Meeting Papers
North Lanarkshire Council · 27 June 2022
Back to Lanarkshire Valuation Joint Board — 27 June 2022 and its agenda
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Tuesday, 21 June 2022 Dear Councillor Lanarkshire Valuation Joint Board The Members listed below are requested to attend a meeting of the above Board to be held as follows:- Date: Monday, 27 June 2022 Time: 14:00 Venue: By Microsoft Teams and Banqueting Hall, The business to be considered at the meeting is listed overleaf. Yours sincerely Cleland Sneddon Clerk to the Board Members Bob Burgess, Lesley Jarvie, Tom Johnston, Fergus MacGregor, Alex McVey, Jim Reddin, William Shields, Anne Thomas, Walter Brogan, Janine Calikes, Ross Clark, Colin Dewar, Lynsey Hamilton, Martin Hose, Gavin Keatt, Mark McGeever Substitutes Nicky Shevlin, Mathew Buchanan, Poppy Corbett, Cal Dempsey, Geri Gray, Monique McAdams, Carol Nugent, Norman Rae, Margaret B Walker 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting Minutes of meeting of the Lanarkshire Valuation Joint Board held on 7 March 2022 submitted for approval as a correct record. (Copy attached) 5 - 8 Item(s) for Decision 3 Appointment of Convener and Depute Convener Report dated 15 June 2022 by the Clerk to the Lanarkshire Valuation Joint Board. (Copy attached) 9 - 10 4 Adoption of Standing Orders on Procedures, Financial Regulations, Standing Orders on Contracts, Scheme of Delegation and Terms of Reference Report dated 17 June 2022 by the Clerk to the Lanarkshire Valuation Joint Board. (Copy attached) 11 - 28 5 Timetable of Future Meetings Report dated 8 June 2022 by the Clerk to the Lanarkshire Valuation Joint Board. (Copy attached) 29 - 30 Monitoring Item(s) 6 Revenue Budget Monitoring 2022/2023 - Lanarkshire Valuation Joint Board Report dated 6 June 2022 by the Treasurer to the Lanarkshire Valuation Joint Board. (Copy attached) 31 - 34 Item(s) for Noting 7 Internal Audit Annual Assurance Report 2021/2022 Report dated 15 June 2022 by the Executive Director (Finance and Corporate Resources - South Lanarkshire Council). (Copy attached) 35 - 44 Item(s) for Decision 8 Annual Governance Statement Report dated 7 June 2022 by the Treasurer to the Lanarkshire Valuation Joint Board. (Copy attached) 45 - 50 9 2021/2022 Annual Report and Accounts - Lanarkshire Valuation Joint Board Report dated 1 June 2022 by the Treasurer to the Lanarkshire Valuation Joint Board. (Copy attached) 51 - 98 2
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10 Financial Strategy 2023/2024 to 2025/2026 Report dated 15 June 2022 by the Treasurer to the Lanarkshire Valuation Joint Board. (Copy attached) 99 - 104 Item(s) for Noting 11 Who We Are and What We Do Report dated 9 June 2022 by the Assessor and Electoral Registration Officer, Lanarkshire Valuation Joint Board. (Copy attached) 105 - 122 12 Lanarkshire Valuation Joint Board Public Performance Report 2021/2022 Report dated 15 June 2022 by the Assessor and Electoral Registration Officer, Lanarkshire Valuation Joint Board. (Copy attached) 123 - 132 13 Monitoring of Complaints (1 April 2021 to 31 March 2022) Report dated 9 June 2022 by the Assessor and Electoral Registration Officer, Lanarkshire Valuation Joint Board. (Copy attached) 133 - 136 14 Progress Update Report dated 15 June 2022 by the Assessor and Electoral Registration Officer, Lanarkshire Valuation Joint Board. (Copy attached) 137 - 152 Urgent Business 15 Urgent Business Any other items of business which the Convener decides are urgent. For further information, please contact:- Clerk Name: Stuart McLeod Clerk Telephone: 07385 370 117 Clerk Email: stuart.mcleod@southlanarkshire.gov.uk 3
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LANARKSHIRE VALUATION JOINT BOARD Minutes of meeting held via Microsoft Teams on 7 March 2022 Convener: Councillor Alex McVey, North Lanarkshire Council Councillors Present: North Lanarkshire Council Councillor Bob Burgess, Councillor Tom Castles, Councillor Jim Reddin, Councillor William Shields South Lanarkshire Council Councillor Peter Craig, Councillor Isobel Dorman, Councillor Lynsey Hamilton (Vice Convener), Councillor Jim Wardhaugh Councillors' Apologies: North Lanarkshire Council Councillor Tom Johnston, Councillor Caroline Stephen, Councillor Annette Valentine South Lanarkshire Council Councillor Walter Brogan, Councillor Geri Gray, Councillor Ann Le Blond Attending: Assessor and Electoral Registration Service G Bennett, Assessor and Electoral Registration Officer; R Pacitti, Assistant Assessor and Electoral Registration Officer Clerk’s Office C Sneddon, Clerk; K McLeod, Administration Assistant; S McLeod, Administration Officer, South Lanarkshire Council Treasurer’s Office P Manning, Treasurer Also Attending: Audit Scotland B Gillespie, Lead Auditor; A Kerr, Senior Audit Manager 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Lanarkshire Valuation Joint Board held on 6 December 2021 were submitted for approval as a correct record. The Board decided: that the minutes be approved as a correct record. 3 Revenue Budget Monitoring and Probable Outturn Position 2021/2022 – Lanarkshire Valuation Joint Board A report dated 22 February 2022 by the Treasurer was submitted comparing the Board’s actual expenditure at 28 January 2022 against the budgeted expenditure for 2021/2022 and providing a forecast for the year to 31 March 2022. 2 5
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As at 28 February 2022, there was an underspend of £0.439 million on the Board’s revenue budget. Following the probable outturn exercise, the position was an anticipated transfer to Reserves of £0.021 million. This would leave a balance of £1.148 million to be carried into 2022/2023. The Board decided: (1) that it be noted that, following the probable outturn exercise, there would be a transfer to Reserves of £0.021 million for the current financial year; and (2) that the underspend on the Board’s revenue budget of £0.439 million at 28 February 2022, as detailed in Appendix A to the report, be noted. [Reference: Minutes of 6 December 2021 (Paragraph 3)] 4 Lanarkshire Valuation Joint Board - Service Plan - 1 April 2022 to 31 March 2025 A report dated 24 February 2022 by the Assessor and Electoral Registration Officer was submitted on the proposed Lanarkshire Valuation Joint Board Service Plan for the period 1 April 2022 to 31 March 2025. The current Service Plan covered the period from 1 April 2019 to 31 March 2022 and a new Plan, covering the period from 1 April 2022 to 31 March 2025, had been prepared. The proposed Service Plan, attached as an appendix to the report, set out the Board’s key business areas over the 3 year period. The key challenges facing the Board over the period of the Plan were detailed in the report. Update reports on the progress of the Plan would be submitted to future meetings of the Board. The Board decided: that the Lanarkshire Valuation Joint Board Service Plan for the period 1 April 2022 to 31 March 2025 be approved. [Reference: Minutes of 1 March 2021 (Paragraph 5)] Councillor Castles joined the meeting during this item of business 5 Lanarkshire Valuation Joint Board Annual Audit Plan 2021/2022 The Board considered the Lanarkshire Valuation Joint Board Audit Plan for 2021/2022, dated February 2022, submitted by the Council’s External Auditors, Audit Scotland. The Plan set out the audit work necessary to allow Audit Scotland to provide an independent auditor’s report and meet the wider scope requirements of public sector audit. The Plan was structured around the following areas:- introduction annual accounts audit planning audit dimensions reporting arrangements, timetable and audit fee other matters including independence and objectivity and quality control Details were given on key aspects of those areas. 6
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The Board decided: that the report be noted. [Reference: Minutes of 1 March 2021 (Paragraph 4)] 6 Lanarkshire Valuation Joint Board - Service Plan - 1 April 2019 to 31 March 2022 - Update A report dated 22 February 2022 by the Assistant Assessor and Electoral Registration Officer was submitted providing an update on the Lanarkshire Valuation Joint Board Service Plan for the period 1 April 2019 to 31 March 2022. The current Service Plan, approved by the Board on 4 March 2019, set out the Board’s key business areas over the period 1 April 2019 to 31 March 2022. The Plan, which was attached as an appendix to the report, assisted in ensuring that services were delivered as effectively and efficiently as possible to service users. Details of the Board’s key challenges over the period of the Plan were outlined in the report. This was the final update report on the progress of the Plan. Officers responded to members’ questions on the inclusion of snack bars on the Valuation Roll, the continued use of Microsoft Teams, post pandemic, for the Lanarkshire Valuation Appeal Panel and arrangements for members of the public attending the Electoral Registration Offices in terms of late registration, absent vote and proxy vote applications for the forthcoming Local Government elections. The Board decided: that the report be noted. [Reference: Minutes of 1 March 2021 (Paragraph 5)] 7 Risk Register Update 2022 A report dated 17 February 2022 by the Assessor and Electoral Registration Officer was submitted on the review and update of Lanarkshire Valuation Joint Board’s Risk Register for 2022. The Board’s Organisational Risk Register had been fully reviewed by the management team and updated to reflect a reassessment of existing risks on the register and to document new risks which had emerged. The review had identified 38 risks, which had been categorised as follows:- 2 as high risk 20 as medium risk 16 as low risk The updated register was attached as Appendix 1 to the report. The Risk Scoring Matrix, which explained the allocation of inherent and residual risk, was attached as Appendix 2 to the report. The Board decided: that the report be noted. [Reference: Minutes of 1 March 2021 (Paragraph 6)] 7
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8 Progress Update A report dated 17 February 2022 by the Assessor and Electoral Registration Officer was submitted on:- an overview of the Service current issues and Service priorities an update on performance issues affecting the future direction of the Joint Board Statistical information, illustrating progress made in terms of key areas of the work undertaken by Lanarkshire Valuation Joint Board, was provided in the appendices to the report. The Assessor and Electoral Registration Officer thanked the members of the outgoing Board for their support over the past 5 years. He continued by advising that Jim Neason, Assistant Assessor and Electoral Registration Officer, was due to retire and thanked him, in his absence, for his dedicated service. The Board decided: that the report be noted. [Reference: Minutes of 6 December 2021 (Paragraph 7)] 9 Urgent Business There were no items of urgent business. Convener’s Closing Remarks The Convener, on behalf of the members of the Joint Board, thanked Mr Neason for his dedicated service to the Joint Board and wished him a long and happy retirement. The Vice Convener echoed the Convener’s sentiments. The Convener continued by thanking members and officers involved with the Board for their hard work and support over the past 5 years and wished everyone present all the very best for the future. 8
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Clerk to the Lanarkshire Valuation Joint Board Subject: Appointment of Convener and Depute Convener 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise members of the procedure to be followed by the Board in appointing its Convener and Depute Convener following the local government elections held on 5 May 2022 [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that a member of South Lanarkshire Council be appointed to the post of Convener; and (2) that a member of North Lanarkshire Council be appointed to the post of Depute Convener. [1recs] 3. Background 3.1. Paragraph 3 of Schedule 2 of the Valuation Joint Boards (Scotland) Order 1995 requires the Board to appoint one of its members as its Convener and one of its members as its Depute Convener. The Depute Convener must not be a member of the same authority as the Convener. 4. Rotation of Convenership 4.1. In 2012, an elected member from South Lanarkshire Council was appointed Convener and an elected member from North Lanarkshire Council was appointed Depute Convener. 4.2. It was agreed at the time of the appointments that, where possible, the convenership be rotated after the local government elections. This means that on this occasion the Convener would be appointed from South Lanarkshire Council and the Depute Convener from North Lanarkshire Council. 5. Employee Implications 5.1. None 6. Financial Implications 6.1. In terms of the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2022, and subsequent amendments the Convener of the Lanarkshire Valuation Joint Board is entitled to be paid a total yearly amount of £24,467 inclusive of any amount payable to the Convener as a Councillor or Senior Councillor), or if greater, the amount payable to the Convener as a Senior Councillor. 3 9
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6.2. The Depute Convener of the Lanarkshire Valuation Joint Board is entitled to be paid a total yearly amount of £23,244 inclusive of any amount payable to the Depute Convener as a Councillor or a Senior Councillor), or if greater, the amount payable to the Depute Convener as a Senior Councillor. 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 8. Other Implications 8.1. There are no implications for risk in terms of the information contained within this report. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in the report Cleland Sneddon Clerk to the Board 15 June 2022 Previous References Lanarkshire Valuation Joint Board of 18 June 2012 Lanarkshire Valuation Joint Board of 26 June 2017 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Stuart McLeod, Administration Officer Ext: 4815 (Tel: 01698 454815) E-mail: stuart.mcleod@southlanarkshire.gov.uk 10
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Clerk to the Lanarkshire Valuation Joint Board Subject: Adoption of Standing Orders on Procedures, Financial Regulations, Standing Orders on Contracts, Scheme of Delegation and Terms of Reference 1. Purpose of Report 1.1. The purpose of the report is to:- request approval of the Board’s revised:- [purpose] Standing Orders on Procedures Standing Orders on Contracts Scheme of Delegation Financial Regulations Terms of Reference for the Appeals and Grievance and Disputes Panels [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that the Standing Orders on Procedures, Financial Regulations, Standing Orders on Contracts, Scheme of Delegation and Terms of Reference for the Appeals and Grievance and Disputes Panels, as detailed in the supporting documentation pack, be approved. [1recs] 3. Background 3.1. The Valuation Joint Boards (Scotland) Order 1995 established 10 Valuation Joint Boards throughout Scotland, including the Lanarkshire Valuation Joint Board (LVJB), and set out the constitution and proceedings for the Boards. Paragraph 5(5)(a) of Schedule 2 of the Valuation Joint Boards (Scotland) Order 1995 authorised the Board to adopt Standing Orders to assist it to carry out and regulate its functions. 4. Procedural Documentation and Terms of Reference 4.1. A separately circulated procedures document pack contains the proposed supporting documentation which will govern the operation of the Board going forward, namely the Standing Orders on Procedures, Standing Orders on Contracts, Scheme of Delegation and Financial Regulations. 4.2. The Lanarkshire Valuation Joint Board also has in place Panels which deal with disciplinary appeals and grievances respectively and the Terms of Reference for those Panels are also contained in the supporting documentation pack. 4 11
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4.3. In line with normal practice, those documents have been reviewed by officers and are now presented for approval by the Board. In terms of the review, amendments have been made to reflect actual practice, organisational and operational arrangements, terminology and legislative changes and requirements. 4.4. Following the review, no changes are proposed to the Scheme of Delegation or Terms of Reference for the Appeals and Grievance and Disputes Panels. Summaries of the proposed changes to the remaining documents are attached as follows:- Standing Orders on Procedures – appendix 1 Standing Orders on Contracts – appendix 2 Financial Regulations – appendix 3 5. Employee Implications 5.1. None 6. Financial Implications 6.1. None 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 8. Other Implications 8.1. There are no implications for risk in terms of the information contained within this report. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 9.2 Consultation has taken place with the Assessor and Electoral Registration Officer on the proposals and documentation presented in this report. Cleland Sneddon Clerk to the Board 17 June 2022 Previous References None List of Background Papers Standing Orders on Procedures Financial Regulations Standing Orders on Contracts Scheme of Delegation Terms of Reference for Associated Panels 12
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Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Stuart McLeod, Administration Officer Ext: 4815 (Tel: 01698 454815) E-mail: stuart.mcleod@southlanarkshire.gov.uk 13
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Summary of Changes to the Standing Orders on Procedures Appendix 1 Standing Order Summary of Proposed Change 4 (a) Amended to:- state that details on how to access virtual/hybrid meetings would be provided on the Lead Authority’s website reflect that every Board member and substitute member must be sent an electronic summons 4 (e) Amended to state that:- members of the public and press can get electronic copies of the agenda for Board meetings subject to any Government guidelines/restrictions or safe systems of work, hard copies will be available to view at the offices in Almada Street, Hamilton 8 (e) Amended to state that no unauthorised sound, film, videotape, digital or photographic recording of the proceedings of any meeting shall be made. 10 Amended to state that:- Members present at meetings shared the responsibility for the proper and expeditious discharge of business and the role of the Convener required to be supported and respected the Clerk, on the instructions of the Convener, will mute any attendee who does not cease speaking when the Convener speaks the Convener must ensure the proper and timely conduct of the meeting which can sometimes mean expediting the business and reaching a decision on the fairness and sufficiency of debate if the Convener raises both hands simultaneously, this shall have the effect of adjourning the meeting 14
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Standing Order Summary of Proposed Change 14 (b) Amended to include additional courses of action open to the Convener in the event of persistent misconduct of a member including:- directing the member to refrain from speaking during the remainder of the debate adjourning the meeting for such period as seems expedient to the Convener in the event of general disturbance which in the opinion of the Convener renders the due and orderly despatch of business impossible, the Convener may, in addition to any other power vested in him/her, without the question being put, suspend the meeting for such period of time that he/she considers expedient 18 (f) Amended to include that motions or amendments that are not seconded will not be discussed. 21 (a) Amended to include the use of the electronic voting system as a method of voting. 15
