Agenda Pack
North Lanarkshire Council · 12 June 2023
Back to Glasgow and the Clyde Valley Strategic Development Planning Authority Joint Committee — 12 June 2023 and its agenda
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05/06/2023 Notice of Meeting and Agenda Glasgow & the Clyde Valley Strategic Development Planning Authority Joint Committee. Date Time Venue Monday, 12 June 2023 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); Councillor Tom Fisher and Councillor Allan Stubbs (North Lanarkshire Council); Councillor John McNaughtan and Councillor Jim Paterson (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). Councillor Lawrence O’Neill (Convener); Councillor David Wilson (Vice-Convener). Further Information - online meetings only This meeting is on-line only but is a meeting which is open to members of the public by prior arrangement. A copy of the agenda and reports for this meeting will be available for inspection prior to the meeting at the Customer Service Centre, Renfrewshire House, Cotton Street, Paisley and online at http://renfrewshire.cmis.uk.com/renfrewshire/CouncilandBoards.aspx For further information, please email democratic-services@renfrewshire.gov.uk MARK CONAGHAN Clerk Page 1 of 78
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05/06/2023 Members of the Press and Public - contact details Members of the press and public wishing to attend the meeting should contact democratic- services@renfrewshire.gov.uk to allow the necessary arrangements to be made. Page 2 of 78
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05/06/2023 Items of business 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 Minute Minute of meeting of this Joint Committee held on 13 March 2023. 5 - 10 2 Unaudited Annual Accounts 2022/23 Report by Treasurer. 11 - 44 3 Internal Audit Engagement - Governance Arrangements Report by Chief Auditor. 45 - 48 4 Internal Audit Annual Report 2022/23 Report by Chief Auditor. 49 - 58 5 Glasgow and The Clyde Valley Strategic Development Planning Authority Joint Committee - Towards a Regional Spatial Strategy Report by Clydeplan Steering Group. 59 - 78 6 Date of Next Meeting Note that the next meeting of the Joint Committee will be held at 11.15 am on 11 September 2023. Page 3 of 78
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Minute of Meeting Glasgow & the Clyde Valley Strategic Development Planning Authority Joint Committee. Date Time Venue Monday, 13 March 2023 11:15 Remotely by MS Teams, Present Councillor Jim Gibbons (East Dunbartonshire Council); Councillor Kenny McLean and Councillor Ken Andrew (Glasgow City Council); Councillor David Wilson (Inverclyde Council); Councillor Tom Fisher (North Lanarkshire Council); Councillor John McNaughtan and Councillor Jim Paterson (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). 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 & Development (East Dunbartonshire Council); J Nicol, Planning & Building Standards Manager (East Renfrewshire Council); S Taylor, Principal Planner (Glasgow City Council); S Jamieson, Head of Regeneration and Planning (Inverclyde Council); L Bowden, Planning & Place Manager (North Lanarkshire Council); A Morrison, Head of Economy and Development Services, K Festorazzi, Principal Accountant (Management Accounting) and E Currie, Senior Committee Services Officer (all Renfrewshire Council); F Carlin, Head of Planning & Regulatory Services (South Lanarkshire Council); P Clifford, Planning & Building Services Manager (West Dunbartonshire Council); and A Kolodziej, Senior Manager Audit & Assurance (Azets). Item 1 Page 5 of 78
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Apologies Councillor Alan Moir (East Dunbartonshire Council); Councillor Paul Edlin and Councillor Colm Merrick (East Renfrewshire Council); and Councillor Allan Stubbs (North Lanarkshire Council). 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 12 December 2022. DECIDED: That the Minute be approved. 2 Revenue Budget Monitoring There was submitted a joint revenue budget monitoring report by the Treasurer and the Strategic Development Plan Manager for the period to 3 February 2023. The report intimated that by 31 March 2023, the forecast position for Clydeplan was a projected underspend of £137,000 and further detail was provided in section 4 of the report. The report noted that there had been no budget adjustments since the start of the financial year. DECIDED: That the report be noted. 3 Revenue Estimates 2023/24 for Clydeplan and the Green Network Partnership Under reference to item 3 of the Minute of the meeting of this Joint Committee held on 12 December 2022, there was submitted a joint report by the Treasurer and the Strategic Development Plan Manager relative to the revenue estimates of the Glasgow and the Clyde Valley Strategic Development Planning Authority (Clydeplan) and the Green Network Partnership, including the requisition of the constituent authorities for financial year 2023/24. The report intimated that the revenue estimates, outlining the projected net expenditure and proposed requisition for 2023/24, and indicative figures for 2024/25 and 2025/26 had been presented to the meeting of the Joint Committee held on 15 December 2022. Estimates at that time had been based on a 3% pay inflation assumption and these were replicated in the report as option 1. Members had requested that the Treasurer Page 6 of 78
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submit a report to this meeting of the Joint Committee providing options with figures greater than 3%. It was noted that this report focussed only on those options as information on the financial context and outlook had been detailed in the report to the December meeting. The report, and Appendix 1 to the report, provided detail on three options; the requisitions for Clydeplan dependent on the option chosen; the impact of each option on the projected level of reserves; and the assumptions that the budget had been based on. DECIDED: That option 3, as detailed in Appendix 1 to the report, be approved. 4 Audit Plan 2022/23 There was submitted a report by the Treasurer relative to the annual audit plan 2022/23 for the Joint Committee which outlined Azets planned activities in their audit for the 2022/23 financial year, a copy of which was appended to the report. The report intimated that Azets had submitted an audit plan which outlined the approach to the audit of the Joint Committee’s 2022/23 annual accounts to assess whether the accounts provided a true and fair view of the Joint Committee’s financial position and also whether the accounts had been prepared in accordance with proper accounting practice, the Code of Practice on Local Authority Accounting in the UK 2022/23. The audit plan outlined the responsibilities of the Joint Committee and Azets; the assessment of key challenges and risks; and the approach and timetable for completion of the audit. It was noted that the risks identified here were included in the audit plans of many bodies which Azets worked with and their inclusion was not a reflection of any specific risk within the Joint Committee. The report advised that the statutory deadline for the approval of the audited accounts for 2022/23 was 30 September 2023 and that the annual audit report was planned to be reported to the meeting of this Joint Committee scheduled to be held on 11 September 2023. The report noted that the proposed audit fee was indicated at £5,780 for the current financial year and represented an increase above the 12.5% uplift fee set by Audit Scotland for 2022/23. Within the terms of the Audit Scotland appointment, local audit teams had discretion to vary the fee by up to 10% above the level set depending on the level of identified audit risk and this proposed higher fee reflected the additional work required in the first year of a new audit appointment. Adrian Kolodziej, Senior Manager, Azets, presented the annual audit plan to members. DECIDED: (a) That Azets annual audit plan 2022/23 be noted; and (b) That the proposed audit fee of £5,780 be approved. Page 7 of 78
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5 Annual Report 2022 There was submitted a report by the Strategic Development Plan Manager relative to Clydeplan’s Annual Report 2022, 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 2022 provided a summary of the work undertaken by Clydeplan during 2022 under the broad headings of Clydeplan Joint Committee; Glasgow City Region; Planning (Scotland) Act - Regional Spatial Strategies and National Planning Framework 4; Glasgow City Region Green Network Partnership; annual accounts and audit report; and the priorities and issues affecting the future work of Clydeplan. DECIDED: (a) That the annual report 2022, 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 Planning (Scotland) Act 2019 - Adoption of National Planning Framework 4 Under reference to item 4 of the Minute of the meeting of this Joint Committee held on 12 December 2022, there was submitted a report by the Strategic Development Plan Manager relative to the adoption and publication of National Planning Framework 4 (NPF4) and the new duties arising from the Planning (Scotland) Act 2019 in relation to regional planning. The report intimated that in terms of the Minute of Agreement, Clydeplan’s remit was ‘to prepare, monitor and keep under review the Glasgow and the Clyde Valley Strategic Development Plan (referred to herein as the Strategic Development Plan) for the Strategic Development Plan area on behalf of the Member Councils’. It was noted that, as a consequence of the adoption and publication of NPF4 on 13 February 2023, the Chief Planner had advised that ‘Strategic Development Plans (SDP) and associated supplementary guidance will cease to have effect and as such no longer be part of the development plan’. A copy of the Chief Planner’s letter dated 8 February 2023 was appended to the report. The report advised that the Planning (Scotland) Act 2019 stated that ‘a planning authority, or two or more such authorities acting jointly, are to prepare and adopt a Regional Spatial Strategy’. The Scottish Government had indicated that they expected work on Regional Strategies to commence once they published guidance which was anticipated in late 2023/early 2024. The report further advised that the Planning Authority must adopt a RSS as soon as reasonably practicable after section 5 of the Planning (Scotland) Act 2019 came into force and that this was still to be formally enacted; must keep their adopted RSS under review, and if they consider it appropriate, may at any time prepare and adopt a Page 8 of 78
