Annual Report of the Scottish Parliamentary Corporate Body 2002

FOREWORD

This is our third Annual Report on our role in providing the Parliament with the property, staff and services it needs. The report covers the period from May 2001 through to the end of May 2002. Our membership has changed this year with the resignation of Des McNulty MSP in December 2001, when he became Convener of the Finance Committee and the subsequent election of Duncan McNeil MSP as his replacement. Our membership is now made up of myself, Robert Brown MSP, Duncan McNeil 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 32 times and have had a wide range of issues to consider and determine.

As one of the Parliament's key principles is openness we have now been publishing the minutes of our meetings for a year on the Parliament's website and these give a flavour of the range of issues we look at. 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 172 questions on issues where we have a direct involvement.

This report also provides details of our accounts for the financial year ending 31 March 2002, and details of expenditure on Members' allowances.

This next year will be our most challenging yet, as we will be preparing ourselves for the move to Holyrood and ensuring that all the necessary services are up and running on time, while at the same time continuing to provide effective services to the Parliament and Members in our interim accommodation. It may be that in the final run-up to the move to Holyrood, we will have to stop delivering some services at the Mound or deliver a different service level. If this happens we will of course keep Members fully informed and I hope that they will bear with us. We cannot forget that this year is also a general election year. We will therefore be publishing guidance to all Members and their staff later this autumn explaining how parliamentary allowances and services can be used during the election period.

Also in the autumn we will be issuing a survey questionnaire to Members and their staff about the quality of a number of the services we offer. I would urge all Members and their staff to respond to the questionnaire, as it will help us greatly to gauge the services offered and to develop them for the next Parliament.

Presiding Officer and Chair of the Scottish Parliamentary Corporate Body

SECTION 2: PROPERTY

2.1 Holyrood - Building Progress

With less than 12 months to go before the new Parliament building at Holyrood is due to be finished, extraordinary progress has been made on site. This year over 38,000 people have been to the on-site Visitor Centre and many more have watched the building rise above the perimeter hoardings. Without doubt, Enric Miralles' stunning design for the new parliamentary complex is taking shape.

At the start of the year, the sub level and basement areas of the building were finished. The steelwork for the floor of the chamber itself followed and the unique Miralles roof design is now emerging. Similarly, a year on, the structure of the striking cantilever building on the Canongate is in place and the main towers, which will house parliamentary Committees and Ministers' accommodation, are at the final stages of completion. Internal work and external cladding have now begun in these areas.

Just before the end of the year the first slabs of Aberdeenshire granite were fixed to the exterior of the MSPs' office block. On the interior, mock-ups of an MSP's office have given Members and others a clear idea of what the accommodation will look like. A similar exercise has been conducted with rooms inside Queensberry House and with a full-size mock-up Chamber in a warehouse near Edinburgh.

Overall, considerable effort has gone into ensuring that Holyrood will not only provide a stunning new home for the Scottish Parliament, but also be a high quality working environment, one of the most sustainable and accessible Parliament buildings in the world. Like Ruth Wishart, writer and broadcaster, we are confident that, "when this extraordinary building is complete, all manner of people will become suddenly enthused in response to the public excitement" (The Herald).

During 2001 the Holyrood Progress Group saw some changes in membership and continued to work closely with the Design Team. The Group reports regularly to the Scottish Parliamentary Corporate Body as well as to MSPs and local residents through newsletters and `question and answer' sessions.

The Project Team continued to promote the project through organised visits to the Visitor Centre, tours of the site and taking presentations out to local interest groups across the country.

Despite some setbacks, construction has proceeded according to programme. By the end of the year, more than 120 contracts had been awarded for approximately 90% of the work on site. A report was considered on the logistics of transferring all Parliament staff and services from our temporary home on the Mound to Holyrood. We decided to aim to move during the 2003 summer recess. This period will also be used to test that the building is working properly before the parliamentary session resumes in September 2003.

2.2 Planning for Holyrood and the Next Parliament

Planning for Holyrood has gained significant momentum over the past year. Each office has been preparing plans and has commenced work on putting in place the many new contracts and services that will be required to ensure a smooth move to the new facilities, as well as effective operation once we are there.

