Agenda item

Consider the following reports:-

(Copies attached with the exception of (j) Bridge Homes LLP which is to follow.)

There had been circulated copies of a report by Audit Scotland, the Council’s Auditors, together with a report by the Director, Finance and Corporate Governance, and a copy of the Annual Accounts 2020/21.  The 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.  2020/21 represented the fifth year of Audit Scotland undertaking the External Audit of the Council’s Annual Accounts with the process now completed.  Audit Scotland had prepared the Annual Audit Report and had provided an unqualified independent audit opinion.  The Annual Audit Report summarised Audit Scotland’s conclusions, including:

·                An unqualified audit opinion;

·                Audit Scotland concurred 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 identified six recommendations for improvement requiring action along with one follow-up to prior year recommendations.  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, Lowood Tweedbank Ltd and Scottish Borders Council’s Pension Fund had been presented to and considered by the Audit and Scrutiny Committee on 21 October 2021.  Audit and Scrutiny Committee agreed to recommend approval of the various accounts to Council, with the exception of Bridge Homes LLP where the accounts were noted pending completion of the audit.  The KPMG audit of Bridge Homes was not finally concluded when the report was considered by Audit and Scrutiny Committee on 21 October 2021.  However, the Director did not expect there to be any issues with the auditors sign off and it would be submitted to the Council in November for approval.  The Convener praised the work of the Director and his team for their work in producing the accounts, and in particular Mrs Kirsty Rob, for the Pension Fund accounts.

DECISION

(a)       AGREED to approve the following Audited Accounts:-

(i)      the Scottish Borders Council’s audited Annual Accounts for the year to 31 March 2021;

(ii)     the Scottish Borders Council’s Pension Fund audited Annual Accounts for the year to 31 March 2021;

(iii)    the Scottish Borders Council Common Good Funds (Charity SC031538) audited Annual Accounts for the year to 31 March 2021;

(iv)    the SBC Welfare Trust (Charity SC044765) audited Annual Accounts for the year to 31 March 2021;

(v)     the SBC Education Trust (Charity SC044762) audited Annual Accounts for the year to 31 March 2021;

(vi)    the SBC Community Enhancement Trust (Charity SC044764) audited Annual Accounts for the year to 31 March 2021;

(vii)   the SBC Ormiston Trust for Institute (Charity SC019162) audited Annual Accounts for the year to 31 March 2021;

(viii)  the Scottish Borders Council Charitable Trusts (Charity SC043896) audited Annual Accounts for the year to 31 March 2021; and

(ix)    Lowood Tweedbank Ltd Annual Accounts for the year to 31 March 2021 (Note Lowood Tweedbank Ltd Annual Accounts were not required to be externally audited as they were exempt under the Companies Act 2006 relating to small companies).

(b)     AGREED that approval of the Bridge Homes LLP Accounts to 31 March 2021 would be deferred until the next meeting of Scottish Borders Council in November, but this would have no impact on the final audit position.