Scottish Prison Service

ANNUAL REPORT AND ACCOUNTS

FOR 2000-01

Presented to the Scottish Parliament in pursuance of the Prisons (Scotland) Act 1989

Laid before the Scottish Parliament by the Scottish Ministers December 2001

SE/2001/280

CONTENTS

Previous Reports Vision and Mission Statement Prison Board Chief Executive’s Foreword Performance against Key Targets Honours and Commendations Custody and Order Care and Opportunity Human Resources Estates Finance

Appendices

1. Location of establishments 2. Description of establishments 3. Prisoner numbers by establishment 4. Average daily prisoner population 5. Total number of receptions to establishments 6. Escapes and absconds from custody 7. Prison discipline: offences and punishments 8. Prison industries 9. Prisoners’ complaints 10. Staff numbers and recruitment 11. Staff training 12. Parliamentary accountability 13. Accounts

PREVIOUS REPORTS

1970 Cmnd 4809 1971 Cmnd 4999 1972 Cmnd 5349 1973 Cmnd 5735 1974 Cmnd 6350 1975 Cmnd 6546 1976 Cmnd 7162 1977 Cmnd 7391 1978 Cmnd 7749 1979 Cmnd 8037 1980 Cmnd 8421 1981 Cmnd 8618 1982 Cmnd 8980 1983 Cmnd 9400 1984 Cmnd 9670 1985 Cm 1 1986 Cm 223 1987 Cm 551 1988 – Cm 998 1989 Cm 1499 1989 – Cm 1663 1990 Cm 2143 1990 – Cm 2323 1991 HC 515 1991 – HC 593 1992 HC 508 1992 – HC 18 1993 HC 808 1993 – HC 638 1994 HC 619 - 1994 – SE/2000/1 1995 1995 – 1996 1996 – 1997 1997 – 1998 1998 – 1999 1999 – 2000

SPS VISION

CORRECTIONAL EXCELLENCE We will be recognised as the leader in prisons’ correctional work which helps reduce recidivism and thereby offers value for money for the taxpayer.

MISSION We will maintain secure custody and good order; and we will care for prisoners with humanity and provide them with appropriate opportunities.

ACTION We will aim to ensure that:

Scotland’s prisons can fairly be viewed as the leaders in correctional services, delivering effective prisoner opportunities which help reduce recidivism;

the prison estate is fit for the 21st century;

Scotland’s prisons are acknowledged as providing the highest standards of service delivery across their full range of activities;

Scottish prisons’ staff will be respected by the nation for their professionalism, their wide range of skills and the difficult job they do on behalf of society; and

in the necessary pursuit of demonstrating value for money to the taxpayer, public sector costs will be competitive with those of alternative providers.

MISSION STATEMENT

The Mission of the Scottish Prison Service is:

to keep in custody those committed by the courts;

to maintain good order in each prison;

to care for prisoners with humanity; and

to provide prisoners with a range of opportunities to exercise personal responsibility and to prepare for release.

THE SCOTTISH PRISON SERVICE BOARD

Tony Cameron (Chief Executive)

Christine Carlin Mike Duffy John Durno (Director, Estates Review) (Operations Director, (Director of Custody until South and West) October 2000 then Director of Strategy & Business Performance)

Jinny Hutchison Willie Pretswell Peter Russell (Director of Strategy and (Director of Finance and (Director of Corporate Affairs until August 2000) Business Systems) Human Resources)

Pete Withers Malcolm Wishart Alasdair MacIntyre (Operations Director, (Non-Executive Director) (Non–Executive Director) North and East)

FOREWORD

I began my foreword last year by referring to the need for continuous improvement within the Scottish Prison Service. I am happy to say that that process of improvement has continued during 2000-2001 and I am confident that with the agreement and implementation of the new Staff Attendance System in 2001-02 we will make considerable progress towards becoming more competitive.

Last year saw the launch of a new Vision for the Prison Service focusing on the key themes of “Protecting the Public” and “Reducing Reoffending”. This new Vision concentrates on the concept of correctional excellence and the SPS’s desire to be recognised as the leader in prisons’ correctional work, helping to reduce recidivism and thereby offering better value for money for the taxpayer.

The delivery of this Vision is predicated on a number of other actions. We must ensure that the prison estate is fit for the 21st century. We must ensure that Scotland’s prisons are acknowledged as providing high standards of service delivery across all of our activities. Our prison staff should be respected by the nation for their professionalism and their skills. We must continue with our determination to ensure value for money for the taxpayer and for the costs of the public sector provision to be competitive with those of alternative service providers.

The Estates Review continued during the year and at the time of writing nears completion. Figures produced by the Scottish Prison Service in the Review are being independently audited prior to a programme of public consultation. The resolution of issues surrounding the prison estate will pave the way for us to develop our vision for the future.

As is reflected in this Report the performance of the Scottish Prison Service against a series of increasingly challenging targets continues to show improvement. However the key challenge for the Prison Service in the years ahead is to fulfil its role by contributing to the Executive’s commitment of a safer Scotland.

This has been reflected in the change of key performance indicators given by Ministers to the Scottish Prison Service which are more reflective of the correctional nature of the work undertaken by the Prison Service.

Another important initiative of last year was the re-launch and revision of the SPS’s race relations policy. This included the appointment of a Race Relations Manager within each establishment and improved race relations training and racial awareness training for all staff. We have also introduced a racial incident reporting system to underline our commitment to effective race relations.

I regret to report that in August 2000 some of our staff saw fit to take unlawful industrial action. This did little to enhance the reputation of the Scottish Prison Service and was counter-productive to our goal of enhancing the image of our staff in the public mind.

The Scottish Executive’s 21st Century Government Action Plan presents a formidable challenge to the SPS as one of its targets is that -“Who provides public services is not important: what matters is that they should be delivered by the best supplier at the best price”. We therefore face the challenge of competition and have a commitment to reduce the gap between the costs of SPS and those of our competitors. We are not concerned only with providing value for money but also with correctional excellence. Over the next few years I believe that with this commitment to best value and the delivery of quality service the SPS can secure its place as service provider of choice.

This will create even greater challenges for us. In our intervention and work with prisoners we must not only be effective in changing behaviour, we also have to be able to evidence this by means of reduced rates of reoffending.

Both the Executive and the Scottish public look to prisons to play an active role in making our society a safer place. The Executive have made an extra £50 million available to us over the next 3 years to help in the modernisation of the estate. In turn we have to show that we are committed to quality, cost effectiveness and efficiency.

T CAMERON Chief Executive PERFORMANCE AGAINST KEY TARGETS

As an Executive Agency of the Scottish Executive, the Scottish Prison Service is set key targets annually by the Justice Minister. The targets cover the four arms of the SPS Mission Statement (custody, good order, care and opportunities) as well as cost per prisoner place.

Setting targets for a prison service is difficult. The public rightly expect prisoners to be kept in secure custody, but maintaining good order in prisons and preparing prisoners for reintegration into society depend on balancing security requirements with the provision of a range of measures to help prisoners to address their offending behaviour and prepare for release. For example, security so high as to eliminate any possibility of an escape - if such were attainable - would conflict with the need to deliver programmes aimed at reducing re-offending and would severely restrict the need for prisoners to have access to purposeful activity of various kinds. The tightest security and supervision is therefore focused on those prisoners who are assessed as being of greatest danger to the public, with lesser security and supervision for prisoners who pose little or no threat to public safety.

Average prisoner numbers declined slightly for the second year running from the all time peak of 1997-98, but the trend at the end of the year was again upward.

So far as SPS performance in 2000-01 was concerned, it was a good year. The custody targets were fully met, and indeed performance was significantly better than the targets. The significant fall in the number of serious assaults by prisoners on other prisoners (69) bettered the target of 91 as well as being the lowest for 5 years. Gratifyingly the target for serious assaults on staff (14) was met. The significant shortfall in delivery of prisoner programmes was disappointing, as was the fact that we exceeded the target for the number of injuries reportable to the Health and Safety Executive. The average cost per prisoner place was actually slightly below that of 1999-2000, and substantially below target.

The Service’s performance in previous years has shown a continuing improvement against a series of progressively more challenging targets. However, those targets did not fully reflect the full range of SPS’s work nor its contribution to the Executive’s plan to create a safer Scotland, which includes the rehabilitation of offenders. For 2001-02 the Justice Minister has introduced new targets focusing on the correctional agenda. The addition to the target for prisoner programmes of a measure for accreditation moves the focus away from simple numbers of programmes delivered and towards a continuing improvement in quality. A target for education has also been introduced, which is a key element in the correctional agenda and SPS will be required to show progress on a year-to-year basis in this important area. Finally, a measure of the performance in combating drugs in prisons has been introduced to support the Scottish Executive’s commitment to addressing the issue of drug abuse in Scotland. At the same time, the core targets for custody and good order have been retained and tightened. These are essential to ensure continued protection of the public, SPS staff and prisoners.