This increase in workload has led to the creation of the Implementation Unit within the Chief Executive's Group in the Parliament. Its function is to co-ordinate the migration exercise. In order for this to be done effectively the Unit have put in place a formal Project Management Methodology including a Risk Management Strategy for the critical projects that are under way.

In the coming year the challenge of delivering the migration projects will be a major piece of work for many of the Parliament's offices. We are, however, well placed to ensure that this key priority for the Parliament is achieved.

2.3 Visitor Management at Holyrood

We appointed external consultants to provide a visitor management strategy for the new site at Holyrood. The study was carried out by RGA Ltd. It included: a comprehensive review of current visitor management services at the George IV Bridge and Holyrood Visitor Centres; a detailed investigation into comparable Parliament buildings around the world and other iconic buildings; an overview of the characteristics of potential visitors to the new facilities; and finally, projected visitor numbers.

In order to determine the characteristics of the various target groups, their attitudes to the Parliament and propensity to attend, Lynn Jones Research was commissioned to undertake four separate pieces of research. These included an omnibus survey covering the whole of Scotland, face to face interviews with current visitors to the Parliament, on-street interviews with day and overnight visitors, and two focus groups. The report concluded that the Scottish Parliament building may attract between 600,000 and 700,000 visitors per year in its first three years at the new site. This information is being used to conclude the detailed planning of services and facilities for the public at the new building.

SECTION 3: SERVICES

As we mentioned in the foreword during this period 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.

3.1 May 2002, Aberdeen

The Parliament met in Aberdeen on 28, 29 and 30 May 2002 while the General Assembly of the Church of Scotland returned to the Assembly Hall in Edinburgh. During those three days, the Parliament met within the Kings College Conference Centre in the University of Aberdeen Campus.

The visit to Aberdeen was hosted by the City of Aberdeen Council and the University of Aberdeen and we are extremely grateful to both organisations for all their help with the arrangements.

Planning for the visit commenced 8 months prior to the event, which was almost double the length of the planning period that was available for the Parliament's visit to Glasgow in May 2000. Meetings of the Parliament proceeded smoothly and other day-to-day parliamentary business was conducted at normal service levels during the relocation.

The longer planning period meant Parliament staff were able to focus more effort on raising the Parliament's profile in the local area and organising events around the daily meetings of Parliament. For example, a total of 312 local schoolchildren attended the Education Service programme in Aberdeen, which is double the normal Education Service capacity in Edinburgh.

The highlight of the week was undeniably the visit to the Parliament by HM The Queen. As part of her golden jubilee celebrations, The Queen addressed the Scottish Parliament in Aberdeen on the morning of Tuesday 28 May.

The budget for the visit was £150,000 and, while final invoices are still being settled, it looks certain that the event will be delivered well within the budget.

3.2 Research and Information Group

This year saw the creation of a new Research and Information Group (RIG). Placed within the Chief Executive's Group, it now encompasses research and information services for Members, and education and visitor services for the public. The group has put more emphasis on encouraging public engagement with the Parliament, and in developing an external communications strategy.

The Scottish Parliament Information Centre (SPICe) comprises two of RIG's service areas - the research service and the information service. SPICe plays a key role in keeping Members well informed whether as individual MSPs or as members of one of the Parliament's 17 committees.

In the course of the last parliamentary year

· around 200 research briefings to aid legislative scrutiny, plenary debates and committee inquiries have been published.

· 6,900 research and information enquiries from Members and their staff and the Parliament's staff have been answered.

· 11 pieces of external research for committees have been commissioned and managed.

· Over 3,000 new items of reference material have been added to our stock.

· A new electronic current awareness service (SCAN) has recently been launched on the Parliament's intranet covering 19 subjects, providing information on devolution issues and material for debates.

· SPICe has recently taken over the Parliament's print contract and the editorship of the Parliament's website and intranet.

· In response to demand, we have increased our capacity for responding to requests for comparative parliamentary research and enhanced the research support we provide on EU and EC related matters.

