Agenda Pack
North Lanarkshire Council · 27 June 2022
Back to Glasgow and the Clyde Valley Strategic Development Planning Authority Joint Committee — 27 June 2022 and its agenda
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16/06/2022 Notice of Meeting and Agenda Glasgow & the Clyde Valley Strategic Development Planning Authority Joint Committee. Date Time Venue Monday, 27 June 2022 11:15 Remotely by MS Teams , Membership Councillor Jim Gibbons and Councillor Alan Moir (East Dunbartonshire Council); Councillor Paul Edlin and Councillor Colm Merrick (East Renfrewshire Council); Councillor Kenny McLean and Councillor Ken Andrew (Glasgow City Council); Councillor Chris Curley and Councillor David Wilson (Inverclyde Council); tbc (North Lanarkshire Council); Councillor John McNaughtan and tbc (Renfrewshire Council); Councillor Richard Nelson and Councillor Robert Brown (South Lanarkshire Council); and Councillor Lawrence O’Neill and Councillor Gurpreet Singh Johal (West Dunbartonshire Council). Further Information For further information in relation to this meeting, please either email democratic- services@renfrewshire.gov.uk or telephone 0141 618 7111. MARK CONAGHAN Clerk Page 1 of 58
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16/06/2022 Items of business The Clerk to the Joint Committee will preside prior to the election of the Convener Apologies Apologies from members. Declarations of Interest Members are asked to declare an interest in any item(s) on the agenda and to provide a brief explanation of the nature of the interest. 1 Appointment of Convener 2 Appointment of Vice Convener 3 Members of the Joint Committee Report by Clerk. 3 - 4 4 Minute Minute of meeting of the Joint Committee held on 14 March 2022. 5 - 10 5 Strategic Planning in a City Region Context Presentation by the Strategic Development Plan Manager. 6 Unaudited Annual Accounts 2021/22 Joint report by Treasurer and Strategic Development Plan Manager. 11 - 44 7 Internal Audit Annual Report 2021/22 Report by Chief Auditor. 45 - 56 8 Timetable of Meetings Report by Clerk. 57 - 58 Page 2 of 58
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To: Glasgow and the Clyde Valley Strategic Development Planning Authority Joint Committee On: 27 June 2022 Report by Clerk Joint Committee Membership 1. Summary 1.1 In accordance with the Minute of Agreement, each of the member councils, following an ordinary election, shall, as soon as practicable thereafter, appoint or reappoint local authority members to the Joint Committee who shall hold office until they are re-appointed or replaced by the member councils. 1.2 At the statutory meetings of the member councils, the following appointments were made: East Dunbartonshire Council Councillor Jim Gibbons and Councillor Alan Moir East Renfrewshire Council Councillor Paul Edlin and Councillor Colm Merrick Glasgow City Council Councillor Ken Andrew and Councillor Kenny McLean Inverclyde Council Councillor Chris Curley and Councillor David Wilson North Lanarkshire Council to be confirmed Item 3 Page 3 of 58
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Renfrewshire Council Councillor John McNaughtan and vacancy South Lanarkshire Council Councillor Richard Nelson and Councillor Robert Brown West Dunbartonshire Council Councillor Lawrence O’Neill and Councillor Gurpreet Singh Johal 2. Recommendation 2.1 That the appointments be noted. Author: Elaine Currie, Senior Committee Services Officer elaine.currie@renfrewshire.gov.uk 0141 618 7111 Page 4 of 58
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Minute of Meeting Glasgow & the Clyde Valley Strategic Development Planning Authority Joint Committee. Date Time Venue Monday, 14 March 2022 11:15 Remotely by MS Teams, Present Councillor Stewart Miller (East Renfrewshire Council); Bailie Glenn Elder and Councillor Kenny MacLean (both Glasgow City Council); Councillor David Wilson (Inverclyde Council); Councillor Harry Curran (North Lanarkshire Council); Councillor Alistair Fulton (South Lanarkshire Council); and Councillor Lawrence O’Neill (West Dunbartonshire Council). Chair Councillor O’Neill, Convener, presided. In Attendance S Tait, Strategic Development Plan Manager (Strategic Development Plan Core Team); H Holland, Executive Officer – Land Planning and Development (East Dunbartonshire Council); J Nicol, Principal Planner (East Renfrewshire Council); S Taylor, Principal Planner (Glasgow City Council); S Jamieson, Head of Regeneration and Planning (Inverclyde Council); L Bowden, Business Manager (Strategic Planning) (North Lanarkshire Council); D Love, Chief Planning Officer, K Festorazzi, Senior Accountant, E Currie, Senior Committee Services Officers and D Cunningham, Assistant Committee Services Officer (all Renfrewshire Council); and T Finn, Planning and Building Services Headquarters Manager (South Lanarkshire Council). Apologies Councillor Alan Moir (East Dunbartonshire Council); Provost Jim Fletcher (East Renfrewshire Council); Councillor Jim Clocherty (Inverclyde Council); Councillor Agnes Magowan (North Lanarkshire Council); Councillor Tom Begg (Renfrewshire Council); and Councillor Jonathan McColl (West Dunbartonshire Council). Item 4 Page 5 of 58
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Declarations of Interest There were no declarations of interest intimated prior to the commencement of the meeting. 1 Minute There was submitted the Minute of the meeting of this Joint Committee held on 13 December 2021. DECIDED: That the Minute be approved. 2 Clerk and Treasurer There was submitted a report by the Clerk relative to the Clerk and Treasurer of the Joint Committee. The report advised that Ken Graham, Head of Corporate Governance, and Clerk to the Joint Committee retired from Renfrewshire Council on 28 February 2022. Mark Conaghan had been appointed as Head of Corporate Governance with effect from 1 March 2022 and would be Clerk to the Joint Committee from that date. The report further advised that Alan Russell, Treasurer to the Joint Committee, had been appointed to the position of Chief Executive, Renfrewshire Council, on 12 November 2021. Alastair MacArthur had been appointed as Director of Finance & Resources and would be Treasurer to the Joint Committee with effect from 16 February 2022. DECIDED: That it be noted that Mark Conaghan would be Clerk to the Joint Committee with effect from 1 March 2022 and that Alastair MacArthur would be Treasurer to the Joint Committee with effect from 16 February 2022. 3 Revenue Budget Monitoring There was submitted a joint revenue budget monitoring report by the Treasurer and the Strategic Development Plan Manager for the period 1 April 2021 to 4 February 2021. The report intimated that, at the end of period 11, gross expenditure was £33,000 underspent and income was £29,000 over-recovered, resulting in a net underspend of £62,000. The projected year-end position was an underspend of £79,000, mainly due to the reduction in premises costs due to the move from West Regent Street to John Street; reduced spend due to COVID-19 and working from home arrangements; and an over-recovery in income. DECIDED: That the report be noted. 4 Audit Plan 2021/22 Update There was submitted a report by the Treasurer providing an update in relation to the audit plan for 2021/22. Page 6 of 58
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The report intimated that Audit Scotland submitted the annual audit plan, which outlined the timescales and planned activity by Audit Scotland, to the Joint Committee in March of each year. Owing to delays caused by the past two years’ audit timetables, the audit plan for 2021/22 was not yet ready for publication and would therefore miss the Joint Committee’s reporting cycle. The report advised that the annual audit plan for 2021/22 would be circulated to members of the Joint Committee when available. The report further intimated that, given the local government elections in May of this year, the unaudited annual accounts 2021/22 would be presented to the meeting of this Joint Committee to be held in June 2022. DECIDED: That the report be noted. 5 Annual Report 2021 There was submitted a report by the Strategic Development Plan Manager relative to Clydeplan’s Annual Report 2021, a copy of which was appended to the report. The report intimated that Clydeplan’s Minute of Agreement required that an annual report be prepared setting out the work of the authority for the previous calendar year. The annual report 2021 provided an overview of the work undertaken by Clydeplan during 2021 under the broad headings of Clydeplan Joint Committee; Glasgow City Region; Planning (Scotland) Act - Regional Spatial Strategies and National Planning Framework 4; Glasgow and the Clyde Valley Green Network Partnership evolution; annual accounts and audit report; and the priorities and issues affecting the future work of Clydeplan. DECIDED: (a) That the Annual Report 2021, as set out in the appendix to the report, be approved; and (b) That it be agreed that, in accordance with the practice of previous years, an enhanced version of the annual report be produced in order to promote the work of the Joint Committee. 6 Clydeplan Development Plan Scheme and Participation Statement 2022/23 There was submitted a report by the Strategic Development Plan Manager relative to the Clydeplan Development Plan Scheme and Participation Statement 2022/23, a copy of which was appended to the report. The report intimated that as part of the requirements of the Planning etc (Scotland) Act 2006, planning authorities were expected to publish a Development Plan Scheme and Participation Statement and review it on an annual basis. Clydeplan published its first Development Plan Scheme and Participation Statement on 31 March 2009, with subsequent revisions published annually in March. The document would be published on the Clydeplan website as well as being sent to Scottish Ministers. The report advised that the Development Plan Scheme and Participation Statement 2022/23 reflected the current position in respect of the recent Planning (Scotland) Act 2019, enacted in July 2019, which removed the statutory requirement to prepare a Page 7 of 58
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Strategic Development Plan, replacing it with a duty on local authorities to prepare a Regional Spatial Strategy (RSS). The RSS would not form part of the statutory Development Plan which would now comprise the National Planning Framework and the Local Development Plan. The report further advised that in support of the development of National Planning Framework 4, the Scottish Government had required that local authorities prepare and submit an indicative RSS by June 2020. Local authorities self-determined what their indicative RSS comprised and how they would collaborate in its production. The report noted that guidance and regulations would be produced, informed by the process of producing an indicative RSS, to enact the duty to produce an RSS, most likely sometime in 2022, following approval of National Planning Framework 4 which was anticipated to be in the summer of 2022. Clydeplan and Glasgow City Region were committed to supporting the development of both the National Planning Framework 4 and RSS guidance. DECIDED: (a) That the Development Plan Scheme and Participation Statement 2022/23, as set out in the appendix to the report, be adopted; and (b) That the Strategic Development Plan Manager be authorised to make the document available online on Clydeplan’s website and on social media and submit it to Scottish Ministers. Chair Due to technical issues the Convener left the meeting and the Vice Convener, Councillor Wilson, assumed the Chair. 7 National Planning Framework 4 Under reference to item 4 of the Minute of the meeting of this Joint Committee held on 13 December 2021, there was submitted a report by the Strategic Development Plan Manager relative to the Joint Committee’s response to the Scottish Government consultation on the Draft National Planning Framework 4 (NPF4), a copy of which was appended to the report. The report intimated that under the terms of the Planning (Scotland) Act 2019, the requirement for Strategic Development Plans in the four largest city regions had been removed and replaced with a requirement for all local authorities, working together as they saw fit, to prepare Regional Spatial Strategies setting out strategic development priorities. This part of the Act was not yet in force and was anticipated once NPF4 had been approved by the Scottish Government. The report advised that, once approved by the Scottish Government, NPF4 would form part of the statutory Development Plan with the current Clydeplan Strategic Development Plan no longer being part of the Development Plan. The report further advised that the Draft NPF4 consultation closed on 31 March 2022 and the proposed response by the Joint Committee was appended to the report. It was noted that the Glasgow City Region’s Regional Partnership would consider the endorsement of the Joint Committee’s response at its meeting to be held on 17 March 2022. Page 8 of 58