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Summary of Changes to the Standing Orders on Contracts Appendix 2 Standing Order Summary of Proposed Change Terminology Amend reference to Sourcing Methodology to Sourcing Strategy. Update all references to Data Protection Act 1998 to new Data Protection Laws. Amend definition of Higher Value Thresholds to remove details of amounts. Update all references to EC Treaty Principles to General Principles. Update all references to an EU Regulated Procurement to a Higher Value Regulated Procurement. 2. General 2.1 Extent Amend extent to apply to all Joint Board contracts (as appropriate) including but not limited to the award of contracts, the establishment of Framework Agreements, a DPS or an arrangement established in terms of the light touch regime and the award of Call Off Contracts. 2.3 Form of contract and Scots Law Amend to remove requirement for the provision of SO 2.3(a) where:- • the estimated value of a contract is less than £50,0000 • Call Off contracts irrespective of value which will be subject to the law of English Courts where they do not allow for a change in the applicable law and legal jurisdiction 2.4a Calculation of Contract Values Amend to include:- • For the purposes of determining whether the European Procurement Rules apply to the procurement exercise VAT (if payable) must be included when calculating the estimated value • For the purposes of determining whether the Reform Act applies to the procurement exercise the estimated value should be calculated exclusive of VAT 2.4e Mixed Procurements New provision setting out rules for determining value of contract for services/social and other specific services. 16
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2.4 (f) Franchises/ Concessions Amend to include reference to concessions. 3. Exempt and Partially Exempt Contracts 3.1 and 3.2 Amend to increase financial threshold from £2,500 to £5,000. This is consistent with financial limits adopted by the Lead Authority and other Local Authorities and it is expected to increase compliance within the Board due to increased efficiency in procurement processes. The increase will be accompanied by process (See SO3.1 (d) and (e) below). 3.1 (c) Amend to include reference to the i-procurement system and new provision that the official purchase order and i-procurement system do not need to be used if exempted by the Lead Authority’s Certified Payment Policy. 3.1 (d) New provision requiring a minimum of 3 quotes including one from an SME having their place of business within local government area of North and/or South Lanarkshire. Place of business does not require it to be their registered or principal office. 3.1(e) New provision requiring the keeping of records of the process. 3.2(a) Amend to:- • increase upper financial threshold at which quotation procedure (Quick Quote) may be used for works contracts from £50,000 to £2million • clarify SOs requirements that apply 3.2(b) Amend to increase minimum of quotes/bids from SMEs having their place of business within local government area of North and/or South Lanarkshire from 1 in 3 to 4 in 5 (if such SMEs are available) and place of business for a SME does not require it to be their registered or principal office. 17
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3.2(c) Delete reference to the requirement for contracts referred to at SO 3.2(a) and (b) being recorded in a Register of Tenders kept and maintained by the Assessor as requirement only applies to contracts where value exceeds £50,000. 3.2 (d) New provision to ensure that the persons invited to submit quotations are selected on a fair, transparent and non-discriminatory basis, and in a manner at all times complaint with the General Principles using a selection process approved by the Legal Advisor. 3.3 Conditions of Funding Delete requirement to record details of contracts awarded via SO3.3 in the Register of Tenders. 3.7 Amend to clarify the SOs requirements that apply where contract awarded on the basis of the ‘Teckal’ or ‘Hamburg’ exemptions. 4. Pre-Tender Requirements 4.2 Contract Reference Number New to include requirement to obtain contract reference number for all contracts where value exceeds £50,000. 4.5.2 Award Criteria Amend to clarify when works contracts can be awarded on basis of lowest price. 4.7 (c) Amend to include reference to obtaining preliminary advice and to the requirement to ensure all prior engagement is disclosed in the tender documents issued for the procurement process. 4.13 (c) Amend to include provision that, in complying with the Sustainable Procurement Duty, the Assessor will so far as possible within the law encourage fair work practices and payment of the living wage and discourage use of exploitative ‘zero hours’ contracts. 4.14 Community Benefit Requirement 18
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4.14 New to clarify when and how the Community Benefit Requirement must be complied with. 5. Competition Requirement 5.1 Amend to increase the financial threshold for works contracts to allow the procurement of works contracts where value is between £50,000 and £2million to be conducted using quick quote process. 5.3 Amend to include reference to the Find a Tender system that is used for publication of notices. 8. Negotiated Tendering Procedure – General 8.1 Amend to clarify that this SO also applies to procurement of works where the estimated value is above £50,000 but below £2m. 8.2 Amend to require compliance with all relevant SOs. 8.4 Amend to bring reporting requirements for contracts awarded using negotiated procedure into line with all other contracts awarded. 9A Innovation Partnership 9A.1 Board Approval New to provide that the prior approval of the Joint Board is required to use Innovation Partnership. 9A.2 Use of Innovation Partnership New to clarify regulations/rules/guidance that will apply if use an Innovation Partnership. 19
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11 Framework Agreements – Internal 11A DPS – Internal New to include provisions that apply if a Framework Agreements is to be established by the Joint Board. 11A.1 DPS – General Amend to include provision that a DPS can be established by the Joint Board without separate approval being required. 11A2. DPS conditions Amend to include details that must be set out in any DPS established by the Joint Board. 11A.3 DPS – Calling Off Amend to include provisions that must be complied with when awarding any Call Off Contract under a DPS. 11A.4 DPS – access by other contracting authorities Amend to include provision that a Call Off Contract under a DPS established in terms of this Standing Order may only be made by those Contracting Authorities clearly identified for that purpose in the PIN/contract notice. 12. Framework Agreements – external 12.2 & 12.3 Amend to clarify the SOs requirements that apply. 12A DPS – External 12A.2 DPS – Conditions Amend to specify the requirements that must be covered in the DPS to allow the Joint Board to use it to award Call off Contracts 12A.3 DPS – Procedure for Calling Off Amend to include requirements that must be complied with when making any Call Off Contract under an external DPS. 20
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13. Collaborations 13.3(b) Trading Operations Amend to identify requirements to be met if lead organisation in collaboration offers to provide service in- house as trading operation. 14. European Procurement Regulations 14.1.2 Application – transitional procurements and EU funded programmes Amend to clarify rules which apply post – Brexit. 14.3 Light Touch Regime New to clarify the requirements to be met when procuring Social and Other Specific Services using the light touch regime including requirement for approval of the Assessor in consultation with the Treasurer and Legal Advisor if non-traditional procurement procedure is to be used. 15. Assurances - Tendering 15.1(e) New requirement for bidders to not have engaged in blacklisting activities in the employment of their staff. 15.1(h) New requirement for bidders to comply with such other requirements as are relevant to the contract being procured. 16. Compliance with the Data Protection Laws Amend to ensure compliance with new Data Protection Laws. 21
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18. E-Procurement 18.1 Amend financial limit in relation to e-procurement from £2,000 to £5,000 to be consistent with the new threshold for Quick Quote (£5,000 to £50,000). 18.2(a) (ii) Delete requirement for physical signatures as no longer relevant given use of electronic tendering. 18.5 Opening of Procurement Documents Amend to clarify that sequential opening must be adopted for all procurement exercises, irrespective of value, where the contract will be awarded on the basis of most economically advantageous tender. 18.7 Dynamic Purchasing System Delete as separate approval no longer required for using DPS and included as standalone SOs provision (see SOs 11A and 12A). Submission of pre- qualification responses/tenders (other than E- procurement) Sections 18.1 to 18.5 and 18A. 1 to 3 in previous SOs Delete on basis all procurement exercises must be completed using e-procurement. 19. Selection of Tenderers 19.1 Amend to clarify that SO 19 applies to all procurements where the estimated value exceeds £50,000. 22
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20. Checking of Pre- Qualification Responses/Tenders and Reporting 20.3 (c) Amend to clarify that arithmetic check must be carried out all on price bids opened. 21 Acceptance of Tenders 21.1 £200,000 and Below – Assessor Amend to include provision for the Assessor to accept the lowest priced tender (in a price only tender for a works contract where the estimated value is less than £2million). 21.2 Over £200,000 – Assessor in Consultation with members Amend to include provision for the Assessor to accept the lowest priced tender (in a price only tender for a works contract where the estimated value is less than £2million). 21.3 Amend to include provision for Assessor not accepting the Lowest Tender (in a price only tender for works where the estimated value is less than £2million) or where the Cost of the tender exceeds the Financial provision. 21.6 (a) (ii) Amend to clarify no requirement to be satisfied with financial or economic standing if procuring a contract using the urgency ground of the negotiated tendering procedure in accordance with Standing Order 8.3.2. 21.7 (d) Amend to include option for voluntary standstill period to be adopted. 21.9 Debrief Amend to include that the Joint Board will offer all unsuccessful tenderers an opportunity for a debrief. 22. Extensions to Contracts 23
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22.2 Contractual Extensions 22.2 (a) (ii) Delete 3 year limit for contractual extension on basis period of all contractual extension approved as part of the award of the original contract. 22.2 (a) (iii) Amend to provide consistency with SO 22.2 (b) which allows for the exercise of a contractual extension by instalments. 22.3 and 22.4 Non- Contractual Extensions 22.3 Amend to clarify requirements that must be complied with to justify the exercise of a non-contractual extension. 25. Contract Performance Security 25.1 General right to require security New to clarify the Joint Boards’ right to seek security i.e. parent company guarantee or performance bond. 28 Contract Terms – Illegal Practices 28.2 Remedies Amend to clarify remedies available to the Joint Board if contract cancelled under SO28.1 as a result of illegal practices. 29. Contract Terms – Assignation 29.1 Amend to clarify applies to assignation and subcontracting. 24
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29.2 Amend to set out the requirements of SO that will apply to an assignation and subcontract. 37. Annual Procurement Report 37.1 Amend to confirm annual procurement report must be prepared within 4 months of the end of the relevant financial year (if required). 25
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Summary of Changes to the Financial Regulations Appendix 3 Section Summary of Proposed Change 2. GENERAL 2.2/2.2.1 New section added to note the action required if there is a new or changed policy that affects the Board’s financial position. 2.3/2.3.1 New section added to note that the Financial Regulations should be read in conjunction with the Scheme of Delegation. 3. FINANCIAL ADMINISTRATION 3.3.1 Wording added to note use of common supplies and services contracts of the lead authority. 3.4.1 Reference added to the relevant Standing Order. 3.4.2 Words added referring to the compliance with Standing Orders when entering contracts. 4. THE REVENUE BUDGET AND BUDGETARY CONTROL 4.6.1 Words added to clarify the frequency of reporting. 4.11/ 4.11.1 and 4.11.2 Section added to note the action required if some of the Board’s spend is Capital in nature (rather than Revenue). 6. LEGALITY OF EXPENDITURE 6.3 Wording expanded to include other potential types of financial arrangements. 7. CONTROL OF INCOME 7.4.1 Sentence added re the level of cash to be held in a safe, and that it should not exceed the insured amount. 7.9.2 Sentence added re the timeous passing of information to the Treasurer, in relation to any grant applications, if appropriate. 26
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10. BANKING ARRANGEMENTS AND CHEQUES 10.3.3 Words added to ensure security firm employees are asked to display appropriate authorisation. 11. ASSET REGISTER, TTLE DEEDS AND PROPERTY 11.3.1 ‘Or leased’ added to reflect the leases arrangements in place at David Dale House, Blantyre. 12. INVENTORIES 12.2.1 / 12.2.2 ‘on official inventory forms’ added to ensure correct documentation is used and updated regularly (12.2.2). 12.3.1 / 12.3.2 Words added to ensure the Code of Conduct for Employees is followed, and that items are recorded in line with guidelines, if removed from the premises. 12.4.2 Words added to ensure compliance with South Lanarkshire Council’s recycling arrangements. 13. INSURANCE 13.2.1 Words added to ensure that any significant changes in operation are notified to the Treasurer. 15. ORDERS FOR WORKS, GOODS AND SERVICES 15.1.2 Specific Standing Orders inserted. 16. PAYMENT OF INVOICES 16.1.4 (i) Words added to ensure that any spend incurred is within the Revenue Estimates of the Board. 16.4.4 Section added to refer to a Direct Debit policy, in the event that this is required. 16.7.3 Section added relating to the authorisation process in times of remote working. 17. CONTRACTS FOR WORKS AND SERVICES 17.8.5 Link provided in relation to contract management guidance. 27
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18. ACCOUNTING SYSTEMS AND RECORDS 18.3.2 Words added to refer to aggregation of duties where practicable, given the resources available. 19. INTERNAL AUDIT 19.3.1 / 19.3.2 Wording updated to include reference to Code of Corporate Governance, the Fraud Response Plan, and the Counter Fraud, Bribery and Corruption Statement. 21. PAYMENT OF WAGES AND SALARIES 21.1.2 Section added referring to the ability to supply information in a self-service method. 21.3.1 Words included to ensure passwords are included in electronic file submissions. 22. TRAVELLING, SUBSISTENCE ETC. ALLOWANCES 22.3.1 Wording updated to reflect the requirement for receipts. 22.7.1 Relevant Acts added to support the submission of Members’ Claims. 22.7.2 / 22.7.3 Wording updated to reflect the requirement for receipts and the requirement to be in line with any amending legislation. 23. SECURITY 23.1.1 Standard requirement for property protection added. 23.2.1 Requirement for cash to be banked timeously, added to wording. 23.3.1 Words added to note Risk Management and General Security guidance. 23.5.3 Wording added to reflect working from home, and the security requirements/policies in place. 28
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Clerk to the Lanarkshire Valuation Joint Board Subject: Timetable of Future Meetings 1. Purpose of Report 1.1 The purpose of the report is to:- [purpose] advise members of the proposed timetable of meetings for the Lanarkshire Valuation Joint Board to December 2023 [1purpose] 2. Recommendation(s) 2.1 The Board is asked to approve the following recommendation(s):- [recs] (1) that the arrangements for future meetings of the Joint Board be approved. [1recs] 3. Background 3.1 In terms of Standing Order No 2 of the Standing Orders on Procedures, the Board normally holds its meetings on the first Monday of every third month commencing in March of each calendar year. The proposed arrangements for the meetings of the Joint Board for the remainder of 2022 and 2023 are as follows:- Board Meeting Time Monday 5 September 2022 2.00pm Monday 5 December 2022 2.00pm Monday 6 March 2023 2.00pm Monday 5 June 2023 2.00pm Monday 4 September 2023 2.00pm Monday 4 December 2023 2.00pm 3.2 All meetings will be held in South Lanarkshire Council Offices, Almada Street, Hamilton and via remote access. 4. Employee Implications 4.1 None 5. Financial Implications 5.1 None 6. Climate Change, Sustainability and Environmental Implications 6.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 5 29
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7. Other Implications 7.1. There are no implications for risk in terms of the information contained within this report. 8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Cleland Sneddon Clerk to the Board 8 June 2022 Previous References None List of Background Papers Standing Orders on Procedures Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Stuart McLeod, Administration Officer Ext: 4815 (Tel: 01698 454815) E-mail: stuart.mcleod@southlanarkshire.gov.uk 30
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Treasurer to Lanarkshire Valuation Joint Board Subject: Revenue Budget Monitoring 2022/2023 - Lanarkshire Valuation Joint Board 1. Purpose of Report 1.1. The purpose of the report is to: [purpose] provide information on the actual expenditure measured against the revenue budget for the period 1 April 2022 to 20 May 2022 provide a forecast for the year to 31 March 2023 [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s): [recs] (1) that an underspend of £0.059 million on Lanarkshire Valuation Joint Board’s revenue budget, as detailed in Appendix A of the report, be noted; and (2) that the forecast to 31 March 2022 of break even, be noted. [1recs] 3. Background 3.1. This is the first revenue budget monitoring report presented to the Lanarkshire Valuation Joint Board for the financial year 2022/2023. 3.2. The report details the financial position for Lanarkshire Valuation Joint Board on Appendix A. 4. Employee Implications 4.1. None 5. Financial Implications 5.1. The Board approved a budget of £3.665 million in December 2020. Since then, the Local Government Finance Settlement has been received as well as further information on Government Grants for 2022/2023 – including Barclay Funding for the year. This has also facilitated a review of expenditure anticipated for 2022/2023. This is detailed in sections 5.2 to 5.5. 5.2. Local Government Finance Settlement: Following receipt of the Local Government Settlement in December 2021, the 1% reduction in the constituent authorities’ contributions was reinstated for the Boards budget into 2022/2023. This means a further £0.035 million of income for the Board in that year. 6 31