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replacement strategy; and must renew their adopted RSS at least once in every period of 10 years. The report noted that a further report would be brought to a future meeting of the Joint Committee in terms of the implications for the Joint Committee’s future work programme and governance. It was proposed that the report on the implications for the Joint Committee’s future work programme and governance be submitted to the next meeting of the Joint Committee to be held on 12 June 2023 and that officers preparing this report be requested to meet with the Convener and Vice Convener prior to the report being submitted to the Joint Committee for consideration. This was agreed unanimously. DECIDED: (a) That the adoption and publication of NPF4 by Scottish Ministers be noted; (b) That it be noted that, as a consequence, the current Clydeplan Strategic Development Plan of July 2017 ceased to have effect and as such would no longer be part of the statutory Development Plan; and (c) That the report on the implications for the Joint Committee’s future work programme and governance be submitted to the next meeting of the Joint Committee to be held on 12 June 2023 and that officers preparing this report be requested to meet with the Convener and Vice Convener prior to the report being submitted to the Joint Committee for consideration. 7 Date of Next Meeting DECIDED: That it be noted that the next meeting of the Joint Committee would be held at 11.15 am on 12 June 2023 and that members be advised if this meeting would be held remotely using MS teams or would be an ‘in person’ meeting. Valedictory The Convener advised that this was the last meeting of the Joint Committee Stuart Tait would attend before his retirement and took the opportunity to thank Stuart for his professionalism and, specifically the help, support and advice he had provided to himself and members during his employment with Clydeplan. On behalf of the Joint Committee, the Convener thanked Stuart for leading a very strong, capable organisation and for his exceptional long service in the public sector. Stuart thanked members and officers from the eight Council’s which made up the Joint Committee and advised that he had enjoyed his 25 years working with Clydeplan. He wished everyone well for the future. Page 9 of 78
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GLASGOW AND THE CLYDE VALLEY STRATEGIC DEVELOPMENT PLANNING AUTHORITY JOINT COMMITTEE To: Joint Committee On: 12 June 2023 ___________________________________________________________________ Report by: The Treasurer ___________________________________________________________________ Heading: Unaudited Annual Accounts 2022/23 ___________________________________________________________________ 1. Summary 1.1 The Annual Accounts for the year ended 31 March 2023 will be submitted to Azets in advance of the statutory deadline of 30 June 2023 and a copy is attached for consideration. 1.2 The Joint Committee has returned a surplus of £75,163 for the financial year 2022/23. This results in an underspend of £105,163 against the planned deficit of £30,000. 1.3 The Management Commentary within the accounts provides an overview of the Committee’s financial performance during 2022/23, along with its outlook for the future. ___________________________________________________________________ 2 Recommendations 2.1 The Joint Committee is asked to: a) Consider the Unaudited Annual Accounts for 2022/23; b) Approve the Annual Governance Statement (pages 7-9); and c) Note the final budget monitoring position for 2022/23. ___________________________________________________________________ 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 2 Page 11 of 78
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3.2. The unaudited accounts are then required to be formally considered by the Committee and the Annual Governance Statement should also 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, Azets, by 30 September. The 2022/23 Audited Annual Accounts are scheduled to be presented to the Joint Committee on 11 September 2023 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 12 shows an accounting Surplus on the Provision of Services of £6,516. 3.6. The Expenditure and Funding Analysis on page 15 shows how this differs from the budgetary surplus of £75,163 due to accounting adjustments for pension costs and the statutory employee leave accrual. 3.7. The Balance Sheet on page 14 of the Annual Accounts shows an increase in net worth of £1.496m 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. 3.8. The revenue budget monitoring statement below shows the final year-end variance for each budget line. The movement since the forecasts at Period 11 arises mainly from the year-end payment of £47,500 to the Green Network Partnership to fund the Development Officer post, as previously approved by the Joint Committee. Page 12 of 78
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ClydePlan Approved Budget 2022/23 Actual Outturn 2022/23 Full Year Variance (Adverse) / Favourable Prior Period Projection Movement (Adverse) / Favourable £000 £000 £000 £000 £000 Employee Costs 474 372 102 380 8 Property Costs 22 (3) 25 3 6 Transport Costs 1 0 1 0 0 Supplies and Services 27 37 (10) 35 (2) Transfer Payments 32 50 (18) 2 (48) Support Costs 24 24 0 26 2 Gross Expenditure 580 480 100 446 (34) Council Requisitions (547) (547) 0 (547) 0 Other Income (3) (8) 5 (6) 2 Gross Income (550) (555) 5 (553) 2 TRANSFER (TO)/FROM RESERVES 30 (75) 105 (107) (32) £000 Opening Revenue Reserve at 1 April 2022 (314) Budgeted Draw on Reserves 30 Year-end variance (105) Closing Revenue Reserve at 31 March 2023 (389) % of Operating Income 70.1% Glossary Employee Costs: Includes direct employee costs such as salary costs, overtime and indirect employee costs such as training, recruitment advertising Property Costs: Includes expenses directly related to the running of premises and land, eg rates, rents and leases, utilities, contract cleaning Transport Costs: Includes all costs associated with the provision, hire or use of transport, including travelling allowances, taxi and car hire costs and staff mileage Supplies and Services: Includes all supplies and service expenses, such as ICT costs, and administrative costs such as stationery, postages, printing and advertising Transfer Payments: Includes costs of payments for which no good or services are received in return e.g. Apprenticeship Levy Support Costs: Includes central support charges e.g. Renfrewshire Council SLA and telephony recharges REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 31 March 2023 Summary of in-year Movement in Reserves Page 13 of 78
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Unaudited Annual Accounts 2022/23 Page 15 of 78
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CONTENTS Management Commentary ......................................................................................................1 Statement of Responsibilities for the Annual Accounts ...........................................................6 Annual Governance Statement ................................................................................................7 Remuneration Report ........................................................................................................... 10 Comprehensive Income and Expenditure Statement ........................................................... 12 Movement in Reserves Statement ........................................................................................ 13 Balance Sheet ........................................................................................................................ 14 Note 1: Expenditure Funding Analysis .................................................................................. 15 Note 2: Accounting Standards Issued not Adopted .............................................................. 15 Note 3: Unusable Reserves ................................................................................................... 16 Note 4: Events after the Balance Sheet date ........................................................................ 17 Note 5: Adjustments between Accounting Basis and Funding Basis under Regulations ...... 17 Note 6: Debtors ..................................................................................................................... 17 Note 7: Creditors ................................................................................................................... 17 Note 8: Related parties ......................................................................................................... 18 Note 9: External audit costs .................................................................................................. 19 Note 10: Retirement Benefits ............................................................................................... 19 Note 11: Contingent Liabilities .............................................................................................. 22 Note 12: Summary of Significant Accounting Policies ........................................................... 22 Note 13: Assumptions made about the future ..................................................................... 26 Note 14: Green Network Partnership ................................................................................... 26 Page 16 of 78
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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 2022/23 and to help readers understand its financial position as at 31 March 2023. In addition, it outlines the main risks and uncertainties facing Clydeplan for the financial year 2022/23 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 2022/23, 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. In December 2022, the Assistant Strategic Development Plan Manager retired and in April 2023, the Strategic Development Plan Manager also retired. Day-today operational management of the ClydePlan team is currently being undertaken by the Chief Planning Officer at Renfrewshire Council, as lead authority. Performance and Activity 2022/23 Strategic Development Plan 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. Page 17 of 78
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2 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 governance through related Portfolio groupings, including: • Land Use and Sustainability; • Transport and Connectivity; • Housing and Equalities; • Infrastructure and Assets; • Economic Delivery Group. During 2022 Clydeplan continued its support for the various work streams of the various Glasgow City Region thematic portfolios including Land Use and Sustainability, Infrastructure and Assets, Housing and Equalities, Transport and Connectivity based portfolios and both the Economic Delivery Group and the Intelligence Hub. Clydeplan’s involvement with the Glasgow City Region activities is likely to continue to grow and develop during 2023 particularly given the economies of scale and general benefits that can be gained through city region scale joint partnership working. This regional joint working approach also supports the Planning (Scotland) Act which seeks for local authorities, working together, as groupings to support the delivery of National Planning Framework 4 through the development of Regional Spatial Strategies. It is anticipated that the formal duty to prepare a Regional Spatial Strategy will come into effect once NPF4 is adopted in early 2023. Green Network Partnership Since the establishment of the Glasgow City Region Green Network Partnership in 2007, the first partnership of its type in Scotland, green networks and related thinking has developed significantly much of which has been at the instigation of the work of the Green Network team, including: • the Central Scotland Green Network established as a National Development in NPF4 and proposed to continue as a National Development in NPF4, • the development of the Glasgow City Region Green Network ‘Blueprint’ and the • the development of Green Infrastructure policy advice. The role for green networks have also been identified as an important component of the city region’s green recovery and in respect of tackling the twin climate and ecological emergencies. In this context the Strategic Habitat Network plays an important role, with projects covering peatland restoration, grassland and wetland development, and woodland development. An overview of the Green Network Partnership is provided at Note 14: Green Network Partnership, on page 26. In fulfilment of its Minute of Agreement and the existing requirements of the 2006 Planning Act, the Joint Committee approved its Annual Report in March 2023. This, along with the 2022/23 Development Plan Scheme and Participation Statement 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>Planning Authority>Development Plan Scheme and Participation Statement Page 18 of 78
