SP Paper 420

INTRODUCTION

This is our second Annual Report on our role in providing the Parliament with the property, staff and services it needs. The report covers the period between 12 May 2000 and 11 May 2001. Our membership has not changed since the establishment of the Parliament and is made up of myself, Des McNulty MSP, Robert Brown MSP, Andrew Welsh MSP and John Young MSP.

This has been a period when we have consolidated those services in place to help Members conduct their parliamentary duties, and looked at ways of improving the way we work as an organisation. We recognise we cannot stand still, and this report also looks at some of the issues which we will be progressing during the next reporting period.

During this year we have met 39 times and have had a wide range of issues to consider and decide.

As one of the Parliament's key principles is openness we recently agreed that the minutes of our meetings should be published on the Parliament's website and these give a flavour of the range of issues we look at. We also publish some of the papers considered at these meetings where it is appropriate to do so. However, papers concerning individual Members, personnel issues, commercially sensitive issues or where an issue is ongoing will not usually be published.

While we hope the publication of the minutes of our meetings will keep Members of the Parliament and the public better informed, it does not prevent any Member from asking parliamentary questions about how we manage services for the Parliament. This year we answered 145 questions on issues where we have a direct involvement. One petition from a member of the public was lodged with the Public Petitions Committee relating to the SPCB.

This report also provides details of our financial accounts for the financial year ending 31 March 2001, and details of expenditure on Members' allowances which we are required to publish under the Scotland Act 1998.

Presiding Officer and Chair of the Scottish Parliamentary Corporate Body

SECTION 2: PROPERTY

2.1 Holyrood

The new Holyrood building project remains one of our greatest challenges and there were a number of significant developments in the course of the year.

Following a full parliamentary debate at the end of May 2000, the Holyrood Progress Group (HPG) was established to oversee the management of the new Parliament building project. The group has worked diligently since its formation, driving the project forward and providing us with monthly information on progress; we are grateful to the progress group for its commitment to this project. Six newsletters have issued to Members and three to local residents, and the HPG has hosted three 'Question and Answer' sessions in the Chamber. A significant step forward in delivery of the new building was made at the end of June 2000 when the Corporate Body and the HPG gave their unanimous approval to the final scheme design proposals. The Parliament has since had a further debate on the Holyrood project in June 2001 and agreed to proceed with the project with a target budget of £197 million recognising that building industry inflation and any risks that may or may not materialise before the end of the project will determine the final cost.

In September 2000, Robert Black, Auditor General for Scotland, published his report on the Holyrood project. The report made a useful and constructive contribution towards ensuring that the project is managed to a successful conclusion.

Building Progress

Work on the new building at Holyrood continues to move forward at a good pace and the building is scheduled for occupation during 2003.

By May 2001 the majority of construction works packages had been let, largely in line with the cost plan and totalling approximately £60 million. A further £31 million- worth is currently going through the tender process. In December 2000 we were able to announce that Scottish granite from Kemnay Quarry in Aberdeenshire would be used in the external cladding of the new building. Timber from a variety of Scottish sources is also to be used. Work is now under way on all three key fronts - the MSP block, Queensberry House and the East Site.

A major milestone was reached in January 2001 with the completion of the main superstructure of the MSPs' office accommodation. The Presiding Officer, Lewis Macdonald, the then Convener of the HPG and the Managing Director of Bovis Lend Lease Europe performed the "topping out" ceremony. This is a traditional ceremony that marks the occasion when a building reaches its highest point and is also designed to recognise the achievements of the construction workers.

The year saw work commence on the Assembly building at the east end of the site, which will house the Debating Chamber, the Committee rooms and the main public foyer of the Parliament building.

Recent work in Queensberry House has seen the main contractor construct the first of the new floors in the building. The structural integrity of the building continues to be enhanced with grouting of the internal walls, and the replacement of a number of lintels above door openings and windows being successfully completed. In the next few months the first visible signs of change to the building's exterior will be carried out; some chimneystacks have already been removed ahead of the downtaking of the existing roof structure.

