Agenda item

With reference to paragraph 8 of the Minute of 24 September 2018, there had been circulated copies of the Council’s audited Annual Accounts for 2018/19. The audit appointment of Audit Scotland for Scottish Borders Council accounts included the requirement to provide an auditor’s report for the Council as well as related charities. 

 Audit Scotland had now completed the audit of the Council’s Annual Accounts for 2018/19 and had given an unqualified audit opinion in all cases.  In addition, Audit Scotland concurred with Management’s accounting treatment and judgements; and had reached positive conclusions in respect of financial sustainability, financial management, governance, transparency and value for money.   Audit Scotland had identified two recommendations for improvement requiring action and these had been accepted by Management and would be enacted within the agreed timescales.

5.2       As required under the Local Authority Accounts (Scotland) Regulations 2014, the audited Annual Accounts for Scottish Borders Council, SBC Common Good Funds, the SBC Charitable Trusts, Bridge Homes LLP, SB Supports LLP and SB Cares LLP, Lowood Tweedbank Ltd and Scottish Borders Council’s Pension Fund had been presented to the Audit and Scrutiny Committee prior to signature. 

5.3       The report also referred to KPMG’s external audit of the Council subsidiaries SB Cares, SB Supports and Bridge Homes which were not registered charities.  KPMG had concluded that the ongoing review of SB Cares was a going concern and had included this comment in its audit opinion.  Late in the audit process KPMG had identified a consistency issue with actuarial valuation of pensions fund liabilities for SB Cares.  Regarding Bridge Homes, KPMG had raised no issues and had no matters to report.

 5.4      In response to a question regarding contingent liabilities and contingent assets, Mr Robertson advised that further information on failure to conclude the land sale transaction would be provided in due course.  Regarding the High Court ruling with regard to Guaranteed Minimum Pensions (GMP), there was still material uncertainty as reconciliation was still being progressed.   With regard to the claim against Capita Plc, the Council had requested a cash settlement and the claim was still ongoing.   Mr Robertson also advised that the £613k exit packages had been calculated in accordance with Council policy. 

DECISION

AGREED to APPROVE the following accounts for officer signature and Council approval:

the Scottish Borders Council’s audited Annual Accounts for the year to 31 March 2019;

the Scottish Borders Council’s Pension Fund audited Annual Accounts for the year to 31 March 2019;

(b)       the Scottish Borders Council Common Good Funds’ (Charity SC031538)         audited Annual Accounts for the year to 31 March 2019;

(c)        the SBC Welfare Trust (Charity SC044765) audited Annual Accounts for the   year to 31 March 2019;

(d)       the SBC Education Trust (Charity SC044762) audited Annual Accounts for     the year to 31 March 2019;

(e)        the SBC Community Enhancement Trust (Charity SC044764) audited Annual Accounts for the year to 31 March 2019;

(f)        the Ormiston Trust for Institute Fund (Charity SC019162) audited Annual        Accounts for the year to 31 March 2019;

(g)       the Scottish Borders Council Charity Funds’ (Charity SC043896) audited         Annual Accounts for the year to 31 March 2019;

(h)       the Bridge Homes LLP audited Annual Accounts for the year to 31 March       2019;

(i)         the SB Supports LLP audited Annual Accounts for the year to 31 March          2019;

(j)         the SB Cares audited Annual Accounts for the year to the 31 March 2019;       and

(k)        Lowood Tweedbank Ltd Annual Accounts for the 30 November 2018 to the 31 March 2019 (part year).