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3 The priorities for the future work of Clydeplan will be influenced, amongst other things, by the Planning (Scotland) Act 2019 and the requirements in relation to strategic planning and the National Planning Framework 4; ongoing developments around Glasgow City Region in terms of governance, subject based portfolios, City Deal and the Glasgow City Region Economic Strategy and Action Plan; development of a work programme to support the development of the Regional Spatial Strategy; and, continuing challenges of delivery in the context of reduced financial and local authority planning staff resources. It is acknowledged that for each of the above there are timescale, resource and funding risks which are out with the direct control of the Joint Committee, but through its joint working processes will seek to minimise and mitigate these risks as far as practically possible. 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 2023. 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 12 summarises the total costs of providing services and the income available to fund those services. The Joint Committee has returned a surplus of £75,163 for the financial year 2022/23. This results in an underspend of £105,163 against the planned deficit of £30,000. 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 £76k and accrued employee benefits of (£3k).A summary of the final outturn position against the approved budget for Clydeplan is shown below. Page 19 of 78
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4 Budget Actual Variance £ £ £ Employee Costs 473,600 371,584 102,016 Property Costs 22,200 (2,704) 24,904 Supplies and Services 27,400 37,243 (9,843) Support Costs 23,700 24,015 (315) Transfer Payments 32,100 49,637 (17,537) Transport Costs 1,000 183 817 Total Expenditure 580,000 479,958 100,042 Requisition Income (547,000) (547,000) 0 Other Income (3,000) (8,121) 5,121 Total Income (550,000) (555,121) 5,121 (Surplus)/Deficit for Year 30,000 (75,163) 105,163 Employee Costs underspent due to the retirement of the Assistant Strategic Development Plan Manager in December 2022, as well as other vacancies that have not yet been filled, including one Strategic Planner post and one Planning Analyst post. Property Costs underspent against budget due to Clydeplan moving into 40 John Street Glasgow, where costs are substantially lower. Supplies and Services overspend is mostly attributable to increased external Audit Fees, along with higher ICT maintenance costs. Transfer Payments are higher than anticipated due to a planned transfer to Green Network Partnership to fund a Development Officer post, as previously approved by the Joint Committee. This offsets an underspend from a budget of £30k that was approved in 2022/23 for a Sustrans bid and was due to be funded from reserves. The bid was unsuccessful and as such there is no spend against this budget in 22/23 and no corresponding drawdown from reserves. Other Income is over-recovered mainly due to a higher than budgeted interest received, following the rise in bank rates over the course of the year. The Balance Sheet at 31 March 2023 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 2023 to that of the prior year, an overall increase in net worth of the organisation of £1.496m 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 £1.586m, an increase of £1.418m in their assessment of Clydeplan’s share of the pension fund asset. This is attributable to many factors, such as the experience of market yields over the course of the past year. The corporate bond yield (upon which the pension discount rate is derived) has risen over the past year, which served to reduce the employer's pension obligations and led to the gain on the balance sheet. A potential change to pension rules is outlined in Note 11: Contingent Liabilities on page 22; however, this has not been reflected in the pension liability reported in the Balance Sheet. Page 20 of 78
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5 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 Joint Committee had an opening balance on its Usable Reserve at 1 April 2022 of £314k. The 2022/23 surplus of £75k takes the closing reserves balance to £389k. Outlook and Future Plans Governance In December 2022, the Assistant Strategic Development Plan Manager retired and in April 2023, the Strategic Development Plan Manager also retired. Day-to-day operational management is being undertaken by the Chief Planning Officer at Renfrewshire Council, as lead authority. In light of this change in the management of Clydeplan, and the introduction of RSS requirements under the Planning (Scotland) Act 2019, the Joint Committee is reviewing governance arrangements and considering the strategic direction of ClydePlan. Options will be brought to the Joint Committee for recommendation to each constituent authority for approval. Budget 2023/24 The 2023/24 budget for ClydePlan was approved by the Joint Committee on 12 December 2022. Clydeplan expenditure budget has decreased for 2023/24, in line with reductions in Premises Costs and Transport costs. Furthermore, in recognition of the high level of reserves, a further reduction of requisition is made in 2023/24 to contributing authorities, totalling £39,500. Conclusion We would wish to take this opportunity to acknowledge the team effort required to produce the accounts and to record our thanks to the outgoing Strategic Development Plan Manager and Assistant Strategic Development Plan Manager and all staff for their continued hard work and support. Councillor Lawrence O’Neill Convener Alastair MacArthur Treasurer Page 21 of 78
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6 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 Annual Accounts were approved for signature by the Joint Committee at its meeting on the 12 June 2023. 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 2023. Councillor Lawrence O’Neill Convener Alastair MacArthur Treasurer Page 22 of 78
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7 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 senior planning professionals from each of the member councils and the Strategic Development Plan Manager; • Clearly defined Standing Orders, Scheme of Delegation and Financial Regulations; • The development of a work programme for the development of the Regional Spatial Strategy; • 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. 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 Page 23 of 78
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8 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; • Conflicts of Interest and whistleblowing. 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 2022/23 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. Processes have been refined during the year in light of the prevailing COVID restrictions at the time, taking into account health and safety advice from officers from the lead authority. By the end of 2022/23 required mitigations were minimal and working practices were close to normal. Meetings of the Joint Committee continued to be held virtually. The arrangements in place are still considered to be effective. 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 Page 24 of 78
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9 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 the statutory Development Plan will instead comprise the National Planning Framework and the Local Development Plan. The Clydeplan Strategic Development Plan (July 2017) is no longer in force following the adoption and publication by Scottish Ministers of the National Planning Framework 4 on 13 February 2023. Regional Spatial Strategy Guidance expected to be published by the Scottish Government in 2023. The Clydeplan Joint Committee at its meeting held on 8 March 2022 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. Councillor Lawrence O’Neill Convener Page 25 of 78
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10 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. 2021/22 2022/23 Total Salary, fees and allowances Total Salary, fees and allowances £ £ 80,678 Stuart Tait Strategic Development Plan Manager 84,111 56,814 Dorothy McDonald Assistant Strategic Development Plan Manager (until 31 December 2022) 39,507 137,492 Total 123,618 Name Post Held The above table shows the relevant amounts, before tax and other deductions, due to each of the persons named for the year to 31 March 2023, whether or not those amounts were actually paid within that period. The Assistant Strategic Development Plan Manager retired on 31 December 2022. 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 2021/22 Up to £23,000 5.5% Up to £22,300 £23,001 to £28,100 7.25% £22,301 to £27,300 £28,101 to £38,600 8.5% £27,301 to £37,400 £38,601 to £51,400 9.5% £37,401 to £49,900 Over £51,401 12% Over £49,901 Tiered contribution rates on whole time pay 2022/23 Page 26 of 78
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11 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. No pension contributions are made for the Joint Committee Convener or Vice-Convener. Pension Lump Sum Pension Lump Sum 2022/23 2021/22 £000 £000 £000 £000 £ £ Stuart Tait Strategic Development Plan Manager 44 68 3 4 16,233 15,500 Dorothy McDonald Assistant Strategic Development Plan Manager 31 48 2 2 8,739 10,965 Accrued Pension benefits as at 31 March 2023 Pension Contributions made by the Joint Committee Name Post Held As at 31 March 2023 Change from 31 March 2022 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 2022/23, in bands of £5,000. 2021/22 2022/23 Number of employeesRemuneration Band Number of employees 1 £55,000 - £59,999 0 1 £75,000 - £79,999 0 0 £80,000 - £84,999 1 2 Total 1 Exit Packages Clydeplan has not agreed any exit packages in either 2022/23 or 2021/22. Councillor Lawrence O’Neill Convener Page 27 of 78
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12 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 £ £ £ 586,030 0 586,030 Employee Costs 444,231 0 444,231 2,295 0 2,295 Premise Costs (2,704) 0 (2,704) 25,773 0 25,773 Supplies & Services 37,243 0 37,243 24,050 0 24,050 Support Costs 24,015 0 24,015 2,728 0 2,728 Transfer Payments 49,637 0 49,637 442 0 442 Transport Costs 183 0 183 0 (49,944) (49,944) Other Income 0 0 0 641,318 (49,944) 591,374 Cost of Services 552,605 0 552,605 0 (337) (337) Interest receivable 0 (8,121) (8,121) 9,000 0 9,000 Pension interest cost 0 (4,000) (4,000) 0 0 (419,500) (419,500) Requisitions from Member Authorities 8 0 (547,000) (547,000) 650,318 (469,781) 180,537 (Surplus)/Deficit on the Provision of Services 552,605 (559,121) (6,516) (650,000) Actuarial (Gain)/Loss on pension assets and liabilities 10 (1,490,000) (469,463) Total Comprehensive Income and Expenditure (1,496,516) 2022/232021/22 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 28 of 78
