THIS REPORT RELATES COUNCIL TO ITEM 20 ON THE AGENDA

STIRLING COUNCIL GOVERNANCE & RESOURCES

10 OCTOBER 2013 NOT EXEMPT

CENTRAL JOINT POLICE BOARD AUDITED ACCOUNTS 2012/13

1 SUMMARY

1.1 The Board’s External Auditors, Grant Thornton, have certified the Accounts of Central Scotland Joint Police Board for the financial year to 31 March 2013. With the former Boards no longer being in existence, the brought regulations into force that require the final year accounts to be presented to the Councils that have been hosting the Treasurer functions.

1.2 This report outlines the key features of the financial position displayed in the 2012/13 Audited Accounts, and it is pleasing to note that there are no qualifications to the Independent Auditor’s Report.

1.1 Copies of the Central Scotland Joint Police Board Abstract of Accounts 2012/13, Appendix 1, have already been distributed to Members with some copies placed in the Member’s Lounge. Following the meeting, arrangements will be made for the accounts to be placed on the Council’s website for viewing by interested organisations and the general public.

1.3 The Auditor’s Final Report on the Accounts will be presented to the Audit Committee on 7 November 2013 and thereafter to Council on 12 December 2013.

2 RECOMMENDATION(S)

The Council agrees to:-

2.1 note the Annual Accounts in respect of Central Scotland Joint Police Board for the financial year ended 31 March 2013; and

2.2 note that the Auditor’s Final Report on the Accounts will be presented to the Audit Committee on 7 November and full Council on 12 December 2013.

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3 CONSIDERATIONS

Audit Opinion 3.1 Grant Thornton as external auditors have now concluded their consideration the Accounts of Central Scotland Joint Police Board for the financial year ended 31 March 2013. It should be noted that there are no qualifications to the Independent Auditor’s Report.

3.2 The key features of the financial position displayed in the Accounts are set out below.

Income & Expenditure

3.3 The revenue outturn position is consistent with previous reports to the Joint Board and is detailed further in the Treasurer’s Explanatory Foreword on page 4 of the Accounts.

3.4 This outturn results an amount to be returned to the constituent authorities of £1.245m. The General Fund balance as at 31 March 2012 was £1.780m from which, as planned, £0.34m was drawn to support the 2012/13 budget and £0.15m and £0.05m from earmarked reserves for spend on protective equipment and legal costs associated with a management issue respectively.

3.5 The Scottish Government will recoup their share of this by an adjustment to the Revenue Support Grant in 2013/14. The fundamental basis is that 51% will be returned to Scottish Government, with 49% being retained by the constituent authorities. However, as the Board used £500K of reserves to support the 2012/13 budget, the Scottish Government decided to recoup 51% of this amount.

3.6 Previous reports to the Board have referred to an ongoing management issue. The Accounts have been prepared on the basis that, in the absence of a clear obligation, no provision can be made for this.

3.7 The effects of applying these arrangements are shown in the following table:-

Amount to be returned to the constituent authorities as at £m 31 March 2013 (subject to audit) 1.245

49 % to be retained by constituent authorities (adjusted for 0.614 balance of severance costs - £9K x 49%) Amount recouped by SG (£0.5m x 51%) (0.255)

Net amount retained by constituent authorities 0.359

Split per authority :

Clackmannanshire 0.057 0.185 Stirling 0.117

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Capital Plan

3.8 The Board incurred £1.5m of capital expenditure in 2012/13. The expenditure was made up of investment of £0.4m in the Force estate, £0.4m for operational vehicles and £0.7m for ICT and other equipment.

3.9 Capital expenditure was financed by capital grant of £1.0m from the Scottish Government and applied capital receipts of £0.5m. All of the available capital receipts were applied.

Pension Costs

3.10 Under International Accounting Standard 19 (IAS19), the Board is required to disclose information relating to the pension fund assets and liabilities of the Police Pension Scheme, the New Police Pension Scheme and the Local Government Pension Scheme. Hymans Robertson, an independent firm of actuaries, has calculated an overall net liability position on the Schemes as at 31 March 2013 of £535m. This represents an increase of £87m when compared with the net liability position of £448m as at 31 March 2012.

3.11 The increase in the net liability position is principally due to the fact that the financial assumptions at 31 March 2013 are less favourable than they were at 31 March 2012. This has resulted in increased liabilities which have only been partially offset by better than expected returns on Local Government Pension Scheme fund assets. The combined effect of these factors has therefore been to increase the International Accounting Standard 19 pension deficit position.

4 POLICY/RESOURCE IMPLICATIONS AND CONSULTATIONS

Policy Implications

Equality Impact Assessment No Strategic Environmental Assessment No Single Outcome Agreement Yes Diversity (age, disability, gender, race, religion, sexual orientation) No Sustainability (community, economic, environmental) No Effect on Council’s green house gas emissions No Effect Strategic/Service Plan Yes Existing Policy or Strategy Yes Risk No Resource Implications Financial Yes People No Land and Property or IT Systems No Consultations Internal or External Consultations Yes

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Equality Impact Assessment

4.1 The contents of this report were considered under the Council’s Equalities Impact Assessment process and were assessed as not relevant for the purposes of Equality Impact Assessment.

Strategic Environmental Assessment

4.2 The contents of this report were considered under the Environmental Assessment (Scotland) Act 2005 and a Strategic Environmental Assessment is not required.

Single Outcome Agreement

4.3 The contents of this report will generally assist the Council in meeting the objectives of the Single Outcome Agreement topics and themes.

Other Policy Implications

4.4 Following consideration of the policy implications of this report no further relevant issues have been identified.

Resource Implications

4.5 The resource implications are as set out in this report.

Consultations

4.6 The report is based on information provided by all Divisions.

Tick ( ) to confirm

The appropriate Convener(s), Vice-Convener(s), Portfolio Holder and NB Depute Portfolio Holder have been consulted on this report JH The Chief Executive/Depute Chief Executive/ appropriate Assistant Chief Executive has been consulted on this report N/A

5 BACKGROUND PAPERS

5.1 Stirling Council 27 June 2013: Central Scotland Joint Police Board Draft Accounts 2012/13.

5.2 Finance & Economy Committee 24 September 2013: Central Scotland Joint Police Board Audited Accounts 2012/13.

6 APPENDICES

6.1 Appendix 1 - Central Scotland Joint Police Board Abstract of Accounts 2012-13.

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Author(s) Name Designation Tel. No./Extension

Roddy Shearer Director of Finance & Resources, 01786 810522

Jim Boyle Chief Finance Officer 01786 233362

Approved by Name Designation Signature

Willie Watson Treasurer, Central Scotland Joint Police Board

Date 1 October 2013 Reference 2012-13 Audited Accounts Report.doc

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