pavement; Structures; and Communications. Remuneration & Subsequent expenditure is capitalised where Items falling below these limits are charged The road pavement, structures and Staff Report it adds to the service potential or replaces as an expense and shown in the Statement of communications elements are valued using the existing elements of assets that were Comprehensive Net Expenditure. Furniture agreed rates determined to identify the gross previously identified in the Road Authorities and fittings are not capitalised unless part of replacement cost of applicable types of road, Asset Valuation System (RAAVS). a specially identified project, such as a major structure or communications on the basis of Annual relocation exercise. new construction on a greenfield site. Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 91 | Annual Accounts
Title Notes to the Accounts
Contents
These rates are re-valued annually using The indexation factors applied are: Assets Under Construction indices to reflect current prices and are also Road building schemes in the course of updated when new construction costs Road Pavement Baxter Index, published construction are capitalised at actual cost Performance become available as comparators to the and Structures quarterly by the Department for with no indexation. Report costs previously identified for specific road Business, Innovation and Skills, Overview types. However special structures, which now merged with the Land and Buildings Department of Energy and tend to be one off by their nature, are valued Climate Change to form the Land and buildings released from road using specific costs that are updated to Department for Business, schemes deemed surplus to requirements current prices. Energy and Industrial Strategy are transferred to, and accounted for as, (BEIS). Assets Held For Sale (see Note 1.6). Objectives Depreciation is accounted for in respect of Communications Traffic Scotland provide new the road pavement by reference to the gross and calculated Information Technology service potential assessed by condition depreciated values each year. Information technology assets are stated at Performance surveys that are carried out over the whole Land Indices produced by VOA. historical cost with no indexation applied. Report network as part of a rolling programme that Performance covers every section of road at least every Upwards movements in value are taken Analysis five years. The Structures and to the revaluation reserve. Downward Communications elements are depreciated movements in value are set off against Accountability using the straight-line method applied to the any credit balance held in the revaluation Report re-valued replacement costs, and also reserve until the credit is exhausted and Corporate inspected every five years to identify any thereafter expensed in the Statement of Governance other changes. Land is not depreciated. Comprehensive Net Expenditure. Historic valuation adjustments in respect of minor corrections to prior year measurements Accountability and valuations of the road network are Report separately identified in the Statement of Remuneration & Changes in Taxpayers’ Equity and Property Staff Report Plant and Equipment note and not treated as prior year adjustments.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 92 | Annual Accounts
Title Notes to the Accounts
Contents
1.5 Depreciation Non-Infrastructure Assets Assets held for sale are those we expect to Infrastructure assets - the road network With the exception of surplus land and sell within one year. Assets classified as held Roads and associated street furniture are properties awaiting sale, non-infrastructure for sale are measured at the lower of their Performance surveyed over a five year rolling period to assets are depreciated on a straight line carrying amounts and their fair value less Report assess their estimated remaining useful lives basis over the expected life of the particular cost of sale. Assets classified as held for Overview and the resultant assessment is used to asset category as follows: sale are not subject to depreciation or determine their valuation, with any changes amortisation. reflected as a condition variance. The Life in years variance is valued according to the rates 1.7 Intangible Non-Current Assets Freehold buildings 5 to 100 applied to the respective sections of road. Intangible non-current assets are capitalised Objectives The useful economic lives of elements of Leasehold buildings Shorter of length of lease where expenditure of £25,000 or more is the road valuation are assessed according or specific asset life incurred in acquiring them. These are valued to the following design lives: IT Equipment 3 to 10 at historic cost and amortised on a straight Performance Plant and Machinery 5 line basis over the expected life of the asset. Report Life in years Performance 1.8 Financial Assets Analysis Road surface, sub-pavement layer, 20 to 50 1.6 Assets Held For Sale fencing, drainage and lighting A property is derecognised and held for Loans, trade receivables and accrued income are accounted for in accordance with IFRS 9. sale when: Accountability Road bridges, tunnels and 20 to 120 These financial assets were previously underpasses Report • it is available for immediate sale; categorised as loans and receivables under Corporate Culverts, retaining walls and 20 to 120 IAS 39 and have been categorised as financial gantries Governance • a plan is in place, supported by assets held at amortised cost under IFRS 9. Road communications assets 15 to 50 management, and steps have been taken to conclude the sale; and Loans and receivables are recognised Accountability The annual depreciation charge for the initially at fair value, plus transaction costs. Report road surface is determined by the annual • it is actively marketed and there is Fair value is usually the contractual value Remuneration & condition variance. an expectation that the sale will be of the transaction. Thereafter, loans and Staff Report made in less than 12 months. receivables are held at amortised cost in Structures and communications assets accordance with IFRS 9 where we aim to hold are depreciated on a straight line basis them to collect the cash flows and where the over the expected useful lives above. cash flows are solely payments of principal Annual and interest on the outstanding principal. Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 93 | Annual Accounts
Title Notes to the Accounts
Contents
Where material and not specifically excluded As all financial assets previously categorised They are derecognised when all obligations by the FReM, credit loss allowances are as available-for-sale financial assets have are settled. recognised. Credit loss allowances for trade been re-categorised as equity instruments Performance receivables and similar arrangements are held at fair value through other 1.11 Private Finance Transactions Report measured at the lifetime expected credit loss. comprehensive net expenditure. (PFI/PPP/NPD) Overview Credit loss allowances for formal loans are Measurement at fair value may require the Private finance transactions that meet the measured at the twelve-month expected use of accounting estimates and so may give definition of service concession credit loss. We have provided for anticipated rise to estimation uncertainty. In valuing arrangements are accounted for in credit losses in respect of those loans where instruments for which there is no active accordance with IPSAS 32. We have five such there is evidence to indicate that we may not market, we have used estimation techniques arrangements, three PFI schemes and two Objectives be able to recover the full value of their which reflect, so far as practicable, those that Non Profit Distributing (NPD) schemes (see amortised cost and deducted these values would be used by market participants, Note 16 for more details). The private sector from the carrying amounts as required under making maximum use of observable inputs. operator is contractually obliged to provide Performance IFRS 9. the services related to the infrastructure that Report Shareholdings are de-recognised when our they construct, which is recognised as a Performance Loans and receivables are only derecognised rights to receive cash flows expire or have non-current asset. The unitary charge Analysis under the following circumstances: when the been transferred, provided that the transfer payments comprise service charges, rights to the cash flows expire; when the transaction also transfers substantially all of repayment of capital and interest and are Accountability assets have been transferred; or when the the risks and rewards of ownership and accounted for as such. Report assets have been written off because there control of the financial asset. Corporate is no reasonable expectation of recovering 1.12 Leases Governance them. During the year we have not 1.10 Trade and Other Payables At their inception, leases are classified as derecognised any loans and receivables. These are financial liabilities other than those operating or finance leases, based on the classified as held at fair value through Net allocation of the risks and rewards of Accountability 1.9 Investment in Equities Operating Expenditure and those classified ownership of the underlying assets. Land and Report Investments in entities that are not classified as financial guarantee contracts. buildings elements are separately accounted Remuneration & to central government are financial for where applicable. Arrangements whose Staff Report instruments within the scope of IFRS 9. They They are valued at fair value, with the fulfilment is dependent on the use of a are all classified as equity instruments held at transaction value regarded as the fair value specific asset or which convey a right to fair value through other comprehensive net at the date of initial recognition. Thereafter, use an asset, are assessed at their inception expenditure (IFRS 9) and available-for-sale where the time value of money is considered to determine if they contain a lease. If an Annual financial assets (IAS 39). to be material, they are held at amortised arrangement is found to contain a lease, Accounts cost using the effective interest rate to that lease is then classified as an operating discount future cash flows. or finance lease.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 94 | Annual Accounts
Title Notes to the Accounts
Contents
Rentals under operating leases are charged 1.14 Other Infrastructure Expenditure Programme costs reflect the costs of to the Statement of Comprehensive Net Other infrastructure expenditure is operating, maintaining, managing and Expenditure. Where the arrangement differentiated between capital and resource improving the road, rail, aviation and Performance includes incentives, such as rent-free periods, for budgeting purposes. However only the maritime infrastructure for which we have Report the value is recognised over the lease term. expenditure that is capital in nature that responsibility as well as those incurred in Overview Where the substantial risks and rewards of relates to assets reflected in these accounts delivering transport policies, such as ownership are borne by the Agency, the is capitalised with that which relates to assets concessionary fares, and grants and asset is recorded as property, plant and reflected by external bodies charged as subsidies to contribute to the provision of equipment and a liability to the lessor is expenditure. Such expenditure includes rail, bus, ferry and air services. The allocation recorded of the minimum lease payments Network Rail grant and Fixed Track Access of costs between administration and Objectives discounted by the interest rate implicit in the and Regulated Asset Base charges. programme has been reviewed in year, lease. The interest element of the finance together with the re-structure of Transport lease payment is charged to the Statement 1.15 Operating Income Scotland Directorates. This has resulted in Performance of Comprehensive Net Expenditure over the Operating income relates to operating a reallocation of staff costs and a Report period of the lease. activities and principally comprises fees and consequential reduction in expenditure Performance charges for services provided on a full-cost classed as administration. Analysis The treatment of Leases will be impacted basis to external customers in both the public in future years by the applicability, from and private sectors. It includes not only 1.17 Grants Payable Accountability 2021-22, of IFRS16. income retained but also income due to the Grants payable are recorded as expenditure Report Consolidated Fund. Operating income is in the period that the underlying activity Corporate 1.13 Provisions stated net of VAT. giving entitlement to the grant occurs. Governance Legal and constructive obligations that are Where necessary, obligations in respect of of uncertain timing or amount are provided 1.16 Administration and Programme grant schemes are recognised as liabilities. for in the Statement of Financial Position at Expenditure Accountability 31 March on the basis of the best estimate The Statement of Comprehensive Net Report available. These are accounted for under Expenditure is analysed between Remuneration & IAS37. Provisions are charged to the administration and programme. Staff Report Statement of Comprehensive Net Administration costs reflect the costs Expenditure unless they will be capitalised of running the Agency and include staff as part of additions to non-current assets. costs as well as accommodation, services Major projects provisions relates to and supplies. Annual compensation claims made in respect of Accounts work done under the projects that have not yet been fully settled.