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13 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 2022 (314,108) (161,895) (476,003) Total Comprehensive Income and Expenditure (6,516) (1,490,000) (1,496,516) Adjustment between accounting basis and funding basis under regulation 5 (68,647) 68,647 0 Increase or (decrease) in year (75,163) (1,421,353) (1,496,516) Balance at 31 March 2023 carried forward (389,271) (1,583,248) (1,972,519) Note Usable Reserves Unusable Reserves Total Reserves £ £ £ Balance at 1 April 2021 (383,872) 377,332 (6,540) Total Comprehensive Income and Expenditure 180,537 (650,000) (469,463) Adjustments between accounting basis and funding basis under regulations 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) (161,895) (476,003) Comparative movements in 2021/22 Page 29 of 78
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14 Balance Sheet The Balance Sheet shows the value as at 31 March 2023 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 2022 As at 31 March 2023 £ £ 315,265 Funds held by Renfrewshire Council 402,148 3,535 Debtors and Prepayments 6 359 318,800 Current Assets 402,507 (10,797) Creditors And Accruals 7 (15,984) (10,797) Current Liabilities (15,984) 168,000 Pension Asset 10 1,586,000 168,000 Long Term (Liabilities) / Assets 1,586,000 476,003 Net Assets / (Liabilities) 1,972,519 (314,108) Usable Reserves (389,271) (161,895) Unusable Reserves 3 (1,583,248) (476,003) Total Reserves (1,972,519) Note The unaudited accounts were issued on 12 June 2023. Alastair MacArthur Treasurer Page 30 of 78
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15 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 371,584 76,000 (3,353) 444,231 Property Costs (2,704) 0 0 (2,704) Supplies and Services 37,243 0 0 37,243 Support Costs 24,015 0 0 24,015 Transfer Payments 49,637 0 0 49,637 Transport Costs 183 0 0 183 Other Income (8,121) 0 8,121 0 Cost of Services 471,837 76,000 4,768 552,605 Other income and expenditure (547,000) (4,000) (8,121) (559,121) (Surplus)/Deficit on the Provision of Service (75,163) 72,000 (3,353) (6,516) 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 2022/23 2021/22 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. Page 31 of 78
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16 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 credit balance on the Pension Reserve shows the value of 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. 2021/22 2022/23 £ £ 368,000 Balance as at 1 April (168,000) (650,000) Actuarial (Gain)/Loss on pension assets and liabilities (1,490,000) 114,000 Reversal of items relating to retirement benefits charged to the Surplus or Deficit on the Provision of Services in the CIES 72,000 (168,000) Balance as at 31 March (1,586,000) 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. 2021/22 2022/23 £ £ 9,332 Balance as at 1 April 6,105 (9,332) Reversal of prior year accrual for short-term accumulating compensated absences (6,105) 6,105 Recognition of the accrual for short-term accumulating compensating absences at 31 March 2,752 6,105 Balance as at 31 March 2,752 Employee Statutory Adjustment Account Page 32 of 78
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17 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 2023, 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 £69k 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 (130,000) 130,000 Employers contributions payable to the Strathclyde Pension Fund 58,000 (58,000) Adjustments primarily involving the Employee Statutory Adjustment Account: Net charges for employment short-term accumulating absences 3,353 (3,353) Net additional amount required to be debited or credited to the Revenue Reserves balance for the year (68,647) 68,647 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 2022/23 2021/22 Note 6: Debtors As at 31 March 2022 Short-term Debtors As at 31 March 2023 £ £ 1,215 Prepayments 359 2,320 Other receivables 0 3,535 Total 359 Note 7: Creditors As at 31 March 2022 Short-term Creditors As at 31 March 2023 £ £ (6,105) Trade Payables (10,372) (4,692) Other Payables (5,612) (10,797) Total (15,984) Page 33 of 78
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18 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. Elected member interests in related parties Under the relevant Codes of Conduct, elected members and senior officials must declare any registered interests in any bodies or organisations. Each member’s Register of Interest can be found by searching for an individual councillor on each of their respective Council’s websites. Elected Members and senior officers Members of the Joint Committee and senior officers have control over Clydeplan’s financial and operating policies. They have the responsibility to adhere to a Code of Conduct, requiring them to declare an interest in matters that directly or indirectly influence, or appear to influence, their judgement or decisions taken during the course of their work. The total senior officers’ remuneration allowances paid in 2022/23 is shown in the Remuneration Report on page 10. There is no specific remuneration paid to elected members by Clydeplan. The Joint Committee consists of the following elected members at 31 March 2023: East Dunbartonshire Council Alan Moir East Dunbartonshire Council Jim Gibbons East Renfrewshire Council Colm Merrick East Renfrewshire Council Paul Edlin Glasgow City Council Ken Andrew Glasgow City Council Kenny McLean Inverclyde Council Chris Curley Inverclyde Council David Wilson North Lanarkshire Council Allan Stubbs North Lanarkshire Council Tom Fisher Renfrewshire Council Jim Paterson Renfrewshire Council John McNaughtan South Lanarkshire Council Richard Nelson South Lanarkshire Council Robert Brown West Dunbartonshire Council Gurpreet Singh Johal West Dunbartonshire Council Lawrence O'Neill Key Related Parties – member authorities The Joint Committee is comprised of the following eight member 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 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. Page 34 of 78
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19 2021/22 2022/23 £ % £ 52,437.50 East Dunbartonshire 12.5% 68,375.00 52,437.50 East Renfrewshire 12.5% 68,375.00 52,437.50 Glasgow City 12.5% 68,375.00 52,437.50 Inverclyde 12.5% 68,375.00 52,437.50 North Lanarkshire 12.5% 68,375.00 52,437.50 Renfrewshire 12.5% 68,375.00 52,437.50 South Lanarkshire 12.5% 68,375.00 52,437.50 West Dunbartonshire 12.5% 68,375.00 419,500.00 GCVSDPA Funding 100.0% 547,000.00 Council Renfrewshire Council is the lead authority for Clydeplan, providing Treasurer and Clerking services, as well as support services, such as HR, Legal and Internal Audit. Clydeplan has a service level agreement with Renfrewshire Council that sets out how much this support should cost each year. In 2- 22/23, Clydeplan paid Renfrewshire Council £23,200 for support services (2021/22 £23,200). Clydeplan received £8k from Renfrewshire Council for interest earned on cash balances (reserves) held by the Council on its behalf. There were no further material transactions between Clydeplan and its member authorities. Other public bodies Strathclyde Pension Fund is the principal administrators of the post-retirement funds held on behalf of the current and former employees of Clydeplan. Information about transactions during the year and outstanding assets and liabilities in relation to Clydeplan’s pension fund can be found in Note 10: Retirement Benefits. There were no other material transactions between Clydeplan and other public bodies. Note 9: External audit costs 2021/22 2022/23 £ £ 3,120 Fees payable with regard to external audit services carried out by the appointed auditor 5,780 3,120 Total 5,780 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. The principal risks to the scheme are assumptions relating to longevity, inflation, and investment performance; in addition, statutory changes to the scheme. These risks are mitigated to an extent by statutory requirements limiting charges to the Council’s general fund. The Council has additional liabilities for unfunded discretionary pension payments outside the main schemes such as arrangements for the award of discretionary post- employment benefits upon early retirement. This is an unfunded defined benefit arrangement, under which liabilities are recognised when awards are made. However, there are no investment assets built up to meet these pensions liabilities, and cash has to be generated to meet actual pensions payments as they eventually fall due. Page 35 of 78
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20 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 2022/23: 2021/22 2022/23 £ £ Comprehensive Income and Expenditure Statement (CIES) 171,000 Current service cost 134,000 171,000 134,000 Financing and Investment Income and Expenditure 9,000 Net interest (4,000) 180,000 Post-employment benefit charged to the Surplus/Deficit on the Provision of Services 130,000 Other post-employment benefits charged to the CIES (274,000) Return on assets excluding amounts included in net interest 256,000 (376,000) Actuarial (gains)/losses arising on changes in financial assumptions (1,746,000) (650,000) Total Actuarial (Gain)/Loss (1,490,000) (470,000) Total post employment benefit charged to the CIES (1,360,000) Movement in Reserves Statement 536,000 Reversal of net charges made to the Surplus or Deficit for the Provision of Services for post employment benefits according with the Code 1,418,000 66,000 Employers Contributions paid to Strathclyde Pension Fund 58,000 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 (£1.490m) is included in the Movement in Reserves Statement (£650k 2021/22). • 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 2022/23 these amounted to £9,449 (2021/22 £9,171). Page 36 of 78
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21 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: 2021/22 2022/23 £000 £000 5,130 Opening Present Value 4,976 171 Current service cost 134 104 Interest Cost 135 25 Employee Contributions 21 (78) Benefits Paid (80) Remeasurement (gains)/losses: (376) Actuarial (gains)/losses arising from changes in financial assumptions (1,746) 4,976 Closing Present Value 3,440 A reconciliation of the Joint Committee’s share of the fair value of the Strathclyde Pension Fund’s assets is as follows: 2021/22 2022/23 £000 £000 4,762 Opening Fair Value 5,144 95 Interest Income 139 66 Contributions from employer 58 25 Contributions from employee 21 (78) Benefits Paid (80) Remeasurement gain/(loss): 274 Return on assets excluding amounts included in net interest (256) 5,144 Closing Fair Value 5,026 10c: Fund history 2018/19 2019/20 2020/21 2021/22 2022/23 £000 £000 £000 £000 £000 Present Value of Liabilities (4,881) (4,327) (5,130) (4,976) (3,440) Fair value of assets 4,295 4,125 4,762 5,144 5,026 Surplus/(deficit) in the scheme (586) (202) (368) 168 1,586 The main fund (Fund 1) of Strathclyde Pension Fund does not have an asset and liability matching (ALM) strategy. The net asset of £1.586m 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 2024 is £58k. 10d: Basis for estimating assets and liabilities The pension scheme’s assets consist of the following categories, by proportion of the total assets held: Page 37 of 78