· Our links with other Parliaments have been improved and, in this respect, our researchers have been instrumental in establishing a research network covering all UK parliamentary and national assembly research and information services.

The third team within RIG is Participation Services. This new team was formed in September 2001 and brings together many of the Parliament's services for the public.

Services offered by the team focus on information and outreach work and include: -

· the Education Service,

· the Public Enquiry Unit,

· the Partner Library network,

· the Visitor Centre and Shop; and

· services for Gaelic speakers.

The team works with the parliamentary Committees on civic participation events. In the last year we have continued to welcome many visitors to the Parliament, many of whom view proceedings in the Chamber or in Committees, for example the 15,100 people who came as part of an organised group.

The Participation Services team is engaged in detailed planning to ensure that the Holyrood building will be accessible to the public. The introduction of improved visitor management services at the new building will help to provide a range of facilities that ensure that the people of Scotland are able to engage with the work of the Parliament. The Gaelic Service is to be strengthened which will enable the team to develop outreach work as well as welcoming visitors to the Parliament.

In October 2002 we will launch a new database. Subject experts will be able to register their interest in acting as external advisers to parliamentary committees. The database will help to maximise the availability of subject expertise to the committees in their work.

The sharing of information and experiences with other parliaments is important to us. In this respect we will encourage the development of an Inter-Parliamentary Research Network to improve contacts and information sharing between the research and information staff of the UK's national and devolved Parliaments and Assemblies.

3.3 Non-Executive Bills Unit

The Unit assists and supports members and clerks with the procedure involving Members' Bills and Committee Bills. The Unit is also responsible for Private Bills.

As a result of the Education, Culture and Sport Committee's proposal for a Children's Commissioner Bill the Unit has been doubled in size to create what is in effect a Bill Team for the preparation of, and parliamentary passage of, the Bill.

In the period covered by the report the Unit has:

· assisted in the introduction of two Members' Bills - the Public Appointments (Parliamentary Approval) (Scotland) Bill which was not approved by the Parliament at Stage 1 and the University of St. Andrews (Postgraduate Medical Degrees) Bill;

· aided 30 members with possible Members' Bill proposals, 12 of those members subsequently lodged proposals that attracted sufficient support to entitle them to introduce a Bill. Five members are receiving ongoing assistance with a view to having Bills drafted and introduced in the coming months;

· overseen the passage of the Protection from Abuse (Scotland) Act 2001 (asp.14) which came into force in February 2002;

· drafted and seen the introduction of the Scottish Parliamentary Standards Commissioner Bill and provided advice to eight other committees in relation to Committee Bills with two committees currently receiving ongoing assistance; and

· handled seven inquiries from potential promoters in relation to possible Private Bills.

3.4 Occupational Health Service

The provision of a part-time, on-site occupational health doctor and nurse has proved popular amongst Members and staff alike. Over the period of the report, 9 MSPs, 15 of their staff and 75 parliamentary staff participated in our life-style health-screening programme. The opportunity to have flu vaccinations on-site was taken up by 8 Members, 19 of their staff and 61 parliamentary staff.

3.5 External Liaison

The External Liaison Unit helps 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 supports the work of MSPs nominated to international organisations including the Committee of the Regions, the Council of Europe (Congress of Regional And Legislative Authorities of Europe) and the British-Irish Interparliamentary Body. It organises and assists with foreign parliamentary and VIP visits to the Scottish Parliament. It prepares outward parliamentary delegations and assists them when they are on parliamentary business abroad.

The expertise of the unit has been strengthened in the reporting period by the secondment of an official from the Department for International Development.

The unit supports the Parliament's liaison with other Parliaments including Westminster, the devolved Assemblies and the European Parliament. Strong links have been developed in the reporting period with the Parliaments of Catalonia and Flanders. The unit 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. It is participating on behalf of the Parliament in the development of the Scottish International Forum. This is a network of Scottish organisations involved in promoting Scotland in the wider world.

The unit dealt with some 140 inward VIP visits to the Parliament in the reporting period. This included addresses to meetings of Members by the Presidents of South Africa, Croatia and Portugal and by the Taoiseach of the Republic of Ireland.