PERFORMANCE AGAINST KEY MINISTERIAL TARGETS

1997-98 1998-99 1999-00 2000-01 2001-02 Number of escapes1 Category A prisoners Target 0 0 0 0 0

Outturn 0 0 0 0 - Category B prisoners Target 1.7 per 1,000 1.0 per 1,000 0.8 per 1,000 0.7 per 1,000 0.9 per 1,000 prisoners = prisoners = 6 prisoners = 5 prisoners = 4 cat Bs = 3 Outturn 11 2 2 1 1 Category C prisoners Target 2 per 1,000 1.6 per 1,000 1.3 per 1,000 1 per 1,000 2.9 per 1,000 prisoners = prisoners = prisoners = 8 prisoners = 6 cat Cs = 5 Outturn 13 10 3 0 0 0 Number of serious assaults on Target 3 per 1,000 3 per 1,000 2.8 per 1,000 2.7 per 1,000 2.7 per 1,000 staff2 staff = 14 staff = 14 staff = 15 staff = 14 staff = 13 Outturn 18 17 13 14 Number of serious assaults on Target <127 <108 <129 <15 per <10 per 1,000 prisoners2 1,000 = 56 Outturn 108 129 91 = 91 69 x number of prisoners to Target 520 660 850 850 700 (50%) complete programmes to address offending behaviour, Outturn 660 797 890 773 y% of which programmes to be fully accredited 3 Education: number of Target - - - - 250,000 prisoner learning hours4 Outturn -5 -5 -5 225,000 % of available prisoner places Target 70 71 76 76 78 with access to night sanitation Outturn 70 71 75 76 % of those tested under Target - - - - 85 random MDT procedures to be clear of in-prison drug use4 Outturn 77 82 85 85 Average annual cost per Target 27,392 27,904 28,761 29,500 32,6006 prisoner place (£s) Outturn 26,744 26,912 28,375 28,114 Number of injuries reportable Target - - - 124 100 to the Health and Safety Executive Outturn 124 131 112 136

1. An escape is defined as having taken place when a prisoner breaches a perimeter security barrier or evades a secure escort. Up until and including 2000-01 the targets for categories B and C were set on the basis of the whole prisoner population: with effect from 2001-02 these targets relate to each 1,000 of prisoners who are in the relevant security category. 2. A serious assault is defined as when the victim has sustained an injury resulting in detention in hospital as an in-patient, or any of the following injuries, whether or not the victim was detained in hospital: fractures, concussion, internal injuries, crushings, severe cuts or lacerations, severe bruising, scalds or burns, or severe general shock requiring medical treatment. 3. % of programmes to be accredited was not part of the target for the years before 2001-02. 4. New target for 2001-02. 5. Figures not available. 6. £12.5m revenue savings will be directed into capital investment. HONOURS AND COMMENDATIONS

Honours

Queen’s Birthday 2000 OBE: Bryan Paterson, Deputy Director, Estates (retired)

MBE: Jamieson McArthur, Movements Manager, HMP Shotts

New Year 2001

MBE: Moira Watson, for services to prisoner welfare

MBE: James McIver, Salvation Army Prison Chaplain

Butler Trust

Award for Young Offender Work

William Tripney and Andy Mazs, HMYOI Polmont in recognition of their work in establishing a Parenting Group for fathers in Polmont.

Certificate Award

Dr J Kennedy Roberts, HMP & YOI Cornton Vale received a Certificate in recognition of his immense contribution to the development of healthcare provision within Cornton Vale.

Commendations

Chief Executive’s Certificate of Meritorious Conduct awarded to:

Security Manager Neil Campbell, Officer Scott Anderson and Officer Bruce Hay, HMP Aberdeen, who extinguished a cell fire and forced their way into a smoke-filled cell to rescue a prisoner.

Officer Grant Marshall and Stuart Archibald, HMP Aberdeen, who rescued a prisoner from a cell fire.

Officer Steven Richmond, Officer John Murdoch and Officer James Connelly, HMP Dungavel, who assisted at the scene of a serious road accident. Officer Alex Henderson and Officer Wendy Brown, HM NIC Shotts, who intervened in an incident between two prisoners.

Night Duty Manager Douglas Horton and Night Duty Officer James O’ Neil, HMP Longriggend, who rescued a prisoner from a smoke-filled cell.

Officer John Duncan and Officer Gary Raeburn, HMP Edinburgh, who stabilised the condition of a prisoner who had attempted suicide.

Shift Manager James McGarry, Officer Gail Hamilton, Officer Alan Lochrie and Officer Ronald Wright, HMYOI Polmont, who removed an uncooperative young offender from a cell fire.

Officer Richard Byrne and Officer Edward Ferguson, HMP Barlinnie, who stabilised the condition of a prisoner who had attempted suicide.

Officer Derek Adie and Officer Trevor Gillot, HMP & YOI Glenochil, who prevented a potential hostage situation.

Officer John Scott, Officer Mathew Blaney and Officer Robert Miller, HMP Barlinnie, who rescued a prisoner from a burning cell and then attempted to stem the fire.

Practitioner Nurse Elaine Salmond, HMP Dungavel, who assisted at the scene of a serious road accident.

Hall Manager Grant Marshall, Officer Pauline Richardson and Officer John Dowie, HMYOI Polmont, who prevented a prisoner from committing suicide.

Officer Stephen Green, Officer James Wright, Officer John McKenna and Nurse Jane Beattie, HMP Barlinnie, who prevented a prisoner from committing suicide.

Officer Paul McMillan, HMP Greenock, who prevented a prisoner from committing suicide.

Officer Raymond Johnstone and Officer John Campbell, HMP Greenock, who extinguished a cell fire and rescued a prisoner from a smoke-filled cell.

Residential Unit Manager James Chisholm, HMYOI Polmont, who, when acting with a colleague, identified a number of security breaches that could have allowed an escape from the establishment.

Officer Neil Allan, Officer David Bennett and Officer Stuart McConville, HMP Edinburgh, who rescued a prisoner from a burning cell, evacuated the flat and then extinguished the cell fire.

Manager Grahame Kerr, Officer Andrew Wilson, Officer John Plant and Officer Lesley Walker, HMP Shotts, who intervened in an incident between two prisoners. Officer Thomas Hughes, Officer Campbell Shearer and Officer Russell Thomson, HMP Shotts, who prevented a prisoner from committing suicide.

Nightshift Manager Andrew Lennie, Practitioner Nurse Daniel Ross, Officer Alan Lochrie and Officer Carl Pickering, HMYOI Polmont, who prevented a prisoner from committing suicide.

Officer Manvir Singh, Officer Graham Bingham and Officer Graeme Holmes, HMP Barlinnie, who prevented a prisoner from committing suicide.

Manager James Armstrong, Officer Graham Mackie, Officer Callum Dickson and Simon Paxford, HMP & YOI Glenochil, who, when acting with colleagues, prevented a potential hostage situation.

Governor’s Commendation for Meritorious Conduct awarded to:

Officer Phyllis Oleksy, Officer Gordon Delaney, Officer Grant Young, Officer Joseph Farrugia and Officer Alan Lennie, HMP Edinburgh, who helped stabilise the condition of a prisoner who had attempted suicide.

Officer Steven Buchan and Officer Mike Appleby, HMP Peterhead, who helped prevent a prisoner from committing suicide.

Officer Scott Sellers and Officer James Durnion, HMP Barlinnie, who apprehended and removed a prisoner from the scene of a serious assault and administered first aid.

First Line Manager Robert Clark, HMYOI Polmont, who helped identify a number of security breaches that could have allowed escapes from the establishment.

Imperial Service Medals

The following staff retired from the Scottish Prison Service during the year, and received the award of an Imperial Service Medal.

Dennis Bremner Aberdeen Robert Cambpell Dumfries Derek Welsh Edinburgh James Chalmers Glenochil John Archibald Glenochil Lesley Johnstone Glenochil Andrew Mercer Glenochil Arthur O’Neil Longriggend Stuart Low Moss John Penman Perth Henderson Dorothy Perth Steven Strang Perth Meldrum

CUSTODY AND ORDER

SPS aims to keep in secure custody those committed by the courts and to maintain good order in each penal establishment.

Keeping prisoners in safe custody must be the first priority of any prison service. As in recent years SPS’s performance in this area was again well within the targets set for it, which is especially impressive in the context of targets that are ever tighter from year to year. The revision of the targets, so that for category B and C prisoners they will, with effect from 2001–02, be calculated with reference to the number of prisoners in each of those security categories, should produce a more focused picture of performance.

SPS’s objective will continue to be to maintain, and where possible improve upon, previous high levels of performance as regards security. To help achieve this objective SPS has continued to develop, and to audit the performance of establishments against, robust Security Standards. A standardised risk assessment framework was introduced in January 2001 to facilitate this process. Work also began during the year to introduce design and other building standards to complement the Security Standards. An electronic visitor identification system was introduced at HMP Edinburgh, which if successful will form a model for use in other establishments; and new perimeter intruder detection systems were installed at Glenochil and Inverness.

Race Relations Policy

SPS is committed to the promotion of positive race relations in Scottish prisons. That commitment was underlined in September 2000 by revision of SPS’s Race Relations Policy, which was first introduced in 1992. Key changes included the appointment of a Race Relations Manager within each establishment, improved Race Relations training for all staff and the introduction of a Racial Incident Reporting system.

SPS also established a non-executive Race Relations Liaison and Monitoring Group to monitor performance and to provide assessment and advice on the overall impact of the Race Relations Policy in relation to prisoners and visitors. Membership of this Group includes three external representatives from Community Relations Agencies and some of the SPS Race Relations Managers. As part of SPS’s commitment to ensuring positive race relations, procedures were introduced to monitor the effectiveness of the Race Relations Policy. A Racial Incident Reporting system for the effective and confidential reporting of incidents was introduced on 1 January 2001: by 31 March 2001, 5 racial incident reports had been made.

CARE AND OPPORTUNITY

Under the care and opportunity agenda the Scottish Prison Service provides convicted prisoners with a range of programmes and other activities relevant to their risks and needs, and tailored to preparing them for release and reducing re-offending. Remand prisoners are also given opportunities to make constructive use of their time in custody. SPS is also responsible for the provision of appropriate health and other services to prisoners in its care.