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The Joint Committee considered the response appended to the report and the further detail provided in section 6 of the report. DECIDED: That the Joint Committee approve the response to the Scottish Government’s consultation on NPF4. 8 Change to Date of Meeting There was submitted a report by the Clerk relative to the date of the next meeting of the Joint Committee. The report intimated that at the meeting of the Joint Committee held on 12 June 2017, it was decided that meeting dates be agreed for the five-year term from 2017 to 2022 and that in 2022 meetings be held at 11.15 am on 14 March and 13 June 2022. The report proposed that the meeting of this Joint Committee scheduled to be held at 11.15 am on 13 June 2022 be rescheduled to 11.15 am on 27 June 2022. DECIDED: That it be agreed that the meeting of this Joint Committee scheduled to be held at 11.15 am on 13 June 2022 be rescheduled to 11.15 am on 27 June 2022. Page 9 of 58
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GLASGOW AND THE CLYDE VALLEY STRATEGIC DEVELOPMENT PLANNING AUTHORITY JOINT COMMITTEE To: Joint Committee On: 27 June 2022 ___________________________________________________________________ Report by: The Treasurer and the Strategic Development Plan Manager ___________________________________________________________________ Heading: Unaudited Annual Accounts 2021/22 ___________________________________________________________________ 1. Summary 1.1 The Annual Accounts for the year ended 31 March 2022 will be submitted to Audit Scotland in advance of the statutory deadline of 30 June 2022 and a copy is attached for consideration. 1.2 The Joint Committee has returned a deficit of £69,764 for the financial year 2021/22. This results in an underspend of £85,436 against the planned deficit of £155,200 1.3 The Management Commentary within the accounts provides an overview of the Committee’s financial performance during 2021/22, along with its outlook for the future. ___________________________________________________________________ 2 Recommendations 2.1 The Joint Committee is asked to: a) Consider the Unaudited Annual Accounts for 2021/22; b) Approve the Annual Governance Statement (pages 6-8); and c) Note the final budget monitoring position for 2021/22. ___________________________________________________________________ 3. Background 3.1. The Local Authority Accounts (Scotland) Regulations 2014 require the Joint Committee to prepare and publish a set of accounts, including an Annual Governance Statement, by 30 June each year. Item 6 Page 11 of 58
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3.2. The unaudited accounts are then required to be formally considered by the Committee no later than 31 August and the Annual Governance Statement should be formally approved at this time. 3.3. In accordance with the Local Authority Accounts (Scotland) Regulations 2014, the Unaudited Annual Accounts will then be signed only by the Treasurer as proper officer. 3.4. The accounts are then subject to external audit by the Committee’s appointed auditor, Audit Scotland, by 30 November 2022. The 2021/22 Audited Annual Accounts are scheduled to be presented to the Joint Committee on 12 September 2022 for approval and signing by the Chair, the Lead Officer and the Treasurer, in accordance with the regulations. 3.5. The Comprehensive Income and Expenditure Statement on page 11 shows an accounting deficit on the Provision of Services of £180,537. 3.6. The Expenditure and Funding Analysis on page 14 shows how this differs from the budgetary deficit of £69,764 due to accounting adjustments for pension costs and the statutory employee leave accrual. 3.7. The Balance Sheet on page 13 of the Annual Accounts shows an increase in net worth of £469,463 compared to last year, which is largely driven by the movement in the pension liability. This is explained further in the Management Commentary within the accounts. Page 12 of 58
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Description Agreed Annual Budget Actual (1) (2) (4) (5) £000's £000's £000's £000's % Employee Costs 493 485 8 1.6% underspend Premises Related 24 2 22 91.7% underspend Supplies & Services 48 26 22 45.8% underspend Support Services 20 24 (4) ‐19.0% overspend Transfer Payments 3 3 0 0.0% breakeven Transport Costs 5 0 5 100.0% underspend GROSS EXPENDITURE 593 540 53 8.9% underspend Contributions from Local Authorities (420) (420) 0 0.0% breakeven Other Income (19) (50) 32 0.0% over‐recovery INCOME (438) (470) 32 7.2% over‐recovery TRANSFER (TO)/FROM RESERVES 155 70 85 £000's Bottom Line Position to 31st March 2022 is an underspend of 85 Opening Reserves (384) Budgeted drawdown from Reserves 155 21/22 Underspend (85) Closing Reserves (314) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2021/22 1st April 2021 to 31st March 2022 Budget Variance JOINT COMMITTEE : GLASGOW & CLYDE VALLEY STRATEGIC DEVELOPMENT PLANNING AUTHORITY Page 13 of 58
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Unaudited Annual Accounts 2021/22 Page 15 of 58
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CONTENTS Management Commentary ............................................................................................................................. 1 Statement of Responsibilities for the Annual Accounts .................................................................................. 5 Annual Governance Statement ....................................................................................................................... 6 Remuneration Report ..................................................................................................................................... 9 Comprehensive Income and Expenditure Statement ................................................................................... 11 Movement in Reserves Statement ................................................................................................................ 12 Balance Sheet ............................................................................................................................................... 13 Note 1: Expenditure Funding Analysis .......................................................................................................... 14 Note 2: Accounting Standards Issued not Adopted ...................................................................................... 15 Note 3: Unusable Reserves ........................................................................................................................... 15 Note 4: Events after the Balance Sheet date ................................................................................................ 16 Note 5: Adjustments between Accounting Basis and Funding Basis under Regulations ............................... 16 Note 6: Debtors ............................................................................................................................................ 17 Note 7: Creditors .......................................................................................................................................... 17 Note 8: Related parties ................................................................................................................................. 17 Note 9: External audit costs .......................................................................................................................... 17 Note 10: Retirement Benefits ....................................................................................................................... 18 Note 11: Contingent Liabilities ...................................................................................................................... 20 Note 12: Agency Services .............................................................................................................................. 21 Note 13: Summary of Significant Accounting Policies ................................................................................... 21 Note 14: Assumptions made about the future ............................................................................................. 24 Note 15: Green Network Partnership ........................................................................................................... 25 Page 17 of 58
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1 Management Commentary The purpose of the Management Commentary is to present an overview of Clydeplan’s financial performance during the year 2021/22 and to help readers understand its financial position as at 31 March 2022. In addition, it outlines the main risks and uncertainties facing Clydeplan for the financial year 2021/22 and beyond. History and Background The Glasgow and Clyde Valley Strategic Development Planning Authority (GCVSDPA) was created in 2008, when the Scottish Government established Strategic Development Planning Authorities for each of the four Scottish city regions. In 2014 the GCVSDPA rebranded as ‘Clydeplan’ to improve recognition and gain wider resonance within the region. The principal role of Clydeplan is to prepare and maintain an up-to-date Strategic Development Plan (SDP) for the region. This process involves engagement through joint working and consultation with key stakeholder organisations and the wider community. Clydeplan is a Joint Committee formed under Section 57 of the Local Government (Scotland) Act 1973. The Joint Committee is comprised of the following eight local authorities: • East Dunbartonshire Council; • East Renfrewshire Council; • Glasgow City Council; • Inverclyde Council; • North Lanarkshire Council; • Renfrewshire Council; • South Lanarkshire Council; and, • West Dunbartonshire Council. The Joint Committee is comprised of two members from each constituent authority. During 2021/22, the Chair of the Joint Committee was Councillor Lawrence O’Neill of West Dunbartonshire Council and Vice-Chair was Councillor David Wilson of Inverclyde Council. A Joint Committee is not a separate legal entity, therefore, to ensure its actions have legal effect it must appoint a ‘lead authority’ with legal personality to act on its behalf to implement its decisions. The lead authority appointed to act for Clydeplan is currently Renfrewshire Council. The Joint Committee is supported by a Steering Group comprising the Strategic Development Plan Manager and the Chief Planning Officers (or their representatives) of each of the member authorities. The Steering Group meets at least four times a year to consider SDP and regional spatial planning related activity, consultations and reports presented to the Joint Committee on the work programme to be undertaken by the Clydeplan Core Team. The Glasgow Clyde Valley Green Network Partnership (GCVGNP) has a strong relationship with Clydeplan and an overview of the Partnership is provided at Note 15: Green Network Partnership on page 25. Strategic Development The SDP covers a period of 20 years, with the current SDP being approved by Scottish Ministers on 24 July 2017. The SDP sets out a clear vision and spatial strategy for the Glasgow City Region with a focus on the key land use and development. It also sets out a policy framework to help deliver sustainable economic growth and enhance the quality of life in the Glasgow City Region. Planning (Scotland) Act 2019 The Planning (Scotland) Act 2019 became law on 25 July 2019. The new act places a duty on Local Authorities to prepare ‘Regional Spatial Strategies’, rather than SDPs. The development of this strategy will be influenced and integrated into the Glasgow City Region processes and structures in terms of engagement and Page 19 of 58