The New Parliament Building Visitor Centre opened at the foot of Holyrood Road in October 2000. In the first six months, the Centre welcomed some 10,000 visitors, from all over the world, through its doors. March 2001 saw the beginning of organised school and college visits to the Centre and up to May 2001, 22 groups had participated.

2.2 Planning for Holyrood and the Next Parliament

The physical planning for the next Session of Parliament, including preparation for migration to Holyrood, is well under way.

We have appointed a Project Manager to work to the Chief Executive to prepare a master programme of projects and services in order that the transfer of business to Holyrood can be accurately programmed and resourced. Due to the significant use of technology within the new Parliament building an IT Technical Manager has also been appointed. The major area of focus for these roles will be the management and co-ordination of all projects relating to fit out and migration of IT systems and services to Holyrood.

The challenge of managing the move to Holyrood and preparing for the next Parliament, while continuing to provide all services in our interim accommodation, cannot be underestimated. Doing both are key Parliament objectives and strategic priorities and we are confident that it can be done with proper planning, management and resources.

2.3 Glasgow: May 2000

One of the highlights of the year was the meeting which the Parliament held in Glasgow in May 2000. This was to enable the Church of Scotland to hold its annual General Assembly in its own Assembly Hall. Planning for the move began in January 2000 and involved parliamentary staff together with officials from Glasgow City Council, Strathclyde Police and contractors to which we owe a great deal of thanks.

A significant amount of effort was spent in ensuring that meetings of the Parliament proceeded smoothly and that other day-to-day parliamentary business was conducted at normal service levels during the relocation.

Taking into account both planning and implementation stages, the time worked by staff on the project totalled approximately 1,168 hours, or 158 days.

The exercise was delivered comfortably within budget. The actual direct spend was £62,500 against a budget of £95,700.

While we had a successful time in Glasgow, we had agreed with the Church of Scotland that we would remain in the Assembly Hall during the General Assembly this year. We did, however, provide support to the Church in finding alternative accommodation for the General Assembly. Following lengthy negotiations a contract was entered into with the Usher Hall in Edinburgh. The costs of hiring this venue and other associated costs over and above those which the Church would have incurred were met by the SPCB. The final costs have still to be calculated and we understand the week was a great success.

2.4 Accommodation - General

In May last year, the need for additional interim accommodation was identified because of cramped working conditions in the existing campus. After reviewing and investigating various options we secured additional floor space in St Andrew Square in August 2000. This has allowed us to make better use of the campus and allow some improvement to Members' facilities.

The new offices at St Andrew Square now accommodate around 60 staff from the Corporate Affairs and Legal Directorates. Services on offer to Members from this site include Personnel, Finance, Allowances and Procurement. We will continue to keep our existing accommodation under review and will make any necessary improvements or alterations.

SECTION 3: SERVICES

As we mentioned in the introduction to our report, we are constantly looking at ways in which we can improve the services offered to Members.

3.1 Allowances

Allowances and the provision of equipment and furniture are essential to enable Members to carry out their parliamentary duties. During 2000, KPMG, a consultancy firm, carried out an independent review of the Members' Allowances Scheme and the Equipment and Furniture Scheme on our behalf. The aim of the review was to provide a scheme which better met the needs of Members and was easier to administer while being transparent and taking into account the need for economy. We are grateful to Members for assisting with this review and for their attendance at the focus groups which helped inform the outcome. A revised scheme was passed by the Parliament on 21 June 2001 and introduced with effect from 1 July 2001. Details of the 2000/2001 scheme and information on costs are published in section 6 of this report.

3.2 Non-Executive Bills Unit

This reporting period we established the Non-Executive Bills Unit. The role of the unit is to assist and support Members and clerks with the procedure involving Members' Bills and Committee Bills. The unit is also responsible for Private Bills. The unit has successfully established, through open competition, a panel comprising individuals from a wide variety of backgrounds within the legal profession to prepare draft Bills on behalf of Members and Committees.