As part of ongoing efforts to maximise opportunities for prisoners to address their offending behaviour and prepare for release, two new care programmes, STOP 2000 for sex offenders and Drug Relapse Prevention for female prisoners and young offenders, were introduced during the year together with a supporting tier of approved activities.

A policy statement entitled Intervention and Integration for a Safer Society was launched in June 2000 with the aim of improving the management of groups of prisoners with particular needs. A wide range of individuals and organisations were asked for comments on how they could work with SPS to implement the actions identified in the statement.

Another example of the collaborative approach was seen in May 2000 with the signing of the National Framework Document of the Scottish Offender Employment Forum. This is an agreement between Employment Services, the Benefits Agency, COSLA, SPS and other criminal justice agencies. The purpose of the Framework Document is for SPS to form partnerships with other agencies to focus on the employability of offenders, with the aim of offering improved opportunities to secure employment or training on release.

Signing the local Framework Document at HMP Edinburgh.

A review of prisoners’ earnings was carried out during the year. The aim of the review was to establish a system of earnings that was fair and consistent across all establishments. Following completion of the review a new earnings policy, including a standardised wages structure, was developed for implementation in April 2001.

New service contracts for primary medical services and prison education were introduced. Four pilot sites were identified for the contracting of social work services. Work began during the year to computerise health care records.

A training package to improve staff awareness of human rights issues was developed, and delivered across the prison estate in the first half of 2000.

HUMAN RESOURCES

The aim of SPS is to recruit, develop and retain quality staff who can perform effectively and efficiently; and to make sure that these staff are rewarded and managed fairly and consistently.

A particular challenge during the year was the redeployment of staff following the closure or merger of a number of establishments, which was managed successfully. During the year a new framework was introduced for management of staff absence, and progress was made on producing guidance on the filling of vacancies.

New guidance, procedures and support mechanisms on appropriate behaviour at work were put in place.

Efforts continued to improve internal communications, with the year seeing the launch of the new corporate vision. The SPS staff newsletter, “SPS Special”, was an award winner at the Scottish Corporate Communications Awards.

ESTATES

A number of major projects were completed during the year. These included

refurbishment of Ross House, Cornton Vale; upgrade of B Hall, Dumfries; construction of upgraded visits facilities at Edinburgh; provision of new staff facilities and a new perimeter intruder detection system with CCTV at Glenochil; installation of replacement pipework and creation of 7 additional prisoner places in Darroch Hall, Greenock; installation of a new perimeter intruder detection system with CCTV at Inverness; construction of a new industrial centre at Friarton Hall, Perth; and construction of flood prevention measures, and installation of a new centralised locking system, at Shotts.

The target of increasing the number of available prisoner places with access to night sanitation to 76% by 31 March 2001 was achieved. Plans are underway to provide around 700 places with night sanitation at Polmont, Edinburgh and Barlinnie.

SPS Environmental Policy Considerable progress was made on implementation of the Environmental Policy throughout the prisons estate, including the dissemination of key data to establishments, the appointment of “Green” Team leaders in each establishment, staff training and SPS involvement in central energy contracts negotiated by the Scottish Executive. A firm of Environmental Management Consultants was appointed to review progress in implementing the environmental policy and to report by 30 April 2001.

FINANCE

An upgrade to SPS’s financial system was successfully implemented in September 2000, which introduced a number of enhanced functions and features to improve processing and retrieval of financial information. A revised Financial Policy and Guidance Manual was launched during the year, which included the financial framework and operating procedures for Accountable Officers and their supporting officers.

Implementation of the SPS Information Systems Strategy continued to make steady progress, including significant enhancements to the Prisoner Records application and further progress on a Medical Records application. Development work on a Prisoner Activities application and an SPS Intranet is due to commence in 2001-02.

The Internal Audit Programme, in accordance with the Strategic and Operational Plans, was carried out under the oversight of the SPS Audit Committee. Seven main reviews were completed during the year, as well as a planned programme of following up reviews. An assessment of the Internal Audit function, carried out as part of a wider review of the Service’s sources of assurance for corporate governance, concluded that the arrangements for internal audit are satisfactory and comply with best practice requirements. The Audit Committee, which is chaired by a non- executive Director of SPS, met five times during the year.

APPENDIX 1

LOCATION OF ESTABLISHMENTS

APPENDIX 2

DETAILS OF ESTABLISHMENTS

HM Prison, Aberdeen

Aberdeen is the local prison serving Northeast Scotland and the Northern Isles. It accommodates remand prisoners, male adults serving sentences of up to 4 years and female adults serving sentences of up to 2 years. All adult females sentenced to less than 6 months stay in Aberdeen, whilst those sentenced to between 6 months and 2 years have the option to transfer to Cornton Vale. Prisoners outwith these classifications who are received from court are housed and prepared for onward movement to appropriate establishments, although sometimes such prisoners continue to be held in Aberdeen for operational reasons.

Prisoners at HMP Aberdeen receiving certificates from the Samaritans qualifying them as “Listeners”.

HM Prison, Barlinnie

Barlinnie receives male prisoners from courts in the West of Scotland. It retains remand prisoners, and adult convicted prisoners serving less than 4 years for the duration of their sentence unless they are allocated to a lower security prison. Adult convicted prisoners serving sentences of 4 years or more are held in the initial phases of their sentence until places become available for them in the long-term prisoner system.

Notable events during the year included:

Construction of a classroom block to support the provision of education and social skills programmes to young remand prisoners. Development of work under the New Deal initiative to include intensive employment preparation training in partnership with North Lanarkshire and South Lanarkshire councils. Employment of 6 housing officers under the Rough Sleepers Initiative.

HM Prison, Castle Huntly

Castle Huntly is an open prison providing low security accommodation for category D male adults serving sentences from 2 years to life, who have been assessed as suitable to serve part of their sentence in open conditions. Those convicted of all types of offence, other than those of a sexual nature, are considered for acceptance.

Notable events during the year included:

The Deputy First Minister and Minister for Justice, Mr Jim Wallace, opened the prison’s first independent living unit on 5 February 2001. A new family visitor centre opened in January 2001.

HM Prison and Young Offenders Institution, Cornton Vale

Cornton Vale provides custodial facilities and services for remand and convicted females (including young offenders) in all sentence ranges and security categories.

Notable events during the year included:

The rebuilding of Ross House to a design tailored specifically for remand prisoners was completed in January 2001. The regime in Ross House now offers enhanced work opportunities for up to 20 prisoners at a time. Refurbishment of Younger House to provide accommodation specifically for young offenders began in January 2001. A grant of £10,000 from the Millennium Fund was approved for building of a children’s play area. A multidisciplinary Mental Health Forum and a Health Promotion Group were established during the year.

HRH The Princess Royal being shown Ross House.

HM Prison and Young Offenders Institution, Dumfries

Dumfries Prison serves the courts of Dumfries and Galloway. It holds male and female prisoners who are remanded in custody for trial and those convicted awaiting sentence. Convicted male and female prisoners serving up to one year may remain at Dumfries, while those females sentenced to more than one year are transferred to Cornton Vale.

Dumfries Young Offenders Institution provides secure accommodation for long-term young offenders from throughout Scotland who require to be held in conditions of high security.

Notable events during the year included:

The final phase of the accommodation re-development programme, comprising re-roofing of D Hall and the worksheds complex and creation of an additional 11 prisoner places, began in January 2001. Work opportunities were enhanced by creation of a vocational training bricklaying workshop for young offenders and of a craft workshop to provide employment specifically for female prisoners. The Scottish Council on Alcohol was engaged to provide a service within the establishment, and the services of a number of external agencies were secured to give one-to-one drug counselling for prisoners.

HM Prison, Edinburgh

Edinburgh serves the courts in Lothian and Borders and part of Fife. It holds adult male prisoners who are untried, convicted but awaiting sentence and those serving up to 4 years. It also provides national facilities in Pentland Hall and a Training for Freedom hostel for prisoners at the top end of the long-term system.

Notable events during the year included:

Visits facilities were significantly improved with the opening of a new purpose- built area for legal agents, and total refurbishment of the main visit room and closed visits area. The new facilities were officially opened by HRH The Princess Royal in September 2000. Under-21 remand prisoners were relocated from B Hall to Glenesk House, where facilities are more appropriate for the needs of this group of prisoner.

HM Prison and Young Offenders Institution, Glenochil

Glenochil prison provides a category B standard national facility to accommodate long-term adult male prisoners. A separate YOI facility accommodates category C male young offenders serving up to 18 months. There are no direct admissions from court: all admissions are transferred from other penal establishments.

Notable events during the year included:

A local Substance Misuse Strategy was put in place, with a comprehensive system of referrals for prisoners with drug problems, and the number of places in drug-free areas was increased. A new staff facility and extension to the Human Resources/training area were completed.

The new staff facility at HMP Glenochil.

HM PRISON, GREENOCK

Greenock serves designated courts in the West of Scotland by holding male prisoners (both adult and under-21s) on remand and a small number of short-term convicted prisoners, all of whom are held in Ailsa Hall. Darroch Hall provides accommodation for selected prisoners serving 12 years or over from closed establishments who are not yet eligible for the national top end facility. It also accepts prisoners who have been downgraded from open prisons and national top ends, who need help with substance abuse. Chrisswell House is the national top end facility for those prisoners serving over 12 years, including life, as part of their progression to open prison. It also accommodates a small number of other prisoners (including persons awaiting deportation) for a range of management and operational reasons.