· The unit organised the annual conference of the British Islands and Mediterranean Region of the Commonwealth Parliamentary Association held in June 2001.

· It also worked with American institutions to organise a conference of women parliamentarians in the Chamber in September 2001.

· The unit organised a number of outward visits by the Presiding Officers and cross-party delegations, including:-

· Scotland Week in Brussels,

· the Parliament of Estonia,

· the Conference of Presidents of the Legislative Regional Assemblies of Europe,

· the Conference of Commonwealth Speakers and

· Tartan Day events in New York and Washington.

3.6 Information Technology

During the past year, IT Services have continued to increase the availability and reliability of the Parliament's data and voice systems which support the work of Members, their staff and parliamentary staff.

The core infrastructure of the Parliament's data network has seen a planned change for significant improvements in connectivity speeds between sites, within buildings and to the internet. Server upgrades were completed and further work will include a refresh of the core data networking equipment with a resilient infrastructure designed to support current business and ease the migration to the new building at Holyrood.

Work on the Holyrood building's IT Services continues apace with the letting of the structured cabling contract and the commencement of data cabling on site. A framework agreement was put in place that allows the data networking hardware for the new building to be purchased. Several business applications are going through the stages of the procurement process for use at Holyrood to enhance the services supplied to Members and staff.

Some other notable highlights over the past year include:

Video Conferencing

- The video conferencing facilities that are supported and maintained by IT Services have been utilised extensively by Members and staff as well as several high profile Committee meetings involving the European and Justice Committees.

Financial Accounting System

- The implementation of the new accounting system was successfully managed and the initial rollout to the Parliament has been completed with second phase implementation under way.

Aberdeen

- IT Services were again involved in the planning for the temporary relocation of Parliamentary business to Aberdeen, where remote ICT services and support were deployed to facilitate the work of Members and staff.

Staff development award

· Staff development and training remains a crucial component in the ability to supply services to Members and staff. IT Services remain committed to staff development and through involvement with the British Computer Society's Professional Development Scheme the Parliament was awarded the British Computer Society's Information Systems Quality at Work award in recognition of the quality of the IT training and development. The Parliament's IT Office was also shortlisted for the Alan Taylor Excellence Award.

3.7 Broadcasting and Audio-Visual Services

The Broadcasting office has continued to provide high quality television coverage of all Chamber proceedings and the main committees for our core broadcasters - the BBC, Scottish Television, Border TV, Grampian TV, Channel 4, and Sky News, as well as supplying footage on request to international broadcasters, most notably for the visits of President Thabo Mbeki and Taoiseach Bertie Aherne in June 2001.

The main improvement of the core service during 2001-02 has been additional coverage of Committee proceedings, provided by a newly purchased mobile camera unit. This has enabled habitual coverage of proceedings in Committee Room 2, and television coverage of all Committee sittings outside Edinburgh.

An internal captioning system has also been added to all proceedings broadcast internally, giving appropriate speaker name tags together with basic information about the subject matters under debate.

This captioning service is also available to our webcast viewers, a service which has continued to improve and remains the best service of its kind in the world. In September 2001 the site was re-launched with a new "internet TV" look, and now all proceedings, including Committee sessions beyond Edinburgh, are broadcast live on the net, with main business archived for on demand viewing for up to 14 days after the sitting. Helping the Parliament provide this innovative public service is Victoria Real, the company which has also assisted Channel 4 with its "Big Brother" web site.

The Broadcasting Office has also been the lead department in the piloting of interactive on-line debates, which from September 2002 will offer the public the opportunity to comment on Members' Business debates and a few Committee initiated consultations.

A new digital-editing suite has been purchased which, along with the new mobile camera unit, has given the Parliament its own in-house video production facilities. These have been put to good effect with a range of public information films, including foreign language ones in French, German and Spanish, with many more planned for 2002-03. The best received film of the year edited on our new suite was "New Voice in the Land", a 1000 days commemorative film made in conjunction with the Media Relations Office.

