Agenda item

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

With reference to paragraph 7 of the Minute of the meeting held on 27 June 2023 there had been circulated copies of a report by the Director – Finance and Procurement which  presented copies of the Council’s audited Annual Accounts for 2022/23.  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 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 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; and Audit Scotland concluded positively in respect of financial management, financial sustainability, vision, leadership and governance and use of resources to improve outcomes.  Audit Scotland identified the following recommendations across 3 reports.  Four recommendations for improvement requiring action were identified along with two follow-ups to prior year recommendations within the Scottish Borders Council annual report.  Six recommendations for improvement requiring action were identified in the Scottish Borders Council Best Value thematic review.  Four recommendations for improvement requiring action were identified along with one follow-up to prior year recommendation for the Scottish Borders Council Pension Fund.  All recommendations had been accepted by management and will 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 being presented to the Audit Committee prior to signature.   It should be noted that, as approved by Council on the 30 March 2023, SBC Common Good Funds were removed from the Scottish Charity Register on 31st March 2023.  Following that deregistration, annual accounts had not 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, the trusts were presented to Council members in their role as Trustees rather than as full Council.  That 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.  The Director – Finance and Procurement presented the report and responded to Members questions.  Regarding the submission of the accounts of SB Inspires to Companies House, the Chief Executive explained that the accounts had been submitted by the deadline, however due to a technical recording issue Companies House had refused to accept them.  The Director confirmed that SBC had evidenced that the accounts had been submitted by the deadline.  Mrs Douglas outlined that an issue regarding the location of a specific statutory paragraph within the accounts had also been resolved.  The Chief Executive acknowledged ongoing frustrations related to the inability to submit LLP accounts online.  In response to a question regarding RAAC concrete, it was confirmed that no RAAC had been identified within the Council’s estate, and that fact would be highlighted when the report was presented to Council. 

DECISION

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

(i) the Scottish Borders Council’s audited Annual Accounts for the year to 31 March 2022;

(ii) the Scottish Borders Council’s Pension Fund audited Annual Accounts for the year to 31 March 2022;

(iii) the Scottish Borders Council Common Good Funds (Charity SC031538) audited Annual Accounts for the year to 31 March 2022;

(iv) the SBC Welfare Trust (Charity SC044765) audited Annual Accounts for the year to 31 March 2022; (v) the SBC Education Trust (Charity SC044762) audited Annual Accounts for the year to 31 March 2022;

(vi) the SBC Community Enhancement Trust (Charity SC044764) audited Annual Accounts for the year to 31 March 2022;

(vii) the SBC Ormiston Trust for Institute (Charity SC019162) audited Annual Accounts for the year to 31 March 2022;

(viii) the Scottish Borders Council Charitable Trusts (Charity SC043896) audited Annual Accounts for the year to 31 March 2022;

(ix) the Bridge Homes LLP audited Annual Accounts for the year to 31 March 2022; and

(x) Lowood Tweedbank Ltd Annual Accounts for the year to 31 March 2022.