Notable events during the year included:

Darroch Hall was refurbished and an additional 7 prisoner places created. The Hall reopened in December 2000. Staff training facilities were improved by refurbishment of the Learning Resource Centre and appointment of a full-time staff training co-ordinator.

HM Prison, Inverness

Inverness serves the courts of the Highlands, Western Isles, Orkney Isles and Moray, holding remand prisoners and short-term adult prisoners, both male and female (segregated). It also holds a small number of long-term prisoners, prior to security classification, on accumulated visits or to meet operational needs.

Notable events during the year included:

A joint initiative between the prison and Highland Health Board Primary Trust, for a Prison Liaison Nurse to work in the community as well as in the prison, was launched in December 2000.

HM Prison, Kilmarnock

Kilmarnock takes local male remand prisoners and local male adult convicted, both short- and long-term. Other selected long-term prisoners are taken to meet SPS operational needs. The prison is operated for SPS under contract by Premier Prison Services Limited.

Prisoners brushing up on their computer skills in HMP Kilmarnock.

HM Prison, Low Moss

Low Moss is a male adult prison for category C and D prisoners serving from 24 days up to 18 months, and selected prisoners serving up to and including 4 years in the last nine months of their sentence. The prison does not receive prisoners direct from court but receives selected prisoners from Barlinnie, Dumfries, Edinburgh, Greenock, and Kilmarnock.

Notable events during the year included:

Davidson House, a 60-place cellular accommodation unit for prisoners in the last 9 months of their sentence, opened in May 2000. A new healthcare facility was built to support multi-disciplinary work and implementation of a detoxification programme. A Throughcare Centre and Drug Support Team were created to develop and support prisoners on issues such as health, employment, welfare and drug misuse during their sentence and on release. Staff and prisoners, in partnership with a local charity, converted two double- decker buses for use as mobile schools in Kosovo.

HM Prison, Noranside

Noranside is an open prison which holds category D male adult prisoners serving 2 years and over, including life sentence prisoners, who have been assessed as suitable to serve part of their sentence in open conditions. The regime opportunities are focused on preparation for reintegration into society.

HM Prison, Perth

Perth holds adult male prisoners serving less than 4 years and those remanded from the courts of Angus, City of Dundee, Perth & Kinross and the northern part of Fife. The prison also accommodates in secure conditions adult male prisoners, including category A prisoners, who are serving sentences of over 4 years up to and including life imprisonment. Over the next few years it will concentrate on taking its long-term prisoners from the North and East of Scotland. It also provides a national top end facility for long-term prisoners approaching the end of their sentence.

Notable events during the year included:

The first half of a £5m programme of improvements to A Hall was completed, resulting in remand prisoners being housed in newly refurbished accommodation with in-cell sanitation. The SPS Drugs Strategy was launched at Perth in June 2000 by the then Deputy Minister for Justice, Mr Angus McKay. Three full-time Drugs Worker posts were established. Following the merger of Perth with HMP Friarton in December 1999, work was completed at the former Friarton site on a new visiting facility and an industrial centre.

HM Prison, Peterhead

Peterhead is a national resource for convicted, long-term male sex offenders offering a comprehensive range of programmes designed to challenge offending behaviour in order to reduce the risk of re-offending on return to the community.

Notable events during the year included:

A new sex offenders awareness programme was established. The establishment reached the UK final of the Cabinet Office Modernising Government Partnership Awards.

HM Young Offenders Institution, Polmont

Polmont is Scotland’s largest young offenders institution. It receives male young offenders who have been given a custodial sentence and assesses their suitability for transfer to other young offenders institutions. Those who stay at Polmont are generally serving sentences of less than 4 years.

Notable events during the year included:

The establishment received an education award from Forth Valley Enterprise after being nominated by a local secondary school. A special regime for under-18s was introduced in August 2000. This was based on the experimental regime for selected under-18s that had begun in Rannoch Hall.

Job hopes boosted for young offenders by APEX Scotland at Polmont.

HM Prison, Shotts

Shotts is a maximum-security prison for adult male prisoners serving sentences of 4 years and over who require to be kept in secure conditions. The prison also houses the National Induction Centre (NIC). The NIC offers a supportive and responsive regime for prisoners (excluding sex offenders), normally serving 10 years or more, during the first 6-12 months of their sentence. The NIC regime is intended to assist prisoners to cope with the personal consequences of their offending behaviour and the impact of sentencing, with particular emphasis on maintaining family contact and the needs of families.

Notable events during the year included:

Work commenced on a new health care centre, incorporating social work, psychology and health care departments, for completion later in 2001.

HM Prison Zeist

This establishment in the Netherlands was built specifically to accommodate the two defendants in the Lockerbie Trial, and is managed and staffed by SPS personnel. Following conclusion of the trial it is being used to house the defendant who was convicted, pending completion of the appeal process. APPENDIX 3

APPENDIX 4

APPENDIX 5

APPENDIX 6

APPENDIX 7

APPENDIX 8

APPENDIX 9

APPENDIX 10

APPENDIX 11

APPENDIX 12

APPENDIX 13 Scottish Prison Service

ANNUAL ACCOUNTS 2000 – 2001

Foreword to the Accounts The accounts have been prepared in accordance with a direction given by the Scottish Ministers in accordance with Article 19 (4) of The Public Finance and Accountability (Scotland) Act 2000. The direction is reproduced as an Appendix to the accounts.

History The Scottish Prison Service (SPS) was established as an Executive Agency of the Scottish Office Home Department in April 1993 (now the Scottish Executive Justice Department). In accordance with the Prisons (Scotland) Act 1989 and the Scotland Act 1998 responsibility for SPS transferred to Scottish Ministers. As a supply- financed Agency, SPS is funded by the Scottish Executive Justice Department’s Cash Account, Budget document 6, Scottish Prison Service.

Principal Activities The Agency exists to keep in custody those committed by the Courts, to maintain good order in each prison, to care for prisoners with humanity and to provide prisoners with a range of opportunities to exercise personal responsibility and to prepare for release.

Research and Development The Agency is currently carrying out research into a range of prisoner and staff- related issues. The current main areas of work include the Fourth Prison Survey, an exploration of staff management style and the role of the first line managers, race relations, communication within the Service, Suicide Prevention, and high-risk violent offenders. There are also on-going evaluations of the small unit provision within SPS and the National Induction Centre as well as a long-term evaluation of outcome effectiveness for prisoner programmes. Research work informs policy development.

Changes in Fixed Assets During the year the Agency made improvements to Buildings, and purchased Plant and Equipment, Fixtures and Fittings, and Computer Equipment at a cost of £23,974k.

Directorate The Directors of the Scottish Prison Service Board are as listed on page 5 of the Annual Report.

Disabled Employees The Agency is working towards the Department of Employment Disability Symbol User Scheme. Applications by disabled people for employment or promotion are given fair and full consideration. Equal Opportunities SPS is an equal opportunities employer, and is committed to the most effective use of all available human resources, through a programme of equal opportunities, which ensures the avoidance of discrimination, victimisation and harassment. The operation of the policy is monitored to make sure the Code of Practice is implemented.

Employee Consultation The Agency recognises the importance of good employee relations and is committed to effective employee communications. Regular meetings are held with representatives of the trade unions in line with Civil Service Whitley Council arrangements.

Payment of Creditors The Agency’s policy is to pay all invoices not in dispute in 30 days or the agreed contractual terms if otherwise specified. The Agency aims to pay 100% of invoices, including disputed invoices once the dispute has been settled, on time in these terms.

During the year ended 31 March 2001 the Agency paid 97.9% (1999-00 97%) of all invoices received within the terms of its payment policy.

The Agency observes the principles of the CBI Code - Prompt Payers.

Audit The accounts for 2000-2001 are audited by auditors appointed by the Auditor General for Scotland.

TONY CAMERON Chief Executive 5 December 2001

STATEMENT OF AGENCY’S AND CHIEF EXECUTIVE’S RESPONSIBILITIES

Accounts In accordance with Article 19(4) of Public Finance and Accountability (Scotland) Act 2000 the Scottish Ministers have directed the Scottish Prison Service to prepare a statement of accounts for each financial year in the form and on the basis set out in the Accounts Direction on page 60. The accounts are prepared on an accrual basis and must give a true and fair view of the Agency’s state of affairs at the year-end and of its income and expenditure, recognised gains and losses and cash flows for the financial year.

In preparing the accounts the Agency is required to: – observe the Accounts Direction issued by the Scottish Ministers, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis; – make judgements and estimates on a reasonable basis; – state whether applicable accounting standards have been followed, and disclose and explain any material departures in the accounts; – prepare the accounts on the going concern basis, unless it is inappropriate to presume that the Agency will continue in operation.

The Accountable Officer of the Scottish Executive Justice Department has designated the Chief Executive of the Scottish Prison Service as the Accountable Officer for the Agency. The relevant responsibilities as Agency Accountable Officer, including responsibility for the propriety and regularity of the public finances and for the keeping of proper records, are set out in the Accountable Officer’s Memorandum issued by the Scottish Executive.

Costs incurred by the Scottish Prison Service for the Lockerbie Trial in the Netherlands are separately provided for and are reported, on an accrual basis, in the accounts. Responsibility for all aspects of the operation of this project lies with the Scottish Executive Lockerbie Trial Steering Group.