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5.3. Barclay Funding: The Scottish Government has allocated the Board Barclay funding of £0.698 million for 2022/2023. These funds have been allocated to councils and will be transferred to the Board via the council contribution payments. The amount from each council is £0.349 million. The annual budget has been revised and again, this is shown in Appendix A. 5.4. Budget Realignment: As a result of the Barclay Grant award, the additional contribution payments, and the preparation of the Board’s medium-term strategy, the level of anticipated spend for 2022/2023 has been refined. Taking these new monies and the refinement to expenditure estimates, the budgets for Expenditure and Income have both been increased by £0.600 million. The budget realignments are detailed in Table 1 and included in the monitoring report in Appendix A. 2022/2023 £ Base Expenditure Budget (December 2021) 3.665 Plus Additional Barclay Expenditure (Staff and IT Equipment) 0.698 Less Budgeted Turnover (at 4%) (0.124) Plus Minor increase in Employee Cost Budgets 0.026 Revised Expenditure Budget 4.265 Base Income Budget (December 2021) 3.665 Increase in Council Contribution Payments (section 5.2/5.3) 0.035 Barclay Funding 0.698 Less Reduction in Use of Reserves (0.133) Revised Income Budget 4.265 5.5. Summary of 2022/2023 Budget: These adjustments take the overall budget to £4.265 million reflecting the revised level of contributions from councils (£4.205 million) and the revised use of reserves (£0.060 million). This revised budget is included in Appendix A. 5.6. Period 2 Monitoring Position: As at 20 May 2022, the variance from phased budget to date is an underspend of £0.059 million. 5.7. Forecast Position: The financial forecast to 31 March 2023 is a break-even position. 6. Climate Change, Sustainability and Environmental Implications 6.1 There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Board’s Revenue Budget is that there is an overspend. The risk has been assessed as low given the detailed budget management applied. The risk is managed through four weekly Budget Monitoring Meetings at which any variance is analysed. In addition, the probable outturn exercise ensures early warning for corrective action to be taken where appropriate. 32
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8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Paul Manning Treasurer 6 June 2022 Previous References None List of Background Papers Revenue Budget 2020/2021 – Lanarkshire Valuation Joint Board – 7 December 2020 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Lorraine O'Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o'hagan@southlanarkshire.gov.uk 33
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Appendix A LANARKSHIRE VALUATION JOINT BOARD Revenue Budget Monitoring Report Period Ended 20 May 2022 (No.2) Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 20/05/22 Actual 20/05/22 Variance 20/05/22 % Variance 20/05/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 3,137 3,137 0 373 315 58 under 15.5% 1,b Property Costs 0 0 0 0 0 0 - n/a Supplies & Services 159 159 0 73 72 1 under 1.4% b Transport & Plant 0 0 0 0 0 0 - n/a Administration Costs 561 561 0 42 42 0 - 0.0% b Payments to Other Bodies 31 31 0 0 0 0 - n/a b Payments to Contractors 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 13 13 0 1 1 0 - 0.0% Total Controllable Exp. 3,901 3,901 0 489 430 59 under 12.1% Total Controllable Inc. (17) (17) 0 0 0 0 - n/a Net Controllable Exp. 3,884 3,884 0 489 430 59 under 12.1% Add Non Controllable Budgets Central Support Costs 381 381 0 0 0 0 - n/a Total Budget 4,265 4,265 0 489 430 59 under 12.1% Funded By: North Lanarkshire Council (2,102.5) (2,102.5) 0 (351) (351) 0 - 0.0% a,b South Lanarkshire Council (2,102.5) (2,102.5) 0 (351) (351) 0 - 0.0% a,b Transfer (From) Reserves (60) (60) 0 0 0 0 - n/a a Net Budget 0 0 0 (213) (272) 59 under (27.7%) Variance Explanations 1 Employee Costs: The underspend reflects vacant posts for which the recruitment is ongoing. Virement a Local Government Settlement (£nil effect) – Increase Contribution Payments by £0.035m offset by a reduced contribution from Reserves (£0.035m). (section 5.3) b Additional 2022/2023 Barclay Spend/Funding (£nil effect) – Increase the Employee Costs budget by £0.606m; Supplies and Services by £0.077m; Administration Costs by £0.006m; Payments to Other Bodies by £0.009m; and increase the Contribution Payments from North and South Lanarkshire councils by £0.349m respectively (section 5.4). c Budget Realignment (£nil effect) – Decrease Employee Costs by £0.098m offset by a reduced contribution from Reserves (£0.098m) (section 5.5). 34
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Executive Director (Finance and Corporate Resources) Subject: Internal Audit Annual Assurance Report 2021/2022 1. Purpose of Report 1.1 The purpose of the report is to:- report on the progress and performance of Internal Audit in the provision of internal audit services to Lanarkshire Valuation Joint Board (LVJB) in 2021/2022 provide an independent audit opinion on the adequacy and effectiveness of LVJB’s framework of governance, risk management and control arrangements for the year ended 31 March 2022 2. Recommendation(s) 2.1 The Board is asked to approve the following recommendation(s):- (1) that the content of this 2021/2022 Internal Audit Annual Report be noted; and (2) that it be noted that the opinion expressed within this report informs LVJB’s 2021/2022 governance statement. 3. Background 3.1 South Lanarkshire Council (SLC) delivers an internal audit service to Lanarkshire Valuation Joint Board (LVJB) in conformance with the Public Sector Internal Audit Standards (PSIAS) (revised 1 April 2017), compliance with which is mandatory under Section 95 of the Local Government (Scotland Act) 1973. This sets out a series of standards to ensure a professional, independent and objective internal audit service is delivered that supports good governance within an organisation. 3.2 PSIAS requires that a Quality Assurance and Improvement Programme (QAIP) is developed to provide assurance that internal audit activity is conducted in accordance with an Internal Audit Charter, that it operates in an efficient and effective manner and that it is perceived to be adding value and improving operations. Assessment has confirmed that South Lanarkshire Council’s internal audit function continues to generally conform to PSIAS. 3.3 The Internal Audit service is governed by the terms and conditions agreed in an annual Service Level Statement (SLS) between SLC and LVJB. The agreement details Internal Audit’s service objectives and plans for delivery of the service. Obligations attach to both parties under this agreement, including performance targets. 3.4 On an annual basis, a plan of work, derived from a risk evaluation of each suggested audit area, is attached to the Service Level Statement. 3.5 Each piece of agreed audit work is discussed with the Assessor and Electoral Registration Officer prior to the issue of a final report and progress with the 7 35
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implementation of actions is monitored by the Assessor and Electoral Registration Officer on a regular basis. 3.6 The objective of an internal audit service is to evaluate and improve the effectiveness of governance, risk management and control processes. The purpose of this report is to provide an independent audit opinion on the overall adequacy and effectiveness of LVJB’s framework of governance, risk management and control arrangements based on audit work undertaken in 2021/2022. 3.7 LVJB systems and controls have been impacted to some extent by the COVID-19 pandemic since March 2020 and the resulting requirement to amend some normal business operations. This has tested LVJB’s risk management framework and has resulted in new ways of working in some areas. Embedded within some systems are controls that have been subject to change. LVJB continue to update the Board on the arrangements, which now focus on blended working arrangements, with a combination of staff working from home and within the office on a pro-rata basis. Duties continue to be undertaken with site visits now being undertaken in respect of maintaining the Valuation Roll, Valuation List for Council Tax, and the Electoral Register. In-person Valuation Appeal Committee hearings have now recommenced. The impact of revised working practices on controls continued to be assessed during our 2021/2022 audit work. The audit opinion expressed in this report once again relates to the revised service delivery arrangements in operation, where this is applicable. 4. Link to LVJB’s Objectives and Top Risks 4.1 LVJB’s objective is to deliver equitable, customer-focused, professional valuation and electoral services for all of its stakeholders. The internal audit service seeks to support this through the delivery of a risk-based plan of internal audit work each year that tests the processes and procedures that deliver this objective. 5. Internal Audit Workload and Performance – 2021/2022 Workload – 2021/2022 5.1 Two core audit assignments were included in the 2021/2022 Audit Plan for LVJB. These are reflected in Table 1. Table One – Core assignment analysis for 2021/2022 Total No. Jobs Core audit assignments planned 2 Audit assignments completed 2 5.2 Other areas of work agreed for the 2021/2022 Audit Plan included agreement of an audit plan, preparation and presentation of an annual report on audit findings to this Board and follow-up of audit actions. 5.3 All of the audit work concluded during 2021/2022 is listed in Appendix One along with the date the work was issued in draft format to LVJB. This work was conducted in conformance with PSIAS. 5.4 PSIAS requires an internal audit function to demonstrate engagement with clients to ensure the Audit Plan agreed at the outset of the year continues, throughout the year, to address known and emerging risks. To satisfy this requirement, feedback was gathered whilst delivering the Plan in year and no amendments were considered necessary. There was no work, in addition to the planned assignment, requested or carried out during 2021/2022. 36
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Performance – 2021/2022 5.5 Delivery of an effective and efficient internal audit service requires good performance in three key areas - delivery of audit work within agreed budget days, issue of reports timeously following completion of audit fieldwork and prompt agreement of findings and recommendations with clients. 5.6 Internal Audit have met all of these requirements for the 2021/2022 Plan of work in line with a revised completion date of June 2022. All of the planned audit work has now been delivered within the budget agreed for the 2021/2022 Audit Plan. Audit reports for the two core assignments (I929189 – Conflict of Interest and I929188 – New Dwellings: Council Tax Valuation Roll / Electoral Register updates) have been issued and the findings and recommendations have been agreed by LVJB prior to the issue of this annual report. Final reports for these assignments will be issued imminently. 5.7 The Board is asked to note the workload and performance (detailed at appendix Two) in relation to the delivery of the internal audit service for the 2021/2022 year. 6. Basis of Audit Opinion 6.1 The opinion expressed within this report (see 8.4) has been based primarily on:- the output from the audit work included within LVJB’s 2021/2022 Internal Audit Plan 6.2 Together with reliance on the following areas of assurance that have also been considered in the expression of an overall audit opinion for the year:- the work of LVJB’s External Auditors during 2021/2022 outputs of audits on shared systems within SLC Area of Assurance – Internal Audit Plan 2021/2022 6.3 Detailed below are a summary of the key findings from areas which were the subject of internal audit work in 2021/2022:- I929189 – Conflict of Interest 6.4 LVJB have procedures in place that require employees to declare conflicts of interest, offers of gifts and hospitality and seek approval for additional employment out with LVJB. 6.5 New employees are made aware of their obligations under the Employee Code of Conduct to adopt the “principles of public life” and the requirements to declare conflicts of interest and offers of gifts and services, as well as the requirement to seek approval for additional employment. 6.6 However, LVJB managers are not proactively reminding incumbent employees of these requirements on a periodic basis. 6.7 Given the lack of any formal documented declarations in recent years (other than requests for approval of other paid employment), there may be a risk that employees are failing to declare any new interests. LVJB cannot necessarily assume that the non-receipt of returns is evidence that no conflict of interest exists for the Board’s employees. 37
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6.8 To mitigate this risk, Internal Audit recommend that all employees are asked each year, prior to LVJB completing their annual governance statement, if they have any conflicts to declare. This would assist in providing LVJB with more robust assurances that all conflicts of interest have been declared. 6.9 There have been two improvement actions agreed for this audit. I929188 – New Dwellings: Council Tax Valuation Roll / Electoral Register updates 6.10 Audit work reviewed the process in place whereby LVJB value new dwellings so that they can add the property Council Tax banding to the Council Tax Valuation List. 6.11 It is important that new dwellings are added to the Council Tax Valuation List accurately and timeously to ensure that the respective Councils can collect the correct Council Tax revenues for the property in a timely and efficient manner and there was reasonable assurance that this was the case for the audit sample reviewed. All dwellings in the sample had been added to the Valuation List. 6.12 It is noted that LVJB’s external auditors, Audit Scotland, commented in their 2020/2021 annual audit report that, in respect of adding new houses to the Council Tax valuation list, LVJBs performance, based on reported performance, was above the average and, despite the pandemic, the Board had been able to sustain this level of performance over 2018/2019 to 2020/2021. 6.13 As a reminder, the reported KPIs for LVJB for the addition of new dwellings to the Council Tax valuation list over this period was:- 2018/2019 2019/2020 2020/2021 2021/2022 Achievement Within 3 months 96% 96% 93% 93% Within 6 months 99% 99% 98% 98% 6.14 Although only a small percentage are processed over the target 3 month timescale, the audit, nevertheless, reviewed the reasons for delays for a small sample of dwellings that were not added to the list within three months. The reasons provided included human errors and lack of notification that there was a new property (e.g. where there had not been adequate planning or building warrant information). Some of this was outwith LVJB’s control. 6.15 The valuation process has been impacted by the pandemic, most notably physical surveys, although these have now recommenced; these were not carried out for all new dwellings during the pandemic. For most of the audit sample, existing surveys and plans were used to support the assessment of valuation for standard house types. Although the expected procedural documentation was used for the majority of these properties, there was not always a clear record from these documents of who had been involved in the valuation. Systems records were able to provide the necessary clarification. There has also been a change to the storage of electronic documentation, with the current approach to store this in the Records Management System as opposed to appending the documentation to the Northgate system property records, as indicated is required by LVJB’s own procedures. 6.16 The systems audit trail provides assurances that the correct people, per LVJBs procedural requirements, were involved in the Council Tax valuation process and there was evidence that the expected segregation of duties between roles in this process was in place for the sample. 38
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6.17 Confirmation was obtained that all sample dwellings had a “live” banding applied and, for relevant South Lanarkshire properties in the sample, all were confirmed as being recorded in the South Lanarkshire Council council-tax system to facilitate the collection of Council Tax revenues due for the properties. 6.18 Audit work also reviewed the process whereby LVJB add the details for new dwellings to the Electoral Register. 6.19 There is a defined process whereby the LVJB Audit and Information Management Team (AIM Team) notify the in-house Electoral Services section of the new dwellings added to the Valuation List each week. Audit testing confirmed that all sample dwellings have been added to the Electoral Register. 6.20 In summary, a reasonable level of assurance was obtained that generally, expected controls are in place for the addition of new domestic dwellings to the valuation list. In total, there have been five improvement actions agreed for this audit, most of which relate to the audit trail that supports the valuations. All of these actions will fall due for delivery during 2022/2023. I924185 - Formal Follow-Up 6.21 Internal Audit have continued to monitor LVJB’s progress to dispose of the revaluation appeals from the 2017 non-domestic rating revaluation exercise. The only appeals now outstanding are those that have been referred to the Lands Tribunal for Scotland (LTS). At the March 2022 update to the Board, there were 207 of these appeals referred to the LTS. There are also nine appeals outstanding, with the LTS, from previous NDR revaluations. 6.22 Following the Scottish Government’s Barclay review of non-domestic rating, revaluations will now be undertaken every three years (instead of every five years). This may present LVJB with resourcing challenges. The risks are recognised within LVJB’s risks register and LVJB are monitoring the challenges via a workforce action plan in conjunction with their updated 2020/2021 – 2023/2024 Workforce Plan. The Board’s external auditors have outlined their intent to monitor updates to the workforce plan as part of their 2021/2022 external audit work plan. 6.23 The only other audit action due in 2021/2022 was in relation to the LVJB Emerging Fraud Risks audit carried out during 2020/2021. The audit related to the supplementary audit trail to be retained to support electronic purchase orders (that were not being manually signed during the pandemic). LVJB have provided some examples to demonstrate that this recommended audit trail is being retained. Area of Assurance – External Audit and Shared Systems 6.24 LVJB’s external auditors, Audit Scotland, undertook the 2020/2021 financial audit during 2021/2022 and provided an unqualified opinion in relation to LVJB’s financial statements. Interim audit work in relation to the year ended 31 March 2022 is in progress, with no significant issues advised to Internal Audit to date. 6.25 LVJB shares some financial and Human Resources systems with SLC. The overall audit opinion for LVJB is also informed by the assurances obtained from systems audits carried out by Internal Audit for SLC on these shared systems. 6.26 During 2021/2022, ‘shared system’ review work was undertaken in relation to areas provided to LVJB under SLA with SLC, such as payroll, accounts payable and IT security. In all of these areas, there was reasonable assurance around the effectiveness of controls and no significant issues were identified that should be separately reported to the Board. Internal Audit have also participated in the Fusion 39