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 95 | Annual Accounts
Title Notes to the Accounts
Contents
1.18 Pensions 1.20 VAT 1.23 Critical Accounting Estimates Past and present employees are mainly Irrecoverable VAT is charged to the relevant Critical accounting estimates are used in covered by the provisions of the Principal expenditure category or included in the the calculation of the valuations for the road Performance Civil Service Pension Scheme (PCSPS) and capitalised purchase cost of non-current network, for the recognition and valuation Report the Civil Servants and Others Pension assets. Transport Scotland is part of the of provisions, for the outstanding claims Overview Scheme, or Alpha Scheme, more details Scottish Government VAT registration and under the Concessionary Travel Scheme of which can be found in Note 2. The PCSPS any outstanding VAT balances are accounted and for the valuation of assets and liabilities is an unfunded multi-employer defined for by the Scottish Government. under Private Finance arrangements. These benefit scheme. Transport Scotland’s are detailed in the section on Significant contributions are recognised as a cost in 1.21 Segmental Reporting Accounting Policies contained within the Objectives the year. The Alpha Scheme provides Segmental reporting identifies components Performance Report. benefits on a career average basis with of expenditure that are regularly reviewed a normal pension age equal to the member’s by the Senior Management Team in order There is a possibility that the valuation of Performance State Pension Age (or 65 if higher). to manage financial performance. land, including the element that forms part Report of the trunk road valuation, may have varied Performance 1.19 Contingent Liabilities 1.22 Employee Benefits as a result of the impact of COVID-19 but it is Analysis Contingent Liabilities are disclosed in A short term liability and expense is not possible to apply any estimates to that, respect of: recognised for leave entitlement, bonuses as it is likely to vary in relation to the location Accountability and other short-term benefits when of the land. Report • possible obligations arising from past employees render service that increases Corporate events whose existence will be confirmed their entitlement to these benefits. As a Governance by the occurrence of uncertain future result an accrual has been made for leave events out with Transport Scotland’s earned but not taken. control; or Accountability Report • present obligations arising from past events Remuneration & where it is not likely that resources will be Staff Report required to settle the obligation or it is not possible to measure it reliably.
Annual Accounts
Transport Scotland Annual Report & Accounts For the year ended 31 March 2020 Annex 96 | Annual Accounts
Title Notes to the Accounts
Contents 2. Staff Numbers and Costs Staff costs comprise
The costs of staff employed on the design, 2019-20 2018-19 Performance procurement and management of capital Permanently Permanently Report Employed Employed Overview projects undertaken by Transport Scotland Staff Others Total Staff Others Total have been charged to capital expenditure in £000’s £000’s £000’s £000’s £000’s £000’s respect of the projects identified in the year. Administration: These have been identified in the table overleaf along with prior year figures to Wages and salaries costs 8,486 556 9,042 7,649 579 8,228 reflect costs similarly capitalised in that year. Social security costs 860 0 860 786 0 786 Objectives These costs are included with the project costs in Note 4. The cost of early retirements Other pension costs 2,154 0 2,154 1,525 0 1,525 in the table on the right, include the costs in Early retirement costs 26 0 26 41 0 41 Performance year and also continuing payments in relation Report to previous years packages. 11,526 556 12,082 10,001 579 10,580 Performance Analysis Programme: Wages and salaries costs 7,888 720 8,608 7,788 441 8,229 Accountability Social security costs 893 0 893 886 0 886 Report Other pension costs 2,132 0 2,132 1,643 0 1,643 Corporate Governance 10,913 720 11,633 10,317 441 10,758 Total staff costs to be 22,439 1,276 23,715 20,318 1,020 21,338 charged to Comprehensive Accountability Net Expenditure Report Remuneration & Staff Report
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Permanent employed staff are civil servants Staff costs comprise cont’d... who have an employment contract with Transport Scotland, others are agency staff. 2019-20 2018-19 Performance Permanently Permanently Report Wages and salaries include gross salaries, Employed Employed Overview performance pay or bonuses received in Staff Others Total Staff Others Total £000’s £000’s £000’s £000’s £000’s £000’s year, overtime, recruitment and retention allowances, private office allowances, Capitalised Programme: ex-gratia payments and any other allowances Wages and salaries costs 2,971 59 3,030 2,557 34 2,591 to the extent that it is subject to UK taxation. Objectives The payment of legitimate expenses is not Social security costs 261 0 261 262 0 262 part of salary. Other pension costs 658 0 658 515 0 515 3,890 59 3,949 3,334 34 3,368 Performance Report Total staff costs charged 3,890 59 3,949 3,334 34 3,368 Performance to capital expenditure Analysis
Total Staff Costs 26,329 1,335 27,664 23,652 1,054 24,706 Accountability Report Corporate Governance
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Pension Costs These statutory arrangements are unfunded Employee contributions are salary-related The Principal Civil Service Pension Scheme with the cost of benefits met by monies and range between 4.6% and 8.05% for (PCSPS) is an unfunded multi-employer voted by Parliament each year. Pensions members of classic, premium, classic plus, Performance defined benefit scheme and as a result payable under classic, premium, classic nuvos and alpha. Benefits in classic accrue Report Transport Scotland is unable to identify its plus, nuvos and alpha are increased at the rate of 1/80th of final pensionable Overview share of the underlying liabilities. The scheme annually in line with Pensions Increase earnings for each year of service. In addition, is therefore accounted for as a defined legislation. Existing members of the PCSPS a lump sum equivalent to three years initial contribution scheme. The scheme Actuary who were within 10 years of their normal pension is payable on retirement. For valued the scheme liabilities at 31 March pension age on 1 April 2012 remained in premium, benefits accrue at the rate of 2012. Details can be found in the resource the PCSPS after 1 April 2015. Those who 1/60th of final pensionable earnings for each Objectives accounts of the Cabinet Office at www. were between 10 years and 13 years and year of service. Unlike classic, there is no civilservicepensionscheme.org.uk. 5 months from their normal pension age on automatic lump sum. Classic plus is 1 April 2012 will switch into alpha sometime essentially a hybrid with benefits for service Performance Pension benefits are provided through the between 1 June 2015 and 1 February 2022. before 1 October 2002 calculated broadly as Report Civil Service pension arrangements. From 1 All members who switch to alpha have their per classic and benefits for service from Performance April 2015 a new pension scheme for civil PCSPS benefits ‘banked’, with those with October 2002 worked out as in premium. Analysis servants was introduced – the Civil Servants earlier benefits in one of the final salary In nuvos a member builds up a pension and Others Pension Scheme or alpha, which sections of the PCSPS having those benefits based on his pensionable earnings during Accountability provides benefits on a career average basis based on their final salary when they leave their period of scheme membership. At the Report with a normal pension age equal to the alpha. (The pension figures quoted for end of the scheme year (31 March) the Corporate member’s State Pension Age (or 65 if higher). officials show pension earned in PCSPS or member’s earned pension account is credited Governance From that date all newly appointed civil alpha – as appropriate. Where the official with 2.3% of their pensionable earnings in servants and the majority of those already in has benefits in both the PCSPS and alpha that scheme year and the accrued pension service joined alpha. Prior to that date, civil the figure quoted is the combined value of is uprated in line with Pensions Increase Accountability servants participated in the Principal Civil their benefits in the two schemes.) Members legislation. Benefits in alpha build up in a Report Service Pension Scheme (PCSPS). The PCSPS joining from October 2002 may opt for either similar way to nuvos, except that the accrual Remuneration & has four sections: 3 providing benefits on a the appropriate defined benefit arrangement rate is 2.32%. In all cases members may opt Staff Report final salary basis (classic, premium or or a ‘money purchase’ stakeholder pension to give up (commute) pension for a lump sum classic plus) with a normal pension age of with an employer contribution (partnership up to the limits set by the Finance Act 2004. 60; and one providing benefits on a whole pension account). career basis (nuvos) with a normal pension Annual age of 65. Accounts