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2 governance through related Portfolio groupings, including: • Land Use and Sustainability; • Transport and Connectivity; • Housing and Equalities; • Infrastructure and Assets; • Economic Delivery Group. The principle focus for 2022/23 will involve working closely with the Clydeplan’s Steering Group and the City Region’s Land Use and Sustainability portfolio to support the implementation of the new Planning (Scotland) Act 2019 and related City Region activities including, following approval of the National Planning Framework 4 (NPF4) by the Scottish Parliament (anticipated Summer 2022) of the development of a Regional Spatial Strategy. In support of the development of NPF4 the Joint Committee approved its response to the NPF4 consultation at its meeting held on 14 March 2022. In fulfilment of its Minute of Agreement and the existing requirements of the 2006 Planning Act, the Joint Committee approved its Annual Report and its Development Plan Scheme and Participation Statement in March 2022. These documents can be accessed at the following web links: • Annual Report - https://www.clydeplan- sdpa.gov.uk>Strategic Development Plan>Annual Reports • Development Plan Scheme and Participation Statement - https://www.clydeplan- sdpa.gov.uk>Strategic Development Plan>Development Plan Scheme and Participation Statement Primary Financial Statements The Annual Accounts are prepared in accordance with the International Accounting Standards Board Framework for the Preparation and Presentation of Financial Statements as interpreted by the Code of Practice on Local Authority Accounting in the United Kingdom (the Code). Under Section 106 of Local Government (Scotland) Act 1973, Joint Committees are classed as local authorities. The Annual Accounts summarise the Joint Committee’s transactions for the year and its year- end position at 31 March 2022. The Primary Financial Statements include the Comprehensive Income and Expenditure Statement (CIES), the Movement in Reserves Statement (MIRS) and the Balance Sheet. These statements are accompanied by Notes to the Accounts, which provide more details on the figures shown in the statements and set out the Accounting Policies adopted by the Joint Committee. Financial Performance Revenue The Comprehensive Income and Expenditure Statement (CIES) on page 11 summarises the total costs of providing services and the income available to fund those services. The Joint Committee has returned a deficit of £69,764 for the financial year 2021/22. This results in an underspend of £85,436 against the planned deficit of £155,200. This excludes accounting adjustments relating to pensions and short-term accumulating compensated absences. The difference between the Employee Costs figure below and the figure reported in the CIES is due to the accounting adjustments for pension costs of £105k and accrued employee benefits of (£3k). A summary of the final outturn position against the approved budget for Clydeplan is shown below. Page 20 of 58
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3 Budget Actual Variance £ £ £ Employee Costs 493,700 484,257 9,443 Property Costs 24,200 2,295 21,905 Supplies and Services 47,600 25,773 21,827 Support Services 20,500 24,050 (3,550) Transfer Payments 2,900 2,728 172 Transport Payments 4,500 442 4,058 Total Expenditure 593,400 539,545 53,855 Requisition Income (419,500) (419,500) 0 Other Income (18,700) (50,281) 31,581 Total Income (438,200) (469,781) 31,581 (Surplus)/Deficit for Year 155,200 69,764 85,436 Employee Costs underspent due to the secondment of a post to the City Region Team, which was budgeted until 31 March 2022, ending in December 2021. Property Costs underspent against budget due to Clydeplan moving into 40 John Street Glasgow, where costs are substantially lower, upon expiry of the previous lease of West Regent Street. Supplies and Services underspend is mostly attributable to home-working due to COVID-19. This has resulted in reduced spending on postage, printing and stationery. Further underspends arise in market research, consultancy and printing of maps and plans, due to the move from SDP to preparing Regional Spatial Strategies. Other Income is over-recovered mainly due to secondment income from the City Region Team at Glasgow City Council. Requisition income is break even. A one-off reduction of £20k per authority was agreed at Clydeplan’s December 2020 meeting, in order to decrease reserves to an appropriate level. The Balance Sheet at 31 March 2022 The Balance Sheet sets out the total net worth of the Joint Committee at a snapshot in time. When comparing the net worth of Clydeplan at 31 March 2022 to that of the prior year, an overall increase in net worth of the organisation of £469k can be seen. This is primarily due to the increase in pension asset explained below. Net Pension Position The disclosure requirements for pension benefits under IAS19 are detailed at Note 10: Retirement Benefits. The appointed actuaries have confirmed a net asset position of £189k, an increase of £536k in their assessment of Clydeplan’s share of the pension fund asset. This can be attributed to higher than expected investment returns and an increase in the net discount rate (discount rate net of inflation) compared to the previous year’s Accounting Date. A potential change to pension rules is outlined in Note 11: Contingent Liabilities on page 20; however, this has not been reflected in the pension liability reported in the Balance Sheet. Page 21 of 58
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4 Reserves Reserves are classified under accounting regulations into two categories: Usable reserves, which are available to spend; and Unusable reserves, which are unrealised net gains or losses that have a deferred impact on the Joint Committee. The balance on the Usable Revenue Reserve at 31 March 2022 is £314k. Outlook and Future Plans Governance It is recognised that all eight Glasgow City Region local authorities who are currently involved with the Glasgow and Clyde Valley Strategic Development Planning Authority Joint Committee wish to continue to contribute towards the strategic planning of the City Region. Clydeplan will continue to keep the Joint Committee apprised of any significant changes and will work closely with its constituent local authorities and partners to develop a work programme relevant to the delivery of the first Regional Spatial Strategy for the Glasgow City Region under the terms of the Planning (Scotland) Act. The documents relating to the future of Clydeplan can be accessed at the following web link; https://renfrewshire.cmis.uk.com/renfrewshire/Meeti ngs/tabid/70/ctl/ViewMeetingPublic/mid/397/Meetin g/2059/Committee/70/Default.aspx Budget 2022/23 The 2022/23 budget for ClydePlan was approved by the Joint Committee on 13 December 2021. Clydeplan expenditure budget has decreased for 2022/23, in line with reductions in Premises Costs and Supplies and Services. Furthermore, in recognition of the high level of reserves, a further reduction of requisition is made in 2022/23 to contributing authorities, totalling £32,500. COVID-19 Lockdown: Remote Working During the COVID-19 lockdown period, Clydeplan has continued to operate effectively, with all staff working from home. Normal governance procedures, such as the Joint Committee meetings, have continued, albeit on a virtual / remote basis. Conclusion We would wish to take this opportunity to acknowledge the team effort required to produce the accounts and to record our thanks to both the Strategic Development Plan Manager and all staff for their continued hard work and support. Councillor Stuart Tait Alastair MacArthur Convener Strategic Development Plan Manager Treasurer Page 22 of 58
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5 Statement of Responsibilities for the Annual Accounts The Joint Committee’s Responsibilities The Joint Committee is required to: • make arrangements for the proper administration of its financial affairs and to secure that the proper officer of the Joint Committee has the responsibility for the administration of those affairs (section 95 of the Local Government (Scotland) Act 1973). The designated officer is Renfrewshire Council’s Director of Finance and Resources, who is also the Treasurer of Glasgow and Clyde Valley Strategic Development Planning Authority; • manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; • ensure that the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014), and so far as is compatible with that legislation, in accordance with proper accounting practices (section 12 of the Local Government in Scotland Act 2003); and • approve the Annual Accounts for signature. I confirm that these Unaudited Annual Accounts were approved for signature by the Joint Committee at its meeting on the 27 June 2022. Signed on behalf of Glasgow and Clyde Valley Strategic Development Planning Authority Joint Committee. The Treasurer’s Responsibilities The Treasurer is responsible for the preparation of the Joint Committee’s Annual Accounts in accordance with proper practices as required by legislation and as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (the Code). In preparing the Annual Accounts, the Treasurer has: • selected suitable accounting policies and then applied them consistently; • made judgements and estimates that were reasonable and prudent; • complied with legislation; and • complied with the local authority Accounting Code (in so far as it is compatible with legislation). The Treasurer has also: • kept adequate accounting records that were up to date; and • taken reasonable steps for the prevention and detection of fraud and other irregularities. I certify that the financial statements give a true and fair view of the financial position of the Joint Committee at the reporting date and the transactions of the Joint Committee for the year ended 31 March 2022. Councillor Convener Alastair MacArthur Treasurer Page 23 of 58
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6 Annual Governance Statement Scope of Responsibility Glasgow and Clyde Valley Strategic Development Planning Authority’s Joint Committee is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for, and used economically, efficiently and effectively. The Joint Committee also has a statutory duty to make arrangements to secure best value under the Local Government in Scotland Act 2003. In discharging this overall responsibility, the Joint Committee’s elected members and senior officers are responsible for putting in place proper arrangements for its affairs and facilitating the effective exercise of its functions, which includes arrangements for the management of risk The Joint Committee’s Governance Framework The governance framework comprises the systems and processes, and culture and values, by which the Joint Committee is directed and controlled. It also describes the way it engages with, and accounts to its stakeholders. The Joint Committee has also put in place a system of internal control designed to manage risk to a reasonable level. Internal control cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Joint Committee’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The main features of our governance arrangements are: • A Minute of Agreement between the member councils of the Joint Committee, https://www.clydeplan-sdpa.gov.uk/planning- authority/joint-committee, setting out the arrangement for the preparation, monitoring and review of the Strategic Development Plan; • The Joint Committee is supported by a Steering Group comprising planning professionals from each of the member councils and the Strategic Development Plan Manager; • The Development Plan Scheme and Participation Statement sets out the key timelines for the preparation of the Strategic Development Plan and the Joint Committee’s approach to engagement with our stakeholders on its development, this is reviewed annually www.clydeplan- sdpa.gov.uk/strategic-development- plan/other/development-plan-scheme-and- participation-statement; • Clearly defined Standing Orders, Scheme of Delegation and Financial Regulations; • Comprehensive business planning arrangements, setting key targets and action plans designed to achieve the objectives of the Strategic Development Plan; • Public performance reporting through the Annual Report; • Policies to regulate employee related matters, including the employee code of conduct and disciplinary procedures; • The Joint Committee approves, as part of the Glasgow and Clyde Valley Green Network Partnership’s Terms of Reference, the allocation of local authority contributions to support the delivery of its Business Plan; • Risk management arrangements including regular monitoring and review of significant risk exposures; • Business continuity arrangements are in place and are kept under review by the Management Team. Page 24 of 58