Internal Financial Control This statement is given in respect of the Agency account for the Scottish Prison Service. As Accountable Officer for the Agency, I acknowledge my responsibility for ensuring that an effective system of internal financial control is maintained and operated in connection with the resources concerned. The system of internal financial control can only provide reasonable, and not absolute assurance, that assets are safeguarded, transactions are authorised and properly recorded and that material errors or irregularities are either prevented or would be detected within a timely period.

The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures, including segregation of duties, management supervision and a system of delegation and accountability. Development and maintenance of the system is undertaken by executive managers within the Scottish Prison Service.

In particular, the system includes:

– comprehensive budgeting systems with an annual budget which is approved by me as Chief Executive and the Board; – regular reviews by the Board of periodic and annual financial reports which indicate financial performance against the forecasts; – setting targets to measure financial and other performance; – the preparation of regular financial reports which indicate actual expenditure against the forecasts; – clearly defined capital investment control guidelines; – as appropriate, formal project management disciplines.

The Scottish Prison Service has an internal audit service, the work of which concentrates on the key activities determined by an analysis of the areas of greatest risk and in accordance with the annual internal audit plan approved by the Audit Committee. The internal auditors operate to standards defined in the Government Internal Audit Manual. The internal auditors report to the Agency Accountable Officer and to the Audit Committee on a regular basis and have direct access to the Board of the Scottish Prison Service and to the members of the Audit Committee. In line with best practice recommendations in corporate governance, the Audit Committee meets regularly throughout the year and is chaired by a non-executive Director. The Head of Internal Audit has issued an Assurance Statement to me which provides her opinion on the adequacy and effectiveness of the internal control system and the extent to which it can be relied on.

My review of the effectiveness of the system of internal financial control is informed by:

– executive managers within the Scottish Prison Service; – the work of the internal auditors as described above; – the external auditors in their management letters and other reports; and – the work of the Audit Committee.

Implementation of the Turnbull Report In September 1999 the Institute of Chartered Accountants in England and Wales published the report of the Turnbull Committee “Internal Control: Guidance for Directors on the Combined Code”. The effect of the Turnbull Report was to extend the existing requirement to provide a statement in respect of financial controls to cover all controls, including financial, operational, compliance and the management of risk.

As Agency Accountable Officer, I am aware of the recommendations of the Turnbull Committee and am taking reasonable steps to implement the full requirements thereof, in accordance with appropriate guidance, for the year ended 31 March 2002.

TONY CAMERON Chief Executive 5 December 2001

Accounts AGENCY OPERATING COST STATEMENT

for the year ended 31 MARCH 2001

Re-stated 2001-01 1999-00 Notes £'000s £'000s INCOME Income from all sources (2) 2,268 1,734

EXPENDITURE Staff Costs (3) 115,460 127,724 Running Costs (4) 91,597 73,497 Other Current Expenditure (5) 19,944 18,762

TOTAL EXPENDITURE 227,001 219,983

OPERATING COST (224,733) (218,249) Cost of capital charges (20) (22,844) (23,349) Interest payable and similar charges (6) (15) Interest receivable (6) 164 93 NET COST OF OPERATIONS AFTER (247,419) (241,520) INTEREST

Lockerbie Trial Costs 3,199 3,387

COST FOR FINANCIAL YEAR (250,618) (244,907)

All income and expenditure are derived from continuing operations.

Prior year figures have been restated in accordance with the accounting principles and disclosure requirements of the Resource Accounting Manual.

The notes on pages 45 to 57 form part of these accounts.

STATEMENT OF RECOGNISED GAINS AND LOSSES

for the year ended 31 MARCH 2001

Re-stated 2001-01 1999-00 £'000s £'000s

Unrealised gain/(loss) on revaluation of tangible fixed (48,838) 1,153 assets less supplementary depreciation

Receipt/Revaluation of Donated Assets (309) 1,009

Total recognised gains and losses for the financial year (49,147) 2,162

Prior year figures have been restated in accordance with the accounting principles and disclosure requirements of the Resource Accounting Manual.

The notes on pages 45 to 57 form part of these accounts.

BALANCE SHEET AS AT 31 MARCH 2001

Re-stated 2001-01 1999-00 Notes £'000s £'000s FIXED ASSETS Tangible Assets (7) 356,342 398,994

CURRENT ASSETS Stock and Work In Progress (8) 3,908 4,037 Debtors (9) 6,154 8,133 Cash at Bank and in Hand (10) 266 296 10,328 12,466

CURRENT LIABILITIES Creditors: amounts falling due within one (11) 9,886 8,986 year

NET CURRENT (LIABILITIES)/ASSETS 442 3,480

TOTAL ASSETS LESS CURRENT LIABILITIES 356,784 402,474

Creditors: amounts falling due after more (11) 4,095 4,162 than one year Provisions for Liabilities and Charges (12) 2,342 3,615

NET ASSETS 350,347 394,697

TAXPAYER’S EQUITY General Fund (13) 325,276 353,526 Donated Assets Reserve (14) 680 1,009 Revaluation Reserve (15) 24,391 40,162 350,347 394,697

TONY CAMERON Chief Executive 5 December 2001

Prior year figures have been restated in accordance with the accounting principles and disclosure requirements of the Resource Accounting Manual.

The notes on pages 45 to 57 form part of these accounts.

CASH FLOW STATEMENT

for the year ended 31 MARCH 2001 Re-stated

Re-stated 2001-01 1999-00 Notes £'000s £'000s OPERATING ACTIVITIES Net Cash outflow from operating activities (I) (176,203) (188,734)

CAPITAL EXPENDITURE & FINANCIAL INVESTMENT Purchase of fixed assets (23,461) (27,304) Proceeds of disposal of fixed assets 760 178 Net Cash outflow from investment (22,701) (27,126) activities

PAYMENTS TO THE SCOTTISH 0 0 CONSOLIDATED FUND

FINANCING FROM THE SCOTTISH CONSOLIDATED FUND From the Scottish Consolidated Fund 198,874 214,213

INCREASE/(DECREASE) IN CASH (II) (30) (1,647)

The notes on pages 45 to 57 form part of these accounts.

NOTES TO THE CASH FLOW STATEMENT 2000-01

(I) Reconciliation of Operating Cost to Operating Cash Flows:

Re-stated 2001-01 1999-00 £'000s £'000s

Costs for the financial year (250,618) (244,907) Notional charges 22,954 23,454 Release of Donated Asset Reserve (20) (1) Depreciation and impairment on tangible 50,220 33,021 assets (Profit)/Loss on sale of tangible assets 282 444 Previously capitalised costs expensed 0 265 Decrease in stock 129 285 (Increase)/Decrease in debtors 1,991 (1,218) Increase/ (Decrease) in (1,141) (77) creditors/provisions Net Cash Flow from Operating Activities (176,203) (188,734)

(II) Reconciliation of Net Cash Flow to movement in Net Funds:

2001-01 1999-00 £'000s £'000s

Increase/(Decrease) in cash in the year (30) (1,647) Change in net funds (30) (1,647) Net funds at 31 March 2000 296 1,943 Net funds at 31 March 2001 266 296

Prior year figures have been restated in accordance with the accounting principles and disclosure requirements of the Resource Accounting Manual.

The notes on pages 45 to 57 form part of these accounts.

Notes to the Accounts AGENCY OPERATING COST STATEMENT

for the year ended 31 MARCH 2001

Re-stated 2001-01 1999-00 Notes £'000s £'000s INCOME Income from all sources (2) 2,268 1,734

EXPENDITURE Staff Costs (3) 115,460 127,724 Running Costs (4) 91,597 73,497 Other Current Expenditure (5) 19,944 18,762

TOTAL EXPENDITURE 227,001 219,983

OPERATING COST (224,733) (218,249) Cost of capital charges (20) (22,844) (23,349) Interest payable and similar charges (6) (15) Interest receivable (6) 164 93 NET COST OF OPERATIONS AFTER (247,419) (241,520) INTEREST

Lockerbie Trial Costs 3,199 3,387

COST FOR FINANCIAL YEAR (250,618) (244,907)

All income and expenditure are derived from continuing operations.

Prior year figures have been restated in accordance with the accounting principles and disclosure requirements of the Resource Accounting Manual.

The notes on pages 45 to 57 form part of these accounts.

STATEMENT OF RECOGNISED GAINS AND LOSSES

for the year ended 31 MARCH 2001

Re-stated 2001-01 1999-00 £'000s £'000s

Unrealised gain/(loss) on revaluation of tangible fixed (48,838) 1,153 assets less supplementary depreciation

Receipt/Revaluation of Donated Assets (309) 1,009

Total recognised gains and losses for the financial year (49,147) 2,162

Prior year figures have been restated in accordance with the accounting principles and disclosure requirements of the Resource Accounting Manual.

The notes on pages 45 to 57 form part of these accounts.

BALANCE SHEET AS AT 31 MARCH 2001

Re-stated 2001-01 1999-00 Notes £'000s £'000s FIXED ASSETS Tangible Assets (7) 356,342 398,994

CURRENT ASSETS Stock and Work In Progress (8) 3,908 4,037 Debtors (9) 6,154 8,133 Cash at Bank and in Hand (10) 266 296 10,328 12,466

CURRENT LIABILITIES Creditors: amounts falling due within one (11) 9,886 8,986 year

NET CURRENT (LIABILITIES)/ASSETS 442 3,480

TOTAL ASSETS LESS CURRENT LIABILITIES 356,784 402,474

Creditors: amounts falling due after more (11) 4,095 4,162 than one year Provisions for Liabilities and Charges (12) 2,342 3,615

NET ASSETS 350,347 394,697

TAXPAYER’S EQUITY General Fund (13) 325,276 353,526 Donated Assets Reserve (14) 680 1,009 Revaluation Reserve (15) 24,391 40,162 350,347 394,697

TONY CAMERON Chief Executive 5 December 2001

Prior year figures have been restated in accordance with the accounting principles and disclosure requirements of the Resource Accounting Manual.