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The partnership pension account is a Further details about the Civil Service pension For 2019-20, employers’ contributions of stakeholder pension arrangement. The arrangements can be found at the website £4,944k (2018-19, £3,683k) were payable to employer makes a basic contribution of www.civilservicepensionscheme.org.uk the PCSPS at one of four rates in the range Performance between 8% and 14.75% (depending on the 26.6% to 30.3% of pensionable pay, based on Report age of the member) into a stakeholder New career average pension arrangements salary bands. The scheme Actuary reviews Overview pension product chosen by the employee were introduced on 1 April 2015 and the employer contributions every four years from a panel of providers. The employee majority of Classic, Premium, Classic Plus following a full scheme valuation. does not have to contribute, but where they and Nuvos members joined the new do make contributions, the employer will scheme. Further details of this new The contribution rates are set to meet the match these up to a limit of 3% of scheme are available at http://www. cost of the benefits accruing during 2019-20 Objectives pensionable salary (in addition to the civilservicepensionscheme.org.uk/ to be paid when the member retires, and employer’s basic contribution). Employers members/the-new-pension-scheme- not the benefits paid during this period to also contribute a further 0.5% of pensionable alpha existing pensioners. Performance salary to cover the cost of centrally-provided Report risk benefit cover (death in service and ill Average numbers of persons employed Performance health retirement). Analysis 2019-20 2018-19 The accrued pension quoted is the pension Permanent Permanent Staff Others Total Staff Others Total Accountability the member is entitled to receive when they Report reach pension age, or immediately on Aviation, Maritime, Freight & 34 1 35 33 1 34 Canals Corporate ceasing to be an active member of the Governance scheme if they are already at or over pension Bus,Accessibility and Active 63 3 66 64 1 65 age. Pension age is 60 for members of Travel classic, premium and classic plus, 65 for Finance and Other (CEO) 52 2 54 49 5 54 Accountability members of nuvos, and the higher of 65 or Report Low Carbon Economy 19 7 26 14 1 15 State Pension Age for members of alpha Remuneration & (The pension figures quoted for officials show Major Projects 63 6 69 63 5 68 Staff Report pension earned in PCSPS or alpha – as Rail 70 2 72 60 2 61 appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted Roads 97 7 104 97 9 106 is the combined value of their benefits in the Transport Strategy & Analysis 52 2 54 37 2 40 Annual two schemes, but note that part of that Accounts pension may be payable from different ages). Total average staff numbers 450 30 480 417 26 443
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3. Other Administration Costs Note 2019-20 2018-19 £000’s £000’s Performance Rentals under operating leases 1,052 1,056 Report Accommodation 1,287 1,479 Overview Office costs and supplies 1,475 1,338 Hospitality 46 59 Travel 484 469 Objectives Training 93 72 Consultancy 154 275 Performance Non-cash items Report Depreciation 6/7 753 750 Performance Analysis Auditors' remuneration and expenses – external 22 182 178 Total administration costs 5,526 5,676 Accountability Report Corporate Governance
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4. Programme Costs Other programme expenditure Note 2019-20 2018-19 £000’s £000’s Roads Performance Report Capital maintenance 184,372 108,959 Overview Current maintenance 123,882 130,028 Other 0 0 PFI interest charges 65,816 60,977 PFI service charges 55,674 60,583 Rail Objectives ScotRail franchise* 476,934 415,379 Rail infrastructure in Scotland** 353,706 338,957 Performance Other 1,353 2,101 Report Concessionary travel Performance Analysis Smartcard applications 3,767 2,102 Concessionary travel schemes 218,705 204,922 Other public transport Accountability Major public transport projects - rail*** 161,937 (104) Report Corporate Transport information 769 771 Governance Ferry services in Scotland 221,539 203,333 Air services in Scotland 59,239 78,052 Accountability Bus services in Scotland 52,210 55,566 Report Other transport directorate programmes 95,329 114,840 Remuneration & Low Carbon and Active Travel 44,877 43,477 Staff Report Central Government grants to Local Authorities 42,138 36,712 Non-cash items Depreciation 6/7 99,387 88,206 Total other programme costs 2,261,634 1,944,861 Annual Accounts * Payments to Abellio (£463m including Fixed Track Access Charges of £297m) and Serco (£13m) totalled £476m. ** The Rail Infrastructure in Scotland Capital Figure of £353m was paid directly to Network Rail. *** The significant variance within Major Projectsis due to the change in the funding arrangements for Network Rail, with most of the funding previously provided under the RAB funding mechanism. This now reflects the Grant for Enhancements. The prior year negative number represents unpaid accruals against other specific projects that were previously directly funded.
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5. Operating Income 2019-20 2018-19 £000’s £000’s Operating income principally arises from: Performance Report Programme income Overview • interest receivable from loans to Caledonian Interest receivable - loans (6,571) (7,230) Maritime Assets Limited (CMAL); Rental income - land & properties (9) (11) • rental income from land and properties Other income (77) (76) acquired for road schemes and now surplus to requirements; European Structural Fund (ESF) income (1,989) (1,295) Objectives Ports income 0 0 • sale of land and property which is surplus to the requirements of the road or rail scheme; Land sales 0 0 Performance Profit on disposal of land (578) (121) Report • ESF funding. Performance Borders roof tax income 0 0 Analysis Total operating income (9,224) (8,733) Accountability Report Corporate Governance
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Contents 6. Property Plant Detrunkings reflect the transfer of road Atkins (RICS Regulated) carry out an annual and Equipment assets to Local Authority control, with the valuation of the trunk road network. corresponding entry in the General Fund Performance (SoCTE). Transfers and reclassifications Revaluation is based on Baxter’s indexation Report include roads and associated land and for all road network assets with the exception Overview buildings, which have transferred from of land. Land is valued at market rates based Local Authority control as a result of the on information supplied by the Valuation trunking of those particular sections of Office Agency. All revaluation movement is the road network. reflected through the revaluation reserve (SoCTE). Objectives
2019-20 Road Leasehold Assets under Performance Network Land Buildings Transport IT Improvements Construction Total Report £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s Performance Analysis Cost or Valuation At 1 April 2019 24,893,650 7,788 12,157 104 4,609 1,507 789,649 25,709,464 Accountability Detrunkings (268,098) 0 0 0 0 0 0 (268,098) Report Additions 7,866 0 0 0 0 0 157,954 165,820 Corporate Governance Disposals 0 (1,449) 0 (20) 0 0 0 (1,469) Revaluation 96,821 302 (1,270) 0 0 0 0 95,854 Accountability Current valuation adjustments 0 0 0 0 0 0 0 0 Report Historic valuation adjustments 86,491 0 0 0 0 0 0 86,491 Remuneration & Staff Report Transfers and reclassifications 480,065 0 0 0 0 0 (479,958) 108 Transfers (to)/from assets held for sale 0 (75) 0 0 0 0 0 (75) Balance at 31 March 2020 25,296,796 6,566 10,887 84 4,609 1,507 467,645 25,788,095 Annual Accounts
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6. Property Plant and Equipment cont’d...