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22 2021/22 2022/23 £000 % £000 1,133 Equity Securities 19.7% 990 1,007 Private Equity 24.6% 1,235 434 Real Estate 8.2% 414 2,439 Investment Funds and 45.6% 2,291 131 Cash & Cash Equivalents 1.9% 95 5,144 100.0% 5,026 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, which 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 2023. The principal assumptions used by the actuary have been: 2021/22 Mortality assumptions 2022/23 19.6 Men 19.3 22.4 Women 22.2 21 Men 20.5 24.5 Women 24.2 2021/22 Other assumptions 2022/23 3.9% Rate of increase in salaries 3.7% 3.2% Rate of increase in pensions 3.0% 2.7% Rate for discounting scheme liabilities 4.8% 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: The limitations of methods and assumptions used are associated with any changes in market conditions that affect the net discount rate. These can have a significant effect on the value of the obligations reported 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 2022/23 and 2023/24. Note 11: Contingent Liabilities 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 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: Summary of Significant Accounting Policies A General Principles The Annual Accounts summarise the Joint Committee’s transactions for the 2022/23 financial year and its financial position as at 31 March 2023. 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. Page 38 of 78
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23 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 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. Page 39 of 78
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24 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 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 Page 40 of 78
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25 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 2021/22 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 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. Page 41 of 78
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26 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 13: 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 2023 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 £0.063m, equating to an 2% increase. For further details see Note 10: Retirement Benefits. Note 14: 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). Financial Performance Revenue GCVGNP has returned a surplus of £2k for the financial year 2022/23 (deficit of £13k in 2021/22). This follows a transfer of £47,500 from ClydePlan to fund a fixed-term Development Officer 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. In 2022/23, funding was received from Nature Scotland for two new GCVGNP projects: Clyde Grasslands Development Phase Project and Clyde Peatlands Project totalling (£16k). Page 42 of 78
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27 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 2023. 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. 2021/22 Reserves 2022/23 £ (99,630) Usable Reserves (101,899) Unusable Reserves: 173 Employee Statutory Adjustment Account 1,463 114,000 Pension Reserve (590,000) 14,543 Total (690,436) Budget 2023/24 The 2023/24 budget for GCVGNP was approved by the ClydePlan Joint Committee on 12 December 2022. The GCVGNP partners have contributed funding in the following proportions to enable it to carry out its objectives: 2021/22 2022/23 £ Council % £ 5,756 East Dunbartonshire 5.1% 5,756 4,900 East Renfrewshire 4.4% 4,900 31,949 Glasgow City 28.4% 31,949 4,451 Inverclyde 4.0% 4,451 17,825 North Lanarkshire 15.9% 17,825 9,311 Renfrewshire 8.3% 9,311 16,992 South Lanarkshire 15.1% 16,992 5,001 West Dunbartonshire 4.5% 5,001 Other organisations 0 Nature Scot 14.4% 16,116 96,185 Total Green Network Partnership Funding 100.0% 112,301 Page 43 of 78
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CLYDEPLAN To: Glasgow and the Clyde Valley Strategic Development Planning Authority Joint Committee On: 12 June 2023 ___________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Internal Audit Engagement – Governance Arrangements ___________________________________________________________________ 1. Summary 1.1 In line with the Public Sector Internal Audit Standards, Internal Audit must communicate the results of each engagement to the Committee. 1.2 The Chief Auditor will report summaries of completed audit engagements to the Joint Committee on the conclusion of each engagement for formal consideration by member in line with the best practice referred to above. 1.3 This report provides detail of the audit engagement completed in December 2022 with the overall assurance rating and the number of recommendations in each risk category. The detailed committee summary for the report is also attached. ___________________________________________________________________ 2. Recommendations 2.1 Members are invited to consider and note the summary for the internal audit review of the governance arrangements. _________________________________________________________ For further information please contact Karen Campbell on 07768354651 Or via e-mail at karen.campbell@renfrewshire.gov.uk Item 3 Page 45 of 78
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Renfrewshire Council Internal Audit Service Update for Glasgow and Clyde Valley Glasgow and the Clyde Valley Strategic Development Planning Authority Joint Committee on the Audit Engagement concluded in December 2022 Category Engagement Assurance Rating Recommendation Ratings Critical Important Good Practice Service Improvement Governance Governance arrangements Substantial 0 0 0 0 Assurance Level Substantial Assurance • There is a sound system of internal control designed to achieve the objectives of the area being reviewed. • The control processes tested are being consistently applied. Reasonable Assurance • The internal control processes are generally satisfactory with some areas of weakness being identified that could put some objectives of the area being reviewed at risk • There is evidence that the level of non-compliance with some of the control processes may put some of the objectives of the area being reviewed at risk. Limited Assurance • Weaknesses in the system of internal controls are such as to put the objectives of the area being reviewed at risk. • The level of non-compliance puts the objectives of the area being reviewed at risk. No Assurance • Control processes are generally weak with significant risk to the achievement of the objectives of the area being reviewed. • Significant non-compliance with control processes leaves the processes/systems open to error or abuse. Recommendation Rating Service Improvement Implementation will improve the efficiency / housekeeping of the area under review. Good Practice Implementation will contribute to the general effectiveness of control. Important Implementation will raise the level of assurance provided by the control system to acceptable levels. Critical Addresses a significant risk, impacting on the objectives of the area under review. Page 46 of 78
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Internal Audit Report Clydeplan Governance Arrangements (B0003/2023/001) Date: December 2022 COMMITTEE SUMMARY Audit Objectives The objectives of the review were to ensure that: 1. The constitutional documents are adequate and up to date. 2. Supporting policies and procedures are adequate and up to date. 3. There are appropriate arrangements in place to ensure that policies and procedures are monitored and complied with. Audit Scope 1. Interviewed the appropriate staff to understand the Clydeplan governance arrangements. 2. Reviewed agendas, minutes of Board papers and policies and procedures to evaluate the operation of governance procedures in place. Key Audit Assurances At the time of the audit:- 1. The constitutional documents and supporting policies and procedures were adequate. 2. There were appropriate arrangements in place to ensure that policies and procedures were monitored and complied with. Key Risks There were no key risks identified during the audit. Overall Audit Opinion The audit has identified that the current governance arrangements in place for Clydeplan are satisfactory. Clydeplan are currently awaiting approval from the Scottish Government to put in place a new Regional Spatial Strategy, following the enactment of the Planning (Scotland) Act by the Scottish Parliament, which will replace the current Strategic Development Plan. When this is completed all the governance documents currently in place will be reviewed and updated as appropriate. Page 47 of 78
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CLYDEPLAN To: Glasgow and the Clyde Valley Strategic Development Planning Authority Joint Committee On: 12 June 2023 __________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Internal Audit Annual Report 2022/23 ___________________________________________________________________ 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 2022/23 and contains an audit assurance statement. 2. RECOMMENDATIONS 2.1 Members are invited to consider and note the contents of the Internal Audit Annual Report. Item 4 Page 49 of 78
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Glasgow and Clyde Valley Strategic Development Planning Authority Annual Report 2022-2023 Renfrewshire Council Internal Audit June 2023 Page 51 of 78
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Glasgow and Clyde Valley Strategic Development Planning Authority Internal Audit Annual Report 2022/2023 Contents Page 1. Introduction 1 2. Responsibilities of Management and Internal Audit 2 3. Internal Audit Activity in 2022/23 2 4. Internal Audit Performance 4 5. Planned Audit Work for 2023/24 5 6. Audit Assurance Statement 5 Page 52 of 78
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- 1 - Glasgow and Clyde Valley Strategic Development Planning Authority Internal Audit Annual Report 1 April 2022 – 31 March 2023 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 2022/23 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 2023/24; • The annual assurance statement which provides an opinion on the overall adequacy and effectiveness of the Planning Authority’s internal control environment. Page 53 of 78
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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. 2.3 The internal audit team will ensure that independence and objectivity are maintained in line with the PSIAS including where non-audit work is undertaken. Internal auditors will have no operational responsibilities. There have been no impairments impacting on the Chief Auditor’s independence and the team has been adequately resourced during the year. 3. Internal Audit Activity during 2022/2023 3.1 The Annual Report for 2021/2022 was submitted to the Joint Board on 27 June 2022. 3.2 There were no outstanding audit recommendations which required to be followed up as part of the 2022/23 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 Creditors Reasonable Assurance • The controls in place over the five procurement systems tested were generally satisfactory. Recommendations were made in relation to documented procedures for one system and improvements were recommended in relation to segregation of duties for another system. Page 54 of 78
