Scottish Parliamentary Corporate Body

Annual Resource Accounts

(12 months ended 31 March 2001)

FOREWORD TO THE ACCOUNTS

These resource accounts have been prepared in accordance with the Direction By The Scottish Ministers which is reproduced in the statement of accounts here.

HISTORY AND STATUTORY BACKGROUND

The Scottish Parliamentary Corporate Body (SPCB) was established in May 1999 under Section 21 of The Scotland Act 1998 (the Act). The SPCB is made up of the Presiding Officer; and four other members of the Scottish Parliament elected by the Parliament . The SPCB appointed a Clerk (who is also the Chief Executive) in accordance with section 20 of the Act, and other staff of the Parliament.

PRINCIPAL ACTIVITIES

The SPCB has a duty to provide the Scottish Parliament, or ensure the Parliament is provided with the property, staff and services required for the Parliament’s purposes. The SPCB is independent of the Scottish Executive. This allows the Parliament to fulfil its constitutional role of scrutiny over the Scottish Executive.

The SPCB enables MSPs to undertake their duties both at the Parliament and in their constituencies. It provides the facilities and staff to allow the Parliament and its Committees to meet and encourages public participation in the process.

The SPCB is managing the construction of a permanent home for the Parliament at Holyrood.

REVIEW OF THE MAIN ACTIVITIES

The main activity of the SPCB and its staff during the year was the continued support of the work of the Parliament. There has been a continued development of the services in place to help Members conduct their parliamentary duties.New units to support Non-Executive Bills and to develop external liaison were established during the period. An increase in staff numbers and additional accommodation was required during the year to provide the support andservices required by the Parliament and the MSPs. In May 2000 Parliament held its plenary meetings in Glasgow and during the year Committees continued to hold meetings across Scotland.

The most significant current expenditure was on salaries, with staff salaries of £9.2 million and MSP salaries of £6.3 million. Members costs, which enable MSPs to secure staff and accommodation to assist them in the discharge of their parliamentary duties were £7.3 million.

The new Holyrood building remains the most significant capital expenditure project for the SPCB. During the period the management of the project was strengthened by the establishment of the Holyrood Progress Group. Work on the building moved forward at a good pace and the building is scheduled for completion of construction in December 2002, with occupation the following year. The Holyrood Project accounted for £28.0 million of the SPCB's capital expenditure during the year.

IMPORTANT EVENTS OCCURRING AFTER THE YEAR END

There were no material events occurring after the year-end that affect the accounts.

INDICATION OF LIKELY FUTURE DEVELOPMENTS

The key future development for the Parliament is the delivery of the permanent home for the Parliament at Holyrood. There will continue to be significant capital expenditure on the Project. There will also be major staff commitment required to develop the services provided from the new Holyrood site and to ensure a successful move into the new Holyrood complex.

SUPPLIER PAYMENT POLICY

The SPCB policy is to comply with the Confederation of British Industry’s Prompt Payers Code. The target is for payment to be made within agreed payment terms or 30 days of receipt of invoices not in dispute for goods and services. Payment performance for 2000-01 was 55%.

THE SPCB AND SENIOR MANAGERS

The Members of the SPCB were:

Sir David Steel MSP, Presiding Officer
Robert Brown MSP
Desmond McNulty MSP
Andrew Welsh MSP
John Young MSP

The Senior Management employed by the SPCB during the 2000-01 financial year was:

Paul Grice Clerk to the Parliament and Chief Executive
Carol Turner Director of Clerking and Reporting
Lesley Beddie Director of Communications
Stewart Gilfillan Director of Corporate Affairs
Barbara Doig Director of Holyrood Project Team (left 31 May 2000)
Alan Ezzi Director of Holyrood Project Team (started November 2000)
Ann Nelson Director of Legal Services

EMPLOYMENT AND RECRUITMENT

Prior to 1 April 2000 the majority of Parliamentary staff was employed by the Scottish Executive on behalf of the SPCB. The SPCB became the direct employer of most of its staff on 1 April 2000 and by the end of the financial year only 53 staff remained on secondment from the Scottish Executive and other organisations. All staff appointed to the SPCB for the year 2000-01 were recruited on the basis of fair and open competition and in accordance with locally agreed
arrangements.