Good progress has been made specifying and purchasing the Parliament television and electronic voting systems for Holyood and contracts awarded on budget and on schedule.

3.8 Records Management

Advances in records management have been made on two fronts, fundamental records management good practice and preparation for the procuring and piloting of an electronic records management system.

In support of best practice, a policy and an initial records management strategy have been developed together with a records retention schedule to provide guidance for Parliamentary staff on the statutory requirements for retaining records. Work has commenced to procure secure offsite storage for the retention of such paper records. A memorandum of understanding between the Parliament and The National Archives of Scotland concerning the archiving of Parliament records has been drafted and is currently under review.

Preparation for the procurement of an electronic records management system (ERMS) for piloting purposes is complete, with contract award anticipated in 2003. ERMS will provide the platform for the Parliament's records management policy, as well as supporting compliance with the requirements of both the Data Protection Act and the Freedom of Information Act. Piloting of the selected ERMS is expected to commence in late 2003.

3.10 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.

We are proud to announce that in June this year, the Facilities Management Helpdesk logged its 100,000th customer call since our Assyst helpdesk system was installed in September 1999. The FM Helpdesk logs around 3,000 customer calls per month and is open from 08:00 until 18:00, Monday to Friday, while Parliament is sitting. It is manned by 4 busy members of staff who are there to take calls from Members and staff on a wide range of issues and problems relating to both accommodation and IT services.

In recognition of the Security Office training and working to the nationally recommended practices of the security industry, the Parliament was successfully audited and gained full membership of SITO, the Industry Training Organisation for the Secure Environment. The Scottish Qualifications Authority (SQA) granted Full Centre Approved status in 2000 allowing the Security Office to conduct Scottish Vocational Qualifications (SVQ) in Security, Safety & Loss Prevention: Guarding for our staff. This also entitles us to do so for other organisations that employ security staff.

On the Procurement front, during the period covered by this report 825 purchase orders were raised. In total 66 contracts were awarded during this period, 25 of which were for the appointment of Committee advisers. The Allowances Office processed 37,397 payment transactions during this period.

A total of 27,000 people visited the Visitor Centre and the Education Service received visits from over 4,200 pupils from all areas of Scotland. Our second Open Day in June 2001 attracted over 4,000 people to see "behind the scenes". The number of Partner Libraries rose again, bringing the current total to 80. The Enquiry Unit dealt with nearly 10,000 detailed queries from the public and answered 73,500 telephone calls.

SECTION 4: STAFF AND RELATED MATTERS

4.1 Senior Management Team

The Clerk/Chief Executive, the Directors of the Parliament and the most senior group of office heads form the Senior Management Team. The full membership is outlined in Annex B.

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

4.2 Staff in post

The number of staff in post at the end of May 2002 was 463, with 30 vacant posts. The number of staff employed has increased since the last annual report in order to recognise an increase in activity as we prepare for our move to Holyrood. Some of these staff have been employed on fixed-term contracts to meet the temporary nature of our demands.

4.3 Personnel - Pay and Grading

This year saw the conclusion of our initial human resource strategy. The first of three phases was to establish the Parliamentary Staff Organisation. This was achieved in large part in time for the first Scottish parliamentary election in May 1999. The second phase was to establish our own distinct terms and conditions of service for our staff. This was achieved on 1 April 2001 and enabled us to contract with our workforce on that date. The final phase of the strategy was to establish our own pay and grading arrangements. This was achieved during 2001-02 in time for implementation, as planned, on 1 April 2002.

The pay and grading review had an unprecedented staff and trade union involvement. It also had a huge coverage in terms of the number of posts evaluated - almost 50% as opposed to the norm of around 10%. These factors helped reassure the staff and us that the review was as thorough and fair as possible. The end result has certainly delivered a very great deal. As well as enabling us to disengage completely from the Scottish Executive pay analogue, it has put us in a very competitive position in regard to the general terms and conditions we are able to offer as an employer. These are also now underpinned by progressive employment policies that reflect our commitment to equality of opportunity and treatment and to supporting a healthy working environment.