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and Business Process working groups. Again, no material issues require to be reported to the Board. 7. LVJB Performance – Delivery of Audit Actions 2021/2022 7.1 PSAIS places a responsibility for monitoring progress with the delivery of audit actions with the Chief Internal Auditor to ensure that recommendations are effectively implemented. One audit action was due to be completed by LVJB during 2021/2022. There were no external audit actions. 7.2 Appendix Three details how LVJB performed against agreed targets for implementing audit recommendations based on verbal updates received from LVJB. 100% of internal audit actions were advised to be delivered on time. 7.3 Two improvement actions have been recommended following the completion of the Conflict of Interest audit work. In addition, five improvement actions have been recommended following completion of the New Dwellings process audit. All seven of these actions fall due for completion during 2022/2023. 8. Summary of Overall Assurance and Audit Opinion 8.1 Internal control remains, primarily, a management responsibility to ensure that LVJB conducts its business in a manner that has due regard to the principles of good governance. The procuring of an internal audit service to test and report on control arrangements does not negate the importance of management continually monitoring the effectiveness of internal controls that are in operation. This remains of particular importance as we continue to emerge from the COVID-19 pandemic and the resulting changes to business processes that have been required in response. The internal audit service cannot be expected to give total assurance that control weaknesses or irregularities do not exist. The audit opinion is based upon the audit work undertaken during the year and knowledge of LVJB’s wider governance, risk management and control arrangements. 8.2 LVJB activities are closely governed by statute and, as a result, there is little scope for LVJB to select what activities it undertakes in the financial year. Continued pressure from external sources is anticipated, which will put a significant strain on LVJB’s resources. 8.3 All of the work undertaken by Internal Audit, including any shared system audits and the reports produced by External Audit, whether of an investigative or routine nature, help to inform an opinion on whether the internal controls that LVJB has in place are adequate. 8.4 In 2021/2022, the Internal Audit opinion is that, overall, reasonable assurance can be placed on the adequacy and effectiveness of LVJB’s framework of governance, risk management and control arrangements for the year ending 31 March 2022 (see 3.7). 8.5 The Board is asked to note the audit findings and consider the opinion expressed above during preparation of LVJB’s Annual Governance Statement. 9. Employee Implications 9.1 The Internal Audit Section within SLC covers the planned audit work but employees in LVJB also contribute to the work by supplying documentation and information as requested and by discussing and agreeing recommendations. 40
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9.2 Feedback received in relation to audit assignments is used to highlight areas for training and development. These are progressed on an individual basis as part of the performance development review process. Best practice information is shared and learning points discussed throughout the year. 10. Financial Implications 10.1 The total charge to LVJB for the Internal Audit service is based on the work plan agreed in the SLS. Total payment for services delivered in 2021/2022 was £9,550. 11. Climate Change, Sustainability and Environmental Implications 11.1 There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 12. Other Implications 12.1 LVJB’s external auditors, Audit Scotland, may consider the findings of Internal Audit in forming an opinion on the organisation as part of their annual audit. 13. Equality Impact Assessments and Consultation Arrangements 13.1 There is no requirement to carry out an impact assessment in terms of the information contained within this report. 13.2 The Assessor and Electoral Registration Officer is consulted in advance of every planned audit assignment and following completion of fieldwork. Paul Manning Executive Director (Finance and Corporate Resources) 15 June 2022 Link(s) to Council Values/Ambitions/Objectives ▪ Achieve results through leadership, good governance and organisational effectiveness Previous References ▪ Internal Audit Annual Assurance Report 2020/2021 (9 June 2021) List of Background Papers ▪ Service Level Statement for Lanarkshire Valuation Joint Board 2021/2022 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Yvonne Douglas, Audit and Compliance Manager Ext: 2618 (Tel: 01698 452618) E-mail: yvonne.douglas@southlanarkshire.gov.uk 41
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Internal Audit assignments completed during 2021/2022 Appendix One Job No. Assignment name Draft Issue I921184 Audit Plan 2021/2022 16 June 2021 I929189 Conflict of Interest 6 June 2022 I929188 New Dwellings 6 June 2022 I924185 Follow-up 2021/22 Concluded in this annual report In addition to this work above, there is the completion of this Annual Report for reporting to the Board. 42
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Internal Audit performance during 2021/2022 Appendix Two Performance Indicator Target 2021/2022 2020/2021 Completion of plan 100% planned assignments complete to draft report stage by 31 May 2 100%2 67%1 Completed plan within budget 100% of plan completed within budget 100% 100% Draft reports issued on time 80% of drafts prepared within 42 days of completion of fieldwork 100% 100% Note: 1. Impacted by redeployment of Internal Audit resources as a result of COVID-19 2. Revised target date of June 2022 agreed by Internal Audit and LVJB. 43
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LVJB’s approach to audit during 2021/2022 – Performance in delivering audit recommendations Appendix Three Results based on verbal assurance information supplied by LVJB at requested date for returns. Internal Target 2021/2022 2020/2021 Delivery of internal audit actions on time and in full 90% 100% 100% External Target 2021/2022 2020/2021 Delivery of external audit actions on time and in full 90% N/A N/A 44
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Treasurer to Lanarkshire Valuation Joint Board Subject: Annual Governance Statement 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide information on the Annual Governance Statement for inclusion in the 2021/2022 Lanarkshire Valuation Joint Board Annual Accounts [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [] (1) that the Annual Governance Statement, attached at Appendix 1, be approved for inclusion in the Lanarkshire Valuation Joint Board 2021/2022 Annual Accounts. [1recs] The a 3. Background 3.1. Each year the Lanarkshire Valuation Joint Board undertakes a comprehensive review of the governance arrangements that are required to support Lanarkshire Valuation Joint Board’s financial and operational controls. The annual review of governance arrangements provides the Governance Statement which is included in Lanarkshire Valuation Joint Board’s Annual Accounts. 3.2. The annual review for 2021/2022 is informed by the Delivering Good Governance in Local Government Framework. 4. Annual Governance Statement for 2021/2022 4.1. The Annual Governance Statement for 2021/2022 is attached at Appendix 1. 4.2. The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management supervision, and a system of delegation and accountability. These arrangements follow the systems of financial management in place within the lead authority, South Lanarkshire Council. 4.3. The Lanarkshire Valuation Joint Board shares financial management systems with South Lanarkshire Council (the lead authority) and is subject to the relevant controls in place as directed by the Internal/External Audit guidance. The overall audit opinion for the year can be informed by the assurances obtained from any system audits carried out by the Council’s Internal Audit section on these shared systems. 8 45
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4.4. The sharing of systems means that the assurances obtained in the Internal Audit Manager’s report on the Council’s financial systems for 2021/2022 can be applied to those of Lanarkshire Valuation Joint Board. 4.5. In addition, Internal Audit carry out a programme of audits each year which, together with the output from South Lanarkshire Council shared systems audits, inform an overall audit opinion on the adequacy and effectiveness of the Board’s governance, risk management and internal control arrangements. 4.6. For 2021/2022, the Treasurer’s opinion is that the systems for internal control were effective and will continue to be reviewed and improved as appropriate in 2022/2023. 5. Employee Implications 5.1. None 6. Financial Implications 6.1. There are no financial implications directly associated with this report. 7. Climate Change, Sustainability and Environmental Implications 7.1 There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 8. Other Implications 8.1. The statement will be subject to review by Audit Scotland as part of their consideration of Lanarkshire Valuation Joint Board’s Annual Accounts. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Paul Manning Treasurer 7 June 2022 Previous References None List of Background Papers Lanarkshire Valuation Joint Boards Annual Accounts Annual Governance Statement 2021/2022 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Lorraine O’Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 46
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Appendix 1 Annual Governance Statement This statement sets out the framework within which the Board has proper arrangements for the governance of the Board’s affairs, thereby facilitating the effective exercise of its functions, ensuring that appropriate arrangements are in place for the management of risk and appropriate systems of internal control are in place. While the Board’s governance arrangements have not been consolidated in a formal Code of Corporate Governance, the Annual Governance Statement has been prepared within the context of the Board’s governance framework and meets legislative requirements to include the Annual Governance Statement with the Annual Accounts. A consolidated Code of Corporate Governance was approved at the Board meeting of 4 March 2019. Scope of Responsibility In delivering its aims and objectives, the Board 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 Board also has a statutory duty to make arrangements to secure best value under the Local Government in Scotland Act 2003. In discharging this responsibility, the Board’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. Governance Framework The Board operates a system of internal control designed to manage risk to a reasonable level. Internal controls 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 Board’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: • Clearly defined Standing Orders, Scheme of Delegation and Financial Regulations and Tender Procedures; • Comprehensive business planning arrangements, setting key targets and action plans designed to achieve our corporate objectives; • Arrangements to manage risk, including a risk management strategy and Corporate Risk Register and business continuity plans; • Clear customer complaints procedures; • Policies to regulate employee related matters, including the Employee Code of Conduct and Disciplinary Procedures; and • Regular public performance monitoring As part of the overall control arrangements, the system of internal control is designed to ensure that assets are safeguarded, transactions are authorised and properly recorded and material errors are detected and corrected. This system is based on a framework of regular management information, financial regulations, administrative 47
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procedures (including segregation of duties), management and supervision, and a system of delegation and accountability. Development and maintenance of the system is undertaken by managers within the Board. In particular, the system includes: • Financial management supported by Financial Regulations; • Detailed budgeting systems; • Regular reviews of periodic and annual financial reports which indicate financial performance against forecasts; • Setting targets to measure performance, including financial performance; • The preparation of regular financial reports that compare actual expenditure and income against forecasts. South Lanarkshire Council is the administering authority. All financial transactions of the Board are processed through the financial systems of the Council and are subject to the same controls and scrutiny as those of the Council. This includes regular reviews by the Council’s Internal Audit Manager. CIPFA Financial Management Code The Chartered Institute of Finance and Public Accountancy (CIPFA) has introduced a Financial Management Code (the FM Code). The FM Code provides “guidance for good and sustainable financial management in local authorities. By complying with the principles and standards within the code, authorities will be able to demonstrate their financial sustainability”. A key goal of the FM Code is to improve the financial resilience of organisations by embedding enhanced standards of financial management. The Board reviewed the principles of the FM Code and carried out a self-assessment as part of its internal governance regime during 2020-2021. This identified that the Board where appropriate had fully embedded all but 1 of the principles of the Code in its normal business. An action was identified for the remaining principle which was to include a statement re the adequacy of reserves in the next budget strategy paper. The refreshed Budget Strategy covering the period to end 2025/2026 was presented to the Board in June 2022. This included reference to the level of Reserves and a plan for their use moving forward. Review of Effectiveness The Board purchases an internal audit service from South Lanarkshire Council, through a Service Level Agreement. The role of Internal Audit is to provide an independent audit opinion on the adequacy and effectiveness of the Board’s governance, risk management and internal control systems based on audit work undertaken in the year. The internal audit service provided to the Board operates in accordance with the Public Sector Internal Audit Standards (revised 2017). A rolling programme of audits are undertaken on an annual basis targeted at the areas of greatest risk. The Internal Audit Manager provides an annual report to the Board and an audit opinion on the adequacy and effectiveness of the Board’s governance, risk management and internal control systems based on audit work undertaken in the year. 48
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The annual report for 2021/2022 was presented to the Board on 27 June 2022. The Internal Audit Manager’s annual assurance statement concluded that a reasonable level of assurance can be placed on the adequacy and effectiveness of the Board’s framework of governance, risk management and control arrangements for the year ended 31 March 2022. Statement on the Role of the Chief Financial Officer CIPFA published the statement on the role of the Chief Financial Officer in 2010 and under the Code, the Board is required to state whether it complies with the statement, and if not, to explain how their governance arrangements deliver the same impact. The Board’s financial management arrangements comply with the principles set out in CIPFA’s statement on the Role of the Chief Financial Officer. Continuous Improvement As part of the annual audit review, recommendations are provided which not only assist management to improve their control environment, but also provide an assessment of the adequacy of existing systems and procedures, including highlighting any necessary improvements to maintain and improve the Board’s governance arrangements going forward. The external auditor’s report, Audit Scotland Annual Report 2020/2021, did not identify any Governance actions for implementation during 2021/2022. Coronavirus Pandemic Whilst there has been a return to some form of normality, the risks associated with the pandemic remain. New working practices have evolved as a result of, in particular, the lockdowns introduced countrywide; working practices such as undertaking tasks from home, sourcing more information digitally, and using electronic communications where deemed appropriate, have been introduced over the last two years. With blended working arrangements now in place involving working some time within the office and some time from home, the risks against service failure associated with the pandemic escalating again are somewhat mitigated against. One of the main impacts on LVJB’s operations of the pandemic was the inability to carry out site visits for council tax, non-domestic changes, and electoral matters. Such visits have resumed, with appropriate safety guidance, and as such should contribute to our organisation’s ability to maintain as accurately and complete as possible the Valuation Roll, Council Tax List and Electoral Registers. LVJB’s staff are to be commended again on their ability to adapt to changing processes to ensure that all statutory functions are carried out. Assurance In conclusion, there were no significant weaknesses identified in the Annual Audit Report relating to improvements requiring action in 2021/2022. Systems are in place to continually review and improve the control environment and governance arrangements operated by the Board. The effectiveness of governance is dependent on the actions of officers of the Board and by the work of Internal and External audit. It is the Board’s view that the governance arrangements were effective during financial year 2021/2022. 49
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Treasurer to Lanarkshire Valuation Joint Board Subject: 2021/2022 Annual Report and Accounts - Lanarkshire Valuation Joint Board 1. Purpose of Report 1.1. The purpose of the report is to: [purpose] advise members of the Lanarkshire Valuation Joint Board’s final accounts position as at 31 March 2022 [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that the unaudited annual accounts for Lanarkshire Valuation Joint Board for year ended 31 March 2022, be approved for submission to Audit Scotland. [1recs] 3. Background 3.1. This report will provide information on the Board’s outturn position for the financial year 2021/2022. Appendix 1 shows this in the normal monitoring format, while Appendix 2 shows the statutorily required Annual Accounts. These include the Comprehensive Income and Expenditure Statement for year ended 31 March 2022 and the Balance Sheet as at 31 March 2022. These Accounts will be passed to Audit Scotland for external audit. 3.2. The Annual Report and Accounts, as detailed at Appendix 2 to the report, comprises:- Management Commentary 2021/2022 Statement of Responsibilities Annual Governance Statement Remuneration Report Expenditure and Funding Analysis Statement Comprehensive Income and Expenditure Statement for year ended 31 March 2022 Balance Sheet as at 31 March 2022 Movement in Reserves Statement for year ended 31 March 2022 Cash Flow Statement for year ended 31 March 2022 Notes to the Financial Statements (including Accounting Policies) Audit Arrangements 4. Employee Implications 4.1. None 9 51
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5. Financial Implications 5.1. Appendix 1 attached shows the 2021/2022 outturn position for the Board in the normal monitoring format, that is, excluding accounting transactions. As reported at the last Board meeting on 7 March 2022, the Board was advised of a probable outturn transfer to reserves of £0.021m. 5.2. Summary of Outturn Position: As shown in Appendix 1, the actual position at the end of the year is a transfer to reserves of £0.352m, an increase of £0.331m from the probable outturn. This is the result of further staff turnover and difficulties in recruitment of new staff, an underspend on computer equipment purchases in connection with Barclay recommendations which are now expected to be undertaken during 2022/2023, and lower than anticipated valuation appeals. Further details of the expenditure and income variances are shown in Appendix 1. 5.3. Appendix 2 shows the Annual Accounts for 2021/2022. The presentation of the Board’s position, in accounting terms, differs from the monitoring position presented in Appendix 1, as it also contains statutory accounting entries for pensions and statutory accumulated absences. 5.4. The Annual Accounts in Appendix 2 show that the Board’s total income on an accounting basis amounted to £4.386m in 2021/2022. This was offset by total revenue expenditure on an accounting basis of £4.698m, leaving a net deficit of £0.312m (net cost of services (£0.312m)). After implementing statutory accounting practice in relation to the pension and statutory accumulated absences figures, the net position for the Board for 2021/2022 is a surplus of £0.352m – as presented in the monitoring statement in Appendix 1. 5.5. Adding this surplus to the Board’s General Reserve carried forward from 2020/2021 (£1.127m), gives the Board a closing General Reserve position of £1.479m at the end of 2021/2022. This is £0.331m higher than anticipated as part of the probable outturn. The strategy for use of reserves is covered in the Budget strategy report that will be presented later in the meeting. 6. Climate Change, Sustainability and Environmental Implications 6.1. There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Board’s Revenue Budget is that there is an overspend. The risk has been assessed as low given the detailed budget management applied. The risk is managed by the preparation of 4 weekly Budget Monitoring Reports where any variance is analysed. In addition, the probable outturn exercise ensures early warning for corrective action to be taken where appropriate. 8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. 52