In the period since the unit was established it has:

· assisted 15 Members with possible Members' Bill proposals, four of those Members having subsequently lodged successful proposals. Six Members are receiving ongoing assistance, three of whom had lodged successful proposals prior to the unit being established;

· assisted with two Committee Bills, the Protection from Abuse (Scotland) Bill and the Parliamentary Standards Commissioner (Scotland) Bill, and provided advice to five other Committees in relation to Committee Bills; and

· published the Guidance on Private Bills which was produced by staff including members of the unit.

3.3 Occupational Health Service

In January 2001, we approved plans for a comprehensive occupational health service to be provided to all those working in the Scottish Parliament. A new contract for the provision of these services is due to be awarded in September 2001 and we are keen that all Members and staff are encouraged to take advantage of the services available.

In addition to the general Personnel-related services, the contract will cover items such as a programme of health check/lifestyle screening sessions, vision testing for display screen equipment users, smoking cessation classes, counselling, workshops on specific health issues and a part-time, on-site occupational health nurse/doctor to provide general advice and guidance. Use of these services will be reviewed on a regular basis in order to ensure that the right services are being made available.

3.4 External Liaison

During the reporting period the External Liaison Unit was established. Its role is to help the Parliament to develop links with other Parliaments and overseas organisations. The unit offers advice and familiarisation activity for Members and staff on external issues. It provides the Secretariat to the Commonwealth Parliamentary Association (Scotland Branch). It organises and assists with foreign parliamentary and VIP visits to the Scottish Parliament. It prepares outward parliamentary delegations and assists with them when they are on parliamentary business abroad. The unit liaises with other Parliaments including Westminster, the devolved Assemblies and the European Parliament. It works with the Scottish Executive and the UK Government and with other Scottish, UK and international organisations to promote Scotland abroad and to develop its contacts with the outside world.

The unit dealt with more than 160 inward VIP visits to the Parliament up to the end of April 2001. This included addresses to meetings of Members by the Presidents of Malawi and Ghana. The unit organised a number of outward visits by the Presiding Officers and cross-party delegations to the Parliament of Sachsen-Anhalt in Germany, the Dail and the Tartan Day events in Washington.

3.5 Scottish Parliament and Business Exchange

We have also been involved in setting up the Scottish Parliament and Business Exchange (The Exchange). The aim of The Exchange is to provide opportunities for promoting mutual understanding between Members of the Scottish Parliament and business communities in Scotland. It will be a resource for the Scottish Parliament and for member organisations, offering

· chances for Members to experience life in companies and small organisations through organised programmes;

· seminars on current/emerging topics;

· visits to the Parliament for people from affiliated organisations; and

· pan-European experiences arranged through the network of similar schemes.

The Exchange will encompass communities in the widest sense. Although initially geared towards commercial and industrial organisations, membership will be open to all, including local government, public agencies, education, police and the voluntary sector to name a few.

We expect that the first programmes will be up and running in autumn 2001.

3.6 Information Technology

Throughout the year, IT Services sustained reliable and effective data and voice systems on which the work of Members and offices of the Parliament critically depend. This involved skilled systems management, maintenance and support work to keep everything running smoothly day to day. The Parliament's network capacity was increased, along with continuous enhancements to security, resilience and efficiency, to manage the growing volumes of data and traffic generated by a busy organisation. The number of Parliament network account holders reached 1,200, including those working within and outwith the Parliament's campus. The network was extended to the premises at St Andrew Square to ensure that staff and Members had continued access to parliamentary services.

New staff were appointed to enhance the IT customer services function, resulting in effective IT Helpdesk call handling and problem management/resolution, and improvements in other technical services direct to the customer. The British Computer Society's Professional Development Scheme has been very successfully implemented for all IT specialist staff to ensure that skills and experience acquisition continue to meet demonstrably high standards.