4.4 Equal Opportunities

In carrying out all of our work, we are fully committed to tackling discrimination and promoting equal opportunities, in relation to both our employment practices and the way in which we provide information and services to the public. In February 2002, we recruited an Equalities Manager, who is responsible for driving forward the implementation of our Equality Framework.

Also, over the past year, our appointed access consultants, Buro Happold, have continued to provide a significant input into the planning and design of the new Parliament building at Holyrood to ensure that it will be an example of best practice in relation to access for people with disabilities.

A new "Disability Allowance" section has been added to the Allowances Scheme. This change has enabled Members to apply for finance to cover adjustments to constituency offices, such as the installation of ramps, and the provision of sign language interpreters where these are required. These new provisions are intended to facilitate Members' own compliance with disability discrimination legislation and promote good practice across the Parliament.

In accordance with the Race Relations (Amendment) Act 2000, and the duties placed on us under this legislation, we have prepared a Race Equality Scheme. This scheme, which was published as part of the Equality Framework in May 2002, sets out the projects that will be delivered to ensure that, in carrying out our functions, we prevent and tackle racial discrimination and promote racial equality. Such projects include the publication and distribution of a new public information leaflet in various ethnic minority community languages, which is planned for next year. The Commission for Racial Equality (CRE) was consulted on the content and structure of our Race Equality Scheme. After this consultation, the CRE has referred other public bodies to our scheme and suggested that they might wish to follow a similar approach in order to ensure their own compliance with this legislation.

A comprehensive programme of equal opportunities training for all staff is currently being planned, and we have initiated procedures to ensure that the Parliament's procurement practices take full account of equal opportunities considerations.

4.5 Health & Safety

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

The Health and Safety Committee, comprising representatives from all parts of the Parliament, has met regularly during the past year. It has been instrumental in bringing a greater focus to health and safety issues. The Health and Safety Officer, in conjunction with the committee, has developed the procedures necessary to form a robust Health and Safety management system. These have been agreed and we are currently delivering a comprehensive training programme to enable all staff and other users of the Parliament's accommodation to meet their health and safety responsibilities.

4.6 Training

Members and staff have access to over 20 classroom training courses and in the past year 65 classroom events were held. These were attended by 357 delegates which equates to 757 training days. Training is also available through the Learning Resource Centre, the Parliament's CD-ROM network and our lending library. The use of the Learning Resource Centre has dropped this year presumably as a result of its relocation to our offices in St Andrew Square. The use of the other two learning mediums has, however, shown an increase. During the period, 48 staff used the Learning Resource Centre, 147 people took advantage of the CD-ROM network and the library loan facility was used 247 times.

4.7 Data Protection Act

Significant progress has been achieved in improving awareness and understanding amongst both Members and parliamentary staff of the implications in the workplace of the Data Protection Act 1998 which came into force in March 2000. In particular, Data Protection Guidance documents have been produced for Members and staff respectively. In the case of Members, the Guidance focuses on scenarios that may occur during Members' constituency surgeries. These include the handling of sensitive information, the requirement for consent from the data subject before passing personal data to a third party and the processing of requests for access to data. Additionally, attention is drawn to the rights of individuals under the Act to request access to their own personal data. The role of the Information Commissioner is clarified in the Guidance and the need for Members and their staff as well as our own staff to comply with the principles of the Act is emphasised.

4.8 Freedom of Information

Good progress has been made in preparing for implementation of the Freedom of Information Act 2002. To date this preparation has focused on the importance of providing a sound records management framework to underpin compliance with the Act; the requirement of providing related training for parliamentary staff; and the need to support the relevant decision makers. Additionally, the requirement to develop both a publication scheme for the Parliament and to define an internal review process to address matters of conflict has been considered.

SECTION 5: GOVERNANCE AND OTHER MATTERS

5.1 Corporate Governance

We have made good progress on our corporate governance arrangements this year, although we are still conscious that we continue to develop our management systems.

Under the Scotland Act 1998, we are empowered to determine our own procedures for the way we conduct our meetings. During the course of this year we have formalised the practices and procedures for our meetings and will be keeping this under review.