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7 Within the overall control arrangements, the system of internal financial control is intended to ensure that assets are safeguarded, transactions are authorised and properly recorded and material errors are detected and corrected. The system is based on a framework of management information, financial regulations, administrative procedures (including segregation of duties), management and supervision, and a system of delegation and accountability. The system includes: • Financial management is supported by comprehensive financial regulations and codes; • Comprehensive budgeting systems, and detailed guidance for budget holders; • Regular reviews of periodic and annual financial reports which indicate financial performance against the forecasts; • Setting targets to measure financial and other performance; • The preparation of regular financial reports that indicate actual expenditure against the forecasts; • The Chief Finance Officer is the Treasurer who complies with the CIPFA Statement on the Role of The CFO in Public Services. With Renfrewshire Council being the lead authority, all financial transactions of the Joint Committee are processed through the financial systems of the Council and are subject to the same controls and scrutiny as those of Renfrewshire Council. This includes regular reviews by the Chief Internal Auditor of Renfrewshire Council. Review of Effectiveness Members and officers of the Joint Committee are committed to the concept of sound governance and the effective delivery of services and take into account comments made by internal and external auditors. The effectiveness of the governance framework is reviewed annually by the Strategic Development Plan Manager, including the use of a self-assessment tool covering five key areas of governance: • Business Planning and Performance Management; • Internal Control Environment; • Budgeting, Accounting and Financial Control; • Risk Management and Business Continuity; • Impact of Coronavirus (COVID-19). This self-assessment indicated that the governance framework is being complied with in all material respects. The Joint Committee’s internal audit service is provided by the lead authority’s internal auditors and operates in accordance with the Public Sector Internal Audit Standards. The lead authority conforms to the requirements of the CIPFA Statement on the Role of the Head of Internal Audit (2019). Internal Audit undertakes an annual programme following an assessment of risk completed during the strategic audit planning process. The Chief Internal Auditor provides an annual report to the Joint Committee and an independent opinion on the adequacy and effectiveness of the system of internal control. The Chief Internal Auditor’s annual assurance statement concluded that a reasonable level of assurance can be placed upon the adequacy and effectiveness of the Joint Committee’s internal control systems. The review has not identified any significant governance issues to be reported on for 2021/22 and no actions arising for the 2021/22 governance statement that require to be reported on. This governance framework has been in place throughout the year. The outbreak of coronavirus (COVID-19) did not result in any changes to the governance arrangements for 2021/22. During the year officers have moved to a hybrid method of working home with negligible impact on service delivery and this arrangement will continue to be reviewed regularly. Meetings of the Joint Committee were also held virtually. The arrangements in place Page 25 of 58
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8 are still considered to be effective. The risk of social distancing continuing and its potential impact on the governance arrangements continues to be reviewed and monitored through robust risk management arrangements. Planning (Scotland) Act 2019 Following the Scottish Government’s review of the Scottish planning system the Planning (Scotland) Act came into effect on 25 July 2019. A key provision of the new Act was the removal of the statutory duty on local authorities to prepare a Strategic Development Plan, this being replaced with a duty to prepare a Regional Spatial Strategy. The Regional Spatial Strategy will not form part of the Statutory Development Plan, which is currently made up of the Strategic Development Plan and Local Development Plan. Under the terms of the new Act this will instead comprise the National Planning Framework and the Local Development Plan. The current Clydeplan Strategic Development Plan (July 2017) will remain in force until the National Planning Framework 4 is approved by the Scottish Parliament, likely in Summer 2022 with Regional Spatial Strategy Guidance expected to be published in late 2022. The Clydeplan Joint Committee at its meeting held on 8 March agreed that all eight local authorities continue to work jointly to discharge their duty under the Planning (Scotland) Act 2019 to prepare a Regional Spatial Strategy. Assurance In conclusion, it is our opinion that the annual review of governance together with the work of internal audit, any comments received from external audit and certification of assurance from the Strategic Development Plan Manager provide sufficient evidence that the principles of good governance operated effectively and the Joint Committee complies with its governance arrangements in all material respects. Systems are in place to continually review and improve the governance and internal control environment. Future actions will be taken as necessary to maintain and further enhance the Joint Committee’s governance arrangements. Page 26 of 58
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9 Remuneration Report All information disclosed in the tables in this Remuneration Report will be audited by the appointed auditor, Audit Scotland. The other sections of the Remuneration Report will be reviewed by Audit Scotland to ensure that they are consistent with the financial statements. Remuneration policy for elected members The Joint Committee makes no remuneration payment to any elected member, nor does it pay any expenses, fees or allowances to elected members. Further, no recharges have been made by member authorities in relation to elected member remuneration. Remuneration policy for senior employees The Remuneration Policy of the Joint Committee is set in reference to national arrangements. The Scottish Joint Negotiating Committee (SJNC) for Local Authority Services sets the salaries for the Chief Executives of Scottish local authorities. The salary of the Strategic Development Planning Manager is set at spinal point 29, which is currently the equivalent of 53% of the salary of the Chief Executive of Renfrewshire Council. These arrangements were agreed through approval of the Chief Officers’ Award – Structure Plan Manager report at a meeting of the Joint Committee on 2 December 2002. The Assistant Strategic Development Planning Manager and Programme Manager posts have been evaluated under the single status framework and are paid according to the salary scales of Renfrewshire Council. 2020/21 2021/22 Total Salary, fees and allowances Total Salary, fees and allowances £ £ 79,323 Stuart Tait Strategic Development Plan Manager 80,678 56,111 Dorothy McDonald Assistant Strategic Development Plan Manager 56,814 135,434 Total 137,492 Name Post Held The above tables show the relevant amounts, before tax and other deductions, due to each of the persons named for the year to 31 March 2022, whether or not those amounts were actually paid within that period. Pension rights Pension benefits for Joint Committee employees are provided through the Local Government Pension Scheme (LGPS). From 1 April 2015 benefits are based on career average pay. Pension benefits are based on the pay received for each year in the scheme increased by the increase in the cost of living, as measured by the appropriate index (or indices). The scheme’s normal retirement age is linked to the state pension age for each member. From 1 April 2009, a five-tier contribution system was introduced with contributions from scheme members being based on how much pay falls into each tier. This is designed to give more equality between the cost and benefits of scheme membership. Prior to 2009 contributions rates were set at 6% for all non-manual employees. Equivalent bandings for 2020/21 Up to £22,300 5.5% Up to £22,200 £22,301 to £27,300 7.25% £22,201 to £27,100 £27,301 to £37,400 8.5% £27,101 to £37,200 £37,401 to £49,900 9.5% £37,201 to £49,600 Over £49,901 12% Over £49,601 Tiered contribution rates on whole time pay 2021/22 Page 27 of 58
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10 If a person works part-time their contribution rate is worked out on the whole-time pay rate for the job, with actual contributions paid on actual pay earned. There is no automatic entitlement to a lump sum. Members may opt to give up (commute) pension for a lump sum up to the limit set by the Finance Act 2004. The accrual rate guarantees a pension based on 1/49th of the pensionable pay for each year of membership, adjusted in line with the cost of living. (Prior to 2015 the accrual rate guaranteed a pension based on 1/60th of final pensionable salary). The value of the accrued benefits has been calculated on the basis of the age at which the person will first become entitled to receive a full pension on retirement without reduction on account of its payment at that age; without exercising any option to commute pension entitlement into a lump sum; and without any adjustment for the effects of future inflation. The pension figures shown relate to the benefits that the person has accrued as a consequence of their total local government employment, not just that relating to their current post. Pension Lump Sum Pension Lump Sum 2021/22 2020/21 £000 £000 £000 £000 £ £ Stuart Tait Strategic Development Plan Manager 41 64 2 0 15,500 15,309 Dorothy McDonald Assistant Strategic Development Plan Manager 29 46 2 1 10,965 10,829 Accrued Pension benefits as at 31 March 2022 Pension Contributions made by the Joint Committee Name Post Held As at 31 March 2022 Change from 31 March 2021 No pension contributions are made for the Joint Committee Convener or Vice-Convener. Remuneration of Employees The following table gives a statement of the number of employees whose remuneration, excluding pension contributions, was in excess of £50,000 during 2021/22, in bands of £5,000. 2020/21 2021/22 Number of employeesRemuneration Band Number of employees 0 £50,000 - £54,999 0 1 £55,000 - £59,999 1 1 £75,000 - £79,999 1 2 Total 2 Exit Packages Clydeplan has not agreed any exit packages in either 2021/22 or 2020/21. Councillor Convener Stuart Tait Strategic Development Plan Manager Page 28 of 58
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11 Comprehensive Income and Expenditure Statement This statement shows the accounting cost of providing services and managing the Joint Committee during the year. It includes, on an accruals basis, all of the Joint Committee’s day-to-day expenses and related income. It also includes transactions measuring the value of non-current assets actually consumed during the year and the real projected value of retirement benefits earned by employees during the year. The statement shows the accounting cost in accordance with generally accepted accounting practices, rather than the cost according to the statutory regulations that specify the net expenditure that local authorities need to take into account. The required adjustments between accounting basis and funding basis under regulations are shown in the Movement in Reserves Statement. Gross Expenditure Gross Income Net Expenditure Gross Expenditure Gross Income Net Expenditure £ £ £ Note £ £ £ 566,332 0 566,332 Employee Costs 586,030 0 586,030 2,160 0 2,160 Premise Costs 2,295 0 2,295 55,108 0 55,108 Supplies & Services 25,773 0 25,773 19,970 0 19,970 Support Costs 24,050 0 24,050 1,917 0 1,917 Transfer Payments 2,728 0 2,728 371 0 371 Transport Costs 442 0 442 0 (109,759) (109,759) Other Income 0 (49,944) (49,944) 645,858 (109,759) 536,099 Cost of Services 641,318 (49,944) 591,374 0 (1,514) (1,514) Interest receivable 0 (337) (337) 6,000 0 6,000 Pension interest cost 9,000 0 9,000 0 (579,500) (579,500) Requisitions from Member Authorities 8 0 (419,500) (419,500) 651,858 (690,773) (38,915) (Surplus)/Deficit on the Provision of Services 650,318 (469,781) 180,537 81,000 Actuarial (Gain)/Loss on pension assets and liabilities 10 (650,000) 42,085 Total Comprehensive Income and Expenditure (469,463) 2021/222020/21 Financing and Investment Income and Expenditure Other Comprehensive Income & Expenditure Taxation and Non-Specific Grant Income Note: Figures in brackets represent income or gains and figures without brackets represent expenditure or losses. Page 29 of 58