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Paul Manning Treasurer 1 June 2022 Previous References Revenue Budget 2021/2022 – Lanarkshire Valuation Joint Board – 7 December 2020 Revenue Budget Monitoring 2021/2022 - Lanarkshire Valuation Joint Board – 7 March 2022 List of Background Papers Financial ledger and budget monitoring results to 31 March 2022 Unaudited Lanarkshire Valuation Joint Board Annual Accounts 2021/2022 Lanarkshire Valuation Joint Board Revenue Budget Monitoring and Probable Outturn Position 2021/2022 – 6 December 2021 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Lorraine O'Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o'hagan@southlanarkshire.gov.uk 53
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Appendix 1 LANARKSHIRE VALUATION JOINT BOARD Revenue Budget Monitoring Report Period Ended 31 March 2022 (No.14) Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 31/03/22 Actual 31/03/22 Variance 31/03/22 % Variance 31/03/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 3,396 3,066 330 3,396 2,850 546 under 16.1% 1 Property Costs 5 0 5 5 0 5 under 100% 2 Supplies & Services 208 222 (14) 208 147 61 under 29.3% 3 Transport & Plant 0 0 0 0 0 0 - n/a Administration Costs 652 654 (2) 652 597 55 under 8.4% 4 Payments to Other Bodies 31 32 (1) 31 28 3 under 9.7% Payments to Contractors 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 14 14 0 14 34 (20) over (142.9%) 5 Total Controllable Exp. 4,306 3,988 318 4,306 3,656 650 under 15.1% Total Controllable Inc. (7) (18) 11 (7) (15) 8 over recovery 114.3% 6 Net Controllable Exp. 4,299 3,970 329 4,299 3,641 658 under 14.1% Add Non Controllable Budgets Central Support Costs 378 379 (1) 378 377 1 under 0.3% Total Budget 4,677 4,349 328 4,677 4,018 659 under 14.1% Funded By: North Lanarkshire Council (2,106) (2,106) 0 (2,106) (2,106) 0 - 0.0% South Lanarkshire Council (2,264) (2,264) 0 (2,264) (2,264) 0 - 0.0% Transfer (From) Reserves (307) 21 (328) (307) 352 (659) over recovery 214.7% Net Budget 0 0 0 0 0 0 - n/a Variance Explanations 1 Employee Costs: The underspend reflects increased turnover of staff and vacant posts for which recruitment is ongoing and lower than anticipated Canvassers Payments being required. Staff turnover has been higher than assumed at probable outturn, 2 Property Costs: The underspend reflects budget no longer required for Scottish Water charges. 3 Supplies and Services: The underspend reflects the purchase of computer equipment in relation to Barclay recommendations which are now expected to be undertaken in 2022/23 (£0.089m) and is offset by spend in compliance with the Equality Act 2010 Public Sector Duty to make reasonable adjustments (£0.015m), as well as some other minor spend on office equipment, and additional costs of leasing lap tops to facilitate home working (£0.013m). 4 Administration Costs: The underspend reflects reduced number of appeals proceeding to a Committee of the Valuation Appeals Panel in the first 6 months of 2021/2022, and lower than anticipated printing and stationery costs to date. 5 Financing Charges: The overspend is in relation to higher than budgeted IT leasing charges. 6 Income: The over recovery of income is due to increased sale costs of Electoral Registers. 54
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LANARKSHIRE VALUATION JOINT BOARD ANNUAL ACCOUNTS 2021/2022 9 55
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2 List of Contents Statement Page Membership of the Board (2021/2022) 3 Management Commentary 4 Statement of Responsibilities 10 Annual Governance Statement 12 Remuneration Report 15 Expenditure and Funding Analysis 20 Comprehensive Income and Expenditure Statement 21 Balance Sheet 22 Movement in Reserves Statement 23 Cash Flow Statement 25 Notes to the Financial Statements Note 1 Accounting Policies 27 Note 2 Prior Period Adjustments 29 Note 3 Accounting Standards issued but not Adopted 29 Note 4 Critical Judgements in Applying Accounting Policies 30 Note 5 Notes to the Expenditure and Funding Analysis - Adjustments Between Funding and Accounting Basis 30 Note 6 Adjustments between Accounting Basis and Funding Basis Under Regulations 31 Note 7 Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty 32 Note 8 Events after the Balance Sheet date 33 Note 9 Contingent Liabilities 33 Note 10 Leases 33 Note 11 Property, Plant and Equipment – Movement on Balances 34 Note 12 Intangible Assets 34 Note 13 Short Term Debtors 34 Note 14 Short Term Creditors 35 Note 15 Related Party Transactions 35 Note 16 Defined Benefit Pension Schemes 35 Note 17 External Audit Costs 40 Note 18 Grant Income 40 Note 19 Balance Sheet Reserves 41 Note 20 Financing and Management of Liquid Resources 42 Note 21 Comprehensive Income and Expenditure Statement – financing and investment income and expenditure 42 Note 22 Going Concern 42 Audit Arrangements 43 56
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3 Membership of the Board (2021/2022) Lanarkshire Valuation Joint Board (herein after referred to as ‘the Board’) is comprised of Elected Members from its two constituent local authorities. The serving Members of the Board during financial year 2021/2022 were as noted below: South Lanarkshire Council North Lanarkshire Council Councillor Lynsey Hamilton (Depute Convenor) Councillor Alex McVey (Convenor) Councillor Poppy Corbett (until 3 November 2021) Councillor Caroline Stephen Councillor Peter Craig Councillor Bob Burgess Councillor Isobel Dorman Councillor Tom Castles Councillor Geri Gray Councillor Jim Reddin Councillor Ann Le Blond Councillor Tom Johnston Councillor Jim Wardhaugh Councillor William Shields Councillor Walter Brogan Councillor Annette Valentine Councillor Meghan Gallagher (until 17 June 2021) Councillor Trevor Douglas (from 17 June 2021) Chief Officers Assessor and Electoral Registration Officer: Gary Bennett BSc MSc AEA (Cert-Scotland) MRICS IRRV (Hons) The following appointed office bearers of the Board are employed on a substantive basis by South Lanarkshire Council: Clerk: Cleland Sneddon (Chief Executive of South Lanarkshire Council) Treasurer: Paul Manning (Executive Director of Finance and Corporate Resources, South Lanarkshire Council) 57
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4 Management Commentary 2021/22 The management commentary provides an overview of the key messages in relation to the objectives and strategy of Lanarkshire Valuation Joint Board (the Board) and its financial performance for the year ended 31 March 2022. It also provides an indication of the issues and risks that may impact upon the Board’s finances in the future. The Board was established by the Valuation Joint Boards (Scotland) Order 1995 and came into existence on 1 April 1996. It provides a range of valuation and electoral registration services to and on behalf of South Lanarkshire Council and North Lanarkshire Council (the constituent authorities), working in partnership with other Valuation Joint Boards and professional bodies throughout Scotland. Core Purpose, Vision, Service Function and Core Objectives The Board's Service Plan was approved at the Board meeting in March 2022 and covers the period April 2022 through to March 2025. The Plan incorporates the Board's Vision statement which is "to deliver quality in the work which we undertake, provide efficient services to all service users, and ensure completeness and accuracy of the Electoral Register, Valuation Roll and the Valuation (Council Tax) List”. The Plan sets out the key business areas identified for Lanarkshire Valuation Joint Board over the three-year period, with a view to ensuring that LVJB’s services are delivered as effectively and efficiently as possible to service users. Where deemed appropriate, each key business area is supported by a series of priorities and measurable key actions, against which performance is regularly reported to the Board. Review of Performance The Board's performance against key performance indicator (KPI) targets during 2021/22, was as follows: • Of 2,818 new Council Tax entries added, 93% were completed within 3 months of the effective date against a target of 87%. 98% were completed within 6 months against a target of 92%. • Of 976 alterations to the non-domestic valuation roll, 68% were completed within 3 months of the effective date against a target of 77% and 83% were completed within 6 months against a target of 92%. The three monthly and six monthly targets were not met, essentially due to the continued challenges as a result of the pandemic and in particular the limitations on carrying out on-site surveys. With regards to electoral registration, within the period 2021/2022, in addition to two by- elections held in North Lanarkshire, the principal activities centred on maintaining the completeness and accuracy of the registers, together with preparations for and the undertaking of the Scottish Local Government Election on 5 May 2022, the associated tasks to which were carried out successfully. The annual canvass of electors 2021 was subject to major reform with the introduction of The Representation of the People (Annual Canvass) (Miscellaneous Amendments) (Scotland) Regulations 2020. Under the reformed canvass, data matching was used at the outset of the canvass to help identify those properties where the residents are more likely to have changed. All Electoral Registration Officers in Great Britain were required to match specified data they hold on registered electors against the Department for Work and 58
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5 Pensions’ Customer Information System (DWP CIS) dataset. This dataset is already used in the electoral registration process to verify an applicant's identity. The household visit element of the 2021 canvass was able to proceed, with suitable precautions undertaken as a result of the pandemic, with circa 31,000 properties being canvassed. The canvass reforms also allowed for e-communications that included telephone and email contact. The canvass was concluded successfully, and the registers were published on 1 December 2021. More information on the Board's performance during 2021/2022 can be found on the Board’s website at www.lanarkshire-vjb.gov.uk Financial Performance Revenue The Comprehensive Income and Expenditure Statement on page 21 summarises the total costs of providing services and the income available to fund those services. The Board set a net operating expenditure budget for 2021/2022 of £3.835m to be funded by contributions from the two constituent local authorities. The budget was based on experience of expenditure and income levels during previous years and included a planned contribution from the Board’s reserves of £0.345m. During the year, this budget was increased to include Scottish Government funding held in Reserves by South Lanarkshire Council for Postal Votes and Household Notifications. It was also increased to reflect funding received from the Scottish Government for the implementation of the Barclay Review. This gave a final budget of £4.677m for the year. In comparison to this revised 2021/2022 budget, the Board returned a surplus of income over expenditure of £0.352m which, compared with the budgeted deficit of £0.307m, resulted in £0.659m of an improvement in the Board’s position. This surplus excludes the accounting adjustments relating to pensions and short-term accumulating absences. The Table overleaf compares the revised budget of the Board at the 31 March 2022. The difference between the net expenditure figure overleaf and that reported in the Comprehensive Income and Expenditure Statement is due to the accounting adjustments, which are analysed in the Expenditure and Funding Analysis on page 20. 59
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6 Lanarkshire Valuation Joint Board Revenue Budget 2021/2022 Budget Actual Variance £000 £000 £000 Employee Costs 3,396 2,850 546 Property Costs 206 201 5 Supplies and Services 208 147 61 Transport and Plant 0 0 0 Administration Costs 829 773 56 Payments to Other Bodies 31 28 3 Financing Charges 14 35 (21) Total Expenditure 4,684 4,034 650 Income (7) (15) 8 Net Expenditure 4,677 4,019 658 Funded by: Contributions from Councils (4,370) (4,371) 1 Total (4,370) (4,371) 0 (Surplus) / Deficit for the Financial Year 307 (352) 659 The main underspend was in respect of employee costs. This reflects a combination of the turnover of staff and the current level of spend in relation to the implementation of the Barclay recommendations. Recruitment has continued (and is ongoing) for posts made vacant through staff turnover, and posts required to undertake the workload associated with the Barclay Review. Balance Sheet The Board’s Balance Sheet as at 31 March 2022 reported net assets of £2.818m compared with net liabilities of £1.017m as at 31 March 2021, a movement of £3.835m during the year. This is mainly due to a £3.473m increase in the Board’s pension fund liability which is calculated by independent actuaries as part of the Strathclyde Pension Fund. Adding the surplus on the Balance Sheet as at 31 March 2022 (£0.352m) to the Board’s General Reserve carried forward from 2020/2021 (£1.127m), gives the Board a closing General Reserve position of £1.479m at the end of 2021/2022. This is shown in the Expenditure and Funding Analysis on page 20 and the Movement in Reserves Statement on page 23. Pension Fund The disclosure requirements for pension benefits under International Accounting Standard 19 are detailed at Note 16. The appointed actuary assessed the Board’s share of Strathclyde Pension Fund as a net asset of £1.273m as at 31 March 2022, compared with a net liability of £2.200m as at 31 March 2021. Changes in the assumptions used by the actuary when calculating the liability, including financial and demographic assumptions, resulted in a reduction in the liability, however these were partially offset by service costs and a negative return on assets. The Pension Asset shown is the result of the accounting legislation and standards and reflects the cost to the Board if all staff retired as at 31 March 2022. Whilst indicative of a broad position in terms of a pension liability, the reader should be aware of a range of factors, inherent in the figure, before drawing conclusions on such a 60
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7 significant number in the Board’s Financial Statements. The Board is meeting pension contributions on an annual basis. Note 16: Defined Benefit Pension Schemes on page 35 provides more details on pensions including the factors affecting the pension liability such as assumptions about mortality, salary inflation, pension inflation and discount rates. The Board’s actuary has confirmed that the IAS19 Balance Sheet is based on financial market values and future market expectation indicators as at 31 March 2022 to comply with the standard. The financial markets at the accounting date will have taken into account COVID19 risks as one of many national and worldwide economic considerations. Provisions, contingencies and write-offs The Board is not aware of any eventualities which may have a material effect on its financial position and has therefore made no provision for such eventualities. Contingent assets and liabilities are disclosed as a note to the financial statements. No debts were written off during the financial year. Service Changes and Future Developments The Board approved LVJB’s Service Plan at its meeting of March 2022. An update on the service plan is provided annually to the Board. Future developments are anticipated in the following service areas: Electoral Registration Following the Local Government Election, preparatory work will commence for the annual canvass of electors 2022 with principal work again focusing on maintaining the electoral registers. It is expected that a number of by-elections will take place within the period 2022/23, and any legislative changes which impact on the workload of our electoral service delivery area – in particular connected with the Elections Act 2022 - will be actively monitored. Valuation Preparatory work associated with implementing the Non-Domestic Rates (Scotland) Act 2020, which came into force on 11 March 2020, will continue into the period 2022/23. A draft valuation roll will be published late in 2022, with the new valuation roll coming into effect on 1 April 2023; a non-domestic revaluation is a significant, resource intensive undertaking which will form a major part of the workload for our organisation over the coming period. With 2017 non-domestic revaluation appeals, those at the Lands Tribunal for Scotland apart, now disposed of in accordance with statutory disposal timescales (31 December 2021 for 2017), work will also continue with maintaining the valuation roll and disposing of running roll appeals where possible (further consideration of the voluminous levels of appeals received as a result of the pandemic will be undertaken once proposed legislation in connection with such appeals is made by the Scottish Government). In respect of Council Tax, work will continue with maintaining the Valuation List, entering new houses on the List as efficiently as possible. 61
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8 With revised ways of working now somewhat established having undertaken a period of business process re-engineering, essentially as a result of the pandemic - together with the resumption of site visits where deemed appropriate - it is envisaged that alterations to the valuation roll should be once again undertaken in line with targets, and that entering new houses in the valuation list should continue to be in line with targets also. Financial Outlook Most economic commentators forecast that pressures on public finances will continue for the foreseeable future. The Board recognises the impact of this difficult financial climate on its constituent authorities and as a consequence it continues to seek to generate efficiencies where possible. A previous Financial Budget Strategy to 2023/24 was approved in June 2019. This has been updated in June 2022 to refresh the Strategy and to extend the timeframe to 2025/2026. The Financial Strategy assists in managing a number of key risks which directly impact on the funding available to deliver the Board’s objectives. It also identifies a future strategy in respect of financial reserves. The Board’s Strategy is revised annually with consideration given to any changes in the financial horizon, which will be presented to the Board. Consequently, the Assessor and Electoral Registration Officer will look to continue to implement efficiency savings in future, although with a significant number of statutory duties to be met the continued pressure on resources could have an adverse impact on performance and service delivery. Risks and Uncertainties The Board noted the Risk Register Update 2022 at its meeting in March 2022. The main risks highlighted are the inability to deal with the increase in non-domestic appeals activity and the failure to recruit and/or retain qualified valuation staff. In respect of the first highlighted risk, as noted earlier, the outcome of proposed legislation - the Non-Domestic Rates (Coronavirus) (Scotland) Bill - is awaited before scoping further the workload associated with the voluminous levels of appeals received as a result of the pandemic. With regards to the second risk, dialogue continues with all officers to the Board, as well as with South Lanarkshire Council’s Personnel Services in relation to retaining and recruiting suitably qualified personnel to deal with the anticipated workload for coming years, in particular the workload associated with the recommendations from the Barclay Review into non-domestic rates. All risks are monitored by LVJB’s management team with a view to mitigating each risk, whether an existing or emerging risk. Coronavirus Pandemic Whilst there has been a return to some form of normality, the risks associated with the pandemic remain. New working practices have evolved as a result of, in particular, the lockdowns introduced countrywide; working practices such as undertaking tasks from home, sourcing more information digitally, and using electronic communications where deemed appropriate, have been introduced over the last two years. With blended working arrangements now in place involving working some time within the office and some time from home, the risks against service failure associated with the pandemic escalating again are somewhat mitigated against. One of the main impacts on LVJB’s operations of the pandemic was the inability to carry out site visits for council tax, non-domestic changes, and electoral matters. Such visits have resumed, with appropriate safety guidance, and as such should contribute to our organisation’s ability to maintain as accurately and complete as possible the Valuation Roll, Council Tax List and Electoral Registers. LVJB’s staff are to be commended again on their ability to adapt to changing processes to ensure that all statutory functions are carried out. 62