2019-20 Road Leasehold Assets under Performance Network Land Buildings Transport IT Improvements Construction Total Report £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s Overview Depreciation At 1 April 2019 4,349,418 0 4,269 45 4,606 1,454 0 4,359,792 Detrunkings (32,844) 0 0 0 0 0 0 (32,844) Charge for the year 99,361 0 628 15 2 26 0 100,031 Objectives Disposals 0 0 0 (20) 0 0 0 (20) Revaluation 18,343 0 (1,376) 0 0 0 0 16,966 Performance Report Current valuation adjustments 0 0 0 0 0 0 0 0 Performance Historic valuation adjustments 10,998 0 0 0 0 0 0 10,998 Analysis Transfers and reclassifications 0 0 0 0 0 0 0 0 Balance at 31 March 2020 4,445,275 0 3,520 40 4,608 1,480 0 4,454,923 Accountability Report Net Book Value at 31 March 2020 20,851,521 6,566 7,367 44 1 27 467,645 21,333,172 Corporate Net Book Value at 31 March 2019 20,544,232 7,788 7,888 59 3 53 789,649 21,349,672 Governance Asset Financing Owned 17,867,157 6,566 7,285 44 1 0 467,645 18,348,699 Accountability Report Finance Leased 0 0 0 0 0 0 0 0 Remuneration & Staff Report On Balance Sheet PFI 2,984,364 0 0 0 0 0 0 2,984,364 Donated 0 0 82 0 0 27 0 109 Net Book Value at 31 March 2020 20,851,521 6,566 7,367 44 1 27 467,645 21,333,172 Annual Accounts
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6. Property Plant and Equipment cont’d...
2018-19 Road Leasehold Assets under Performance Network Land Buildings Transport IT Improvements Construction Total Report £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s Overview Cost or Valuation At 1 April 2018 23,484,643 7,720 11,472 135 4,609 1,507 962,522 24,472,608 Detrunkings 0 0 0 0 0 0 0 0 Additions 5,332 0 0 0 0 0 174,877 180,209 Objectives Disposals 0 (115) 0 (31) 0 0 0 (146) Revaluation 809,819 23 685 0 0 0 0 810,527 Performance Report Current valuation adjustments 0 0 0 0 0 0 0 0 Performance Historic valuation adjustments 246,266 0 0 0 0 0 0 246,266 Analysis Transfers and reclassifications 347,750 0 0 0 0 0 (347,750) 0 Transfers (to) / from assets held for sale 0 0 0 0 0 0 0 0 Accountability Report Balances at 31 March 2019 24,893,810 7,628 12,157 104 4,609 1,507 789,649 25,709,464 Corporate Governance
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6. Property Plant and Equipment cont’d...
2018-19 Road Leasehold Assets under Performance Network Land Buildings Transport IT Improvements Construction Total Report £000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s Overview Depreciation At 1 April 2018 4,090,264 0 3,972 61 4,604 1,427 0 4,100,328 Detrunkings 0 0 0 0 0 0 0 0 Charge for the year 88,179 0 605 15 2 27 0 88,828 Objectives Disposals 0 0 0 (31) 0 0 0 (31) Revaluation 165,426 0 (308) 0 0 0 0 165,118 Performance Report Current valuation adjustments 0 0 0 0 0 0 0 0 Performance Historic valuation adjustments 5,549 0 0 0 0 0 0 5,549 Analysis Transfers and reclassifications 0 0 0 0 0 0 0 0 Balances at 31 March 2019 4,349,418 0 4,269 45 4,606 1,454 0 4,359,792 Accountability Report Net Book Value at 31 March 2019 20,544,392 7,628 7,888 59 3 53 789,649 21,349,672 Corporate Net Book Value at 31 March 2018 19,394,379 7,720 7,500 74 5 80 962,522 20,372,280 Governance Asset Financing Owned 17,643,025 7,628 7,785 59 3 0 390,194 18,048,694 Accountability Report Finance Leased 0 0 0 0 0 0 0 0 Remuneration & Staff Report On Balance Sheet PFI 2,901,367 0 0 0 0 0 399,455 3,300,822 Donated 0 0 103 0 0 53 0 156 Net Book Value at 31 March 2019 20,544,392 7,628 7,888 59 3 53 789,649 21,349,672 Annual Accounts
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7. Intangible Assets 2019-20 2018-19 £000’s £000’s Performance Purchased computer software licences are At replacement cost or valuation capitalised as intangible non-current assets Report Overview where expenditure of £25,000 or more is At 1 April 554 554 incurred. These are valued at historic cost Additions 0 0 and amortised on a straight line basis over the expected life of the asset. Disposals 0 0 Balance at 31 March 554 554 Objectives Accumulated amortisation At 1 April 522 495 Performance Charge for the year 26 27 Report Revaluations 0 0 Performance Analysis Disposals 0 0 Balance at 31 March 548 522 Accountability Net Book Value at 31 March 6 32 Report Corporate Governance
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8. Assets Classified 2019-20 2018-19 as Held for Sale £000’s £000’s Performance Balance at 1 April 0 0 Report There were three assets held for sale by Overview Transport Scotland in 2019-20. Assets Transfers to non-current assets 0 0 classified as held for sale are measured Transfers from non-current assets 75 0 at the lower of their carrying amount Disposals (77) 0 immediately prior to their classification as held for sale and their fair value less Change arising on revaluation 2 0 Objectives costs to sell. Assets held for sale are not Balance at 31 March 0 0 subject to depreciation or amortisation.
The change arising on revaluation was a Performance Report timing issue due to the sale of one asset and Performance the application of indexation overlapping. Analysis
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9. Financial Assets Interests in Nationalised Investments in entities that are not classified Industries Performance & Limited Voted to central government are financial Report Companies Loans Other Funds Total Overview instruments within the scope of IFRS9. 2019-20 £000’s £000’s £000’s £000’s (See Note 1.9). Balance at 1 April 2019 20,550 194,090 45,420 260,060 As at 31 March Scottish Ministers, Add element reported within current assets 0 7,672 585 8,257 represented by Transport Scotland, are the Advances and repayments sole shareholder in Caledonian Maritime Objectives Assets Ltd, David MacBrayne Ltd, Highlands Cash advances 0 37,957 45,166 83,123 and Islands Airports Ltd and TS Prestwick Repayments 0 (8,212) (1,173) (9,385) HoldCo Ltd. Scottish Ministers hold the Performance following share investments: Less Report Performance Impairments/ Write-offs 0 0 (4,303) (4,303) Analysis Caledonian Maritime 1,500,000 ordinary Balance at 31 March 2020 20,550 231,507 85,695 337,752 Assets Ltd shares of £10 each David MacBrayne Ltd 5,500,002 ordinary Loans repayable within 12 months transferred to 0 (8,772) (1,569) (10,341) Accountability shares of £1 each current assets Report Highlands and Islands 50,000 ordinary shares Balance at 31 March 2020 20,550 222,735 84,126 327,411 Corporate Airports Ltd of £1 each Governance TS Prestwick Holdco Ltd 1 ordinary share of £1 Accountability These organisations are operated and Report managed independently of the Scottish Remuneration & Government, and do not fall within the Staff Report Departmental Accounting boundary. The companies all publish an annual report and accounts. The net assets and results of the above bodies are summarised on page 111. Annual Accounts
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9. Financial Assets cont’d... Interests in Nationalised Industries Performance & Limited Voted Report Companies Loans Other Funds Total Overview 2018-19 £000’s £000’s £000’s £000’s Balance at 1 April 2018 20,550 184,178 56,144 260,872 Add element reported within current assets 0 3,900 297 4,197 Advances and repayments Objectives Cash advances 0 19,492 19,761 39,253 Repayments 0 (5,808) (297) (6,105) Performance Less Report Performance Impairments/ Write-offs 0 0 (29,900) (29,900) Analysis Balance at 31 March 2019 20,550 201,762 46,005 268,317
Loans repayable within 12 months transferred to 0 (7,672) (585) (8,257) Accountability current assets Report Balance at 31 March 2019 20,550 194,090 45,420 260,060 Corporate Governance
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TS Prestwick Highlands & Caledonian David David MacBrayne Limited HoldCo Ltd Islands Maritime MacBrayne Scottish Ministers are the sole shareholder Airports Ltd Assets Ltd Ltd in David MacBrayne Ltd, which became the Performance £m £m £m £m holding company for CalMac Ferries Ltd Report Net assets / (liabilities) as at 31 March (28.9) (29.1) 56.6 23.5 following the restructuring in 2006. CalMac Overview Ferries Ltd provides the Clyde & Hebrides Turnover 35.9 24.3 48.8 224.0 Ferry Services under a subsidised public Profit / (loss) for the financial year 5.4 (3.9) 7.6 1.4 service contract with Scottish Ministers.