A number of important business applications were implemented. These include Human Resource and Time Recording systems for the Personnel Office, to ensure that we are able to abide by the provisions of the European Working Hours Directive. Many Clerking and Official Reporting processes, in addition to the Bill Handling and Written Answers projects noted below, have been refined and supported with electronic template and associated database developments. Video-conferences were facilitated for several Committees, enabling wider consultation and participation in support of their work without incurring additional time and travel costs.

Other significant IT projects in the course of the year included:

Interim Parliament relocation to Glasgow May 2000

• The network was extended from Edinburgh to Glasgow with 20 laptops, 15 desktop PCs, one file and print server, 10 network printers, 10 faxes, five ISDN lines, 92 analogue phone lines and phones and 75 network data points for Members' laptops. On-site support was also provided for the three weeks duration.

CD-ROM networking system August 2000

• The implementation of a CD-ROM system over the network has allowed distributed access to over 130 reference applications. CD-ROM based training has also been made available directly to users' PCs throughout the Parliament.

Digital voice recorder solution December 2000

• The digital voice recorder solution incorporates flash-RAM based technology and desktop software to streamline the business of Members and Parliament staff. Dictation can now be recorded, downloaded to a PC and e-mailed to constituency offices for transcription within seconds, rather than sending micro-tapes via conventional post, avoiding time delay and possible security risks.

Bill handling software December 2000

• Redevelopment of the software used to produce the text of parliamentary Bills for publication. This was critical to the Parliament's impressive throughput of 22 Bills up to the end of this reporting period.

Award of IT support contract (NESSI) December 2000

• A major IT support contract (NESSI) for the Parliament was let to Wipro in December 2000. This provides an on-site team to work along with the Parliament's own technical and professional staff plus access to offshore resources for additional project work.

Hot desks in Brussels February 2001

• IT facilities (two PCs with access to the Parliament's network and three telephone lines) were configured and installed in the Scotland Europa accommodation within Scotland House, Brussels for use by visiting Members and staff.

Written answers application April 2001

• A bespoke application has been developed to automate work done by the Chamber Office in tracking the progress of parliamentary questions and their written answers and providing statistical data on the performance of both the Parliament and the Scottish Executive. A searchable database for parliamentary questions and written answers to meet the needs of a wide range of customers, from Members to the general public, has been developed and made available on the Parliament's website.

Case tracking application April 2001

• In conjunction with a pilot group of Members, a case tracking application was developed to allow Members and their support staff to keep details of constituents' correspondence.

3.7 Broadcasting and Audio-Visual Services

All Chamber and Committee Room 1 proceedings are televised by the Parliament's Broadcasting Unit, and the pictures made available to the media.

We have developed a range of new audio-visual services including:

• A free picture stills service through which high j-peg images extracted from the TV output are made available to Members, the press, community groups and the public for reproduction.
• A tape duplication service which allows Members, groups and individuals to purchase VHS tapes of parliamentary proceedings at a very modest price.
• The permanent webcasting of the Chamber and Committee meetings of the Parliament began in November 2000. The service allows Parliament to communicate worldwide.
• A mobile camera unit was purchased in March 2001 to widen our committee coverage, particularly of meetings which take place beyond Edinburgh.

3.8 Records Management

Another new initiative which we started this year is a records management programme. This will ensure that both traditional paper and electronic documents of all types, including e-mail, are managed as effectively as possible. The benefits of good records management include having complete and accurate records in the right place at the right time, having swift and accurate access to the information we produce or receive, securing sensitive information and managing the length of time we retain documents to reduce storage and retrieval costs. This will link in closely to any Data Protection and Freedom of Information regimes.

3.9 Continuing to Deliver

We have also continued to provide Members with all other services essential in supporting their role and keeping the public involved and informed about the Parliament.

The Helpdesk has dealt with around 39,800 calls from all users of the Parliament's facilities during this period. Apart from the Holyrood building project, the Procurement Office let 97 contracts between May 2000 and May 2001, 18 of which were for the appointment of Committee advisers, and 916 purchase orders were raised. Our Finance Office processed over 6,000 invoices, the majority of which were within the agreed terms for payments. The Allowances Office processed 30,619 payment transactions.