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- 3 - Procurement – Quick Quote processes Substantial Assurance • Satisfactory arrangements are in place which ensure adherence to the quick quote process. The council’s contracts standing orders were temporarily updated at the beginning of 2022 with one of the principal changes being the lower threshold for quick quotes increasing from £10,000 to £25,000. It was recommended that a full review of the contract standing orders, including consideration of the increased threshold, should be completed and presented for approval by the Council. Creditors – Purchase to Pay No Assurance • The audit specifically reviewed the arrangements for compliance with the purchase to pay procedures, whereby manual payments should only be made in very specific circumstances. The review identified that current process in place for the passing and payment of manual invoices fall short in several areas and creates several risks, particularly in relation to possible breaches of the Council’s Contract Standing Orders. Cyber Security Reasonable Assurance • The internal control processes were generally satisfactory. The audit identified some scope for improvement in the existing arrangements mainly in relation to training for staff and updating the incident response plan to include more detail on decision-making arrangements. Page 55 of 78
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- 4 - 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 2022/23 Performance measure Target 2022/23 Actual 2022/23 % of audit assignments completed by target date 95% 93% % of audit assignments completed within time budget 95% 97% % completion of audit plan for the year* 95% 98% * 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. 4.2 The percentage completion of the 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 PSIAS require the Chief Auditor to develop and maintain a quality assurance and improvement programme (QAIP) that covers all aspects of the internal audit activity. The QAIP must include both periodic internal self- assessments and five-yearly external assessments, carried out by a qualified, independent assessor from outwith the organisation. 4.4 We continued to participate in the Scottish Local Authorities Chief Internal Auditors’ Group peer review process and our external assessment has recently been completed by the Chief Internal Auditor from South Ayrshire Council. The report concluded that the internal audit service fully conforms with the PSIAS. The report included 7 recommendations for improvement, 3 of which had already been identified through the internal self-assessment process. An action plan has been completed and the report has been submitted to the Council’s Audit, Risk and Scrutiny Board. External Audit 4.5 External Audit’s review of the internal audit service concluded that overall the service operates in accordance with the PSIAS. Page 56 of 78
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- 5 - Risk Management 4.6 The internal audit service through the Risk Manager, provides advice and support to the GCVSDPA officers, as required. 5. Planned Work for 2023/24 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 2023/24: • 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 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 2022/23 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. Page 57 of 78
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- 6 - • 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 Chief Auditor Date 12 June 2023 Page 58 of 78
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Glasgow and the Clyde Valley Strategic Development Planning Authority To: Glasgow and the Clyde Valley Strategic Development Planning Authority Joint Committee On: 12th June 2023 Report by The Clydeplan Steering Group Glasgow and the Clyde Valley Strategic Development Planning Authority Joint Committee – Towards a Regional Spatial Strategy 1. Introduction 1.1 This report was requested at the Joint Committee meeting in March 2023 to be brought forward to the next meeting to consider the management and governance arrangements for the duty to prepare a Regional Spatial Strategy (RSS). The report outlines potential options and seeks the view of Joint Committee on the preferred model for implementation. 1.2 The report also deals with the requisite cessation of the Joint Committee due to the recent changes in planning legislation enacted by the Scottish Parliament. 2. Recommendation 2.1 It is recommended that the Joint Committee: a) consider the content of this report; b) notes the cessation of Clydeplan and the resultant dissolution of the Joint Committee; and c) considers the options detailed within the report and advises officers of Joint Committee’s preferred option for considering regional spatial planning issues going forward. Item 5 Page 59 of 78
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3. Background 3.1 At the meeting of the Joint Committee on 13th March 2023 it was agreed that a report would be prepared for the next available Joint Committee meeting to explore options for new management and governance arrangements in relation to ongoing strategic planning in the Clydeplan area, the cessation of Clydeplan and the duty to prepare a Regional Spatial Strategy (RSS). 3.2 The National Planning Framework 4 (NPF4) was approved by the Scottish Parliament and came into force on 13 February 2023. This had the effect of deleting Clydeplan which no longer has any status in planning terms. NPF4 states that regional spatial planning will now be carried out through regional spatial strategies but there is no prescribed framework for this as yet. 3.3 The 2019 Act introduced a new duty requiring one or more local authorities to prepare a Regional Spatial Strategy (RSS). The RSS is a long-term spatial strategy for the strategic development of an area which enables planning authorities to work together with others within a defined area to guide future long-term strategic development and use of land. 3.4 Elements for consideration that will inform the content of an RSS for the region will be informed by forthcoming RSS guidance, NPF4, LDP requirements and future regional joint working outputs which will be influenced by the outcome of this paper. 3.5 Unlike the Clydeplan, the RSS will not form part of the statutory development plan which will now comprise NPF4 and individual authorities’ local development plans (LDPs). RSSs will instead feed into the planning process by guiding the preparation of relevant LDPs and future iterations of the NPF. 3.6 The March 2023 report to the Joint Committee (NPF4) was accompanied by a joint letter from the Planning Minister and Chief Planner for Scotland (dated 8 Feb 2023). This letter makes clear that from February 2023 LDPs no longer have to be consistent with the Strategic Development Plan. Instead, there will be a new requirement for LDPs to take NPF4 into account in terms of their content. Adopted LDPs and their site allocations are unaffected. 3.7 Given these changes, the role and remit for which the Glasgow and Clyde Valley Strategic Development Planning Authority Joint Committee was originally established will significantly change. Appendix 1 to this report contains the current Memorandum of Understanding from 2013. 3.8 There is no prescription in the Planning (Scotland) Act 2019 on how local authorities discharge the duty to prepare an RSS and it is open for local authorities to consider their preferred model. The RSS will not be a statutory document and it is not clear what, if any, role a regional body (like the Joint Committee) would have in approving its content. Guidance on the preparation of RSSs is pending, however the Scottish Government are yet to confirm a timescale for this. Therefore, it is an appropriate juncture to examine the future governance of joint working on regional planning matters and to seek the settled view of Joint Committee. Page 60 of 78
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4. Context 4.1 The Joint Committee current host authority is Renfrewshire Council. Its Convener is from West Dunbartonshire Council and Vice Convener is from Inverclyde Council. 4.2 At its meeting in March 2021 the Joint Committee considered a report setting out several options for the governance and operational management of the RSS duty set out by legislation. Among the recommendations of that report were to move towards the integration of the strategic planning functions within the Glasgow City Region governance. This was envisaged to involve oversight and development of the RSS by a new political collaborative within the City Region’s governance structure. This collaborative would recommend the RSS to the City Region Cabinet for approval. Glasgow City Council would take on the role of host authority (from Renfrewshire Council as presently). 4.3 The Joint Committee decided in March 2021 to ask officers to examine further how this option could be implemented and to set out the steps to deliver this, along with the associated timescale. 5. Proposed options 5.1 Since the March 2021 Joint Committee, discussions have continued at the Clydeplan Steering Group (informed by the views of elected members at each authority) as officers have awaited confirmation of the NPF4 position. In addition, both the Clydeplan Manager and Assistant Manager have now retired leaving both posts currently vacant. 5.2 A series of options are now contained and assessed within this report for the Joint Committee in terms of a proposed way forward with the preparation and governance of the forthcoming RSS. These are set out below and overlap in some respects with those presented to the Joint Committee in March 2021. 5.3 Under all options the Joint Committee with its current terms of reference would be formally disbanded. To be enacted this decision would require to be taken by each of the 8 local authorities individually, via their own governance arrangements. 5.4 In all options, analysis would be undertaken to estimate the level of resource required to prepare, process and monitor an RSS going forward. This would be reflected in decisions in terms of existing and future officer posts who at present remain Renfrewshire Council employees. Page 61 of 78
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5.5 Option 1 - This option follows the recommendation of the March 2021 Joint Committee report. Existing Clydeplan staff resource would be subject to a TUPE transfer to Glasgow City Council. The team would be integrated into the existing city region structures (overseen by the Regional Director) who would take responsibility for preparing an RSS and reporting this through to the GCR Cabinet for approval. This would move the duty to prepare a RSS directly into the City Region governance structures. RSS Governance Host Local Authority Officer resource Pros Cons GCR Cabinet with the option to consider the establishment of a sub committee Glasgow Employed by Glasgow City Council All Clydeplan and Green Network staff would be transferred under TUPE regulations to the Glasgow City Region with Glasgow City Council as the hosting authority Aligning with existing GCR resources including the Intelligence Hub and management structures offers the potential for some limited financial savings and efficiencies. This approach would bring increased efficiencies and effective engagement in terms of process and resourcing. Would better align work streams and offer opportunities for greater influence of regional partnership working. This would include closer joint working with other City Region Portfolio groupings (for example Infrastructure and Assets and Transport and Connectivity) and other strategy development (eg. the Regional Economic Strategy). Would utilise existing officer structures associated with Clydeplan namely the Steering Group, Heads of Policy and Topic Groups to shape work programmes. The terms of reference of Cabinet would require to change to cover spatial planning. Potential for the dilution of focus on spatial planning business due to the number of issues on Cabinet agenda, unless a sub-committee was established. Requires the TUPE of staff to Glasgow City Council Page 62 of 78