All results are draft and subject to audit with TS Prestwick HoldCo Limited Objectives final accounts yet to be published. Scottish Ministers are the sole shareholder in TS Prestwick Holdco Ltd, which became Highlands and Islands Airports Limited Caledonian Maritime Assets Limited the holding company of Glasgow Prestwick Performance (HIAL) (CMAL) Airport in 2013 purchased through Transport Report Scottish Ministers are the sole shareholder in Scottish Ministers are the sole shareholder Scotland. Transport Scotland advanced Performance HIAL. The company’s purpose is to maintain in Caledonian MacBrayne Ltd, which became loan funding to the Group to cover the cash Analysis the safe operation of its airports to support known as Caledonian Maritime Assets Ltd deficit arising from its operating deficit and economic and social development in the (CMAL) following a restructure in 2006, capital expenditure. Accountability Highland and Islands. HIAL currently operates and retained ownership of the vessels and Report 11 airports; 10 in the Highlands and Islands ports, which it leases to the operator of the Corporate and also Dundee, which it operates via a Clyde & Hebrides Ferry services. Governance wholly owned subsidiary company, Dundee Airport Ltd. Accountability Report Remuneration & Staff Report
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Voted Loans Transport Scotland has taken account of These represent loans that Transport these bodies forecast expenditure within Scotland provides to CMAL for the its budget. Performance procurement of new shipping and to Report HIAL to renew and improve commercial Transport Scotland is also the sole sponsor of Overview airport infrastructure. British Waterways and provides funding to subsidise its residual operation as Scottish Other Funds Canals. British Waterways is a statutory body These represent loans that Transport and is classed as an NDPB but HM Treasury Scotland provide to Prestwick Airport as agreed not to apply the budgeting treatment Objectives noted above, and to the Energy Savings Trust of that until after 31 March 2020. to fund energy efficient transport initiatives. CMAL and Prestwick Airport are classed as Performance In respect of IFRS12, it should be noted that Public Corporations. Report both HIAL and David MacBrayne are classed Performance as Non Departmental Public Bodies (NDPB’s), Analysis and are treated in accordance with the HM Treasury Consolidated Budgeting guidance Accountability which can be found at https://www.gov.uk/ Report government/publications/consolidated- Corporate budgeting-guidance-2019-to-2020 Governance
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10. Trade Receivables and As at 31/03/20 As at 31/03/19 Other Assets 10a Analysis by classification £000’s £000’s Amounts falling due within one year: Trade and other receivables Performance Report Trade and other receivables 60 270 Overview Damage claims 1,063 1,247 Prepayments and accrued income 50,687 38,177 51,810 39,694 Amounts falling due after more than one year: Prepayments and other receivables 52,552 57,365 Objectives 52,552 57,365 Performance As at 31/03/20 As at 31/03/19 Report 10b Intra-Government balances £000’s £000’s Performance Amounts falling due within one year: Intra-Government balances Analysis Other Central Government bodies 10,201 6,912 Local Authorities 104 0 Accountability Public corporations and trading funds 0 0 Report 10,305 6,912 Corporate Governance Balances with bodies external to Government 41,505 32,782 Total receivables 51,810 39,694 Amounts falling due after more than one year: Accountability Intra-Government balances Report Remuneration & Other Central Government bodies 0 460 Staff Report Local Authorities 0 0 Public corporations and trading funds 0 0 0 460 Balances with bodies external to Government 52,552 56,905 Annual Total receivables 52,552 57,365 Accounts
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10. Trade Receivables and Other Assets As at 31/03/20 As at 31/03/19 cont’d... £’000 £’000 Performance At 1 April 0 0 Report Charge for the year 0 0 Overview Unused amount released 0 0 Utilised during the year 0 0 At 31 March 0 0 Objectives
Trade receivables are shown net of a As at 31/03/19 As at 31/03/18 provision for impairment as follows: £’000 £’000 Performance Loans, trade receivables and accrued Report income are accounted for in accordance At 1 April 0 0 Performance with IFRS9 (See Note1.8). Charge for the year 0 0 Analysis Unused amount released 0 0 Utilised during the year 0 0 Accountability Report At 31 March 0 0 Corporate Governance
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11. Trade Payables and As at 31/03/20 As at 31/03/19 Other Liabilities 11a Analysis by classification £000’s £000’s Amounts falling due within one year: Trade and other payables Performance Report Trade Payables and Other Liabilities are Trade payables 1,201 18,100 Overview accounted for in accordance with IFRS9, Accruals 141,890 164,190 (See Note 1.10) Other payables 50,706 10,083 Financial liabilities – PFI 36,439 32,240 Deferred income 83 83 230,319 224,696 Objectives Amounts falling due after more than one year: Other payables 390 767 Performance Financial liabilities – PFI 1,147,595 1,200,772 Report 1,147,985 1,201,539 Performance Analysis
As at 31/03/20 As at 31/03/19 11b Intra-Government balances £000’s £000’s Accountability Amounts falling due within one year: Intra-Government balances Report Other Central Government bodies 5,885 3,573 Corporate Governance Local Authorities & Health Boards 44,468 38,145 Public corporations and trading funds 13,642 21 63,995 41,739 Accountability Balances with bodies external to Government 166,324 182,957 Report Remuneration & Total payables 230,319 224,696 Staff Report Amounts falling due after more than one year: Intra-Government balances Other Central Government bodies 0 0 Local Authorities & Health Boards 0 0 Annual Public corporations and trading funds 0 0 Accounts 0 0 Balances with bodies external to Government 1,147,985 1,201,539 Total payables 1,147,985 1,201,539
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12. Provisions for Liabilities Land and Property Major and Charges 12a Provisions for liabilities and charges Acquisition Projects Other Total 2019-20 £000’s £000’s £000’s £000’s Performance Report Balance as at 1 April 2019 61,616 1,922 5,469 69,008 Land and Property Acquisition Overview Land and property acquisition provision Provided in year 0 0 38 38 relates primarily to the estimates made of the likely compensation payable in respect Provisions not required written back (19,954) 0 0 (19,954) of planning blight, discretionary and Provisions utilised in year (878) (1,922) (69) (2,870) compulsory acquisition of property from property owners arising from physical Discount amortised 201 0 0 201 Objectives construction of a road or rail scheme. Balance as at 31 March 2020 40,985 0 5,438 46,423 When land is acquired by compulsory 2018-19 purchase, it is often not known when Performance Report compensation settlements will be made. Balance as at 1 April 2018 68,705 3,375 5,528 77,608 Performance A provision for the estimated total cost of Provided in year 0 0 36 36 Analysis land acquired is created when it is expected that a General Vesting Declaration will be Provisions not required written back (36) 0 0 (36) published in the near future. It may take Provisions utilised in year (3,506) (1,453) (91) (5,050) Accountability several years from the announcement of a Report Discount amortised (3,547) 0 (3) (3,549) scheme to completion and final settlement Corporate of all liabilities. The estimates provided by Balance as at 31 March 2019 61,616 1,922 5,469 69,008 Governance the Valuation Office Agency (VOA) are reviewed bi-annually. Accountability Major Projects Report Remuneration & Major projects provision relates to Staff Report compensation claims made in respect of work done on projects that have not yet been fully settled.