One of the main advances in our corporate governance arrangements this year is the appointment of an Advisory Audit Board. Audit Boards are viewed as an essential component of improving the quality of financial and internal control standards in an organisation. The primary purpose of the Audit Board is to advise the Clerk/Chief Executive as Accountable Officer, and where appropriate ourselves as the SPCB, on the adequacy of our corporate governance arrangements. Following a recruitment and selection process we are pleased to announce the independent appointments of Professor Niall Lothian as the Board's chair and Robert Bertram as a member of the Audit Board. Duncan McNeil MSP will also be a member of the board.

5.2 Risk Management

Good corporate governance can be achieved only if effective risk management is embedded in the culture and thinking of the organisation and the system for delivering this is dynamic and continuous. The central drivers are the integration of risk management within our business planning process and the involvement of staff in that process.

As Accountable Officer the Clerk/Chief Executive is also required to make a statement of how he has applied the principles of corporate governance and whether or not the organisation has complied throughout the accounting period with the appropriate provisions. This will be subject to audit by Audit Scotland.

Risks are unplanned occurrences with the potential to disrupt our business, systems or services. We recognise that an effective system of internal control depends on a thorough and regular evaluation of the nature and extent of these risks to which the organisation might be exposed.

There are a number of risks we could face in the Parliament. These include

· risks which pose a threat to the achievement of our objectives, programmes or service delivery.

· risks which can damage the reputation of the SPCB and the public's confidence in services supporting the Parliament.

We now have in place a risk register, which details the risks in our meeting the business objectives, as set out in the management plan. Over the next reporting period we will be looking more closely at the impact and likelihood of most of these risks and to see what, if any, procedures are already in place and what gaps need to be addressed.

Risk management must be an ongoing process and we have asked the Senior Management Team to monitor the register in some detail on a regular basis, drawing to our attention any exceptions.

5.3 Management Plan

The management plan has continued to evolve and we believe it is now more focused on the business objectives to meet the strategic priorities which have been set. A copy of the plan is attached at Annex D. The main change this year has been the introduction of a covering mission statement setting out the purpose and values of the Parliamentary Staff Organisation. A copy of this statement is attached at Annex C.

The management plan itself provides an overview of the planning process on an organisational basis. This year we have the challenge of the development of services for Holyrood, while at the same time maintaining the high standard of service already offered to Members in the support of parliamentary business.

The strategic priorities in the plan have altered slightly for this coming year to reflect this. Our 4 strategic priorities are:

· Effective Support of Parliamentary Business

(A) Business Support (Activity in the Parliament and Committees)

(B) Members' Support (Central and Local Office Activity)

(C) Financial Management

· Delivering the New Parliament Building and Services

· Promoting the Parliament

(A Participative, Open and Accessible Approach that Engages the Public)

· Good Working Environment

Against each of the business objectives we have identified measures and targets, and the senior management team will be monitoring these closely throughout the year.

5.4 Royal Appointments on the Nomination of Parliament

The Scottish Public Services Ombudsman Act 2002 and Freedom of Information (Scotland) Act 2002 made by the Parliament place certain duties on the SPCB. We are required to undertake the following:

· Make available a budget for the Ombudsman and Scottish Information Commissioner to meet the costs associated with their offices.

· Determine a salary for these office-holders.

· Determine the length of appointment.

· Make arrangements for the payment of pensions, allowances or gratuities to, or in respect of, any person who has ceased to hold the office of Commissioner.

· Agree the determination setting terms and conditions for staff appointed by the Commissioners.

· Designate an Accountable Officer: to sign the accounts of the expenditure and receipts of the Commissioner; to ensure propriety and regularity of the finances; and ensure that resources are used economically, effectively and efficiently.

This role is likely to increase in the forthcoming year with similar provisions set out in the Public Appointments and Public Bodies etc. (Scotland) Bill.

SECTION 6: FINANCE

6.1 SPCB Expenditure for the 12 Months Ended 31 March 2002

The expenditure for the 2001-02 financial year is set out below in the style of the internal monthly management report received by ourselves. 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 third year, lived within our budgets. We spent £39.8m on our running costs in 2001-02, which was £2.2m (5%) less than the available budget excluding reserves, and £5.2m (12%) including reserves.