The notes on pages 45 to 57 form part of these accounts.

CASH FLOW STATEMENT

for the year ended 31 MARCH 2001 Re-stated

Re-stated 2001-01 1999-00 Notes £'000s £'000s OPERATING ACTIVITIES Net Cash outflow from operating activities (I) (176,203) (188,734)

CAPITAL EXPENDITURE & FINANCIAL INVESTMENT Purchase of fixed assets (23,461) (27,304) Proceeds of disposal of fixed assets 760 178 Net Cash outflow from investment (22,701) (27,126) activities

PAYMENTS TO THE SCOTTISH 0 0 CONSOLIDATED FUND

FINANCING FROM THE SCOTTISH CONSOLIDATED FUND From the Scottish Consolidated Fund 198,874 214,213

INCREASE/(DECREASE) IN CASH (II) (30) (1,647)

The notes on pages 45 to 57 form part of these accounts.

NOTES TO THE CASH FLOW STATEMENT 2000-01

(I) Reconciliation of Operating Cost to Operating Cash Flows:

Re-stated 2001-01 1999-00 £'000s £'000s

Costs for the financial year (250,618) (244,907) Notional charges 22,954 23,454 Release of Donated Asset Reserve (20) (1) Depreciation and impairment on tangible 50,220 33,021 assets (Profit)/Loss on sale of tangible assets 282 444 Previously capitalised costs expensed 0 265 Decrease in stock 129 285 (Increase)/Decrease in debtors 1,991 (1,218) Increase/ (Decrease) in (1,141) (77) creditors/provisions Net Cash Flow from Operating Activities (176,203) (188,734)

(II) Reconciliation of Net Cash Flow to movement in Net Funds:

2001-01 1999-00 £'000s £'000s

Increase/(Decrease) in cash in the year (30) (1,647) Change in net funds (30) (1,647) Net funds at 31 March 2000 296 1,943 Net funds at 31 March 2001 266 296

Prior year figures have been restated in accordance with the accounting principles and disclosure requirements of the Resource Accounting Manual.

The notes on pages 45 to 57 form part of these accounts.

Notes to the Accounts NOTES TO THE ACCOUNTS

1. Accounting Policies

In 2000-01 the accounts have been prepared in accordance with the Resource Accounting Manual. The particular accounting policies adopted by the Agency are described below. They have been applied consistently in dealing with items considered material in relation to the accounts.

Accounting Convention The accounts have been prepared under the historic cost convention modified to account for the revaluation of fixed assets, and stocks where material, at their value to the Agency by reference to their current costs.

Continuing Activities The results of the Agency Operating Statement derive from operating activities, all of which are continuing.

Tangible Fixed Assets Title to the freehold land and buildings shown in the Accounts is held in the name of the Scottish Ministers.

Tangible fixed assets are stated at their purchase price, together with any incidental expenses of acquisition and, with the exception of computer equipment, are revalued each year using either Business Monitor Producer Price Indices to take account of specific price changes, or as described below. Computer equipment is not indexed, in line with Scottish Executive guidance.

All the feuhold properties were valued as at 31 March 1995 by District Valuers (DVs) of the Valuation Office Agency, and over the following 5 years a rolling programme of revaluations and reassessments of remaining life was undertaken by DVs in the capacity of External Valuers, revaluing on average 4 establishments each year since 1995. The rolling programme concluded in 1999/2000 and, in accordance with FRS15, a full revaluation of the SPS Estate was carried out for 2000/2001 at 31 August 2000. This included 18 establishments, 6 prison officers’ clubs, 12 dwellinghouses, 168 lockup garages/garage sites and 22 plots of surplus land. Properties are now valued as at 31 August, in order that information on the new valuations will be available by the end of September in accordance with Resource Accounting Manual requirements. All the valuations have been undertaken on the undernoted basis in accordance with the Appraisal and Valuation Manual of the Royal Institution of Chartered Surveyors and subject to SPS instructions that re-inspections were limited to those alterations and improvements carried out subsequent to 31 March 1995.

Properties regarded by SPS as operational were valued on the basis of Existing Use Value or, where this could not be assessed because there was no market for the subject asset, the Depreciated Replacement Cost (DRC), subject to the prospect and viability of the occupation and use. Properties regarded by SPS as non-operational were valued on the basis of Open Market Value.

Where a Depreciated Replacement Cost figure has been provided, the Valuation Certificate also provides an open market valuation (allowing for alternative uses) and these produce amounts significantly lower than the DRC figures.

The sources of information and assumptions made in producing the various valuations are set out in the Valuation Certificate, which is not published within the Annual Report and Accounts.

The valuation figures incorporated in the accounts are the aggregate of separate valuations of parts of the portfolio, not a valuation or apportioned valuation of the portfolio valued as a whole. SPS property valued on a DRC basis made use of Home Office Reference Cost Data (RCD). The source of this data has changed from historical cost data established in the 1980’s, as updated with indices, to a more appropriate basis using current cost data. The impact of this change is reflected in notes 4 and 7.

Provision for depreciation is made to write off the cost of fixed assets on a straight- line basis over the expected useful lives of the assets concerned. The expected useful lives are as follows, in compliance with FRS15:

Buildings Not exceeding 80 years Fixed Plant and Not exceeding 40 years Equipment Computers 2 years Motor Vehicles 5 years Moveable Plant & 5 years Equipment Fixtures & Fittings 5 years

Minor works and furniture are written off in the year of purchase as are all other items costing less than £1,000.

Donated tangible fixed assets are capitalised at their current value on receipt, and this value is credited to the donated assets reserve. Subsequent revaluations are also taken to this reserve. Each year, an amount equal to the depreciation charge on the asset is released from the donated asset reserve to the operating cost statement.

Realised element of depreciation from revaluation reserve Depreciation is charged to expenditure on the revalued amount of assets. An element of the depreciation therefore arises due to the increase in valuation and is in excess of the depreciation that would be charged on the historical cost of assets. The amount relating to this excess is a realised gain on revaluation and is transferred from the Revaluation Reserve to the General Fund. PFI Contract The accounting treatment for the contract under the Private Finance Initiative has been prepared under the guidance contained in paragraph 5.19 of Treasury Task Force, Private Finance, Technical Note (Revised). The annual commitment is included within Leasing Commitments while reversionary interest is included under Land and Buildings. The prepayment relating to the land and the deferred residual value of the building are released to the Income and Expenditure Account over the period of the contract.

Stocks and Work-In-Progress Stocks and work-in-progress are valued as follows:

Finished goods are valued at the lower of cost or, where materially different, – current replacement cost and net realisable value Work in progress is valued at the lower of cost, including appropriate overheads, – and net realisable value.

Value Added Tax The majority of services provided by the Scottish Prison Service fall outwith the scope of Value Added Tax (VAT). owever, the manufacturing and sale of goods to external bodies is subject to VAT on both inputs and outputs. The Agency can recover this input VAT and also recovers VAT on certain contracted-out services.

Income is shown in the accounts net of VAT.

Pension Costs and other post retirement benefits The total liability for early retirement costs has been recognised in full in the year in which the prepayment is made and charged against the Operating Cost Statement. The difference between the reduction in the net present value of the prepayment and the reduction in the liability each year is credited to the Operating Cost Statement. Early severance payment obligations are expensed in the year in which the employee leaves SPS.

Capital Charge A charge, reflecting the cost of capital utilised by SPS, is included in the operating costs. The charge is calculated at the government’s standard rate of 6% in real terms on all assets less liabilities, except for donated assets and cash balances with the Office of HM Paymaster General, where the charge is nil.

Operating Leases Rentals applicable to operating leases are charged to the Operating Cost Statement as incurred.

Insurance No outside insurance is effected against fire, explosion, common law, third party and similar risks except where there is a statutory requirement to do so. Research and Development Expenditure on research and development is treated as an operating cost in the year in which it is incurred.

2. Income from all sources

2001-01 1999-00 £'000s £'000s

Income from sales 2,165 1,738 Profit/(Loss) on sale of assets (282) (444) Rental income - garages 14 19 - quarters 17 21 Release of donated asset reserve 20 1 General revenue 334 399 2,268 1,7343

3. Staff Costs

Staff costs during the year were:

2001-01 1999-00 £'000s £'000s

Wages and salaries 94,333 97,439 Social security costs 6,789 6,947 Other pension costs 14,202 14,709 Early departure costs (see Note 21) 136 8,629 Total employment costs 115,460 127,724

Employees

Number of Employees

The average number of persons employed during the year was:

2001-01 1999-00 £'000s £'000s

Establishment staff 4,428 4,745 Headquarters staff 274 295 4,702 5,040

Pensions

The staff of the Agency are members of the Principal Civil Service Pension Scheme and their pension benefits accrue under this scheme. Contributions of £14,201,836 (1999-2000 £14,708,511) were paid to the Paymaster General at rates determined from time to time by the Government Actuary. For 2000-01 (and 1999-00) the rates fell in the range of 12% to 20.5% depending on salary scales.