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12. Provisions for Liabilities and Charges Land and Property Major cont’d... 12b Analysis of expected timing of Acquisition Projects Other Total discounted flows £000’s £000’s £000’s £000’s Performance Report Other In the remainder of the period to 2021 21,379 0 5,413 26,792 Transport Scotland agreed to meet the Overview additional costs of benefits payable to Between 2022 and 2025 19,606 0 25 19,631 specific employees, who retired early, Between 2026 and 2030 0 0 0 0 until they reach the age of 60, at which point the liability is assumed by the Thereafter 0 0 0 0 PCSPS. The cost of these benefits is Balance as at 31 March 2020 40,985 0 5,438 46,423 Objectives provided in full when the employee retires. In the remainder of the period to 2020 38,006 1,922 5,432 45,361 Provisions for liabilities and charges are Between 2021 and 2024 23,610 0 37 23,647 Performance accounted for in accordance with IAS37 Between 2025 and 2029 0 0 0 0 Report (See Note 1.13). Performance Thereafter 0 0 0 0 Analysis Balance as at 31 March 2019 61,616 1,922 5,470 69,008 Accountability Report Corporate Governance
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13. Movement on Working 2019-20 2018-19 Capital Balances As at As at Net Net Note 31/03/20 31/03/19 Movement Movement Performance £000’s £000’s £000’s £000’s Report Receivables Overview Due within one year 8/10 51,810 39,694 (12,116) (5,980) Due after more than one year 10 52,552 57,365 4,813 (20,702) Net (increase) / decrease 104,362 97,059 (7,303) (26,682) Objectives Payables Due within one year 11 230,319 224,696 5,623 44,375 Performance Due after more than one year 11 1,147,985 1,201,539 (53,554) (36,779) Report 1,378,304 1,426,235 (47,931) 7,596 Performance Analysis Less: Lease and PFI creditors included in above 11 1,184,034 1,233,012 (48,978) (21,821) Less: Capital accruals included in the above 48,942 59,526 (10,584) 54,530 Accountability Net increase / (decrease) 145,328 133,697 11,631 (25,113) Report Provisions 12 46,423 69,008 (22,585) (8,600) Corporate Governance Net increase / (decrease) 46,423 69,008 (22,585) (8,600) Net movement increase / (decrease) 296,113 299,764 (3,651) (7,031) Accountability Report Remuneration & Staff Report
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14. Capital Commitments As at 31/03/20 As at 31/03/19 £000’s £000’s Transport Scotland’s capital commitments Performance Report relate to future payments on major road Property, plant and equipment 4,328,800 3,455,657 Overview schemes currently under construction. Total contracted capital commitments The main works contracts have been for which no provision has been made 4,328,800 3,455,657 awarded and the loans agreed. These commitments have not been reflected elsewhere in the accounts. Objectives
15. Commitments under Obligations under operating leases comprise: As at 31/03/20 As at 31/03/19 Operating Leases £000’s £000’s Performance Report Performance Land & buildings Commitments under operating leases to Analysis pay rentals during the year following the Due within 1 year 1,290 1,290 year of these accounts are given in the table below, analysed according to the Due after 1 year but not more than 5 years 0 1,290 Accountability period in which the lease expires. Commitments thereafter 0 0 Report Corporate 1,290 2,580 Governance
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Contents 16. Commitments under c) M80 - the contract covers the design, build AWPR / B-T - the project involved the PFI Contracts and financing of approximately 18 km of construction of a new dual carriageway motorway and associated roads, junctions, around the City of Aberdeen and upgrading Performance structures and associated works and their of the road between Balmedie and Tipperty Report Transport Scotland has entered into the Overview following PFI contracts for the design, build, on-going maintenance for a period of to dual carriageway. The NPD contract also finance and maintenance of assets reflected 30 years. Unitary charge payments incorporates the management, operation and on the Statement of Financial Position: commenced in September 2011 and maintenance of these roads for the next 30 will cease in September 2041. years. The unitary charge payments became a) M6 (A74M) - the contract covers the committed in phases from Autumn 2016 and design, construction and financing of Under IPSAS 32, the substance of these PFI will cease in 2048. The final phase of the Objectives 28.3km of new motorway, as well as the contracts is that of a finance lease, with the project opened to traffic in February 2019. operation and maintenance of 90km of asset being recognised. Payments under PFI existing motorway. Payments are made contracts comprise two elements; imputed Performance Report under a shadow toll regime. The toll finance lease charges and services charges. Performance period began in July 1997 and expires Analysis in July 2027. We also have the following design, build, finance and maintenance contracts. b) M77 - the contract is a Public Private Accountability The M8, M73, M74 Motorway Improvements Partnership (PPP) entered into with Report East Renfrewshire and South Lanarkshire Project involved upgrades to the A8 Corporate Councils. The project covers the design, Baillieston to Newhouse, completion of the Governance construction, financing and operation M8 between Glasgow and Edinburgh, and of 15km of motorway and 9km local included improvements to the M74 Raith road to the A726 trunk road. Payments Interchange and the widening of other key Accountability are made under a shadow toll regime. sections of the M8, M73 and M74. The NPD Report contract also incorporates the management, Remuneration & The toll period began in April 2005 and Staff Report expires in April 2035. operation and maintenance of this section of the motorway for the next 30 years. The new improvements opened to traffic in April 2017. The unitary charge payments are committed and will cease in 2047. Annual Accounts
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16. Commitments under PFI Contracts Imputed finance lease obligations As at 31/03/20 As at 31/03/19 As at 31/03/18 cont’d... under PFI contracts comprise: £000’s £000’s £000’s Rentals due within 1 year 62,055 40,407 40,407 Performance Transport Scotland does not have any Report Rentals due within 2 to 5 years 247,497 161,627 161,627 commitments under PFI contracts in Overview respect of assets that are not reflected Rentals due thereafter 1,153,274 1,336,392 1,385,769 in the Statement of Financial Position. 1,462,826 1,538,426 1,587,803 Less: Interest element (finance cost) (278,792) (305,414) (332,970) Total capital cost 1,184,034 1,233,012 1,254,833 Objectives Imputed service charge obligations As at 31/03/20 As at 31/03/19 As at 31/03/18 under PFI contracts comprise: £000’s £000’s £000’s Performance Service charge due within 1 year 40,652 44,074 54,430 Report Service charge due within 2 to 5 years 89,854 114,525 145,483 Performance Service charge due thereafter 263,756 279,737 292,854 Analysis Total service charge 394,262 438,336 492,767 Accountability Report Corporate Governance