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12 Movement in Reserves Statement This statement shows the movement in the year on the different reserves held by the Joint Committee, analysed into usable reserves (that is, those reserves that can be applied to fund expenditure) and unusable reserves. The surplus or deficit on the provision of services line shows the true economic cost of providing the Joint Committee’s services, more details of which are shown in the Comprehensive Income and Expenditure Statement. Movement in reserves during the year Note Usable Reserves Unusable Reserves Total Reserves £ £ £ Balance at 1 April 2021 (383,872) 356,332 (27,540) Total Comprehensive Income and Expenditure 180,537 (650,000) (469,463) Adjustment between accounting basis and funding basis under regulation 5 (110,773) 110,773 0 Increase or (decrease) in year 69,764 (539,227) (469,463) Balance at 31 March 2022 carried forward (314,108) (182,895) (497,003) Note Usable Reserves Unusable Reserves Total Reserves £ £ £ Balance at 1 April 2020 (279,942) 210,317 (69,625) Total Comprehensive Income and Expenditure (38,915) 81,000 42,085 Adjustments between accounting basis and funding basis under regulations 5 (65,015) 65,015 0 Increase or (decrease) in year (103,930) 146,015 42,085 Balance at 31 March 2021 carried forward (383,872) 356,332 (27,540) Comparative movements in 2020/21 Page 30 of 58
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13 Balance Sheet The Balance Sheet shows the value as at 31 March 2022 of the assets and liabilities recognised by the Joint Committee. The net assets of the Joint Committee (assets less liabilities) are matched by the reserves held. Reserves are reported in two categories. The first category comprises usable reserves, which are those reserves that the Joint Committee may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use. The second category of reserves comprises those that the Joint Committee is not able to use to provide services. This category includes reserves that hold unrealised gains and losses in the value of assets. As at 31 March 2021 As at 31 March 2022 £ £ 493,396 Funds held by Renfrewshire Council 315,265 15,162 Debtors and Prepayments 6 1,215 508,558 Current Assets 316,480 (134,018) Creditors And Accruals 7 (8,477) (134,018) Current Liabilities (8,477) (347,000) Pension (Liability) / Asset 10 189,000 (347,000) Long Term Liabilities 189,000 27,540 Net Assets / (Liabilities) 497,003 (383,872) Usable Reserves (314,108) 356,332 Unusable Reserves 3 (182,895) (27,540) Total Reserves (497,003) Note The unaudited accounts were issued on 27 June 2022. Alastair MacArthur Treasurer Page 31 of 58
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14 Note 1: Expenditure Funding Analysis This statement shows how annual expenditure is used and funded from resources and provides a reconciliation of the statutory adjustments between the Joint Committees financial performance on a funding basis and the Surplus or deficit on the Provision of Service in the Comprehensive Income and Expenditure statement. Net Expenditure chargeable to the Joint Committee Adjustments for pensions Other adjustments Net Expenditure in the CIES £ £ £ £ Employee Costs 484,257 105,000 (3,227) 586,030 Premises Costs 2,295 0 0 2,295 Supplies & Services 25,773 0 0 25,773 Support Costs 24,050 0 0 24,050 Transfer Payments 2,728 0 0 2,728 Transport Costs 442 0 0 442 Other Income (50,281) 0 337 (49,944) Cost of Services 489,264 105,000 (2,890) 591,374 Other income and expenditure (419,500) 9,000 (337) (410,837) (Surplus)/Deficit on the Provision of Service 69,764 114,000 (3,227) 180,537 Net Expenditure chargeable to the Joint Committee Adjustments for pensions Other adjustments Net Expenditure in the CIES £ £ £ £ Employee Costs 507,317 58,000 1,015 566,332 Premises Costs 2,160 0 0 2,160 Supplies & Services 55,108 0 0 55,108 Support Costs 19,970 0 0 19,970 Transfer Payments 1,917 0 0 1,917 Transport Costs 371 0 0 371 Other Income (111,273) 0 1,514 (109,759) Cost of Services 475,570 58,000 2,529 536,099 Other income and expenditure (579,500) 6,000 (1,514) (575,014) (Surplus)/Deficit on the Provision of Service (103,930) 64,000 1,015 (38,915) 2021/22 2020/21 Page 32 of 58
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15 Note 2: Accounting Standards Issued not Adopted The Code requires the disclosure of information relating to the impact of an accounting change that will be required by a new standard that has been issued but not yet adopted. There are no new standards that have a material impact on Clydeplan’s accounts. Note 3: Unusable Reserves Pension Reserve The Pension Reserve absorbs the timing differences arising from the different arrangements for accounting for post -employment benefits and for funding benefits in accordance with statutory provisions. The Joint Committee accounts for post-employment benefits in the Comprehensive Income and Expenditure Statement as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and investment returns on any resources set aside to meet the costs. However, statutory arrangements require benefits earned to be financed as the Joint Committee makes employer’s contributions to pension funds. The debit balance on the Pension Reserve shows a significant shortfall in the benefits earned by past and current employees and the Joint Committee’s share of Strathclyde Pension Fund resources available to meet them. The statutory arrangements ensure that funding will have been set aside by the time the benefits come to be paid. 2020/21 2021/22 £ £ 202,000 Balance as at 1 April 347,000 81,000 Actuarial (Gain)/Loss on pension assets and liabilities (650,000) 64,000 Reversal of items relating to retirement benefits charged to the Surplus or Deficit on the Provision of Services in the CIES 114,000 347,000 Balance as at 31 March (189,000) Pension Reserve Employee Statutory Adjustment Account The Employee Statutory Adjustment Account absorbs the differences that would otherwise arise on revenue balances from accruing for short-term accumulating compensated absences at the end of the financial year. Generally accepted accounting practices require that all short-term employee benefits, including accumulating compensated absences, should be recognised as a cost in the accounts for the year to which they relate. This means that where employees’ full holiday entitlement has not been taken by the financial year-end, the cost of the untaken days or time is calculated and recorded as an accrued expense. However, statutory arrangements require that the impact of such accrued expenditure on revenue balances is neutralised by transfers to or from the Employee Statutory Adjustment Account. Page 33 of 58
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16 2020/21 2021/22 £ £ 8,317 Balance as at 1 April 9,332 (8,317) Reversal of prior year accrual for short-term accumulating compensated absences (9,332) 9,332 Recognition of the accrual for short-term accumulating compensating absences at 31 March 6,105 9,332 Balance as at 31 March 6,105 Employee Statutory Adjustment Account Note 4: Events after the Balance Sheet date Events taking place after the authorised for issue date per the Balance Sheet are not reflected in the financial statements or notes. Where events taking place before this date provided information about conditions existing at 31 March 2022, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. Note 5: Adjustments between Accounting Basis and Funding Basis under Regulations The surplus for the year on the Revenue Reserves was £110,773 less than the Comprehensive Income and Expenditure Statement result. The table below gives a breakdown of the differences between the income and expenditure included in the Joint Committee’s Comprehensive Income and Expenditure Statement in accordance with the Code and the amounts that statute and non-statutory proper practice require the Joint Committee to debit and credit the Revenue Reserve Balance. Usable Reserves Unusable Reserves £ £ Adjustments primarily involving the Pension Reserve: Net charges made for retirement benefits in accordance with IAS19 (180,000) 180,000 Employers contributions payable to the Strathclyde Pension Fund 66,000 (66,000) Adjustments primarily involving the Employee Statutory Adjustment Account: Net charges for employment short-term accumulating absences 3,227 (3,227) Net additional amount required to be debited or credited to the Revenue Reserves balance for the year (110,773) 110,773 2021/22 Usable Reserves Unusable Reserves £ £ Adjustments primarily involving the Pension Reserve: Net charges made for retirement benefits in accordance with IAS19 (133,000) 133,000 Employers contributions payable to the Strathclyde Pension Fund 69,000 (69,000) Adjustments primarily involving the Employee Statutory Adjustment Account: Net charges for employment short-term accumulating absences (1,015) 1,015 Net additional amount required to be debited or credited to the Revenue Reserves balance for the year (65,015) 65,015 2020/21 Page 34 of 58
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17 Note 6: Debtors As at 31 March 2021 Short-term Debtors As at 31 March 2022 £ £ 2,020 Prepayments 1,215 13,142 Other receivables 0 15,162 Total 1,215 Note 7: Creditors As at 31 March 2021 Short-term Creditors As at 31 March 2022 £ £ (9,332) Trade Payables (6,105) (124,686) Other Payables (2,372) (124,686) Total (8,477) Note 8: Related parties The Joint Committee’s related parties are those bodies or individuals that have the potential to control or significantly influence the Joint Committee, or to be controlled or significantly influenced by the Joint Committee. The Joint Committee is required to disclose material transactions that have occurred with related parties and the amount of any material sums due to or from related parties. Related party relationships require to be disclosed where control exists, irrespective of whether there have been transactions between the related parties. Disclosure of this information allows readers to assess the extent to which the Joint Committee might have been constrained in its ability to operate independently or might have secured the ability to limit another party’s ability to bargain freely with the Joint Committee. The member authorities of the Joint Committee have contributed requisitions in the following proportions to enable the Joint Committee to carry out its objectives. The Joint Committee in turn pays Renfrewshire Council for support services. The service level agreement for these services is £23,200 (2020/21 £23,200). In previous years a proportion of the cost was paid by the Green Network Partnership, however in 2021/22 this was fully absorbed by Clydeplan. 2020/21 2021/22 £ % £ 72,437.50 East Dunbartonshire 12.5% 52,437.50 72,437.50 East Renfrewshire 12.5% 52,437.50 72,437.50 Glasgow City 12.5% 52,437.50 72,437.50 Inverclyde 12.5% 52,437.50 72,437.50 North Lanarkshire 12.5% 52,437.50 72,437.50 Renfrewshire 12.5% 52,437.50 72,437.50 South Lanarkshire 12.5% 52,437.50 72,437.50 West Dunbartonshire 12.5% 52,437.50 579,500.00 GCVSDPA Funding 100.0% 419,500.00 Council In addition to requisitions in the table there was income of £49K from Glasgow City for a staff secondment. Note 9: External audit costs 2020/21 2021/22 £ £ 3,040 Fees payable with regard to external audit services carried out by the appointed auditor 3,120 3,040 Total 3,120 Page 35 of 58