The new Holyrood building is of course the most significant capital expenditure project for the SPCB. Work on the building moved forward at a good pace during the year the project accounted for £44.4 m of our capital expenditure.

Capital expenditure of £46.4m in the period was £37.6m (44%) less than the available budget. This is due to the rephasing of expenditure on the Holyrood project.

The total underspend against budget in 2001-02 is being utilised to reduce the Parliament's funding requirement for future years through the end year flexibility arrangements.

SPCB Expenditure for the 12 Months Ended 31 March 2002

Notes

Note 1: Revenue expenditure of £39.8m in 2001-02 comprised Parliament staff salaries of £11.5m and MSP salaries of £6.9m. Members' costs, which enable MSPs to secure staff and accommodation to assist them in the discharge of their parliamentary duties, were £7.2m. The remaining £14.2m 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 2000-01 underspend of £7.7m. It was agreed that the Parliament should carry forward the underspend using end year flexibility to reduce its funding requirements in 2002-03. In practice, this inflated the 2001-02 budget by £7.7m to allow the funds to be carried forward again into 2002-03. The object of this was to reduce pressure on the Consolidated Fund over the next 2 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.

6.2 Parliamentary Salaries Scheme and Party Leaders Allowance

This year we also facilitated the debate on Members' salaries and party leaders' allowance scheme. We did not take a formal view on the salary levels and as a Body we considered this to be a matter for Parliament. However, we did have a role in implementing the arrangements.

The motion agreed to by Parliament set Members' salaries at £48,228 from 1 April 2002. The motion also agreed to a mechanism to ensure that Members were not again put in the uncomfortable position of having to vote on their own salaries. In future, salaries will be automatically linked to 87.5% of a Member's salary at Westminster. The motion also put a responsibility on us, where appropriate, to review and in consequence of a review to implement any future pay changes, not only for Members but also importantly for Ministers. In undertaking a review, we will be required to take appropriate advice on salary levels from outside bodies or individuals before we can implement any salary changes. We in the SPCB will also have to have regard to any such advice.

We also now have a responsibility to meet the costs of the party leaders' allowance scheme. This provides those qualifying party leaders of parties who are represented by 30 or more Members in this Parliament to receive an annual allowance of up to £21,000. The motion also extended such a provision to the leaders of non-Executive parties represented in this Parliament by between 15 and 29 Members and those leaders will receive up to an annual allowance of £11,000.

6.3 Financial Assistance for Registered Political Parties

Under the Financial Assistance for Registered Political Parties Order, the registered political parties in the Parliament are entitled to monies to assist their Members to carry out their parliamentary duties. In the financial year ended 31 March 2002 we paid out a total of £361,957.83.

6.4 MSPs' Allowances

The Members' Allowances Scheme makes provision for the payment of allowances to enable Members to carry out their parliamentary duties. The scheme sets a maximum limit on certain costs that Members can reclaim. All costs are met on the basis of actual expenditure incurred by the Member. The main costs that may be reclaimed, and the limit of the allowance for 2001-02, fell into the following categories:

· costs incurred in employing support staff and running a constituency or regional office up to £49,300;

· costs members incur as employers, together with surgery advertising costs up to £1,000;

· costs of accommodation in Edinburgh incurred by Members who cannot reasonably commute to Edinburgh on a daily basis up to £9,446;

· costs of travel incurred whilst undertaking parliamentary duties - this is reimbursed on an actual basis when supported by receipts;

· costs of Members' staff travelling within the constituency or region and the parliamentary complex - 36 return journeys a year among all staff employed by the Member;

· costs of family travelling to Edinburgh - 12 single journeys per family member a year excluding children over the age of 18.

There are a number of other specific allowances available that are claimed only on an exceptional basis, which are listed in the following table.

Members are able to group allowances to meet shared expenses and in 2001-02 could transfer resources between allowances (within limits).

A list of staff employed by Members during the reporting period can be obtained on request from the Chief Executive's Office on 0131 348 5255.