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Offers political scrutiny by Council Leaders via Cabinet Page 63 of 78
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Option 2 - All strategic planning issues relating to individual member authorities would revert to them. It would be up to each individual authority to reach decision on whether to participate in the preparation of an RSS going forward. RSS Governance Host Local Authority Officer resource Pros Cons Individual local authorities n/a Existing officers at individual authorities Clydeplan staff would revert to being Renfrewshire Council employees, with no specific regional planning responsibilities. Would offer democratic accountability at each local authority. Potential for short term financial savings Current staff costs would be retained by Renfrewshire Council which would have significant financial implications for that authority Would undermine collaborative working between planners at a regional level. It would lose the joint working which has been such a key part of the success of Clydeplan as an approach to regional spatial planning and on collaboration on major cross border infrastructure such as City Deal projects. It is clear from NPF4 spatial strategy that cross- Council collaboration is envisaged more rather than less in the future. Loss of dedicated and specialised resources at individual Councils putting more pressure on planning authorities Smaller authorities unlikely to have resources to dedicate to this and therefore longer term potential costs to resource this individually. Page 64 of 78
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No political scrutiny at a regional planning level No efficiencies of scale Reduced level of traction at a regional and national scale Each local authority would still have a requirement to produce a RSS individually in some form to meet the statutory duty. Could result in various forms of RSS being produced by different coalitions of authorities or by individual authorities, which may be less effective on a regional scale. Page 65 of 78
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Option 3 - Strategic planning issues to be considered by a newly formed “Spatial Planning Partnership”. This new forum would enable member discussion on cross boundary strategic planning issues and approve the production of the RSS. The Partnership would require to be established as a formally constituted body. Working requirements would need to be established including quorum requirements. It is suggested the political make-up of the new Spatial Planning Partnership would be like the existing Joint Committee with nominations for membership emanating from the 8 authorities. The new Partnership supported by an officer Steering Group and (repurposed Clydeplan) dedicated officer team. RSS Governance Host Local Authority Officer resource Pros Cons New “Spatial Planning Partnership” To be determined To be determined Would have a focused spatial planning remit which would meet as required for business Could avoid TUPE requirements / keep the employer the same if Renfrewshire Council agreed to host. No formal relationship with GCR governance, budgets and activity No current management in post. Would require some additional resource. Potential for delay / time requirements to establish this new partnership could lose momentum for work on RSS. Would require a local authority to become host authority to set this up and take responsibility. Page 66 of 78
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6. Staffing / Funding 6.1 For options 1, 2 and 3, future funding would need to be considered. Currently all authorities contribute the same set amount per annum (by requisition payment to Renfrewshire) towards the staffing and administration of Clydeplan. In Option 2 Renfrewshire Council would be faced with significant financial implications as the current staff complement are their employees. 6.2 In terms of the Clydeplan team resource there are currently 7.3 FTE posts associated with the team. Following the departure of the Clydeplan Manager and Assistant Manager in recent months, 3 of these FTE positions are currently vacant. 6.3 There are 2 x 0.5 FTE Planning Analysts posts (job share) and 1.4 administrative posts as part of that team. 6.4 There are also 3.6 FTEs in the GCR Green Network team which are also under the same line management as the Clydeplan team. One of these posts is a two- year position funded by Clydeplan reserves (Development Officer) and another is a Peatland Officer post funded by NatureScot for two years. 6.5 Depending which of the above options is agreed by the Joint Committee, the option would need to assess likely staff resource requirements (based on an agreed workplan) and how this would be funded by the local authorities. This is likely to be less than the existing staff quota, pending a review. 7. Conclusions and Next Steps 7.1 The eight local authorities of Glasgow City Region have a long standing and successful track record of joint working on regional planning matters. As Scotland’s only metropolitan area this joint working will continue to be important if the city region is to maximise its economic, social and environmental potential. 7.2 Joint Committee should note that individual Council’s will require to report the disbandment of Joint Committee to their respective committees or meetings of Council for a decision. 7.3 The increasing recognition of the importance of city regions to the future wellbeing of Scotland has seen the emergence of associated governance structures. 7.4 Embedding the development and oversight of the RSS within those structures would allow for greater integration in strategy alignment in particular with the Regional Economic Strategy. In addition, this would allow for resource and governance efficiencies, staff retention and importantly retaining elected member oversight. Taking this into account, the Steering Group’s majority officer view is that Option 1 should be progressed. 7.5 From the above, it is the Clydeplan Steering Group’s recommendation that members of the Joint Committee requests that Glasgow City Region consider how this option can be implemented and set out the steps to deliver this, and Page 67 of 78
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the associated timescale and costs. This will then be reported back to Joint Committee for decision at the next available opportunity. Page 68 of 78
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MINUTE OF AGREEMENT among East Dunbartonshire Council, East Renfrewshire Council, Glasgow City Council, Inverclyde Council, North Lanarkshire Council, Renfrewshire Council, South Lanarkshire Council and West Dunbartonshire Council all incorporated by the Local Government etc. (Scotland) Act 1994 (and all hereinafter referred to as “the Member Councils”). WHEREAS: 1. In terms of The Strategic Development Planning Authority: Designation (No. 1)(Scotland) Order 2008 (“the 2008 Order”), the Member Councils are designated a group of planning authorities which are jointly to prepare and keep under review a Strategic Development Plan for a strategic development plan area. 2. The Member Councils have agreed that the Strategic Development Planning Authority designated under the 2008 Order shall be known as “The Glasgow and the Clyde Valley Strategic Development Planning Authority”. 3. The Member Councils have agreed to appoint a Joint Committee for the purpose of representing them in carrying out the functions conferred upon them under Sections 4 to 14 of the Town and Country Planning (Scotland) Act 1997 as amended by the Planning etc (Scotland) Act 2006 (“the Joint Committee” and “the 1997 Act” respectively) and have each passed the necessary resolution for giving effect to this Agreement. 4. The Member Councils have agreed to enter into this Agreement for their respective interests. NOW THEREFORE it is hereby agreed and declared:- 1. Interpretation 1.1 Words importing the masculine gender only shall include the feminine gender and vice versa. 1.2 Words importing the singular number only shall include the plural number and vice versa. Page 69 of 78
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2 Definitions In this minute of agreement, the following words have the following meanings: Convener – the Convener of the Joint Committee appointed by the Joint Committee. Vice-Convener – the Vice-Convener of the Joint Committee appointed by the Joint Committee Strategic Development Plan area – comprises the administrative boundaries of the eight Member Councils, with the exception of part of West Dunbartonshire which is covered by the Loch Lomond and the Trossachs National Park Authority. 3 Constitution of the Joint Committee Constitution 3.1 The Member Councils hereby agree that the Joint Committee shall consist of sixteen members (such members being referred to herein as “Local Authority Members”). Appointment of Members by the Member Councils 3.2.1 Each of the Member Councils shall appoint two Local Authority Members to the Joint Committee in accordance with the provisions of this Clause. 3.2.2 Each of the Member Councils shall appoint its first two Local Authority Members before or at the meeting at which approval is given to this Agreement and such Local Authority Members shall, subject as hereinafter provided, continue in office until they are re-appointed or replaced by the Member Councils. Each of the Member Councils, following an Ordinary Election, shall, as soon as practicable thereafter, appoint or re- appoint Local Authority Members to the Joint Committee who shall hold office until they are re-appointed or replaced by the Member Councils. 3.2.3 A Local Authority Member shall cease to be a member of the Joint Committee when he ceases to be a member of the Member Council which appointed him or on the appointment by that Member Council of another Local Authority Member in his place, whichever shall occur first. Page 70 of 78
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Appointment of Convener 3.3 Subject to the provisions of Clause 3.4.2 and 3.4.3 hereof, the Joint Committee shall elect biennially a Convener and Vice-Convener from its Local Authority Members both of whom shall continue in office until the first meeting of the Joint Committee which takes place after First April in the second year following their election. Casual Vacancies 3.4.1 Where a casual vacancy occurs in the case of a Local Authority Member of the Joint Committee, the Member Council which appointed the Local Authority Member shall appoint a new member. 3.4.2 Where a vacancy occurs in the case of the Vice-Convener, the Joint Committee shall appoint a new Vice-Convener at the next or subsequent meeting of the Joint Committee, who shall continue in office until the previously anticipated expiry of the outgoing Vice-Convener’s term of office. 3.4.3 When a vacancy occurs in the office of Convener, the Vice-Convener shall assume the office of Convener in succession to the previous Convener and shall continue in office until the previously anticipated expiry of the outgoing Convener’s term of office. Quorum 3.5 The quorum of the Joint Committee shall be four Local Authority Members provided that not less than four of the Member Councils are represented. Procedures 3.6 The Joint Committee shall adopt Standing Orders relating to proceedings at its meeting. Page 71 of 78
