Agenda item

Consider report by Director Finance and Procurement.  (To follow.)

There had been circulated copies of a report by Audit Scotland, the Council’s Auditors, together with a report by the Director of Finance and Procurement, a copy of the Annual Accounts 2022/23 and associated papers. The audit appointment of Audit Scotland for Scottish Borders Council (SBC) accounts included the requirement to provide an auditor's report for the Council.  2022/23 represented the first year of the new Audit Scotland team undertaking the External Audit of the Council’s Annual Accounts with the process now completed.  Audit Scotland had prepared both the Annual Audit Report and a Best Value thematic report, copies of which had also been circulated, and had provided an unqualified independent audit opinion.  The Annual Audit Report summarised Audit Scotland’s conclusions, including an unqualified audit opinion, concurrence with management’s accounting treatment and judgements and positive conclusions in respect of financial management, financial sustainability, vision, leadership and governance and use of resources to improve outcomes.  Audit Scotland had identified a number of recommendations across 3 reports as follows:

·            Scottish Borders Council annual report - four recommendations for improvement requiring action were identified along with two follow-up to prior year recommendations.

·            Scottish Borders Council Best Value thematic review - six recommendations for improvement requiring action were identified.

·            Scottish Borders Council Pension Fund - four recommendations for improvement requiring action were identified along with one follow-up to prior year recommendation. 

All recommendations 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 Pension Fund, Bridge Homes LLP, Lowood Tweedbank Ltd and SB Inspires LLP were presented to the Audit Committee on the 25^th September prior to Council consideration and signature.  Members were asked to note that following the agreement to remove SBC Common Good Funds from the Scottish Charity Register on 31^st March 2023 no annual accounts had been prepared, audited or submitted to OSCR.  The Common Good Funds had instead been consolidated within the Council’s statutory accounts.  Trusts did not have the same annual accounts statutory deadline as the Council and Pension Fund. In addition, he Trusts were presented to Members in their role as Trustees rather than as full Council and this would be done for 2022/23 via correspondence.  Audit Scotland would provide a letter to Councillors as Trustees at the completion of the audit, in advance of the reporting deadline of 31 December 2023.  Bridge Homes LLP, Lowood Tweedbank Ltd and SB Inspires accounts had been prepared in accordance with the special provisions applicable to companies subject to the small companies regime.  For financial year 2022/23 the companies were entitled to exemption under section 477 of the Companies Act 2006 which meant their accounts did not require to be audited.   Mrs Douglas advised that there was no mention of RAAC within these accounts but it would be included in the 2023/24 Accounts.  To date schools had been checked and no RAAC had been found.  Checks were now being carried out on other Council owned buildings.  Councillor Thornton-Nicol as Chair of the Audit Committee advised that the accounts had been considered by the Audit Committee and also that the Audit Scotland Team had been impressed.  The Audit Committee were therefore happy to support the recommendation in the report.  Councillor Parker as Chair of the Pension Fund Committee advised that the Council Fund was one of the best performers and also commended the accounts.  Members thanked Mrs Douglas and her teams.

DECISION

AGREED to approve the following accounts:-

(a)     the Scottish Borders Council’s audited Annual Accounts for the year to 31 March 2023;

(b)     the Scottish Borders Council’s Pension Fund audited Annual Accounts for the year to 31 March 2023;

(c)     the Bridge Homes LLP audited Annual Accounts for the year to 31 March 2023;

(d)     Lowood Tweedbank Ltd Annual Accounts for the year to 31 March 2023; and

(e)     SB Inspires LLP Annual Accounts for the year to 31 March 2023.