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Contents 17. Other Financial The total amount charged to the Statement Commitments – Rail of Comprehensive Net Expenditure in respect of these schemes is: Performance Report Transport Scotland is committed to pay grant 2019-20 2018-19 Overview funding to Network Rail in accordance with £000’s £000’s the Grant Agreements and to Abellio ScotRail Ltd and Serco Caledonian Sleeper Ltd under the Franchise Agreements. Network Rail 353,706 338,957 Abellio ScotRail 463,681 390,266 Network Rail funding for operation, Objectives Serco Caledonian Sleeper Limited 13,253 25,072 maintenance and renewals is determined by the Office of Rail and Road (ORR) for each Total 830,640 754,295 rail Control Period. The Determination for the Performance Report current control period, CP6 from April 2019 Following expiry of the contract with First Performance to March 2024 is reflected below. The overall Analysis funding available for the control period, Group, further contracts from April 2015 were including Enhancement Grant, was published awarded to Abellio for the ScotRail franchise, and to Serco for the Caledonian Sleeper in the Statement of Funds Available. Accountability franchise. Amounts due under these Report The total amount charged to the Statement contracts in future years, analysed between Corporate of Comprehensive Net Expenditure reflects those periods where the commitment falls Governance the grants paid to Network Rail and the are: Abellio ScotRail and Serco Caledonian Sleeper franchise obligations. Network Rail Abellio Serco Accountability Deed of Grant ScotRail Caledonian Report Sleeper Remuneration & The total amount charged to the Statement Limited Total Staff Report of Comprehensive Net Expenditure in respect £000’s £000’s £000’s £000’s of these schemes reflects the cessation of Expiry within 0-12 months 750,000 798,517 37,898 1,586,415 the Abellio ScotRail and Serco Caledonian Sleeper franchises. Expiry within 1 to 2 years 762,000 619,348 28,811 1,410,159 Expiry within 2 to 5 years 1,275,000 1,290,141 56,908 2,622,048 Annual Accounts Total 2,787,000 2,708,006 123,617 5,618,622
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18. Financial Instruments 18a Financial Instruments by Category 2019-20 Note Total Financial Assets at Total Assets per Statement of Financial Position Amortised Cost £000’s 18a Financial Instruments by Category £000’s Performance Report Trade and other receivables excluding prepayments, reimbursement of provisions and VAT recoverable Overview 369,162 369,162 Balance as at 31 March 2020 369,162 369,162
Liabilities per Statement of Financial Position Note Other Financial Liabilities Total Objectives £000’s £000’s PFI liabilities 16 1,184,034 1,184,034 Trade and other payables excluding statutory Performance liabilities (VAT, income tax and social security) Report 194,270 194,270 Performance Analysis Balance as at 31 March 2020 1,378,304 1,378,304
18a Financial Instruments by Category 2018-19 Note Total Loans & Receivables Total Accountability Assets per Statement of Financial Position £000’s £000’s Report Corporate Governance Trade and other receivables excluding prepayments, reimbursement of provisions and VAT recoverable 311,625 311,625 Accountability Balance as at 31 March 2019 311,625 311,625 Report Remuneration & Staff Report Liabilities per Statement of Financial Position Note Other Financial Liabilities Total £000’s £000’s PFI liabilities 16 1,233,012 1,233,012
Trade and other payables excluding statutory Annual liabilities (VAT, income tax and social security) 249,553 249,553 Accounts Balance as at 31 March 2019 1,482,565 1,482,565
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18. Financial Instruments cont’d... The table below analyses financial liabilities Cash Flow and Fair Value Interest into relevant maturity groupings based on Rate Risk 18b Financial Risk Factors the remaining period at the Statement of Transport Scotland’s loans to CMAL accrue Performance Exposure to Risk Financial Position date to the contractual interest at the rate set for the National Loans Report Due to the largely non-trading nature of its maturity date. The amounts disclosed are the Fund and those to Prestwick at the rate Overview activities and the way in which Government contractual discounted cash flows. Balances specified by the European Commission. Departments are financed, Transport due within 12 months are included at their Scotland is not exposed to the degree of carrying balances as the impact of Income, expenditure and cash flows are financial risk faced by many other business discounting is not significant. dependent on changes in market interest entities. A high level review of risk rates that affect this. Transport Scotland has Objectives management is now considered at each interest bearing liabilities in respect of PFI meeting of the Audit and Risk Committee. schemes and minor lease rentals that are determined in the contracts entered in to Performance 2019-20 Carrying 0-12 5-10 >10 and, as such, the related income, expenditure Report value months 1-2 years 3-5 years years years and cash flows are substantially independent Performance £000’s £000’s £000’s £000’s £000’s £000’s of changes in market interest rates. Analysis Non-derivative liabilities 1,184,034 36,439 35,593 121,110 203,706 787,186 Derivative liabilities 0 0 0 0 0 0 Accountability Total financial liabilities 1,184,034 36,439 35,593 121,110 203,706 787,186 Report Corporate Governance 2018-19 Carrying 0-12 5-10 >10 value months 1-2 years 3-5 years years years £000’s £000’s £000’s £000’s £000’s £000’s Accountability Non-derivative liabilities 1,233,012 32,240 14,791 51,197 93,688 1,041,096 Report Remuneration & Derivative liabilities 0 0 0 0 0 0 Staff Report Total financial liabilities 1,233,012 32,240 14,791 51,197 93,688 1,041,096
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Contents 19. Contingent Liabilities i. Contracts held by Transport Scotland iii. Other contingent liabilities held by should include indemnity clauses where Transport Scotland: 19a Contingent Liabilities disclosed risk is either considered part of the • Monklands Canal - maintenance of pipes Performance under IAS37 normal course of business or is not under trunk roads. Report Overview • As part of Transport Scotland’s normal quantifiable: • There is a contingent liability in respect course of business, the Forestry • Operating agreements (ScotRail and of any further payment required to the Commission grants the right to use a Caledonian Sleeper Rail Franchise Lothian Pension Fund in respect of forestry track as an emergency diversion Agreements) with indemnities to Abellio employees transferred from the Forth route on the A83 Rest and Be Thankful ScotRail Ltd and Serco Caledonian Sleeper Estuary Transport Authority (in excess on the understanding that Transport Ltd commencing 1 April 2015; of the agreed settlement amount for Objectives Scotland has the liability for any incidents • Indemnity clauses in roads contracts the value of the cessation deficit if it that may occur whilst the track is being to compensate Network Rail for any subsequently exceeds the prudent used for this purpose. The potential damage or loss of access; basis on which it was calculated). This is Performance obligation is estimated at £5 million • Liability agreement for any issues considered to be a remote possibility due Report but it is considered unlikely that any caused by the Glasgow Airport Rail Link to the assumptions made in the calculation Performance Analysis liability will occur. (GARL) ground investigation work over of the deficit payment. This was calculated the next 2 years. on a deliberately prudent basis to mitigate the risk of any requirement for a future 19b Possible Contingent Liabilities not Accountability ii. Guarantees/Letters of Comfort issued additional payment. There is therefore a required under IAS37 but included for Report parliamentary reporting and by Transport Scotland on behalf of contingent liability in respect of any further Corporate accountability purposes Scottish Ministers: payment required. It is however, not Governance • The FReM states that where information • s54 guarantees issued as part of rail possible to predict what any subsequent about contingent liabilities is not required rolling stock procurement process; valuation of the pension deficit will be to to be disclosed because the likelihood • Commitment towards the continued inform any further contribution required Accountability of a transfer of economic benefits is funding of the pension obligations by Transport Scotland. Report considered too remote, they should be of Abellio ScotRail Ltd and Serco Remuneration & disclosed separately for parliamentary Caledonian Sleeper Ltd through the Staff Report reporting and accountability purposes. Franchise Agreements.