The Procurement Office issued a customer feedback questionnaire in December 2000 to establish the level of service customers receive and to seek comments on the quality of the service. The results of this were useful in highlighting areas where improvements were required, particularly documentation, staffing and information provided by the Procurement Office.

We have continued to extend the Education Service to reach a wider audience and around 10,000 pupils visited the Parliament this year. Seminars and visits were held for teachers and programmes of outreach work to community and adult education groups were developed.

Interest in the Parliament continues to grow and around 34,000 people came to see the Parliament's Visitor Centre, many of them making favourable comments. Over 70,000 calls were dealt with by the Public Enquiry Unit staff, and more than 7,000 more detailed enquires were dealt with in writing.

We are pleased to report that the Scottish Parliament Visitor Centre and Shop was awarded a "four star" grading by the Scottish Tourist Board, which is rated as "excellent" and a Commendation as part of the "Interpret Britain Awards" from the Association for Heritage Interpretation "in recognition of excellent interpretative practice".

SPICe continues to build up its services in all areas to support the information needs of the Parliament. We have handled around 7,000 requests for information, published 170 research briefings on the Parliament's website, added 4,000 items to stock, commissioned external research for eight Committees and redesigned SPEIR - the intranet site, to include significantly more information. Our researchers have provided numerous verbal and written briefings to Committees. We have developed closer links with the external research community through our commissioned research programme and the web-based register of researchers interested in providing research commissioned by the Parliament. SPICe staff have been working with the British Council on projects in Ethiopia and Nepal aimed at improving these countries' provision of information to their Parliaments.

79 public libraries in Scotland (almost one in nine) are now members of the Partner Library Network, with the addition of Oban this year. 85% of these libraries offer free internet access to the Parliament's website, and all receive a selection of Scottish Parliament printed documents. There were three official Partner Library launches by Members: Glenwood Partner Library, Glenrothes (Henry McLeish), William Patrick Library, Kirkintilloch (Sam Galbraith) and Thurso Library (Jamie Stone). In April librarians from the network attended a familiarisation visit to Parliament Headquarters.

3.10 Pensions/ Personnel

We advise Members on their employment practices and provide them with model contracts of employment, model job descriptions and advice on salary scales for their own staff. We also provide a personnel service for parliamentary staff. We develop personnel policies and practices which are based on best employment practice and are proud of our positive and constructive relationships that have been built up with the Scottish Parliament's trade unions.

We deliver a payroll service for 900 people which includes parliamentary staff, Members and their staff. We also provide a pension service for parliamentary staff, Members and their staff.

The Members' Pension Fund provided a total return of -11% in the 12 months to 31 March 2001, which compares with a return of -10.3 % for the Medium Fund in the CAPS Pooled Fund Survey. The fund continues to outperform over the longer term with a total return of 3.6% per annum compared to 3.3% for the median for the three years to 31 March 2001. The total amount invested to date is £3,431,389 which has a current market value of £3,192,744.

3.11 Future Services

Over the next 12 months we shall continue to concentrate on improving further the services we offer. This will be an important year to ensure that we have the detailed planning in place for when we move to Holyrood and our staff will continue to put together all the necessary contracts and services we need.

The Arts Strategy for Holyrood will be developed by the consultants we recently commissioned to undertake this work and we look forward to receiving their report. In conjunction with this we shall also be preparing a strategy to deal with the number of sponsorship requests we receive.

We are looking at what additional support we can provide to Members to run their offices and we have initiated a review of the provision of services to Members in their constituency and regional offices. The fact-finding stage of this review has been undertaken over the summer recess by visiting a number of Members' constituency offices. The reaction to the survey visits has been very positive and this initiative is clearly welcomed by Members and their staff. The results of the surveys will be collated and analysed over the forthcoming period.