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18 Note 10: Retirement Benefits As part of the terms and conditions of employment of its employees, the Joint Committee offers retirement benefits. Although these benefits will not actually be payable until employees retire, the Joint Committee has a commitment to make the payments that need to be disclosed at the time that employees earn their future entitlement. The scheme for employees is the Strathclyde Pension Fund which is administered by Glasgow City Council. This is a “funded” defined benefit scheme meaning that the Joint Committee and its employees pay contributions into a fund, calculated at a level intended to balance the pensions liability with investment assets. 10a: Transactions relating to retirement benefits The cost of retirement benefits is recognised in Gross Expenditure when they are earned by employees, rather than when the benefits are eventually paid as pensions. However, the charge that is statutorily required to be made in the accounts is based upon pension contributions payable by the Joint Committee in the year, and an adjustment is made within the Movement in Reserves Statement to replace the cost of retirement benefits with employers’ contributions. The following transactions have been made in the accounting statements in 2021/22: 2020/21 2021/22 £ £ Comprehensive Income & Expenditure Statement (CIES) 127,000 Current service cost 171,000 127,000 171,000 Financing and Investment Income & Expenditure 6,000 Net interest 9,000 133,000 Post-employment benefit charged to the Surplus/Deficit on the Provision of Services 180,000 Other post employment benefit charged to the CIES (523,000) Return on assets excluding amounts included in net interest (274,000) 604,000 Actuarial (gains)/losses arising on changes in financial assumptions (376,000) 81,000 Total Actuarial (Gain)/Loss (650,000) 214,000 Total post employment benefit charged to the CIES (470,000) Movement in Reserves Statement (145,000) Reversal of net charges made to the Surplus or Deficit for the Provision of Services for post employment benefits according with the Code 536,000 69,000 Employers Contributions paid to Strathclyde Pension Fund 66,000 Notes • Current service cost is the cost of future entitlements to pension payments to current employees. • Past service cost is the estimated increase in liabilities arising from current decisions that relates to years of service earned prior to this year. • In addition to the recognised gains and losses included in the CIES, an actuarial gain of £650k is included in the Movement in Reserves Statement (2020/21 £81k loss). • Net interest is an actuarial adjustment to the inflation element in the cost of funding current and future pension obligations. This is the expected increase during the year in the present value of the Joint Committee’s share of Strathclyde Pension Fund’s liabilities because they are one year closer to settlement. • The Joint Committee is also responsible for all pension payments relating to added years benefits it has awarded, together with related increases. In 2021/22 these amounted to £9,171 (2020/21 £9,125). Page 36 of 58
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19 10b: Assets and liabilities in relation to retirement benefits A reconciliation of the Joint Committee’s share of the present value of the Strathclyde Pension Fund’s liabilities is as follows: 2020/21 2021/22 £000 £000 4,327 Opening Present Value 5,109 127 Current service cost 171 101 Interest Cost 104 26 Employee Contributions 25 (76) Benefits Paid (78) Remeasurement (gains)/losses: 604 Actuarial (gains)/losses arising from changes in financial assumptions (376) 5,109 Closing Present Value 4,955 A reconciliation of the Joint Committee’s share of the fair value of the Strathclyde Pension Fund’s assets is as follows: 2020/21 2021/22 £000 £000 4,125 Opening Fair Value 4,762 95 Interest Income 95 69 Contributions from employer 66 26 Contributions from employee 25 (76) Benefits Paid (78) Remeasurement gain/(loss): 523 Return on assets excluding amounts included in net interest 274 4,762 Closing Fair Value 5,144 10c: Fund history 2017/18 2018/19 2019/20 2020/21 2021/22 £000 £000 £000 £000 £000 Present Value of Liabilities (4,229) (4,881) (4,327) (5,109) (4,955) Fair value of assets 4,036 4,295 4,125 4,762 5,144 Surplus/(deficit) in the scheme (193) (586) (202) (347) 189 The main fund (Fund 1) of Strathclyde Pension Fund does not have an asset and liability matching (ALM) strategy. The net asset of £189k has a significant impact on the net worth of the Joint Committee as recorded in the Balance Sheet. Any deficit on the Strathclyde Pension Fund will be made good by increased contributions over the remaining working life of employees, as assessed by the Fund actuary. The total contributions expected to be made by the Joint Committee to Strathclyde Pension Fund in the year to 31 March 2022 is £66k. Page 37 of 58
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20 10d: Basis for estimating assets and liabilities The pension scheme’s assets consist of the following categories, by proportion of the total assets held: 2020/21 2021/22 £000 % £000 1,086 Equity Securities 22.0% 1,133 877 Private Equity 19.6% 1,007 387 Real Estate 8.4% 434 2,323 Investment Funds and 47.4% 2,439 89 Cash & Cash Equivalents 2.5% 131 4,762 99.9% 5,144 The Joint Committee’s share of the liabilities of the Strathclyde Pension Fund have been assessed on an actuarial basis using the projected unit method, that estimates the pensions that will be payable in future years dependent upon assumptions about mortality rates, salary levels and so on. The Scheme’s liabilities have been assessed by Hymans Robertson, an independent firm of Actuaries, and the estimates are based on the latest full valuation of the Fund at 31 March 2022. The principal assumptions used by the actuary have been: 2020/21 Mortality assumptions 2021/22 19.8 Men 19.6 22.6 Women 22.4 21.2 Men 21 24.7 Women 24.5 2020/21 Other assumptions 2021/22 3.6% Rate of increase in salaries 3.6% 2.9% Rate of increase in pensions 2.9% 2.0% Rate for discounting scheme liabilities 2.0% 50.0% Pre-April 2009 service 50.0% 75.0% Post-April 2009 service 75.0% Longevity at 65 for current pensioners (years) Longevity at 65 for future pensioners (years) Take-up of option to convert annual pension into retirement lump sum: 10e: Impact on cashflows An objective of the fund is to keep employer’s contributions at as constant a rate as possible. The fund has agreed a strategy to achieve a funding rate of 100% in the longer term. Employers’ and employees’ contributions have been determined so that rates are standard across all participating employers. The rate for employer contributions has been set at 19.3% for 2021/22 and 2022/23. Note 11: Contingent Liabilities Guaranteed Minimum Pension (GMP) was accrued by members of the Local Government Pension Scheme between 6 April 1978 and 5 April 1997. The value of GMP is inherently unequal between males and females for a number or reasons, including a higher retirement age for men and GMP accruing at a faster rate for women; however overall equality of benefits was achieved for public service schemes through the interaction between scheme pensions and the Second State Pension. The introduction of the new Single State Pension in April 2016 disrupted this arrangement and brought uncertainty over the ongoing indexation of GMPs, which could lead to inequalities between men’s and women’s benefits. Strathclyde Pension Fund’s actuary has carried out calculations and estimates that the potential impact of GMP indexation would be an increase in the pension liability of approximately £21k for Clydeplan. This estimate is not reflected in the Primary Financial Statements because the trigger event that would require recognition has not yet occurred. Following two court cases, including Mrs Goodwin v Department for Education, it is expected that proposed changes to public service pension schemes will be required, to ensure that surviving same-sex spouses and civil partners receive benefits equivalent to those received by the surviving spouses of Page 38 of 58
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21 opposite-sex marriages. Strathclyde Pension Fund’s actuary estimates that the potential impact may be in the range of 0.1%-0.2% of gross obligations, which equates to between £5k and £10k for Clydeplan. This estimate is not reflected in the Primary Financial Statements because the trigger event that would require recognition has not yet occurred. Note 12: Agency Services Clydeplan acts on behalf of Clyde Marine as an agent. Funding is sent by Clyde Marine to Clydeplan’s bank account and invoices are paid from this funding to Clyde Marine’s suppliers. There is no operational input by Clydeplan and no gain or loss to Clydeplan. These funds are not, therefore, included in the financial results of Clydeplan. In 21/22 there was no cash received and it was agreed that Clydeplan would no longer facilitate this service, therefore, the cash was returned to Clyde Marine. Note 13: Summary of Significant Accounting Policies A General Principles The Annual Accounts summarise the Joint Committee’s transactions for the 2021/22 financial year and its financial position as at 31 March 2022. The Joint Committee is required to prepare Annual Accounts by the Local Authority (Scotland) Regulations 2014 and section 12 of the Local Government in Scotland Act 2003 requires these accounts to be prepared in accordance with proper accounting practices. These practices primarily comprise the Code of Practice on Local Authority Accounting in the United Kingdom (the Code), supported by International Financial Reporting Standards (IFRS) and statutory guidance issued under section 12 of the 2003 Act. The Code is issued jointly by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) and is designed to give a true and fair view of the financial performance of the Joint Committee. The accounting convention adopted in the Annual Accounts is principally historical cost, modified by the valuation of pension assets and liabilities where appropriate. The Annual Accounts have been prepared on a going concern basis. Materiality refers to a level of information or value of such significance that it could influence the decisions or assessments of users of the Annual Accounts by its presence or omission. B Accruals of Expenditure and Income Activity is accounted for in the year that it takes place, not simply when cash payments are made or received. In particular: • Revenue from the sale of goods is recognised when the Joint Committee transfers the significant risks and rewards of ownership to the purchaser, and it is probable that the economic benefits or service potential associated with the transaction will flow to the Joint Committee; • Revenue from the provision of services is recognised when the authority satisfies the performance obligation of the transaction and it is probable that the economic benefits or service potential associated with the transaction will flow to the Joint Committee; • Supplies are recorded as expenditure when they are consumed. Where there is a gap between the date supplies are received and their consumption, they are carried as inventories on the Balance Sheet; • Where income and expenditure have been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. Where there is evidence that debts are unlikely to be settled, the balance of debtors is written down and a charge Page 39 of 58