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9 Conclusion Given the continued challenges which all organisations have faced as a result of the coronavirus pandemic, operational performance continued to remain positive for the period 2021/22, in particular in respect of delivering a major electoral event, and meeting targets in respect of entering new dwellings in the Valuation List. It is anticipated that the resumption of site visits will assist in performance in respect of undertaking alterations to the valuation roll for non-domestic subjects. Sound financial management and medium term planning has enabled the Board to successfully manage the financial challenges faced during financial year 2021/22. However, there remain a number of challenges going forward, not least the challenges posed by the introduction of three yearly non-domestic revaluations with effect from 1 April 2023; an associated change to the non-domestic appeals system scheduled to be implemented with effect from 1 January 2023; and further potential challenges posed by the introduction of the Elections Act 2022. We wish to acknowledge the significant efforts of all staff in contributing to the Board's operational performance, of budget managers and support staff whose financial stewardship contributed to the Board's financial position at 31 March 2022, and to everyone involved in the preparation of the Annual Accounts. Paul Manning Gary Bennett Treasurer Assessor and ER Officer Convenor 63
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10 Statement of Responsibilities This statement sets out the respective responsibilities of the Board and the Treasurer for the Annual Accounts. The Board’s Responsibilities The Board is required to: • make arrangements for the proper administration of its financial affairs, and to ensure that one of its officers has responsibility for the administration of those affairs. For the Board, that officer is the Executive Director of Finance and Corporate Resources for South Lanarkshire Council, designated as the Treasurer of the Board; • manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; • ensure the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014) and 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 Convenor of Lanarkshire Valuation Joint Board 27 June 2022 64
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11 The Treasurer’s Responsibilities The Treasurer is responsible for the preparation of the Board’s Annual Accounts which, in terms of the CIPFA / LASAAC Code of Practice on Local Authority Accounting in the United Kingdom is required to present a true and fair view of the financial position of the Board at the accounting date, and its comprehensive income and expenditure for the financial year then ended. In preparing the Annual Accounts, the Treasurer has: • Selected suitable accounting policies, and applied them consistently; • Made judgements and estimates that were reasonable and prudent; • Complied with legislation; and • Complied with the Code of Practice on Local Authority Accounting in the United Kingdom. The Treasurer has also: • Kept proper accounting records which 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 Board at 31 March 2022, and its income and expenditure for the year ended 31 March 2022. Paul Manning Treasurer of Lanarkshire Valuation Joint Board 27 June 2022 65
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12 Annual Governance Statement This statement sets out the framework within which the Board has proper arrangements for the governance of the Board’s affairs, thereby facilitating the effective exercise of its functions, ensuring that appropriate arrangements are in place for the management of risk and appropriate systems of internal control are in place. While the Board’s governance arrangements have not been consolidated in a formal Code of Corporate Governance, the Annual Governance Statement has been prepared within the context of the Board’s governance framework and meets legislative requirements to include the Annual Governance Statement with the Annual Accounts. A consolidated Code of Corporate Governance was approved at the Board meeting of 4 March 2019. Scope of Responsibility In delivering its aims and objectives, the Board 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 Board also has a statutory duty to make arrangements to secure best value under the Local Government in Scotland Act 2003. In discharging this responsibility, the Board’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. Governance Framework The Board operates a system of internal control designed to manage risk to a reasonable level. Internal controls 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 Board’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: • Clearly defined Standing Orders, Scheme of Delegation and Financial Regulations and Tender Procedures; • Comprehensive business planning arrangements, setting key targets and action plans designed to achieve our corporate objectives; • Arrangements to manage risk, including a risk management strategy and Corporate Risk Register and business continuity plans; • Clear customer complaints procedures; • Policies to regulate employee related matters, including the Employee Code of Conduct and Disciplinary Procedures; and • Regular public performance monitoring As part of the overall control arrangements, the system of internal control is designed to ensure that assets are safeguarded, transactions are authorised and properly recorded and material errors are detected and corrected. This system is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management and supervision, and a system of delegation and accountability. 66
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13 Development and maintenance of the system is undertaken by managers within the Board. In particular, the system includes: • Financial management supported by Financial Regulations; • Detailed budgeting systems; • Regular reviews of periodic and annual financial reports which indicate financial performance against forecasts; • Setting targets to measure performance, including financial performance; • The preparation of regular financial reports that compare actual expenditure and income against forecasts. South Lanarkshire Council is the administering authority. All financial transactions of the Board are processed through the financial systems of the Council and are subject to the same controls and scrutiny as those of the Council. This includes regular reviews by the Council’s Internal Audit Manager. CIPFA Financial Management Code The Chartered Institute of Finance and Public Accountancy (CIPFA) has introduced a Financial Management Code (the FM Code). The FM Code provides “guidance for good and sustainable financial management in local authorities. By complying with the principles and standards within the code, authorities will be able to demonstrate their financial sustainability”. A key goal of the FM Code is to improve the financial resilience of organisations by embedding enhanced standards of financial management. The Board reviewed the principles of the FM Code and carried out a self-assessment as part of its internal governance regime during 2020-2021. This identified that the Board where appropriate had fully embedded all but 1 of the principles of the Code in its normal business. An action was identified for the remaining principle which was to include a statement re the adequacy of reserves in the next budget strategy paper. The refreshed Budget Strategy covering the period to end 2025/2026 was presented to the Board in June 2022. This included reference to the level of Reserves and a plan for their use moving forward. Review of Effectiveness The Board purchases an internal audit service from South Lanarkshire Council, through a Service Level Agreement. The role of Internal Audit is to provide an independent audit opinion on the adequacy and effectiveness of the Board’s governance, risk management and internal control systems based on audit work undertaken in the year. The internal audit service provided to the Board operates in accordance with the Public Sector Internal Audit Standards (revised 2017). A rolling programme of audits are undertaken on an annual basis targeted at the areas of greatest risk. The Internal Audit Manager provides an annual report to the Board and an audit opinion on the adequacy and effectiveness of the Board’s governance, risk management and internal control systems based on audit work undertaken in the year. The annual report for 2021/2022 was presented to the Board on 27 June 2022. The Internal Audit Manager’s annual assurance statement concluded that a reasonable level of assurance can be placed on the adequacy and effectiveness of the Board’s framework of governance, risk management and control arrangements for the year ended 31 March 2022. 67
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14 Statement on the Role of the Chief Financial Officer CIPFA published the statement on the role of the Chief Financial Officer in 2010 and under the Code, the Board is required to state whether it complies with the statement, and if not, to explain how their governance arrangements deliver the same impact. The Board’s financial management arrangements comply with the principles set out in CIPFA’s statement on the Role of the Chief Financial Officer. Continuous Improvement As part of the annual audit review, recommendations are provided which not only assist management to improve their control environment, but also provide an assessment of the adequacy of existing systems and procedures, including highlighting any necessary improvements to maintain and improve the Board’s governance arrangements going forward. The external auditor’s report, Audit Scotland Annual Report 2020/2021, did not identify any Governance actions for implementation during 2021/2022. Coronavirus Pandemic Whilst there has been a return to some form of normality, the risks associated with the pandemic remain. New working practices have evolved as a result of, in particular, the lockdowns introduced countrywide; working practices such as undertaking tasks from home, sourcing more information digitally, and using electronic communications where deemed appropriate, have been introduced over the last two years. With blended working arrangements now in place involving working some time within the office and some time from home, the risks against service failure associated with the pandemic escalating again are somewhat mitigated against. One of the main impacts on LVJB’s operations of the pandemic was the inability to carry out site visits for council tax, non-domestic changes, and electoral matters. Such visits have resumed, with appropriate safety guidance, and as such should contribute to our organisation’s ability to maintain as accurately and complete as possible the Valuation Roll, Council Tax List and Electoral Registers. LVJB’s staff are to be commended again on their ability to adapt to changing processes to ensure that all statutory functions are carried out. Assurance In conclusion, there were no significant weaknesses identified in the Annual Audit Report relating to improvements requiring action in 2021/2022. Systems are in place to continually review and improve the control environment and governance arrangements operated by the Board. The effectiveness of governance is dependent on the actions of officers of the Board and by the work of Internal and External audit. It is the Board’s view that the governance arrangements were effective during financial year 2021/2022. Gary Bennett Assessor and Electoral Registration Officer Lanarkshire Valuation Joint Board 27 June 2022 Convenor of Lanarkshire Valuation Joint Board 27 June 2022 68
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15 Remuneration Report The remuneration report provides details of the Board’s remuneration policy for senior Board members and senior employees. Introduction The Remuneration Report has been prepared in accordance with the Local Authority Accounts (Scotland) Regulations 1985 (as amended by the Local Authority Accounts (Scotland) Regulations 2014. These Regulations require various disclosures about the remuneration and pension benefits of senior Board members and senior employees. All information disclosed in tables 1 – 3 and 5 and 6 in this Remuneration Report and details of exit packages have been audited by Audit Scotland. The other sections of the Remuneration Report have been reviewed by Audit Scotland to ensure that they are consistent with the financial statements. Senior Employees The remuneration of senior employees is set by reference to national arrangements. The Scottish Joint Negotiating Committee (SJNC) for Local Authority Services sets the salaries for the Chief Officers of Scottish local authorities. Circular CO/151 sets the amount of salary for Chief Officers for 2021/2022. Senior Councillors The Convenor and Depute Convenor of the Lanarkshire Valuation Joint Board are remunerated by the Council of which they are a council member, as shown in Table 3. The remuneration of councillors is regulated by the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2007 (SSI No. 2007/183) as amended most recently by the Local Governance (Scotland) Act 2004 (Remuneration) Amendment Regulations 2020 (SSI 2020/26). The Regulations provide for the grading of Councillors for the purposes of remuneration arrangements, as either the Leader of the Council, the Provost, Senior Councillors or Councillors. These regulations also set out the amounts a councillor may be paid for being a Convenor or Depute Convenor of a Joint Board. This is inclusive of any amount payable to them as either a Councillor or Senior Councillor. The Board has an arrangement with each Council who remunerates the Convenor and Depute Convenor/s to reimburse the Council for the additional costs of that councillor arising from them being a Convenor or Depute Convenor of the Board. The disclosures made in this report are limited to the amounts paid to the Council by the Board for remuneration and does not reflect the full value of the remuneration that may be paid to the councillor. Trade Unions (Facility Time Publication Requirements) Regulations 2017 In addition to the regulations governing senior employees and councillors, the Trade Union (Facility Time Publication Requirements) Regulations 2017, which applied from 1 April 2017, require public sector employers to collect and publish a range of information on trade union facility time in respect of their employees who are Trade Union Representatives. This information is available on the Board’s website. There are no employees within the Board who are Trade Union Representatives, as noted on the Board’s website. 69
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16 General Pay Bands for Senior Employees The number of officers who received remuneration (excluding pension contributions) in excess of £50,000 for the financial year is shown in Table 1: Table 1 - General Pay Band Disclosure for Senior Employees Annual Remuneration Number of Employees Number of Employees £ 2021/22 2020/21 50,000 – 54,999 6 2 55,000 – 59,999 0 0 60,000 – 64,999 2 2 65,000 – 69,999 0 0 70,000 – 74,999 2 2 75,000 – 114,999 (Note 1) 0 0 115,000 – 119,999 1 1 Note 1: These are merged pay bands covering more than £5,000 due to the fact that no employees fell into these bands in either financial year. Disclosure of Remuneration Tables 2 and 3 provide details of the remuneration paid to the Board’s senior employees, Convenor and Depute Convenor. Comparative figures for 2020/2021 have been shown. Table 2 – Senior Employees Name / Post Salary / Fees Taxable Expenses Compensation for Loss of Office Any other Remuneration 2021/22 Total 2020/21 Total G Bennett Assessor and Electoral Registration Officer £119,906 - - - £119,906 £119,036 J Neason Assistant Assessor and Electoral Registration Officer £73,263 - - - £73,263 £72,449 R Pacitti Assistant Assessor and Electoral Registration Officer £73,263 - - - £73,263 £72,449 Total £266,432 - - - £266,432 £263,934 The senior employees included in Table 2 include any Board employee: • Who has responsibility for management of the Board to the extent that the person has power to direct or control the major activities of the Board (including activities involving the expenditure of money), during the year to which the report relates, whether solely or collectively with other persons; • Who holds a post that is politically restricted by reason of section 2(1) (a), (b) or (c) of the Local Government and Housing Act 1989; or • Whose annual remuneration, including remuneration from a local authority subsidiary body, is £150,000 or more. 70
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17 Table 3 – Convenors and Depute-Convenors Name / Post Salary / Fees Taxable Expenses Compensation for Loss of Office Any other Remuneration 2021/22 Total 2020/21 Total A McVey Convenor £5,934 - - - £5,934 £4,468 L Hamilton Depute Convenor £3,476 - - - £3,476 £3,336 Total £9,410 £9,410 £7,804 Pension Rights Pension benefits for councillors and Lanarkshire Valuation Joint Board (LVJB) employees are provided through the Local Government Pension Scheme (LGPS). LVJB employees had a final salary pension scheme prior to 1 April 2015. This means that pension benefits are based on the final year’s pay and the number of years that person has been a member of the scheme. As of 1 April 2015, LVJB employees are now part of a defined benefit pension scheme worked out on a career average basis. Benefits built up are calculated using pensionable pay each scheme year, rather than final salary. All benefits built up prior to this date are protected. From 1 April 2009, a five-tier contribution system was introduced with contributions from scheme members based on how much pay falls into each tier. This is designed to give more equality between the costs and benefits of scheme membership. Under The Local Government Pension Scheme (Scotland) Regulations 2014, the earnings ranges used to determine annual contribution rates are to be increased each year by any increase applied to pensions under the Pensions (Increase) Act 1971. In accordance with this the salary bands for 2019/2020 were uprated by the Consumer Price Index (CPI) increase for 2020/2021. The member contribution rates and tiers for 2021/2022 are shown in Table 4 along with those that applied in 2020/2021: Table 4 – Pension Contribution Rates Pensionable Pay Contribution rate 2021/22 Pensionable Pay Contribution Rate 2020/21 On earnings up to an including £22,300 5.50% On earnings up to an including £22,200 5.50% On earnings above £22,300 and up to £27,300 7.25% On earnings above £22,200 and up to £27,100 7.25% On earnings above £27,300 and up to £37,400 8.50% On earnings above £27,100 and up to £37,200 8.50% On earnings above £37,400 and up to £49,900 9.50% On earnings above £37,200 and up to £49,600 9.50% On earnings above £49,900 12.0% On earnings above £49,600 12.0% 71