SECTION 4: STAFF

4.1 Senior Management Team

The Clerk/Chief Executive and the heads of each of the Parliament's Directorates form the Senior Management Team as follows: -

Paul Grice, Clerk/Chief Executive

Carol Devon, Director of Clerking and Reporting

Stewart Gilfillan, Director of Corporate Affairs

Lesley Beddie, Director of Communications

Ann Nelson, Director of Legal Services

Alan Ezzi, Holyrood Building Project Director (since replaced outwith the period of this report by Sarah Davidson).

Together with the Senior Management Team we aim to ensure that the Parliament is managed effectively and that staff and resources are used efficiently.

4.2 Staff in post

We recognise that our staff are by far the most important resource that the Parliament possesses and, as employers, we are conscious of the need to provide a good working environment; a number of initiatives have been considered to meet this priority. An organisation chart at Annex A sets out the existing staff structures as at 12 May. At the end of this period the staff in post figure was 428, with 32 vacant posts.

Our staff are directly employed by the SPCB and we are working together with the trade union side to look at the structure of the organisation, the gradings of staff and pay & performance management. We have commissioned consultants to assist with this review and will shortly to be in a position to commence negotiations with the trade union side.

In the interim period, the pay and conditions of our staff are analogued with the Scottish Executive.

We have also appointed a Gaelic Officer to raise the profile of Gaelic both within and outwith the Parliament. We believe this has been a valuable addition to our staffing, and considerable progress has been achieved with the Gaelic community and media and on the provision of information in Gaelic on the website and in other forms.

4.3 Equal Opportunities

In August 1999 we commissioned officials to develop an equal opportunities strategy for the Scottish Parliament covering Members and their staff as well as parliamentary and contract staff, and covering both the employment and service delivery aspects of both the SPCB and individual Members.

A small working group of staff and Members was set up to manage the process of developing the policy. The working group, following competition, appointed the firm of Mackay Simon Consulting to assist it in delivering this important piece of work. Shona Simon, the lead consultant, commenced her assignment as "Equal Opportunities Development Adviser" (EODA) on 5 June 2000 and submitted her report in December 2000. Following detailed consideration the report was endorsed by the Senior Management Team and by the SPCB. The EODA's report provides a comprehensive "Equality Framework" comprising policies and guidance in the areas of employment and service provision. The report is currently with the parliamentary staff trade union side for comment.

4.4 Health & Safety

We are committed to promoting health and safety as a priority for all our staff, Members, contractors, visitors, and members of the public and any other persons who may be affected by the Parliament's business.

To achieve this, a working group was set up last year and a project devised with the help of Health and Safety Consultants. Since then our new Health and Safety Policy and Organisational Arrangements have been written, signed off by the Senior Management Team and ourselves and issued via the intranet. A Health and Safety Officer was recruited and a Health and Safety Committee set up.

All procedures are in the process of review with relevant training courses run once they are issued. Procedures for risk assessment, accident reporting and display screen equipment will be issued by the end of August with the rest to follow. Once all procedures are in place and training given, an audit programme will be set up to monitor the health and safety management system.

Relevant statistical data are starting to be compiled on accidents, incidents and near misses with an interim procedure issued to staff to make them aware of their duties.

The aim of the above is to set up a workable health and safety management system which will fulfil our legal and moral responsibilities.

4.5 Training

Members and staff have access to a range of training opportunities. In the past year 77 classroom-based courses were held, attended by 517 delegates, which equates to 567 training days. Training is also available through the Learning Resource Centre and 43 packages were accessed by 181 people and 350 items borrowed through our lending library.

In September 2000, the Parliament's CD-ROM network was launched, giving Members, parliamentary staff and Members' staff access to selected training packages at their desktop. During the period of this report, 122 individuals accessed training through the network.

4.6 Data Protection Act

We are registered under the Data Protection Act 1998 to process personal information. Data Protection Action Officers have been nominated to deal with access requests and work has been undertaken this year to ensure that we are compliant with this Act.

4.7 Freedom of Information

We are also aware that the forthcoming Freedom of Information legislation will have an impact on the information we hold, and over the next year we will ensure that the culture in the organisation will meet expectations.