The salary and pension entitlements of the Board Members were:

Real Total accrued

Salary (as increase pension at age 60 Salary defined in pension at 31 March 1999-00 Name and Title below) at age 60 2001 Age £’000s £’000s £’000s £’000s

T CAMERON * 54 90-95 2.5-5 35-40 40-45 Chief Executive

C CARLIN* 37 10-15 0-2.5 5-10 n/a Director

M DUFFY consent to disclosure withheld Director

J B DURNO consent to disclosure withheld Director

J HUTCHISON consent to disclosure withheld Director

J MCNEILL* 55 20-25 0-2.5 0-5 n/a Director

W PRETSWELL consent to disclosure withheld Director P RUSSELL 50 55-60 0-2.5 20-25 55-60 Director

P WITHERS 54 60-65 0-2.5 20-25 55-60 Director

A MACINTYRE 63 5-10 - - 0-5 Non-exec. Director

M WISHART 53 5-10 - - 0-5 Non-exec. Director

*The salary range reflects remuneration for the months in office. T Cameron, J McNeill and C Carlin became Board Members on 1/09/99, 1/11/00 and 1/12/00 respectively.

Salary includes gross salary, performance pay or bonuses, overtime, recruitment and retention allowances, and any other allowance to the extent that it is subject to UK taxation. It does not include the estimated monetary value of benefits in kind.

Pension benefits are provided through the Principal Civil Service Pension Scheme (PCSPS). This is a statutory scheme, which provides benefits on a “final salary” basis at a normal retirement age of 60. Benefits accrue at the rate of 1/80th of pensionable salary for each year of service.

In addition, a lump sum equivalent to 3 years’ pension is payable on retirement. Members pay contributions of 1.5% of pensionable earnings. Pensions increase in payment in line with the Retail Price Index. On death, pensions are payable to the surviving spouse at a rate of half the member’s pension. On death in service, the scheme pays a lump sum benefit of twice pensionable pay and also provides a service enhancement on computing the spouse’s pension. This enhancement depends on the length of service and cannot exceed 10 years. Medical retirement is possible in the event of serious ill health. In this case pensions are brought into payment immediately without actuarial reduction and with service enhanced as for widow(er) pensions.

4. Running Costs

These comprise:

Re-stated 2001-01 1999-00 £'000s £'000s

Repairs and Maintenance 9,986 10,189 Depreciation and impairment 50,220 33,021 Other Staff Related Costs 5,870 6,045 Heat, Light, Telephone etc. 5,973 5,144 Payments in lieu of Council Tax 3,100 2,995 Rentals in operating leases - hire of plant and machinery 75 89 - other operating leases (see Note 16) 13,767 13,238 General Expenditure 2,534 2,706 Notional Charges (see Note 20) 72 70 91,597 73,497

Depreciation includes £33,794k relating to the revaluation of land and buildings in August 2000 (£15,154k in 1999-00) due to prison closures. Included within Other Operating Leases is an amount of £12,363k (£11,740k in 1999-2000) in relation to PFI Expenditure.

5. Other Current Expenditure

These comprise:

2001-01 1999-00 £'000s £'000s

Victualling and Other Supplies 8,629 7,825 Prisoner Earnings 1,819 1,751 Other Costs 9,496 9,186 19,944 18,762

6. Interest Receivable

2001-01 1999-00 £'000s £'000s

Interest on early retirement prepayment 164 93

7. Tangible Fixed Assets

Plant Fixtures Land & Motor & Comp & Assets under Buildings Vehicles Equip Equip Fittings Construction Total Excluding

Donated Assets Cost or £’000s £’000s £’000s £’000s £’000s £’000s £’000s Valuation Opening Balance 415,089 952 10,119 11,700 382 10,475 448,717 Additions 13,334 134 1,938 690 96 7,782 23,974 Completed Assets under 10,133 0 0 297 0 (10,430) 0 Construction Revaluation Valued (90,357) 0 0 0 0 0 (90,357) Indexed 171 (23) 280 0 13 0 441 Disposals (1,047) (143) (228) (91) 0 (29) (1,538) Closing Balance 347,323 920 12,109 12,596 491 7,798 381,237 Depreciation Opening Balance 35,433 648 5,387 9,046 218 0 50,732 Charge 12,487 88 1,470 2,235 126 0 16,406 Reval Adj (41,221) 0 0 0 0 0 (41,221) Backlog 3 (13) 148 0 5 0 143 Disposals (33) (143) (219) (90) 0 0 (485) Closing Balance 6,669 580 6,786 11,191 349 0 25,575 NBV at 340,654 340 5,323 1,405 142 7,798 355,662 31/3/2001 Donated Assets Opening Balance 1,000 0 10 0 0 0 1,010 Additions 0 0 0 0 0 0 0 Revaluation (316) 0 0 0 0 0 (316) Closing Balance 684 0 10 0 0 0 694 Depreciation Opening Balance 0 0 1 0 0 0 1 Charge 18 0 2 0 0 0 20 Revaluation (7) 0 0 0 0 0 (7) Closing Balance 11 0 3 0 0 0 14 NBV at 673 0 7 0 0 0 680 31/3/2001

Total Net Book Value At 341,327 340 5,330 1,405 142 7,798 356,342 31/3/2001 At 31/3/2000 380,656 304 4,741 2,654 164 10,475 398,994

The establishments and other land and buildings which were revalued by the Chief Valuer of Scotland at 31 August 2000 included 18 establishments, 6 prison officers’ clubs, 12 dwellinghouses, 168 lockup garages/garage sites and 22 plots of surplus land across the estate. The total value of these properties at that date was £333,023,770.

Included within Land and Building is an amount of £5,259,566, representing an increase of £420,549 in the reversionary interest in the PFI prison HMP Kilmarnock.

Due to changes primarily on the basis of DRC reference cost data, a revaluation adjustment of £90,357,339 less accumulated depreciation of £41,221,110 has occurred.

Donated Assets include a Visitor Reception Centre at Edinburgh provided to the Scottish Prison Service with the restriction that it be leased to the developer for a peppercorn rent for a period of 35 years to be used solely as a Visitors Reception Centre.

8. Stocks

The main categories of stock held are:

2001-01 1999-00 £'000s £'000s

Consumables 2,038 2,208 Works, Estates and Locks 551 584 Industries raw materials, work in progress 1,736 and finished goods for resale 1,805 Provision for obsolete stock (486) (491) 3,908 4,037

9. Debtors Re-stated 2001-01 1999-00 £'000s £'000s Amounts due within one year: Trade Debtors 722 769 Provision for Bad Debts (75) (78) Other Debtors 223 198 Prepayments and Accrued Income 1,328 1,891 Recoverable VAT 1,539 2,108 3,737 4,888

Amounts due after more than one year:

Prepayment 1,938 2,798 Other Debtors 479 447 2,417 3,245 6,154 8,133

10. Cash at Bank and in Hand

2001-01 1999-00 £'000s £'000s

Accounts at the Office of HM Paymaster General 203 163 Other Bank Accounts 10 76 Cash in Hand 53 57 266 296

In addition the Scottish Prison Service holds £188,713 (1999-00 - £200,942) in respect of Common Good Fund balances on behalf of prisoners.

11. Creditors

2001-01 1999-00 £'000s £'000s Amounts due within one year: Trade Creditors 4,347 3,795 Accruals 4,340 4,066 Other Creditors 213 197 Deferred Income 156 928 Excess Receipts due to the Scottish 830 0 Consolidated Fund 9,886 8,986 Amounts due after more than one year: Deferred Residual Interest 4,095 4,162 13,981 13,148

Deferred Income is based on the Accounting conventions adopted for resource-based supply.

12. Movement in Provision and Charges

The provision for future pension payments and other charges is as follows:

Other Pension Total Re-stated Charges 2001-01 2001-01 2001-01 1999-00 £'000s £'000s £'000s £'000s

Balance at 1 April 2000 321 3,294 3,615 2,383 Provided in the year 34 0 34 2,626 Amounts utilised in the year 0 (1,097) (1,097) (1,292) Released in the year (210) 0 (210) (102) Accrual Balance at 31 March 2001 145 2,197 2,342 3,615

13. Movement in General Fund

Re-stated 2001-01 1999-00 £'000s £'000s

Balance at 1 April 2000 353,526 358,669 Deficit for financial year (250,618) (244,907) Land transferred from Secretary of State 0 150 Exchequer Contribution 198,874 214,213 Transfer from/(to) Deferred Income (58) 1,314 Transfer of realised element from Revaluation Reserve 598 633 (Note 15) Notional Charges (Note 20) 22,954 23,454 Balance at 31 March 2001 325,276 353,526

14. Donated Asset Reserve

2001-01 2001-01 2001-01 £'000s £'000s £'000s Land & Plant & Building Equipment Total

Balance at 1 April 2000 1,000 9 1,009 Donated during year 0 0 0 Revaluation (309) 0 (309) Release of Reserve to Operating (18) (2) (20) Statement Balance at 31 March 2001 673 7 680

15. Movement in Revaluation Reserve

2001-01 1999-00 £'000s £'000s

Balance at 1 April 2000 40,162 24,751 Net Revaluation surplus/(deficit) (56,251) 15,069 Revaluation Adjustment 41,221 2,706 Backlog depreciation (143) (1,468) Permanent Diminution in Assets (263) Realised elements transferred to General Fund (598) (633) Balance at 31 March 2001 24,391 40,162 In accordance with The Resource Accounting Manual, the excess depreciation calculated on revalued assets over that which would be charged on a historical cost basis has been transferred to the General Fund.