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22 made to revenue for the income that might not be collected; • Suppliers invoices paid in the one week following the year-end are accrued together with specific accruals in respect of further material items provided the goods or services were received by the Balance Sheet date. C Contingent Liabilities Contingent liabilities are disclosed in the accounts, but not recognised in the Balance Sheet, in circumstances where: • an event has taken place that gives the Committee a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Joint Committee; or • a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably. D Employee Benefits Benefits payable during employment All salaries and wages earned up to the Balance Sheet date are included in the accounts irrespective of when payment was made. An accrual is made for the cost of holiday entitlements earned by employees but not taken before the year end; and which employees may carry forward into the next financial year. Post-employment benefits The Joint Committee participates in the Local Government Pension Scheme which is administered by the Strathclyde Pension Fund. The Local Government Pension Scheme is accounted for as a defined benefit scheme, and in accordance with International Accounting Standard 19 (IAS19) the Joint Committee has disclosed certain information concerning the assets, liabilities, income and expenditure relating to the pension scheme. IAS 19 requires that an organisation must account for retirement benefits when it is committed to giving them, even if the payment will be many years into the future. This involves the recognition in the Balance Sheet of the Joint Committee’s share of the net pension asset or liability in the Strathclyde Pension Fund and a pension reserve. The Comprehensive Income and Expenditure Statement also recognises changes during the year in the pension asset or liability. Service expenditure includes pension costs based on employers' pension contributions payable and payments to pensioners in the year. The liabilities of the Strathclyde Pension Fund attributable to the Joint Committee are included in the Balance Sheet on an actuarial basis using the projected unit method i.e., an assessment of the future payments that will be made in relation to retirement benefits earned to date by employees, based on assumptions about mortality rates, employee turnover rates and projections of earnings for current employees. Liabilities are discounted to their value at current prices using a discount rate based on the current rate of return available on a high-quality corporate bond of equivalent currency and term to the scheme liabilities. The assets of the Strathclyde Pension Fund attributable to the Joint Committee are included in the Balance Sheet at their fair value, principally the bid price for quoted securities, and estimated fair value for unquoted securities. E Events after the Balance Sheet date Events after the Balance Sheet date are those events, both favourable and unfavourable, that occur between the end of the reporting period and the date when the Statements are authorised for issue. There are two types of events: • Adjusting events – those that provide evidence of conditions that existed at the end of the reporting Page 40 of 58
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23 period, and the Statements are adjusted to reflect such events; • Non-adjusting events – those that are indicative of conditions that arose after the reporting period, and the Statements are not adjusted. Where a category of events would have a material effect, disclosure is made in the notes of the nature of the event and its estimated financial effect. Events taking place after the date of authorisation for issue are not reflected in the Statements. F Prior Period Adjustments, Changes in Accounting Policies and Estimates and Errors Prior period adjustments may arise as a result of a change in accounting policies or to correct a material error. Changes in accounting estimates are accounted for prospectively, i.e., in the current and future years affected by the change and do not give rise to a prior period adjustment. Changes in accounting policies are made only when required by proper accounting practices, or the change provides more reliable or relevant information about the effect of transactions, other events and conditions on the Committee’s financial position or financial performance. Where a change is made, it is applied retrospectively (unless otherwise stated) by adjusting opening balances and comparative amounts for the prior period as if the new policy had always been applied. Material misstatement or omission discovered in prior period figures are corrected retrospectively (unless otherwise stated) by adjusting opening balances and comparative amounts for the prior period. G Government Grants and other Contributions Whether paid on account, by instalments or in arrears, government grants and third-party contributions and donations are recognised as due to the Joint Committee when there is reasonable assurance that: • the Joint Committee will comply with the conditions attached to the payments; and • the grants or contributions will be received. Amounts recognised as due to the Joint Committee are not credited to the Comprehensive Income and Expenditure Statement until conditions attaching to the grant or contribution have been satisfied. Monies advanced as grants and contributions are carried in the Balance Sheet as creditors. When conditions are satisfied, the grant or contribution is credited to the Specific Grant Income line in the CIES. H Non-current Assets Clydeplan carried out a review during 2020/21 on plant and equipment and intangible assets and deemed that no items currently qualify for recognition. Assets that are held for use in the supply of services or other administrative purposes and are expected to be used for more than one year are classed as property, plant and equipment and intangible assets. Assets costing less than £9,000 are not treated as capital expenditure. I Provisions Provisions are made where an event has taken place that gives the Joint Committee a legal or constructive obligation that probably requires a settlement by a transfer of economic benefit or service potential, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to the appropriate service line in the Comprehensive Income and Expenditure Statement. When payments are eventually made, they are charged to the Page 41 of 58
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24 provision carried in the Balance Sheet. Estimated settlements are reviewed at the end of each financial year. J Reserves Reserves are classified under accounting regulations into two categories: usable reserves, which are available to spend; and unusable reserves, which are unrealised net gains that have a deferred impact on the Joint Committee. Usable Reserves The Revenue Reserve represents surplus funds held by the Joint Committee, which are ultimately repayable to the constituent authorities in the same allocation proportions as the requisitions. Unusable Reserves The Pension Reserve arises from the IAS19 accounting disclosures for retirement benefits and recognises the Joint Committee’s share of actuarial gains and losses in the Strathclyde Pension Fund and the change in the Joint Committee’s share of the Pension Fund net liability chargeable to the CIES. The Employee Statutory Adjustment Account absorbs the differences that would otherwise arise on the Revenue Reserve from accruing for compensated absences earned, but not taken in the year, e.g., annual leave entitlement carried forward at 31 March each year. K Value Added Tax Income and Expenditure excludes any amount relating to Value Added Tax (VAT), as all VAT is payable to HM Revenue & Customs and all VAT is recoverable from them. Note 14: Assumptions made about the future The Annual Accounts contain estimated figures that are based on assumptions made by the Joint Committee about the future or that are otherwise uncertain. Estimates are made taking into account historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates. The items in the Balance Sheet at 31 March 2022 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows: Item Uncertainties Effect if Results differ from Assumption Pensions Liability Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. A firm of consulting actuaries is engaged to provide the Joint Committee with expert advice about the assumptions to be applied. The effects on the net pensions liability of changes in individual assumptions can be measured. For instance, a 0.1% decrease in the discount rate assumption would result in an increase in the pension asset of £0.095m, equating to an 2% increase. The carrying value of the pension asset was £0.189m as at 31 March 2022. For further details see Note 10: Retirement Benefits. Page 42 of 58
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25 Note 15: Green Network Partnership Overview The Glasgow Clyde Valley Green Network Partnership (GCVGNP) was formed in 2006 to develop a co- ordinated approach that will deliver major improvement in the scale and quality of green network provision across Glasgow Clyde Valley. There is a strong relationship between Clydeplan and the GCVGNP: The Strategic Development Plan Manager and Assistant Manager are Chair and Vice- Chair of the GCVGNP Committee respectively; the Clydeplan Joint Committee acts for its constituent local authorities to agree local authority funding to support the GCVGNP Business Plan; the Clydeplan Joint Committee approves the GCVGNP business plan and revenue estimates, in respect of local authority contributions only; progress against business plan targets are monitored annually by the Joint Committee; the executive team of Clydeplan and GCVGNP share offices in 40 John Street, Glasgow. As well as the Strategic Development Plan Manager, the GCVGNP committee is comprised of senior employees from the eight local authorities. The relationship between the Clydeplan and the GCVGNP is not a joint arrangement and so outside the scope of IFRS 11 (Joint Arrangements). In May 2021, the Green Network Manager retired, and the post will not be filled. This leaves GCVGNP with two staff members. At its Partnership meeting on 12 May 2021, the GCVGNP approved a change to the contribution funding, whereby, the funding for 2021/22 and future years will only consist of the contributions from the eight local authorities. This is demonstrated in the funding table that follows. Financial Performance Revenue GCVGNP has returned a deficit of £13k against a budgeted breakeven, giving a net position of £13k (2020/21 £10k). The deficit is a result of a reduction in income due to the eight local authorities being the only requisitioners and also the Green Network Manager leaving in May 2021 which was an unbudgeted post. GCVGNP is a significant regional component of the Central Scotland Green Network (CSGN). As a result, the GCVGNP secures additional funding for various projects related to the CSGN. The GCVGNP has been a key partner in the study and planning of the development of the Seven Lochs Wetland Park; however, there was no project expenditure by the GCVGNP in either 2021/22 or 2020/21. Reserves The Partnership retains financial reserves to offset any liabilities of the Partnership. The following table shows the value of the Partnerships reserves at 31 March 2022. This is analysed into Usable reserves, which is derived from partnership funding and can be used to fund expenditure, and Unusable reserves, which cannot be used to fund expenditure. 2020/21 Reserves 2021/22 £ £ (113,306) Usable Reserves (99,630) Unusable Reserves: 3,109 Employee Statutory Adjustment Account 173 312,000 Pension Reserve 114,000 201,803 Total 14,543 Budget 2022/23 The GNP’s 2022/23 budget was approved by the ClydePlan Joint Committee on 13 December 2021. Page 43 of 58
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26 The GCVGNP partners have contributed funding in the following proportions to enable it to carry out its objectives: 2020/21 2021/22 £ Council % £ 5,756 East Dunbartonshire 6.0% 5,756 4,900 East Renfrewshire 5.1% 4,900 31,949 Glasgow City 33.2% 31,949 4,451 Inverclyde 4.6% 4,451 17,825 North Lanarkshire 18.5% 17,825 9,311 Renfrewshire 9.7% 9,311 16,992 South Lanarkshire 17.7% 16,992 5,001 West Dunbartonshire 5.2% 5,001 Third Party 33,619 Scottish National Heritage 0.0% 0 32,276 Scottish Forestry 0.0% 0 7,210 Glasgow Centre for Population Health 0.0% 0 4,809 Scottish Environmental Protection Agency 0.0% 0 18,737 Central Scotland Green Network 0.0% 0 7,000 NHS Health Scotland 0.0% 0 199,836 Total Green Network Partnership Funding 100.0% 96,185 Page 44 of 58
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GLASGOW AND THE CLYDE VALLEY STRATEGIC DEVELOPMENT PLANNING AUTHORITY JOINT COMMITTEE To: Joint Committee On: 27 June 2022 ___________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Internal Audit Annual Report 2021/22 ___________________________________________________________________ 1. SUMMARY 1.1 The Public Sector Internal Audit Standards require the Chief Auditor to prepare a report, at least annually, to senior management and the Board on the internal audit activity’s purpose, authority, and responsibility, as well as performance relative to its plan. 1.2 The annual report must also provide an annual audit opinion on the overall adequacy and effectiveness of the Glasgow and Clyde Valley Strategic Development Planning Authority’s internal control environment. 1.3 The Annual Report for Glasgow and Clyde Valley Strategic Development Planning Authority is attached at Appendix 1 and outlines the role of Internal Audit, the performance of the Internal Audit Team, the main findings from the internal audit work undertaken in 2021/22 and contains an audit assurance statement. 2. RECOMMENDATIONS 2.1 Members are invited to consider and note the contents of the Annual Report. Item 7 Page 45 of 58