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18 From April 2015, if a person works part-time their contribution is based on their part-time pay. Prior to this, if a person worked part-time, their contribution rate was 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 lump sum up to the limit set by the Finance Act 2004. From 1 April 2015, benefits are calculated on the basis of a revalued annual pension built up of 1/49th of pensionable pay each year, plus inflation to keep up with the cost of living. Prior to this date, the accrual rate guaranteed a pension based on 1/60th of final pensionable salary and years of pensionable service and prior to 2009 the accrual rate guaranteed a pension based on 1/80th and a lump sum based on 3/80th of final pensionable salary and years of pensionable service. The value of the benefits has been calculated without exercising any option to commute pension entitlement into a lump sum and without any adjustment for the effects of future inflation. In those cases where members have transferred pension entitlements from previous employments, the pension figures shown relate to the benefits that the person has accrued as a consequence of their total local government service, and not just their current appointment. It also reflects both employer and employee contributions. The Pension entitlement of Senior Employees for the year to 31 March 2021 are shown in the Table 5, together with the contribution made by the Board to each senior employees’ pension during the year. The accrued pension benefit reflects both the employer and employee contributions. Table 5 – Pension Benefits: Senior Employees Name / Post Accrued Pension Benefits March 2022 Movement in accrued pension benefits since 31 March 2021 Pension Contribution made by Board 2021/22 Pension Contribution made by Board 2020/21 G Bennett Assessor and Electoral Registration Officer Pension Lump Sum £65,369 £109,366 £2,828 £717 £23,142 £22,962 J Neason Assistant Assessor and Electoral Registration Officer Pension Lump Sum £42,383 £73,544 £2,184 £733 £14,140 £13,983 R Pacitti Assistant Assessor and Electoral Registration Officer Pension Lump Sum £37,970 £66,492 £1,821 £663 £14,140 £13,983 Total £51,422 £50,928 72
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19 Table 6 – Pension Benefits: Convenors and Depute Convenors Name / Post Pension Contribution made by Board 2021/22 Pension Contribution made by Board 2020/21 L Hamilton Depute Convenor £671 £644 Exit Packages There were no exit packages agreed or paid for financial years 2021/2022 or 2020/2021. Gary Bennett Assessor and ER Officer Convenor 27 June 2022 27 June 2022 73
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20 Expenditure and Funding Analysis The Expenditure and Funding Analysis shows the expenditure and income figures reported to Lanarkshire Valuation Joint Board and, through a single adjustments column, reconciles it to the accounting figures presented in the Comprehensive Income and Expenditure Statement. Expenditure and Funding Analysis 2021/2022 2020/2021 2021/2022 Net Exp. Chargeable to GF Adjustment between Funding and Accounting Basis (note 5) Net Exp. in CIES Net Exp. Chargeable to GF Adjustment between Funding and Accounting Basis (note 5) Net Exp. in CIES Column 1 Column 2 Column 3 Column 5 Column 6 Column 7 £000 £000 £000 £000 £000 £000 2,711 400 3,111 Employee Costs 2,850 670 3,520 381 381 Property Costs 201 201 122 122 Supplies and Services 147 147 0 0 Transport and Plant 0 0 848 16 864 Administration Costs 773 (27) 746 28 28 Payments to Other Bodies 28 28 202 (175) 27 Financing Charges 35 21 56 4,292 241 4,533 Total Expenditure 4,034 664 4,698 (4,472) - (4,472) Income (4,386) - (4,386) (180) 241 61 Net Cost of Services (352) 664 312 0 30 30 Financing and Investment Income and Expenditure 0 51 51 (180) 271 91 (Surplus) or Deficit (352) 715 363 2020/21 2021/22 General Fund General Fund £000 £000 (947) Opening General Fund Balance (1,127) (180) (Less)/plus (Surplus) or Deficit on General Fund (per column 1 and 5 of EFA) (352) - Transfers To/From Reserves - (1,127) Closing General Fund Balance (1,479) 74
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21 Comprehensive Income and Expenditure Statement for the year ended 31 March 2022 This statement shows income generated by the Board during the year and how it was spent on services and financing costs. 2020/21 2021/22 Note Actual Actual £000 £000 3,111 Employee Costs 3,520 381 Property Costs 201 122 Supplies and Services 147 0 Transport and Plant 0 864 Administration Costs 746 28 Payments to Other Bodies 28 27 Financing Charges 56 4,533 Total Expenditure 4,698 (4,472) Income (4,386) 61 Net Cost of Services 312 30 Financing and Investment Income and Expenditure 51 91 Deficit on the Provision of Services 363 721 Re-measurement of the Net Defined Benefit Asset/Liability (4,198) 16 721 Other Comprehensive Income and Expenditure (4,198) 812 Total Comprehensive Income and Expenditure (3,835) 75
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22 Balance Sheet as at 31 March 2022 This statement shows the resources of the Board and means by which they were financed. It shows the values as at the Balance Sheet date of the assets and liabilities recognised by the Board. 31 March 2021 31 March 2022 Note £000 £000 Non-Current Assets: 177 Property, Plant and Equipment 156 11 0 Intangible Assets 0 12 177 Total Non-Current Assets 156 Current Assets: 58 Short Term Debtors 72 13 1,427 Cash and Cash Equivalents 1,542 1,485 1,614 Current Liabilities: (479) Short Term Creditors (225) 14 (479) Total Current Liabilities (225) 1,183 Total Assets less Current Liabilities 1,545 Long Term Liabilities (2,200) Pension Liability 1,273 16 (1,017) Total Assets less Liabilities 2,818 Financed By: Unusable Reserves (2,200) Pension Reserve 1,273 19 (121) Accumulating Compensated Absences Reserve (90) 19 177 Capital Adjustment Account 156 19 Usable Reserves 1,127 General Fund Reserve 1,479 19 (1,017) 2,818 The notes on pages 27 to 41 form part of the financial statements. The unaudited accounts were approved for issue by the Board on 27 June 2022. The unaudited accounts are signed on behalf of the Board by: Paul Manning Treasurer of Lanarkshire Valuation Joint Board 27 June 2022 76
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23 Movement in Reserves Statement for the year ended 31 March 2022 This statement shows the movement in the year on the different reserves held by the Board, analysed into usable reserves and unusable reserves. The deficit on the provision of services shows the true economic cost of providing the Board’s services, which is fully analysed in the Comprehensive Income and Expenditure Statement on page 21. This cost excludes other statutory charges to the General Fund balance. The net increase / (decrease) before transfers to / from other statutory reserves shows the statutory General Fund balance before any discretionary transfers to or from the other statutory reserves of the Board. General Fund Balance Total Usable Reserves Unusable Reserves Total Reserves £000 £000 £000 £000 Balance at 31 March 2021 1,127 1,127 (2,144) (1,017) Movement in Reserves during 2021/2022 Surplus on the provision of services (363) (363) - (363) Other comprehensive income and expenditure - - 4,198 4,198 Total comprehensive income and expenditure (363) (363) 4,198 3,835 Adjustments between accounting basis and funding basis (note 5) 715 715 (715) 0 Net increase before transfers to / from other statutory reserves 352 352 3,483 3,835 Transfers to / from other statutory reserves - - - - Increase / (Decrease) in 2021/2022 352 352 3,483 3,835 Balance as at 31 March 2022 1,479 1,479 1,339 2,818 77
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24 Movement in Reserves Statement for the year ended 31 March 2021 General Fund Balance Total Usable Reserves Unusable Reserves Total Reserves £000 £000 £000 £000 Balance at 31 March 2020 947 947 (1,152) (205) Movement in Reserves during 201202021 Surplus on the provision of services (91) (91) - (91) Other comprehensive income and expenditure - - (721) (721) Total comprehensive income and expenditure (91) (91) (721) (812) Adjustments between accounting basis and funding basis (note 5) 271 271 (271) Net increase before transfers to / from other statutory reserves 180 180 (992) (812) Transfers to / from other statutory reserves - - - - Increase / (Decrease) in 201202021 180 180 (992) (812) Balance as at 31 March 2021 1,127 1,127 (2,144) (1,017) 78
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25 Cash Flow Statement This statement shows the changes in cash and cash equivalents of the Board during the year. The statement shows how the Board generates and uses cash and cash equivalents by classifying them as either operating, investing or financing activities. • The level of net cash arising from operating activities is a key indicator of the extent to which the operations of the Board are funded by way of taxation and grant income or from service users and constituent authorities. • Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Board’s future service delivery. • There were no financing activities as the board had no requirement to borrow. Further analysis of movements is provided in the cash flow notes following the statement. 2020/21 2021/22 £000 £000 (91) Net deficit / (surplus) on the provision of services (363) 692 Adjust net deficit / (surplus) on the provision of service for non-cash movements 477 2 Adjust for items included in the net deficit / (surplus) on the provision of services that are investing and financing activities 1 603 Net cash flows from operating activities 115 (181) Investing Activities 0 422 Net increase or decrease in cash and cash equivalents 115 1,005 Cash and cash equivalents at 1 April 1,427 1,427 Cash and cash equivalents at 31 March 1,542 Cash Flow Statement Note – Non Cash Movements The balance of non-cash movements is made up of the following elements: 2020/21 2021/22 £000 £000 6 Depreciation, impairment and amortisation of assets 21 (21) Movement in Debtors (14) 263 Movement in Creditors (223) 361 Movement in Pension Liability 725 85 Movement in the Employee Statutory Adjustment Account (31) (2) Interest received (1) 692 Net Cash flows from the provision of services for non-cash movements 477 79
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26 Cash Flow Statement Note – Operating Activities The cash flows for operating activities include the following items: 2020/21 2021/22 £000 £000 2 Interest received 1 0 Interest paid 0 2 Net cash flows from operating activities 1 Cash Flow Statement Note – Cash and Cash Equivalents The balance of Cash and Cash Equivalents is made up of the following elements: 2020/21 2021/22 £000 £000 1,427 Short term deposits 1,542 1,427 Total Cash and Cash Equivalents 1,542 80
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27 Notes to the Financial Statements Note 1: Accounting Policies General Principles Lanarkshire Valuation Joint Board is required to prepare annual accounts by the Local Authority Accounts (Scotland) Regulations 2014, section 12 of the Local Government in Scotland Act 2003 requires they be prepared in accordance with proper accounting practices. The general policies adopted in compiling and presenting the Accounts are those recommended by the Code of Practice on Local Authority Accounting in the United Kingdom 2020/2021 issued jointly by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC), supported by International Financial Reporting Standards (IFRS). There are no significant departures from those recommendations. The Annual Accounts has been prepared under the historic cost convention. All accounting policies have been applied consistently. Debtors and Creditors Accruals basis The Comprehensive Income and Expenditure Statement is compiled on an accruals basis. Income and expenditure activities are accounted for in the year in which they take place, not simply when payments are made or received. Where goods and services have been sold but the income not received by 31 March 2022 or goods have been received but not paid for by 31 March 2022 then the Comprehensive Income and Expenditure Statement has been amended to reflect the outstanding amounts and a debtor or creditor for the relevant amount is recorded in the Balance Sheet. (i) Debtors All specific and material sums payable to the Board have been brought into account. (ii) Creditors Sundry Creditors are accrued on the basis of payments made during the first three weeks following 31 March 2022; together with specific accruals in respect of further material items. (iii) Accumulating Compensated Absences International Accounting Standard 19 (IAS19) states that ‘an organisation should account for employment benefits when employees earn them and the authority is committed to providing them, even if the actual provision might be in future years.’ All salaries and wages earned up to 31 March 2022 are included irrespective of when actual payments were made. The requirements of IAS 19 have been fully applied in the current year, in respect of annual leave provision, including recognition of the net liability and an accumulating compensated absences reserve in the Balance Sheet and entries in the Comprehensive Income and Expenditure Statement for movements in the liability relating to the scheme. (iv) Pension Costs The Board participates, through South Lanarkshire Council, in the Local Government Superannuation Scheme, which is managed by Glasgow City Council. The cost of providing pensions for employees is charged to the Comprehensive Income and Expenditure Statement in accordance with the statutory requirements governing the particular pension schemes to which the Board contributes. The requirements of IAS19 have been fully applied in the current year, including recognition of the net liability and a pensions reserve in the Balance Sheet and entries in the 81
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28 Comprehensive Income and Expenditure Statement for movements in the liability relating to the scheme. Previous year budget and expenditure information has been provided to allow comparability. In assessing liabilities for retirement benefits for the 2021/2022 Annual Accounts, a discount rate based on the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme was used. The Actuary has advised that a rate of 2.7% per annum is appropriate (2020/2021 - 2%). Actuarial Gains and Losses – changes in the net pension liability that arise because of events have not coincided with assumptions made at the last actuarial valuation or because the actuaries have updated their assumptions – debited to the Pension Reserve. (v) Allocation of Central Support Expenses The allocation of Central Support Expenses is the cost of those South Lanarkshire central support departments which provide a service to the Board. The individual support departments are Administration Services, Personnel, Information Technology and Finance Services. The method of allocation is determined by each individual department and in most instances is a time based allocation of employee costs or the recharge of actual costs incurred. The recharge is made on a consistent basis. (vi) Borrowing Facilities The Board is a separate legal entity and has South Lanarkshire Council as its lead authority. The loans’ fund of South Lanarkshire Council acts as banker to the Board and consequently lends or borrows according to the required cash flow and activities of the Board. (vii) Financial Instruments Where an instrument has a maturity of less than 12 months the fair value is taken to be the principal outstanding. Creditors due within 12 months are not classed as a financial instrument. Intangible Assets Expenditure on non-monetary assets that do not have physical substance but are controlled by the Board as a result of past events (for example, software licences) is capitalised when it is expected that it will bring benefits to the Board for more than 12 months. Intangible Assets are measured at cost. The depreciable amount of an intangible asset is amortised over its useful life in the Comprehensive Income and Expenditure Statement. The useful life of these assets is deemed to be 1-5 years. Leases Leases are classified as finance leases where the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the property, plant or equipment from the lessor to the lessee. All other leases are classified as operating leases. The Board as Lessee – Operating Leases Rentals paid under operating leases are charged to the Comprehensive Income and Expenditure Statement as an expense for the use of the leased property, plant or equipment. Property, Plant and Equipment Assets that have physical substance and are held for use in the supply of services or administrative purposes and that are expected to be used during more than one financial year are classified as Property, Plant and Equipment. 82
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29 Recognition Expenditure on the acquisition, creation or enhancement of Property, Plant and Equipment is capitalised on an accruals basis. Expenditure that merely maintains the condition of an asset e.g. repairs and maintenance is charged as an expense when it is incurred. Measurement Assets are initially measured at cost, comprising: • the purchase price • any costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management Assets are then carried in the Balance Sheet using the following measurement bases: • other land and buildings – fair value, determined by the amount that would be paid for the asset in its existing use (existing use value – EUV) • vehicles, plant and equipment – where non- property assets that have short useful lives or low values (or both), depreciated historical cost basis is used as a proxy for fair value Depreciation Depreciation is provided for on all Property, Plant and Equipment assets and is calculated on the following bases: • other buildings – straight-line allocation over the useful life of the property as estimated by the valuer (other buildings 10 – 40 years) • vehicles, plant and equipment – straight line allocation over the useful life of the asset (5 – 20 years) • over the term of the remaining lease of David Dale House. Note 2: Prior Period Adjustments There are no prior period adjustments included within the 2021/2022 Annual Accounts. Note 3: Accounting Standards Issued but Not Adopted The Accounting Code of Practice requires the Board to disclose information relating to the impact of an accounting change that is required by a new standard that has been issued but not yet adopted. For this disclosure, the standards introduced by the 2022/23 Code, which are required to be applied by 1 April 2022, and will be adopted by the Board on 1 April 2022: • Annual Improvements to IFRS Standards 2018-2020 IFRS 1(First Time Adoption) – the amendment relates to foreign operations of acquired subsidiaries transitioning to IFRS. IAS37 (Onerous Contracts) – the amendment clarifies the intention of the standard. IFRS16 (Leases) – the amendment removes a misleading example that is not referenced in the Code material. IAS41 (Agriculture) – one of a small number of IFRSs that are expected only to apply to a small number of local authorities. • Property, Plant and Equipment: Proceeds Before Intended Use This amendment introduces changes to IAS16 Adoption of the standards by the Board on 1 April 2022 is not expected to have any impact on the financial statements. 83