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Contents • Transport Scotland has received a claim 20. Related Party Transactions David MacBrayne Ltd is the parent company in respect of damage to a commercial of Calmac Ferries Ltd and Argyll Ferries Ltd property, Oak Mall Shopping Centre Transport Scotland is an Executive Agency who operated ferry services under contracts Performance Greenock, purported to be caused by of the Scottish Government. The Scottish with Transport Scotland, and which Transport Report Overview rainwater passing from the bridge over Government is regarded as a related party Scotland supported via the payment of the property that carries the A78 trunk with which it had various material subsidies. TS Prestwick Holdco Limited is road that Transport Scotland is responsible transactions during the year. David the parent company of the group of for maintaining. We are continuing to MacBrayne Ltd, CMAL, TS Prestwick HoldCo subsidiaries who own and operate Glasgow challenge this claim. Ltd and HIAL are wholly owned subsidiaries Prestwick Airport. Transport Scotland • Transport Scotland has received a claim of the Scottish Government, with whom it advanced loan funding to the Group to cover Objectives in respect of delays to construction of a also had various material transactions the cash deficit arising from its operating car park extension at Central Car Auctions during the year. Transport Scotland also deficit and capital expenditure. in Baillieston. It is claimed delays were sponsors British Waterways Scotland, Performance caused by water percolation from the trading as Scottish Canals, under a Transport Scotland paid grants to British Report adjacent Monklands Canal that Transport framework agreement. Waterways Scotland, trading as Scottish Performance Scotland is responsible for maintaining. Canals, for the operation and maintenance Analysis We are continuing to challenge their loss Loans were advanced to and repaid by of Scottish canals and related infrastructure & expense and nuisance claims. and capital grants for related investments CMAL to fund vessel construction, and Accountability during the year. to HIAL to support airports infrastructure. Report Grants were paid to HIAL to subsidise its Corporate operating and capital expenditure and also Transport Scotland also had significant Governance to CMAL to fund agreed pier and harbour transactions with Local Authorities, infrastructure projects. Strathclyde Partnership for Transport, Scottish Water and the Tay Road Bridge Accountability Joint Board during the year, principally in Report relation to payment of grants to deliver Remuneration & specific transport objectives. Staff Report
All interests declared by members of the Transport Scotland Senior Management Team are of a minor nature and have no impact on Annual the awarding of contracts and commissions. Accounts
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21. Segmental Reporting 2019-20 Total continuing Net 21a Business Segments – segments Resource Investment Income Non Cash AME ODEL Total Performance £000’s £000’s £000’s £000’s £000’s £000’s £000’s Statement of Comprehensive Report Overview Net Expenditure Roads 111,895 201,299 (663) 99,361 0 121,490 533,382 Rail 184,091 812,643 0 0 0 0 996,734 Concessionary travel & bus 274,317 1,869 (523) 26 0 0 275,689 services Other public transport 19,271 0 0 753 0 0 20,024 Objectives Ferry services in Scotland 178,122 43,778 (6,571) 0 0 0 215,329
Air services in Scotland 46,673 12,568 0 0 0 0 59,241 Performance Other transport directorate 34,790 60,914 (1,466) 0 0 0 94,238 Report programmes Performance Analysis Scottish Futures Fund 0 44,876 0 0 0 0 44,876 Grants to Local Authorities 0 42,138 0 0 0 0 42,138 Accountability 849,159 1,220,085 (9,223) 100,140 0 121,490 2,281,651 Report Corporate Governance
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21. Segmental Reporting cont’d... 2018-19 Total continuing Net 21a Business Segments – segments Resource Investment Income Non Cash AME ODEL Total Performance Statement of Comprehensive £000’s £000’s £000’s £000’s £000’s £000’s £000’s Report Net Expenditure cont’d... Roads 114,153 128,947 (207) 88,179 0 121,561 452,633 Overview Rail 420,680 338,853 0 0 0 0 759,533 Concessionary travel & bus 264,278 35 (927) 27 0 0 263,413 services Other public transport 18,206 0 0 750 0 0 18,956 Objectives Ferry services in Scotland 190,924 12,642 (5,983) 0 0 0 197,583
Air services in Scotland 41,106 7,045 (1,247) 0 29,900 0 76,804 Performance Other transport directorate 30,560 83,838 (368) 0 0 0 114,030 Report programmes Performance Analysis Scottish Futures Fund 0 43,478 0 0 0 0 43,478 Grants to Local Authorities 0 36,712 0 0 0 0 36,712 Accountability 1,079,907 651,550 (8,732) 88,956 29,900 121,561 1,963,142 Report Corporate Governance
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21. Segmental Reporting cont’d... 2019-20 Total continuing segments Trunk Road Capital Other Voted Total Capital 21b Business Segments – Maintenance Projects Assets Loans Expenditure Performance Capital Expenditure £000’s £000’s £000’s £000’s £000’s Report Roads 7,866 156,525 0 0 164,391 Overview Rail 0 0 0 0 0 Other public transport 0 0 (97) 0 (97) Ferry, aviation and other services in Scotland 0 0 0 73,738 73,738 Objectives 7,866 156,525 (97) 73,738 238,032
2018-19 Performance Total continuing segments Trunk Road Capital Other Voted Total Capital Report Maintenance Projects Assets Loans Expenditure Performance £000’s £000’s £000’s £000’s £000’s Analysis Roads 5,332 174,793 160 0 180,285
Rail 0 0 0 0 0 Accountability Other public transport 0 0 (31) 0 (31) Report Corporate Ferry, aviation and other services in Scotland 0 0 0 33,148 33,148 Governance 5,332 174,793 129 33,148 213,402 Accountability Report Remuneration & Staff Report
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Contents 22. Notional Charges 23. Losses and Special Payments
The following notional charges have been The costs of damage to the trunk road Irrecoverable costs no longer being pursued Performance included in the accounts: network due to road accidents are charged amounted to £0.151 million in respect of Report Overview to Transport Scotland as part of the road 14 cases and these have now been written Note 2019-20 2018-19 maintenance programme. These costs off. No individual case exceeded £250,000. £000’s £000’s are recovered from the party responsible through their insurance company wherever A full and final commercial settlement of Auditors' remuneration 3 182 178 possible, except where there has been a £65 million was paid to Aberdeen Roads fatal injury. The costs are held in a debtor Limited (ARL) in connection with the Objectives 182 178 account until the recovery is successful. construction phase of the AWPR project. There is continuous review of the costs held The settlement was reached on a commercial in the debtor account and those deemed basis and without any admission of liability Performance recoverable are identified. by any party. Report Performance Analysis
Imputed finance lease obligations Number of cases 2019-20 2018-19 under PFI contracts comprise: £000’s £000’s Accountability Report Total cash losses 14 151 333 Corporate Governance Details of cases over £250,000 0 0 0 Including – claims abandoned 14 151 333 – active claims 0 0 0 Accountability Report Remuneration & Staff Report
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Contents 24. Events after reporting period Performance Report Following the end of the financial year Overview the proposed arrangement for the sale of Prestwick airport was unable to be completed as originally planned. We have been advised that the company previously selected as Preferred Bidder does not wish to complete the purchase of the Objectives business at this time. The withdrawal from the process by the Preferred Bidder means that the business can engage with other Performance Report interested parties and that engagement is Performance now under way. This has no impact on the Analysis financial statements.
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Title
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Performance Report Overview
Objectives
Performance Report Performance Analysis
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Title Transport Scotland Direction by The Scottish Ministers
Contents
In accordance with section 19(4) of the Public Finance and Accountability (Scotland) Act 2000 Performance Report 1 The statement of accounts for the financial Overview 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 Objectives for the year for which the statement of accounts are prepared. Performance 2 The accounts shall be prepared so as to Report give a true and fair view of the income and Performance expenditure, recognised gains and losses, Analysis and cash flows for the financial year, and of the state of affairs as at the end of the Accountability financial year. Report Corporate 3 This direction shall be reproduced as an Governance appendix to the statement of accounts.
Accountability Report Remuneration & Staff Report
Signed by the authority of the Scottish Ministers Annual Dated 17 January 2006 Accounts
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Title Glossary
Contents
Abbreviations as they appear
Abbreviation Detail Performance ULEV, EV Ultra Low Emission Vehicles, Electric Vehicles Report Overview NTS National Transport Strategy CIHT Chartered Institute of Highways and Transportation Dft Department for Transport CMAL Caledonian Maritime Assets Ltd HIAL Highlands and Island Airports Ltd Objectives FMEL Ferguson Marine Engineering Ltd LEZ Low Emission Zone Performance PfG Programme for Government Report Performance NPF National Performance Framework Analysis STPR2 Strategic Transport Projects Review (2)
SMC Scottish Maritime Cluster Accountability BSOG Bus Services Operator Grant Report AWPR – B/T Aberdeen Western Peripheral Route – Balmedie Tipperty Corporate Governance SULEB Scottish Ultra Low Emission Bus Scheme PCIP Procurement and Commercial Improvement Programme Accountability SOCNE Statement of Consolidated Net Expenditure Report SFP Statement of Financial Position Remuneration & ABR / SBR Autumn / Spring Budget Review Staff Report FREM Financial Reporting Manual RAVS Roads Asset Valuation System PPP Public Private Partnership Annual PFI Private Finance Initiative Accounts DEL Departmental Expenditure Limit ODEL Outside Departmental Expenditure Limit
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