SECTION 5 : FUTURE

5.1 Corporate Governance

Good corporate governance is vital to the management of any organisation. During the course of the year, we set up a Corporate Policy Unit, whose role among other things is to assist us with our governance arrangements.

Up until now we have been involved in the implementation and delivery of new policies and services, however as many of these are now in place we see our role being more strategic.

We see this as allowing us the opportunity to concentrate more on:

· setting the strategic aims of the organisation and monitoring its achievements;

· setting budgets and monitoring financial performance;

· considering specific matters in depth;

· agreeing the policy on new initiatives;

· reviewing the corporate governance arrangements periodically;

· considering significant specific issues as they come up.

We have formally delegated most of our responsibilities to the Clerk/Chief Executive to allow him to manage the organisation on a day-to-day basis. We receive regular monthly reports from him informing us of the progress of various issues, including finance and staffing. We are also putting in place internal control mechanisms for the organisation, and work is now well under way on a risk assessment exercise for the organisation which will be subject to audit scrutiny.

5.2 Management Plan

This year's management plan is based to a large extent on our initial plan. However, the Senior Management Team in consultation with staff have also developed the plan to incorporate strategic priorities and performance measures. The four strategic priorities have been identified as those which we think will best demonstrate where our focus should be over the next two years. A full copy of the plan is attached at Annex B. The strategic priorities we have identified are:

Effective support of parliamentary business. We consider this is essential if we are to meet our overriding aim of a Parliament which is able to fulfil its constitutional role.

Planning for the next Parliament. This is geared towards the move to Holyrood at the next election.

Promoting the Parliament. This we see as being linked with our aim of ensuring that Scotland is well informed about its Parliament and to allow the people of Scotland to be involved with the Parliament.

A good working environment. This is to recognise the importance of our role as an employer.

We have also put in place key performance indicators which will allow us to see at regular intervals how we are performing as an organisation. Over the next period we shall be developing these indicators to provide more detailed information on the quality of services.

SECTION 6: FINANCE

6.1 SPCB Expenditure for the 12 Months Ended 31 March 2001

The expenditure for the 2000-01 financial year is set out, in the table shown at 6.2, in the style of the internal monthly management report we receive. This information is a summary of the expenditure included within the annual accounts.

We have prepared separate annual accounts that comply with the accounting principles and disclosure requirements of the Resource Accounting Manual. The Auditor General for Scotland is auditing these accounts and they will be laid before the Parliament by the end of December.

We have, for the second year, lived within our budgets. We spent £35.1m on our running costs in 2000-01, which was £2.6m (7%) less than the available budget.

The new Holyrood building remains the most significant capital expenditure project for us.

Capital expenditure of £28.0m in the period was £24.9m (47%) less than the available budget. This is due to the re-phasing of expenditure on the Holyrood project.

The total under-spend against budget in 2000-01 is being utilised to reduce the Parliament's funding requirement for future years through the End Year Flexibility arrangements.

6.2 SPCB Expenditure for the 12 Months Ended 31 March 2001

Notes

Note 1: Revenue expenditure of £35.1m in 2000-01 comprised Parliament staff salaries of £9.2m and MSP salaries of £6.3m. Members' costs, which enable MSPs to secure staff and accommodation to assist them in the discharge of their parliamentary duties, were £7.3m. The remaining £12.3m met the administration and property running costs of the Parliament.

Note 2: A specific arrangement was made with the Executive and the Finance Committee in respect of the Parliament's 1999-00 under-spend of £19.4m. It was agreed that the Parliament should carry forward the under-spend using End Year Flexibility to reduce its funding requirements in 2001-02. In practice, this inflated the 2000-01 budget by £19.4m to allow the funds to be carried forward again into 2001-02. The object of this was to reduce pressure on the Consolidated Fund over the next 3 years, whilst allowing the SPCB to have sufficient funds to prepare the Parliament for the move to the Holyrood Site.

Note 3: Capital charges were introduced by the Resource Accounting Manual to reflect the depreciation in value of assets and the cost of capital.