16. Leasing Commitments

At 31 March 2001 the Agency had annual commitments for operating lease rentals as follows:

2001-01 2001-01 1999-00 £'000s £'000s £'000s Land & Other All Building Leases Leases

Expiring within 1 year 430 28 Expiring between 1 and 5 years 60 403 Expiring between 6 and 10 years 959 905 Expiring between 21 and 25 years 12,326 12,730 959 12,816 14,066

Included within other leases is the annual commitment for a contract, which SPS awarded under the Private Finance Initiative to design, construct, manage and finance a prison at Kilmarnock. This contract commenced in March 1999 and was let for a period of 25 years. The annual commitments vary each year with more significant variations in later years, with a reduction of approximately £5m over years 18 to 25. The estimated capital value of the project is approximately £33m.

In the event of termination of the PFI contract, the SPS has committed to pay certain amounts to the contractor according to defined formulae. In the case of voluntary termination by SPS, a sum will be payable based on the equity value of the contract and certain other costs. In the event of termination due to contractor default, a sum will be payable based on lender liabilities less full rectification and any additional costs incurred by SPS as a result of executing this option.

17. Capital Commitments

The Scottish Prison Service is committed to the following:

2001-01 1999-00 £'000s £'000s

Committed at 31 March 2001 6,046 7,041 This figure includes the amount contracted at 31 March 2001 with additional amounts committed in order to fulfil the capital programme.

18. Contingent Liabilities

At 31 March 2001 the Agency had outstanding contingent liabilities totalling:

2001-01 1999-00 £'000s £'000s

1,701 564

19. Reconciliation to Draft Cash Account

Receipts and payments of the Scottish Prison Service will be recorded in the Scottish Executive Cash Account for 2000-01. Figures have been reconciled to the cash flow statement as follows:

2001-01 1999-00 £'000s £'000s

Balance brought forward 928 2,242 Exchequer Contribution 198,874 214,213 TOTAL FUNDING 199,802 216,455

GROSS EXPENDITURE 208,026 222,195 Less: Receipts applied (8,380) (6,668) NET TOTAL 199,646 215,527

Receipts payable to Justice Department (830) 0 Retained funds 986 928 TOTAL FUNDING 199,802 216,455

The Scottish Prison Service is a supply - financed agency of the Scottish Executive. The Agency’s expenditure forms a section within the Scottish Executive Justice Department.

Losses Statement £’000

Total (498 cases) 176 Notes Special payments Total (250 cases) 210

20. Notional Charges

The following notional charges have been included in the accounts:

Re-stated 2001-01 1999-00 £'000s £'000s

Cost of capital charges 22,844 23,349 Scottish Executive Services 38 35 Auditors remuneration 72 70 22,954 23,454

The Cost of Capital charge is calculated as 6% of all assets less liabilities over the year, except for donated assets, and cash balances with the Office of HM Paymaster General where the charge is nil.

21. Early Departure Costs

The cost of early departures to the Scottish Prison Service in 2000-01 was £136k (£8.6m in 1999-00) and represents the cost of early departure decisions made in the current and in earlier years.

22. Key Financial Target

The Agency’s key financial target was to keep the cost per available prisoner place within £29,500. The actual annual average cost per prisoner place, calculated on a cash basis, in 2000-01 was £28,114 (1999-00 £28,375).

23. Related Party Transactions The Scottish Prison Service is an Executive Agency of the Scottish Executive. The Scottish Executive is regarded as a related party with which the Agency has various material transactions during the year. During the year, none of the Board Members, members of key management staff or other related parties has undertaken any material transactions with the Agency.

Auditor's Report AUDITOR’S REPORT TO THE SCOTTISH PARLIAMENT AND THE AUDITOR GENERAL FOR SCOTLAND

I have audited the financial statements on pages 40 to 57 under the Public Finance and Accountability (Scotland) Act 2000. These financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and the accounting policies set out on pages 45 to 47.

Respective responsibilities of the Agency, the Chief Executive and Auditor

As described on pages 38 to 39 the Agency and Chief Executive are responsible for the preparation of the financial statements and for ensuring the regularity of financial transactions. The Agency and Chief Executive are also responsible for the preparation of the other contents of the Annual Report. My responsibilities, as independent auditor, are established by statute and guided by the Auditing Practices Board and the auditing profession’s ethical guidance.

I report my opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers, and whether in all material respects the expenditure and receipts shown in the accounts were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers. I also report if, in my opinion, the Foreword is not consistent with the financial statements, if the Agency has not kept proper accounting records, or if I have not received all the information and explanations I require for my audit.

I read the other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements. I consider the implications for my certificate if I become aware of any apparent misstatements or material inconsistencies with the financial statements.

I review whether the statement on pages 38 to 39 reflects the Agency’s compliance with Scottish Executive guidance on statements on the system of internal financial control. I report if it does not meet the requirements specified by the Scottish Executive, or if the statement is misleading or inconsistent with other information I am aware of from my audit of the financial statements.

Basis of Opinion

I conducted my audit in accordance with the United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts, disclosures and regularity of financial transactions included in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Agency and the Chief Executive in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Agency’s circumstances, consistently applied and adequately disclosed. I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by error, or by fraud or other irregularity and that, in all material respects, the expenditure and receipts shown in the accounts were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers.

In forming my opinion I have also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion

In my opinion:

the financial statements give a true and fair view of the state of affairs of the Scottish Prison Service at 31 March 2001 and of the deficit, recognised gains and losses and cash flows for the year then ended and have been properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers; and in all material respects the expenditure and receipts shown in the accounts were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers; and in all material respects the sums paid out of the Scottish Consolidated Fund for the purpose of meeting the expenditure shown in the accounts were applied in accordance with section 65 of the Scotland Act 1998.

I have no observations to make on these financial statements.

Peter Tait 18 George Street Chief Auditor Edinburgh Audit Scotland

7 December 2001

Auditor General's Report A REPORT BY THE AUDITOR GENERAL FOR SCOTLAND UNDER SECTION 22(3) OF THE PUBLIC FINANCE AND ACCOUNTABILITY (SCOTLAND) ACT 2000

THE 2000/2001 AUDIT OF THE SCOTTISH PRISON SERVICE

1. I have received the audited accounts of the Scottish Prison Service for the year ended 31 March 2001. The auditor’s report on the accounts is not qualified but the auditor has drawn my attention to the accounting treatment for a Private Finance Initiative contract. 2. I submit these accounts and the auditor’s report in terms of sub-section 22(4) of the Public Finance and Accountability (Scotland) Act 2000, together with this report, which I have prepared under sub-section 22(3) of the Act. 3. The Scottish Prison Service procured the provision of a 500-place prison at HMP Kilmarnock through a Private Finance Initiative contract. The contract provides for Kilmarnock Prison Services Ltd to design and construct the prison and to finance, operate and manage it for a 25-year period commencing March 1999. 4. In submitting the Scottish Prison Service’s accounts to me the auditor has referred this matter to me in the following terms:

“ In forming my opinion on the 2000/01 accounts, I have considered the adequacy of the disclosures and the assessment of the estimates and judgements made by SPS for Private Finance Initiative transactions. In reviewing the qualitative factors, which form the basis of the accounting treatment, I sought supporting evidence from the operator’s published accounts. This revealed that neither party is recognising HMP Kilmarnock as a property asset with both parties claiming to have transferred substantially all the risks and rewards associated with ownership of the property asset to each other. In view of this situation, I consider it should be drawn to your attention but given that SPS have complied with HM Treasury guidance, my opinion contained in the formal audit certificate is not qualified in this respect.” 5. The Accounting Standards Board’s Financial Reporting Standard (revised) – Reporting the substance of transactions: Private Finance Initiative and Similar Contracts sets out guidance for purchasers and providers in accounting for assets associated with such contracts. The Treasury has issued additional guidance to public sector bodies on the application of the Standard from the purchaser’s viewpoint. This additional guidance does not apply to private sector partners and there is no requirement to ensure consistency of treatment between purchaser and provider. 6. The purpose of this report is to bring the situation to public notice. The effect of the accounting treatment adopted is that HMP Kilmarnock does not appear as a property asset on the balance sheets of either the Scottish Prison Service or Kilmarnock Prisons Services Ltd. The Scottish Prison Service balance sheet does however recognise the reversionary interest value of the property asset. 7. I wish to emphasise, however, that the Scottish Prison Service has complied fully with the current accounting guidance. Robert W Black Auditor General for Scotland

10 December 2001

Appendix to the Accounts APPENDIX TO THE ACCOUNTS

SCOTTISH PRISON SERVICE DIRECTION BY THE SCOTTISH MINISTERS

in accordance with Article 19(4) of The Public Finance and Accountability (Scotland) Act 2000

1. The statement of accounts for the financial year ended 31 March 2001 and subsequent financial years shall comply with the accounting principles and disclosure requirements of the edition of the Resource Accounting Manual which is in force for the year for which the statement of accounts are prepared. 2. The statement of accounts shall give a true and fair view of the income and expenditure and cash flows for the financial year, and the state of affairs as at the end of the financial year. 3. In addition to the requirements of the Manual: 3.1 When preparing its income and expenditure account the Scottish Prison Service shall have regard to the profit and loss account format 2 prescribed in Schedule 4 to the Companies Act 1985 to the extent that such requirements are appropriate to the Scottish Prison Service. 4. This direction shall be reproduced as an appendix to the statement of accounts. This direction supersedes the one dated 25th April 2000.

P S Collings Signed by the authority of the Scottish Ministers

Dated 29th March 2001