AUDIT

The accounts are audited by auditors appointed by the Auditor General for Scotland in accordance
with section 10(5) of the Public Finance and Accountability (Scotland) Act 2000.

P E Grice

Clerk to the Parliament and Chief Executive

17 December 2001

SCOTTISH PARLIAMENTARY CORPORATE BODY

DIRECTION BY THE SCOTTISH MINISTERS
in accordance with section 19(4) of the Public Finance and Accountability (Scotland) Act 2000

1. The statement of accounts for the financial year ended 31 March 2001 shall comply with the accounting principles and disclosure requirements of the edition of the Resource Accounting Manual which is in force for the year for which the statement of accounts are prepared.

2. The statement of accounts shall give a true and fair view of the net resource outturn and cash flows for the financial year, and the state of affairs as at the end of the financial year.

3. This direction shall be reproduced as an appendix to the statement of accounts. This direction supersedes the one given on 21st August 2000.

Signed by the authority of the Scottish Ministers

P S Collings
29 March 2001

Statement of the SPCB’s Responsibilities and the Clerk to the Parliament and Chief Executive’s Responsibilities as the Principal Accountable Officer for the SPCB

The Scottish Parliamentary Corporate Body has prepared the statement of accounts in accordance with the Direction By The Scottish Ministers reproduced at page 3 and with the accounting principles and disclosure requirements set out in the Resource Accounting Manual. The resource accounts are prepared on an accrual basis and give a true and fair view of the SPCB's state of affairs at the year-end, the net resource outturn, resources applied to objectives, operating cost statement, total recognised gains and losses and cash flows for the financial year.

In preparing the accounts the SPCB has:

• observed relevant accounting and disclosure requirements, and applied suitable
  accounting policies on a consistent basis;
• made judgements and estimates which are reasonable and prudent; and
• stated whether applicable accounting standards have been followed, subject to any
  material departures disclosed and explained in the accounts.
• prepared the accounts on a going concern basis

The Clerk to the Parliament and Chief Executive is, by virtue of his appointment, Principal Accountable Officer for the SPCB. The relevant responsibilities of the accountable officer, including the responsibility for the propriety and regularity of the finances of the SPCB, and for the keeping of proper records, are set out in section 16 of the Public Finance and Accountability (Scotland) Act 2000.

P E Grice
Clerk to the Parliament and Chief Executive 17 December 2001

Auditor's report to the Scottish Parliament

I have audited the financial statements on pages 7 to 18 under the Public Finance and Accountability (Scotland) Act 2000. These financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and the accounting policies set out in the Notes

Respective responsibilities of the Accountable Officer and Auditor

As described here the Accountable Officer is responsible for the preparation of the financial statements and for ensuring the regularity of financial transactions. The Accountable Officer is also responsible for the preparation of the other contents of the Accounts. My responsibilities, as independent auditor, are established by statute and guided by the Auditing Practices Board and the auditing profession's ethical guidance.

I report my opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers. I report my opinion as to whether in all material respects the expenditure and receipts shown in the accounts were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers, the Budget (Scotland) Act 2000 and sections 4 to 7 of the Public Finance and Accountability (Scotland) Act 2000 and whether in all material respects the sums paid out of the Scottish Consolidated Fund or the purpose of meeting the expenditure in the accounts were applied in accordance with section 65 of the Scotland Act 1998. I also report if, in my opinion, the Foreword is not consistent with the financial statements, if the Scottish Parliamentary Corporate Body has not kept proper accounting records, or if I have not received all the information and explanations I require for my audit.