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Clerk and Treasurer 3.7.1 The Joint Committee shall from time to time invite one of the Member Councils to appoint an appropriate senior officer to act as Clerk to the Joint Committee. Similarly, the Joint Committee shall invite one of the Member Councils to appoint an appropriate senior officer to act as Treasurer to the Joint Committee. The Clerk and Treasurer shall continue in their respective offices until the relevant employing Member Council or the Joint Committee shall otherwise determine. The relevant employing Member Council’s costs arising from the duties undertaken by the Clerk and Treasurer shall be reimbursed to it by the Joint Committee as provided for in Clause 6 hereof. 3.7.2 The procedures to be established under Clause 3.6 of this Agreement shall include Standing Orders with respect to contracts made on behalf of the Joint Committee by the Clerk to the Joint Committee for the supply of goods or the provision of services. Such Standing Orders shall be the subject of consultation with and approval by the Member Councils and in line with financial regulations. Meetings 3.8 The Joint Committee shall meet not less than four times during each year. The Convener of the Joint Committee, in consultation with the after-mentioned Chair of the Steering Group, shall fix the date, time and place of meetings, subject to any previous agreement by the Joint Committee. 4. Remit of the Joint Committee 4.1 The aims and objectives of the Joint Committee shall be as follows:- (a) to prepare, monitor and keep under review the Glasgow and the Clyde Valley Strategic Development Plan (referred to herein as “the Strategic Development Plan”) for the Strategic Development Plan area on behalf of the Member Councils. Page 72 of 78
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(b) to advise and make recommendations to the Member Councils on the policy content of the Strategic Development Plan, including the approval of the Strategic Development Plan by Member Councils, its submission to the Scottish Ministers, its final approval and its subsequent monitoring and review. (c) to receive reports from the Member Councils on conformity of Local Development Plans with the Strategic Development Plan. (d) to receive reports as required from Member Councils on development management matters of strategic significance. (e) to liaise with and make representations to the Scottish Government, Scottish Enterprise and other bodies as necessary on matters of relevance to strategic development planning in the Glasgow and the Clyde Valley Strategic Development Plan area. (f) to respond to and comment upon Strategic Development Plans, planning applications and other development proposals submitted to this Joint Committee by adjoining authorities. (g) to take such action as may be necessary from time to time to sustain the development strategy contained in the Strategic Development Plan and contribute to the economic, social and environmental regeneration of the Glasgow and the Clyde Valley Strategic Development Plan area. The Joint Committee is empowered to do anything which is calculated to facilitate, or is conducive or incidental to the discharge of any of the aforesaid remit. Page 73 of 78
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5. Delegation of Functions Delegation to the Joint Committee 5.1 The Member Councils hereby delegate to the Joint Committee the power to discharge the functions conferred upon the Member Councils under Sections 5 to 12 (both inclusive) of the 2006 Act. The delegation hereby granted shall not prevent any or all of the Member Councils from discharging the said functions. 6. Financial Arrangements Allocation of Expenditure 6.1 Each of the Member Councils shall pay a one-eighth share of the whole expenditure and costs incurred by the Joint Committee under this Agreement. Joint Committee Budget 6.2.1 Not later than Thirty-First December in each year the Treasurer shall, in consultation with the Strategic Development Plan Manager, prepare and submit to the Joint Committee revenue estimates for the year following from First April. The revenue estimates will include detail with regards the requisition each Member Council shall be required to contribute. In determining to approve the revenue estimates the Joint Committee shall consider any observations by Member Councils. Each of the Members Councils will pay to the Joint Committee instalments in accordance with arrangements proposed by the Treasurer and approved by the Joint Committee. 6.2.2 All monies due to the Joint Committee shall be held by the Treasurer who shall make payments as required by the Joint Committee. Accounts 6.3 The Treasurer shall prepare Accounts to the Joint Committee annually to Thirty first March and that these be submitted to the Joint Committee no later than Thirtieth September following. The accounts shall be audited in accordance with the provisions of Section 96 of the Local Government (Scotland) Act 1973 and the Page 74 of 78
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Accounts shall be submitted to the Member Councils after formal submission to and approval by the Joint Committee after completion of the audit. Financial Plan 6.4 For each financial year the Treasurer will submit to the Joint Committee a financial plan setting out estimated expenditure and associated requisitions for the following three years; and the Member Councils will have regard to this plan when preparing their own financial plans. 7. Administrative Arrangements Strategic Development Plan Manager and Staff 7.1.1 The Joint Committee shall have power to appoint a Strategic Development Plan Manager and such supporting staff as is considered appropriate (the Strategic Development Plan Manager and supporting staff being referred herein as the “Core Team”). 7.1.2 The Core Team shall provide a Strategic Development Planning service as directed by the after-mentioned Steering Group. Steering Group 7.2 The Joint Committee shall be supported by a Steering Group comprising the Chief Planning Officers (or their representatives) of each of the member councils and the Strategic Development Plan Manager or his representative (referred to herein as the “Steering Group”). The Steering Group will from time to time appoint one of its members as Chair to the Steering Group (referred to herein as “the Chair”). The Steering Group will meet regularly (at least four times each year) to consider, inter alia, Strategic Development Plan Reviews, consultations and reports to be presented to the Joint Committee, and the work programme for Strategic Development Planning to be undertaken by the Core Team and within each authority. Page 75 of 78
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Secondment of Staff 7.3 The Member Councils shall use their reasonable endeavours to meet any request from the Strategic Development Plan Manager or the Joint Committee for the secondment of appropriate/relevant staff for the purpose of assisting in the preparation of the strategic development plan, its updates and review. Any such secondment shall be on such terms as may be agreed between the Member Council and the Joint Committee. Employing Authority and other Administrative Arrangements 7.4 Renfrewshire Council shall employ and provide personnel services for the Core Team and make provision for all necessary office accommodation and ancillary services, including transport and insurance. Other administrative tasks will be carried out by the Member Council whose employee for the time being has been appointed as Clerk to the Joint Committee. The Joint Committee shall pay to Renfrewshire Council the total costs reasonably incurred by Renfrewshire Council in connection with the employment of the Core Team, including costs arising from termination of employment, or termination of the Joint Committee, and including, without prejudice to the foregoing, any costs arising on redundancy or any unfair dismissal. Arrangement of Services 7.5 When considering the arrangement of services, the Joint Committee shall have regard to the capabilities of the Service Departments of the Member Councils and in the event of the Joint Committee seeking the assistance of any of the Member Councils, the Council concerned shall not unreasonably withhold such assistance. The Joint Committee shall pay appropriate fees for any such assistance given, if so required. Annual Report 7.6 The Joint Committee shall prepare each year an annual report on its work for submission to each of the Member Councils not later than thirty first March in the following financial year. Page 76 of 78
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8. Miscellaneous Commencement and Variation 8.1 This Agreement shall be deemed to have commenced and taken effect on Tenth June Two Thousand and Thirteen notwithstanding the dates hereof (“the Commencement Date”) and may be varied only by supplementary written agreement amongst all the parties. Withdrawal of a Party to the Agreement 8.2 Withdrawal may be made from the Agreement on Thirty first March in any year by any of the Member Councils serving upon the Joint Committee not less than two years notice to be served in like manner as a notice served under Section 190 of the Local Government (Scotland) Act 1973. Such withdrawal shall not affect the obligation of the party or parties withdrawing to pay their share of the costs due under this Minute of Agreement, including without prejudice to the foregoing generality, their allocation of the costs of the Core Team, any seconded staff and their contributions to the budgets of the Joint Committee for the next two financial years following the date of service of Notice. Arbitration 8.3 Any dispute among the Member Councils shall be determined by an arbiter mutually agreed whom failing by an arbiter appointed by the Sheriff of North Strathclyde at Paisley on the written application of any of the parties. The decision of any such arbiter shall be final and binding on the parties. Discharge of former agreement and rights and liabilities 8.4 Whereas the Member Councils entered into a Minute of Agreement dated Nineteenth March, Twenty seventh March, Nineteenth June, Seventeenth September and Twenty fifth October all Nineteen hundred and ninety seven and Twenty sixth January, Second February, and Thirteenth March all Nineteen hundred and ninety eight relative to the carrying out of the functions of the Joint Committee appointed by them under the Designation of Structure Plan Areas (Scotland) Order 1995 (“the Old Minute of Agreement”) then, with effect from the Commencement Date, the Member Page 77 of 78
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Councils (i) discharge the Old Minute of Agreement and (ii) assume responsibility for and ratify all of the assets, rights, liabilities and obligations of the Member Councils under the Old Minute of Agreement. The parties hereto consent to the registration hereof for preservation: IN WITNESS WHEREOF Page 78 of 78