Agenda item

Consider Report by Director Finance and Corporate Governance.  (Copy attached.)

1.1          There had been circulated copies of a report and associated papers by the Director Finance and Corporate Governance that provided the Audit and Scrutiny Committee an opportunity to scrutinise the draft Scottish Borders Council and Group Annual Report and Accounts for the year ended 31 March 2022 prior to its submission to the External Auditors.  The draft Report and Accounts were still subject to Statutory Audit, which would commence in July 2022 as normal, but may be concluded later than usual due to competing external audit demands as a result of the ongoing impact of the Covid-19 pandemic.  It was estimated that following the External Audit process, the final report and Accounts would be submitted to Council in October 2022.  The Accounts summarised the financial transactions for the 2021-22 financial year and the balance sheet positions at the year-end of 31 March 2022.  The draft Annual Accounts for 2021-22 were attached at Appendices 1-5 to the report as follows: Scottish Borders Council, SBC Common Good Funds, SBC Welfare Trust, SBC Education Trust, SBC Community Enhancement Trust, Ormiston Trust for Institute Fund, SBC Charitable Trusts, Bridge Homes LLP, and Lowood Tweedbank Ltd.  The Accounts would be made available for public inspection for a 14 day period commencing 1 July 2022.

1.2          The Director Finance and Corporate Governance gave a brief presentation which highlighted the main points of the report.  A climate change route map was approved by Council in response to the declared climate emergency; Free School Meals were rolled out to all Primary 4 and Primary 5 pupils; Enterprise Mobility had been launched in SBCares to provide hand-held devices to over 400 frontline care staff; the SBC Digital Strategy was approved which included a focus on streamlining processes and digital automation where possible; and Wilkie Gardens extra care housing facility in Galashiels had opened.  Financial highlights for 2021-22 included a revenue outturn £1.427 million underspend which was 0.5% of the final approved budget; £9.301 million Financial Plan Savings Achieved; £37.2 million of earmarked balances from 2021-22 into 2022-23 which included £9.5 million of the Covid-19 reserve carried forward; net assets had increased by £84.3 million; and capital expenditure of £59.6 million including a timing movement of £7.5 million into 2022-23.  As at 31 March 2022 the total Usable Reserves Balance was £64.5m (£48.3m at 31 March 2021), a net increase of £16.2m during the year.  The presentation also covered the Group accounts that were included with the papers.  Following the 2020 triennial valuation, the Pension Fund was 110% funded and made a positive return of 5.9% against a benchmark of 10.6%.  Consequently investment values were increased by £50 million.  The successful sale of Bridge Homes properties to Eildon Housing Association had been concluded.  Bridge Homes generated a £282,000 trading profit and the LLP was to be wound up.

1.3          The Director Finance and Corporate Governance answered Members’ questions and provided further clarification where requested.  Mr Robertson noted the £282,000 trading profit of Bridge Homes LLP would go into reserves.  Funding available from Welfare and Education Trusts were advertised through the Community and Partnerships Team and Ward members were encouraged to promote opportunities.  Mr Robertson undertook to speak with the Communities & Partnership Manager to ensure Members received anonymised information throughout the year so that the money from these Trusts was used.  The Director Education & Lifelong Learning was currently undertaking a review of various educational trusts to consolidate and modernise these where possible, and that review would involve consultation with communities and schools. 

DECISION

(a)       NOTED the Draft Annual Report and Accounts 2021/22 for Scottish Borders Council and associated Group Accounts; and,

(b)       AGREED to support its submission for review by the External Auditors, Audit Scotland for Scottish Borders Council, Common Good and Trust Funds accounts, and to KPMG who continue to provide the external audit of the Council’s subsidiary Bridge Homes.