I review whether the statement on page 6 reflects the Scottish Parliamentary Corporate Body's compliance with the Scottish Executive's guidance on the statement on the system of internal financial control. I report if it does not meet the requirements specified, or if the statement is misleading or inconsistent with other information I am aware of from my audit of the financial statements.

Basis of opinion

I conducted my audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts, disclosures and regularity of financial transactions included in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Scottish Parliamentary Corporate Body's in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Scottish Parliamentary Corporate Body's circumstances, consistently applied and adequately disclosed.

I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by error, or by fraud or other irregularity and that, in all material respects, the expenditure and receipts shown in the accounts were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers.

In forming my opinion I have also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion

In my opinion:

• the financial statements give a true and fair view of the state of affairs of the Scottish Parliamentary Corporate Body at 31 March 2001 and of the net resource outturn, resources applied to aims, recognised gains and losses and cash flows for the year then ended and have been properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers; and
• in all material respects the expenditure and receipts shown in the accounts were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers, the Budget (Scotland) Act 2000 and sections 4 to 7 of the Public Finance and Accountability (Scotland) Act 2000; and
• in all material respects the sums paid out of the Scottish Consolidated Fund for the purpose of meeting the expenditure shown in the accounts were applied in accordance with section 65 of the Scotland Act 1998.

Robert W Black,
Auditor General for Scotland Edinburgh

110 George Street
19 December 2001 EH2 4LH

Statement on the System of Internal Financial Control

This statement is given in respect of the resource accounts for the Scottish Parliamentary Corporate Body. As Principal Accountable Officer of the SPCB, I acknowledge my responsibility for ensuring that an effective system of financial control is maintained and operated in connection with the resources concerned.

The system of internal financial control can provide only reasonable and not absolute assurance that assets are safeguarded, transactions authorised and properly recorded and that material errors or irregularities are either prevented or would be detected within a timely period.

The system of internal financial control is based upon a framework of regular management information, financial regulations, and administrative procedures including segregation of duties and a system of delegation and accountability.

In particular, it includes:

• comprehensive budgeting systems with an annual budget;
• procedures to review and agree budgets;
• the preparation of regular financial reports which indicate actual expenditure against forecasts;
• clearly defined capital investment control guidelines; and
• as appropriate, formal project management disciplines.

The SPCB received an internal audit service from Deloitte & Touche, who were appointed during the year. The work of the internal auditors is informed by an analysis of the risk to which the SPCB is exposed, and the internal audit programme was based on this analysis. The internal audit programme was approved by me.

My review of the effectiveness of the system of internal financial control is informed by the work of the internal auditors and the senior managers of the parliamentary staff who have responsibility for the development and maintenance of the financial control framework, and comments made by the external auditors in their management letters and other reports. No formal audit committee presently exists. However one will be set up to take internal and external audit reports. Policies relating to financial control are being developed further and policy on fraud prevention is under development.

Implementation of the Turnbull Report

In September 1999 the Institute of Chartered Accountants in England and Wales published the report of the Turnbull Committee "Internal Control: Guidance for Directors on the Combined Code". The effect of the Turnbull Report was to extend the existing requirement to provide a statement in respect of financial controls to cover all controls, including financial, operational, compliance and the management of risk.

As Principal Accountable Officer, I am aware of the recommendations of the Turnbull Committee and am taking reasonable steps to implement the full requirements of the guidance, as they apply to the SPCB, for the year ended 31 March 2003.

P E Grice
Clerk to the Parliament and Chief Executive

17 December 2001

Schedule 1: Summary of Resource Outturn 2000-01 (pdf)

Schedule 2: Statement of Recognised Gains and Losses (pdf)

Schedule 3: Balance Sheet (pdf)

Schedule 4: Cash Flow Statement (pdf)

Schedule 5: Resources by Departmental Aims and Objectives (pdf)

Notes (pdf)