Agenda item

Consider the following reports (Copies attached.):-

There had been circulated copies of a report by Audit Scotland, the Council’s Auditors, together with a report by the Executive Director, Finance & Regulatory, and a copy of the Annual Accounts 2019/20.  The Executive Director’s report explained that 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. KPMG had continued to provide the external audit of the council subsidiary bridge homes.  2019/20 represented the fourth year of Audit Scotland undertaking the External Audit of the Council’s Annual Accounts and they had prepared the Annual Audit Report which provided an unqualified independent audit opinion.  The Annual Audit Report summarised Audit Scotland’s conclusions, including:

·                An unqualified audit opinion

·                Audit Scotland concur with management’s accounting treatment and judgements;

·                Audit Scotland concluded positively in respect of financial management, financial sustainability, governance and transparency and best value.

Audit Scotland had identified four recommendations for improvement requiring action and these had been accepted by management and would be enacted within the agreed timescales.   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 and Lowood Tweedbank Ltd and Scottish Borders Council’s Pension Fund had all been presented to the Audit and Scrutiny Committee prior to signature.  KPMG had concluded their audit of Bridge Homes LLP, subject to approval of their mandatory going concern consultation which was required on all UK audits as a result of Covid-19. They had raised no issues or matters to report.  Members noted the impact of Covid-19 on the Council’s financial position and welcomed the unqualified audit opinion.  In response to a concern that the recording of Education Maintenance Payments was still an issue after being raised for the last 3 years, Mr Robertson advised that work was ongoing to ensure that pupil records matched the payments made.  However, he confirmed that this had not prevented the Council being able to claim their grant for these payments in full.  Mr Robertson advised that following the preparation of his report a late notification regarding a presentational change to the gross income and expenditure figures relating to the IJB had been received.  However, this had no overall impact on the final figures and he was happy to make this adjustment.

DECISION

AGREED to approve the following Audited Accounts:-

(a)       the Scottish Borders Council’s audited Annual Accounts for the year to 31 March 2020;

(b)     the Scottish Borders Council’s Pension Fund audited Annual Accounts for the year to 31 March 2020;

(c)     the Scottish Borders Council Common Good Funds’ (Charity SC031538) audited Annual Accounts for the year to 31 March 2020;

(d)     the SBC Welfare Trust (Charity SC044765) audited Annual Accounts for the year to 31 March 2020;

(e)     the SBC Education Trust (Charity SC044762) audited Annual Accounts for the year to 31 March 2020;

(f)      the SBC Community Enhancement Trust (Charity SC044764) audited Annual Accounts for the year to 31 March 2020;

(g)     the SBC Ormiston Trust for Institute (Charity SC019162) audited Annual Accounts for the year to 31 March 2020;

(h)     the Scottish Borders Council Charitable Trusts (Charity SC043896) audited Annual Accounts for the year to 31 March 2020;

(i)      the Bridge Homes LLP audited Annual Accounts for the year to 31 March 2020; and

        (j)      Lowood Tweedbank Ltd Annual Accounts for the year to 31 March 2020.