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Glasgow and Clyde Valley Strategic Development Planning Authority Annual Report 2021-2022 Renfrewshire Council Internal Audit June 2022 Page 47 of 58
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Glasgow and Clyde Valley Strategic Development Planning Authority Internal Audit Annual Report 2021/2022 Contents Page 1. Introduction 1 2. Responsibilities of Management and Internal Audit 2 3. Internal Audit Activity in 2021/22 2 4. Internal Audit Performance 3 5. Planned Audit Work for 2022/23 4 6. Audit Assurance Statement 4 Page 49 of 58
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- 1 - Glasgow and Clyde Valley Strategic Development Planning Authority Internal Audit Annual Report 1 April 2021 – 31 March 2022 1. Introduction 1.1 As host Authority, Renfrewshire Council provides an internal audit service to Glasgow and Clyde Valley Strategic Development Planning Authority. This includes: The compilation of an annual audit plan following consideration and evaluation of those areas of greatest risk in the organisation’s operation, and consultation with the Strategic Development Plan Manager; Delivery of the planned audit assignments; Follow up of previous audit recommendations; Provision of any ongoing advice and support on audit and risk management related matters; Provision of an Annual Report and Assurance Statement, and presentation to elected members at the Glasgow and Clyde Valley Strategic Development Planning Authority. 1.2 The Service operates in accordance with the Public Sector Internal Audit Standards which defines Internal Audit’s role as: “......an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.” 1.3 In line with the Standards, the purpose of this Annual Report is to report on: The outcome of any planned Internal Audit reviews in 2021/22 relating to the Glasgow and the Clyde Valley Strategic Development Planning Authority; The outcome of Internal Audit reviews of supporting Renfrewshire Council corporate systems; Internal audit performance; Planned audit work for 2022/23; The annual assurance statement which provides an opinion on the overall adequacy and effectiveness of the Planning Authority’s internal control environment. Page 51 of 58
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- 2 - 2. Responsibilities of Management and Internal Audit 2.1 It is the responsibility of management to ensure that the areas under their control are adequate and effective and that there is a sound system of internal control which facilitates the effective exercise of the organisation’s functions and which includes arrangements for the management of risk. 2.2 Internal Audit is not a substitute for effective control exercised by management as part of their responsibilities. Internal Audit’s role is to independently assess the adequacy of the risk management, internal controls and governance arrangements put in place by management and to undertake sufficient work to evaluate and conclude on the adequacy of those controls for the period under review. 3. Internal Audit Activity during 2021/2022 3.1 The Annual Report for 2020/2021 was submitted to the Joint Board on 14 June 2021. 3.2 There were no outstanding audit recommendations which required to be followed up as part of the 2021/22 annual follow up exercise. 3.3 Internal Audit also conduct reviews of the main corporate systems operating within Renfrewshire Council which support the Committee’s activity. The main findings in relation to these are summarised in Table 1 below and Renfrewshire Council management have agreed to implement the audit recommendations made in relation to each review: Table 1 Audit Area Conclusion Payroll - Overpayments • Reasonable Assurance Although there is a Salary Adjustment Policy in place, recovery action does not always strictly comply with the policy and recommendations were made to strengthen controls in this area. There are satisfactory arrangements in place to ensure that employees and managers are aware of their responsibilities in relation to payroll processing and salary overpayments. The introduction of monthly overpayment reports to services to inform them of employee overpayments has enabled services to address any issues that may lead to further overpayments. A dedicated team within the Council has been established to concentrate on Page 52 of 58
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- 3 - overpayment recoveries. Supporting Attendance • Reasonable Assurance The audit review identified that, the level of sickness absence monitoring in place was found to be adequate and that management are provided with adequate information to ensure that the supporting attendance policy is being followed. Budgetary Controls • Substantial Assurance The audit identified that there were clear budgetary control roles and responsibilities for accounting staff and budget holders. Budget holders get the information they need from accounting staff. The main findings from the review were in relation to having formal procedures i.e. an updated Budget Holders Manual and council specific budget monitoring procedures for accountants. 4. Review of Internal Audit Performance 4.1 Internal Audit produces regular reports on its performance during the year to the Renfrewshire Council, Audit, Risk and Scrutiny Board, against a range of measures set annually by the Director of Finance and Resources. These targets are set for all internal audit engagements and include Renfrewshire Council and other associated bodies, for which the team provides internal audit services. Table 2 shows the actual performance against targeted performance for the year. Table 2 Internal Audit Performance 2021/22 Performance measure Target 2021/22 Actual 2021/22 % of audit assignments completed by target date 95% 98.4% % of audit assignments completed within time budget 95% 96.8% % completion of audit plan for the year* 95% 92.1% * this measures the completion percentage as at 31 March. 100% of the plan is ultimately delivered through the finalisation of the outstanding elements in the new financial year. Page 53 of 58
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- 4 - 4.2 The percentage completion of the revised audit plan is slightly below the target set for the year. This was due, in the main, to a higher than anticipated level of unplanned absence. It should be noted that the planned internal audit activity within the planning authority is 100% complete. The actual performance for the year for the two other indicators, is above the target performance level. 4.3 The Chief Auditor is required to develop and maintain a quality assurance and improvement programme that covers all aspects of internal audit including conformance with the PSIAS. The review did not identify any areas of non- conformance that require to be addressed. 4.4 External Audit External Audit’s review of the internal audit service concluded that overall the service operates in accordance with the PSIAS. 4.5 Risk Management The internal audit service through the Risk Manager, provides advice and support to the GCVSDPA officers, as required. 5. Planned Work for 2022/23 5.1 Following a risk based assessment of the activities of the Glasgow and Clyde Valley Strategic Development Planning Authority and consultation with the Strategic Development Plan Manager the following internal audit work has been agreed for 2022/23: A review of the governance arrangements in place; Ad-hoc internal audit and risk management advice; Follow-up of previous audits. 6. Audit Assurance Statement 6.1 Internal Audit has performed its work in accordance with the role defined in paragraph 1.2. The audit work performed has been reported to the Strategic Development Plan Manager, and to the Joint Committee in this annual report. Where areas for improvement in internal control have been identified, appropriate recommendations have been made and accepted for action by management. 6.2 In view of the continued challenges common to all public bodies, there will be a requirement for the council and the bodies for which it is host authority to exercise very close scrutiny over expenditure, and both areas will continue to receive due internal audit attention. 6.3 It is not feasible for the system of internal control to be without any weakness. It is important to balance the risks involved in accepting systems limitations Page 54 of 58
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- 5 - with the consequences if a problem emerges. Internal Audit recognises this and assesses this in its reporting mechanism. 6.4 The audit plan is always intended to be flexible and contingency time was utilised to undertake additional work on areas of emerging risk. Additionally, the gross operational internal audit days were reduced by 14% in 2021/22 overall due to unplanned absence and no audit engagements were outsourced as was planned due to the pandemic. In this context, it is considered that a reasonable level of assurance can be placed upon the adequacy and effectiveness of the Glasgow and Clyde Valley Strategic Development Planning Authority’s internal control, risk management and governance arrangements, as evidenced by:- The results of the audit work in 2021/22 in relation to the corporate systems which supported the Glasgow and Clyde Valley Strategic Development Planning Authority’s activities. Management action in response to audit recommendations. Management self assessment of internal control, risk management and governance arrangements. The regular review and updating of the Local Code of Corporate Governance by the Council in accordance with the CIPFA/SOLACE framework for corporate governance requirements and of the corporate governance arrangements within the Glasgow and Clyde Valley Strategic Development Planning Authority. Signed Asst. Chief Auditor Date 17 June 2022 Page 55 of 58
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To: Glasgow and the Clyde Valley Strategic Development Planning Authority Joint Committee On: 27 June 2022 Report by Clerk Timetable of Meetings 2022 to 2027 1. Summary 1.1 Meetings of the Joint Committee are convened on a quarterly basis with meetings being held at 11.15 am on Mondays in March, June, September and December each year. 1.2 Arrangements for ordinary meetings of the Joint Committee are governed by the provisions of Standing Order 5 of the Joint Committee’s Procedural Standing Orders which state that:- “The Joint Committee shall meet from time to time as determined by the Joint Committee but shall meet not less than four times in each calendar year. The dates, times and places for ordinary meetings of the Joint Committee shall be decided by the Joint Committee.” 1.3 To allow the business of the Joint Committee to continue during the coronavirus pandemic, the Joint Committee met remotely from March 2020, latterly using MS Teams. 1.4 The suggested dates for meetings of the Joint Committee for the current five- year term from 2022 to 2027 are: 12 September and 12 December 2022 13 March, 12 June, 11 September and 11 December 2023 11 March, 10 June, 9 September and 9 December 2024 10 March, 9 June, 8 September and 8 December 2025 9 March, 8 June, 7 September and 7 December 2026 8 March and 14 June 2027. Item 8 Page 57 of 58
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1.5 In terms of the venue for meetings, it is proposed that the Joint Committee consider the future arrangements for meeting and whether meetings should continue to be held remotely using MS Teams. 2. Recommendations 2.1 That the timetable of meetings be approved; and 2.2 That the Joint Committee consider the future arrangements for meetings and whether meetings should continue to be held remotely using MS Teams. Author: Elaine Currie, Senior Committee Services Officer elaine.currie@renfrewshire.gov.uk 0141 618 7111 Page 58 of 58