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30 Note 4: Critical Judgements in Applying Accounting Policies In applying the accounting policies, the Board is obliged to highlight whether it has had to make certain judgements about complex transactions or those involving uncertainty about future events. The critical judgements made in the Annual Accounts are: • There is a high degree of uncertainty about future levels of funding for local government in Scotland. However, the Board has determined that this uncertainty is not yet sufficient to provide an indication that the assets of the Board might be impaired as a result of a need to reduce levels of service provision. Note 5: Notes to the Expenditure and Funding Analysis - Adjustments Between Funding and Accounting Basis 2021/22 2021/22 2021/22 2021/22 Adjustments for Capital Purposes (note a) £000 Net Change for the Pensions Adjustments (note b) £000 Other Differences (note c) £000 Total Adjustments between Funding and Accounting Basis £000 Employee Costs - 701 (31) 670 Property Costs - - - - Supplies and Services - - - - Transport and Plant - - - - Administration Costs - (27) - (27) Payments to Other Bodies - - - - Financing Charges 21 - - 21 Total Expenditure 21 674 (31) 664 Income - - - - Net Cost of Services 21 674 (31) 664 Financing and Investment Income and Expenditure - 51 - 51 Surplus or Deficit 21 725 (31) 715 84
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31 2020/21 2020/21 2020/21 2020/21 Adjustments for Capital Purposes (note a) £000 Net Change for the Pensions Adjustments (note b) £000 Other Differences (note c) £000 Total Adjustments between Funding and Accounting Basis £000 Employee Costs - 315 85 400 Property Costs - - - - Supplies and Services - - - - Transport and Plant - - - - Administration Costs - 16 - 16 Payments to Other Bodies - - - - Financing Charges (175) - - (175) Total Expenditure (175) 331 85 241 Income - - - - Net Cost of Services (175) 331 85 241 Financing and Investment Income and Expenditure - 30 - 30 Surplus or Deficit (175) 361 85 271 Note a – Adjustment for Capital Purposes This column adds in depreciation and impairment and revaluation of gains and losses in the financing charges line. Note b – Net Change for the Pensions Adjustment Net change for the removal of pension contributions and the addition of IAS19 Employee benefits pension related expenditure and income: • For Employee Costs and Administration Costs this represents the removal of the employer contributions made by the Board as allowed by statute and the replacement with current service costs and past service costs. • For Financing and Investment Income and Expenditure – the net interest on the defined benefit liability is charged to the Comprehensive Income and Expenditure Statement. Note c – Other Differences Other differences between amounts debited/credited to the Comprehensive Income and Expenditure Statement and amounts payable /receivable to be recognised under statute: • For Employee Costs this represents the accrual made for the cost of holiday/leave entitlements earned by employees but not taken before the year-end which employees can carry forward into the next financial year. These require to be included within the Net Cost of Services under generally accepted accounting practices, however, are not chargeable to the General Fund. Note 6: Adjustments between Accounting Basis and Funding Basis Under Regulations This note details the adjustments that are made to the total Comprehensive Income and Expenditure Statement recognised by the Board in the year in accordance with proper accounting practice to arrive at the resources that are specified by statutory provisions as being available to the Board to meet future revenue expenditure. 85
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32 Useable Reserves £000 £000 2021/22 2020/21 Adjustments to Revenue Resources Pension Costs (transferred to (or from) the Pensions Reserve (3,473) 1,082 Holiday Pay (transferred to the Employee Statutory Adjustment Account) (31) 85 Reversal of entries in the surplus or deficit on the Provision of Services in relation to capital expenditure (these items are charged to the Capital Adjustment Account) 21 6 Total Adjustments to Revenue Resources (3,483) 1,173 Adjustments between Revenue and Capital Resources Capital expenditure finance from revenue balances (transfer to Capital Adjustment Account) 0 (181) Total Adjustments between Revenue and Capital Resources 0 (181) Total Adjustments (3,483) 992 Total Comprehensive Income and Expenditure 3,835 (812) Net Increase / (Decrease) before transfers to / from Reserves 352 180 Increase / (Decrease) in year 352 180 Note 7: Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty The Annual Accounts contain estimated figures that are based on assumptions made by the Board 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 Board’s Balance Sheet at 31 March 2022 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows: Items Uncertainties Effect if Actual Results Differ from Assumptions 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, commissioned by Strathclyde Pension Fund, is engaged to provide the Board with expert advice about the assumptions to be applied. The effect on the net pension asset of changes in individual assumptions can be measured. For instance, a 0.1% decrease in the discount rate assumption would result in an decrease in the pension asset of £0.631m. However, the assumptions interact in complex ways. During 2021/2022, the actuaries advised that the net pension liability had increased by: £2.311m attributable to the updating of financial assumptions; increased by £0.197m attributable to changes in demographic assumptions; and decreased by £0.042m due to other experience. The net liability had increased by £1.732m due to the expected return on pension fund assets. 86
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33 Note 8: Events after the Balance Sheet The unaudited Annual Accounts were authorised for issue by the Treasurer of Lanarkshire Valuation Joint Board on 27 June 2022. There were no events that occurred between 1 April 2022 and the date that the Annual Accounts were authorised for issue that would have an impact on the financial statements. Note 9: Contingent Liabilities Pensions A circular from the Scottish Public Pensions Agency (Local Government Pension Scheme 2020/04) refers to a ruling that same-sex survivors were originally entitled to survivor benefits, taking into account the member’s service from 6 April 1978. Following the Goodwin Tribunal, regulatory amendments will now need to be made with effect from the same date to extend that entitlement to male survivors of female members. While this could have a financial impact on future years’ costs, and the impact cannot yet be quantified, current information from the Board’s actuaries suggests that any impact is likely to be minimal. Given the uncertainty, and the expected immaterial nature of any potential impact, no provision has been made in the Accounts. The Board’s actuaries also highlighted an awareness of 2 other court cases which may impact on pension benefits in the future. The first was the Walker case where it was ruled that surviving spouses in same sex marriages should be entitled to the same benefits as those in different sex marriages and also the O’Brien case where it was ruled that recognition of part time benefits should apply to service for the period prior to 7 April 2000. The actuaries understanding is that these are unlikely to be significant judgements in terms of impact on future pension obligations of Employers. Again, given the uncertainty, and the immaterial nature of any potential impact, no provision has been made in the Accounts. Valuation Appeals Number of Appeals: Voluminous numbers of appeals have been received in connection with the pandemic with the possibility of additional expenditure in legal costs as a consequence of these appeals. However, neither the value nor the timing of these costs can be reliably estimated at this time as legislation drafted by the Scottish Government to assist in dealing with such appeals has yet to be implemented. Accordingly, the Board recognises that a contingent liability may exist in respect of potential costs arising from these appeals. Transfer of the Valuation Appeals Process: The transfer of Valuation Appeal Panel (VAP) activities to the Scottish Courts and Tribunal Service is due to take place on 1 January 2023. This will have no financial impact on the Board as it is expected that VAP costs will be removed from the councils’ settlements and therefore from the income that the Board receives from the councils. Note 10: Leases Operating Leases – LVJB as Lessee: The Board has entered into an operating lease and details are provided across the asset category of Property, Plant and Equipment, and Land and Buildings. Land and Buildings – the Board leases their offices which have been accounted for as an operating lease. The rental payable in 2021/2022 was £0.093m (2020/2021 £0 due to the lease commencing on 1 April 2021). 87
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34 The future minimum lease payments due under non-cancellable leases in future years are: 2021/22 2020/21 £000 £000 Not later than one year 93 93 Later than one year and not later than five years 387 377 Later than five years 343 444 Total 915 914 Note 11: Property, Plant and Equipment 2021/22 2020/21 £000 £000 Cost or Valuation At 1 April 181 0 Additions 0 181 At 31 March 181 181 Accumulated Depreciation At 1 April 4 0 Depreciation 21 4 At 31 March 25 4 Net Book Value at 31 March 156 177 Note 12: Intangible Assets 2021/22 2020/21 £000 £000 Cost or Valuation At 1 April 2 8 Additions 0 0 Derecognition - Disposals (2) (6) At 31 March 0 2 Accumulated Amortisation At 1 April 2 6 Amortisation of Intangible Assets 0 2 Derecognition - Disposals (2) (6) At 31 March 0 2 Net Book Value at 31 March 0 0 Note 13: Short Term Debtors The debtors figure comprises prepayments and is analysed as follows: 2021/22 2020/21 £000 £000 Information Technology Annual Support and Maintenance 71 51 Membership Fees 1 0 Insurance Services 0 7 Total 72 58 88
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35 Note 14: Short Term Creditors The creditors figure is analysed as follows: 2021/22 2020/21 £000 £000 Valuation Appeal Panel – Fees 21 25 Royal Mail – Postal Charges 0 8 North Lanarkshire Council – Convenor Salary 6 0 Accumulated Compensated Absences – Annual Leave 95 126 Other – Employee Cost Accrual 102 111 Registers of Scotland 1 0 Scottish Government – Barclay Underspend 0 209 Total 225 479 Note 15: Related Party Transactions The Board is required to disclose material transactions with related parties. During the year transactions arose with the following related parties: 2021/22 2021/22 2020/21 2020/21 Receipts Payments Receipts Payments £000 £000 £000 £000 South Lanarkshire Council 2,265 371 2,208 684 North Lanarkshire Council 2,106 6 2,195 5 Fife Council - 1 0 0 Total 4,371 378 4,403 689 The Board occupied the premises at David Dale House, 45 John Street, Blantyre, G72 0JG during 2021/22, and are recharged for the cost of accommodation by South Lanarkshire Council. Included within payments to South Lanarkshire Council is a charge of £0.201m for the lease of office accommodation at David Dale House (2020/21: £0.318m for the annual rental of office accommodation at Hamilton Academical’s Football Stadium). Note 16: Defined Benefit Pension Schemes As part of the terms and conditions of employment, the Board offers retirement benefits. The Board participates in the Local Government Pension Scheme (Strathclyde Pension Fund), a funded defined benefit scheme, administered by Glasgow City Council. The scheme is supported by contributions from both employer and employees. Transactions relating to Retirement Benefits The cost of retirement benefit is recognised in the reported cost of services when it is earned by the Board’s employees, rather than when the benefits are eventually paid as pensions. However, the charge that is statutorily required to be made against the Board’s funding from councils is based on the pension contributions payable by the Board in the year, and an adjustment is made in the Movement in Reserves Statement to this effect. The following transactions have been made in the Comprehensive Income and Expenditure Statement. 89
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36 Comprehensive Income and Expenditure Statement 2021/22 2020/21 £000 £000 Cost of Services: Service cost comprising: • Current service cost 1,109 749 • Past Service Cost (including curtailments) 0 0 Financing and Investment Income and Expenditure • Net interest expense 51 30 Total post-employment benefit charged to the Deficit on the Provision of Services 1,160 779 Other Post Employment Benefit Charged to the Comprehensive Income and Expenditure Statement: Re-measurement of the net defined benefit liability/(asset) comprising: • return on pension fund assets 1,732 5,759 • actuarial gains or losses arising on changes in demographic assumptions 197 743 • actuarial gains or losses arising on changes in financial assumptions 2,311 (6,634) • actuarial gains or losses arising on changes in other experience (42) (589) Total post-employment benefit charged to the Comprehensive Income and Expenditure Statement 4,198 (721) Net Charge to the Surplus/Deficit on the Provision of Services brought forward 1,160 779 Movement In Reserves Statement • reversal of net charges made to the surplus or deficit for the provision of services for post-employment benefits in accordance with the Code (725) (361) Actual amount charged against the General Fund balance for pensions in the year: • employers’ contributions payable to the scheme 435 418 Pensions Assets and Liabilities Recognised in the Balance Sheet The amount included in the Balance Sheet arising from the Lanarkshire Valuation Joint Board’s obligation in respect of its defined benefit plan is as follows: 2021/22 2020/21 £000 £000 Present value of the defined obligation (31,554) (32,593) Fair value of pension fund assets 32,827 30,393 Net liability arising from defined benefit obligations 1,273 (2,200) A reconciliation of the Board’s share of the present value of the Fund’s defined obligation is as follows: 90
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37 2021/22 2020/21 £000 £000 Opening Balance at 1 April (32,593) (26,356) Current Service Cost (1,109) (749) Interest Cost (659) (611) Contributions by scheme participants (142) (135) Re-measurement gains / (losses) • actuarial gains / (losses) arising on changes in demographic assumptions 197 743 • actuarial gains / (losses) arising from changes in financial assumptions 2,311 (6,634) • actuarial gains / (losses) arising from changes in other experience (42) 700 Past service gains / (losses) - - Settlements and curtailments - - Estimated Unfunded benefits paid 25 25 Estimated Benefits paid 458 424 Closing Balance at 31 March (31,554) (32,593) A reconciliation of the movement in the Board’s share of the fair value of the Fund’s assets is as follows: 2021/22 2020/21 £000 £000 Opening Fair Value of Pension Fund Assets 30,393 25,238 Interest Income 608 581 Re-measurement gains and (losses) • expected return on pension fund assets 1,732 5,759 • actuarial gains and losses - - • other experiences - (1,289) The effect of changes in foreign exchange rates - - Contributions by members 142 135 Contributions by the employer 410 393 Contributions in respect of Unfunded Benefits 25 25 Benefits Paid (483) (449) Closing Fair Value of the Scheme Assets 32,827 30,393 91
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38 Analysis of Pension Fund Assets 31/03/22 31/03/21 Quoted prices in active markets Quoted prices not in active markets Total Quoted prices in active markets Quoted prices not in active markets Total £000 £000 £000 £000 £000 £000 Cash and Cash Equivalents 824 11 835 490 21 511 Equity Instruments 7,218 16 7,234 7,099 33 7,132 Debt Instruments 0 0 0 0 0 0 Real Estate 0 2,768 2,768 0 2,462 2,462 Derivatives 0 0 0 5 0 5 Private Equity 0 6,426 6,426 0 5,436 5,436 Investment Funds 182 15,382 15,564 286 14,561 14,847 Asset Backed Securities 0 0 0 0 0 0 Structured Debt 0 0 0 0 0 0 Total 8,224 24,603 32,827 7,880 22,513 30,393 Basis for Estimating Assets and Liabilities Liabilities have been assessed on an actuarial basis using the projected unit credit method, to provide an estimate of the pensions that will be payable in future years dependant on assumptions about mortality rates, salary levels etc. The Local Government Pension Scheme has been assessed by Hymans Robertson LLP, an independent firm of actuaries, with estimates for the Strathclyde Pension Fund being based on the latest valuation of the scheme as at 31 March 2020. The principal assumptions used by the actuary were: 2021/22 2020/21 Years Years Mortality Assumptions: Longevity at 65 for current pensioners • Male 19.6 19.8 • Female 22.4 22.6 Longevity at 65 for future pensioners • Male 21.0 21.2 • Female 24.5 24.7 Financial Assumptions: % % Rate of inflation / pension increase rate 3.2 2.85 Rate of increase in salaries 3.9 3.55 Expected return on assets 7.7 2.0 Rate for discounting scheme liabilities 2.7 2.0 Take up option to convert annual pension into retirement lump sum Pre April 2009 / (Post April 2009) 50(75) 50 (75) The estimation of the defined benefit obligation is sensitive to the actuarial assumptions set out in the table above. The sensitivity analyses below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period 92
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39 and assumes for each change that the assumptions analysed changes while all the other assumptions remain constant: Approximate % increase in employer’s liability Approximate monetary amount Change in assumption at 31 March 2020 £000 0.1% decrease in real discount rate 2% 631 1 year increase in member life expectancy 4% 1,262 0.1% increase in the salary increase rate 0% 94 0.1% increase in the pension increase rate 2% 531 Asset and Liability Matching Strategy The Fund has an asset and liability matching (ALM) strategy that matches, to the extent possible, the types of assets invested to the liabilities in the defined benefit obligation. The Fund has matched assets to the pension obligations by investing in long-term fixed interest securities and index linked gilt edged investments with maturities that match the benefits payments as they fall due. A large proportion of the assets relate to equities (79%) and bonds (10%). The scheme also invests in properties (8%) and cash (3%). The comparative year’s figures for equities and bonds are 76% and 14% respectively. The ALM strategy is monitored annually or more frequently if necessary. Impact of Covid-19 The Fund’s actuary confirmed that the IAS19 Balance Sheet is based on financial market values and future market expectation indicators as at 31 March to comply with the standard. The financial markets at the accounting date will have taken into account COVID-19 risks as one of the many national and worldwide economic considerations. There has been no explicit additional allowance or adjustment made for COVID-19 by the actuary. Impact of Ukraine War The Fund’s actuary confirmed that the IAS19 Balance Sheet is based on financial market values and future market expectation indicators as at 31 March to comply with the standard. The financial markets at the accounting date will have taken into account the risks of the war as one of the many national and worldwide economic considerations. There has been no explicit additional allowance or adjustment made for the Ukraine War by the actuary. Impact on the Board’s Cash Flow The objectives of the fund are to keep employers’ contributions at a constant a rate as possible. The Fund has an agreed strategy to achieve a funding rate of 100% in the longer term. The Scheme is a multi-employer defined benefit plan and employers’ contributions have been determined so that employee and employer rates are standard across all participating local authorities. Employers’ contributions were set at 19.3% for 2021/2022 based on the last triennial valuation completed on 31 March 2020. This same employers’ contribution rate (19.3%) has been set for the next year (2022/2023). 93
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40 The total contributions expected to be made by the Board to the Fund for the year ending 31 March 2023 is approximately £0.410m. The weighted average duration of the defined benefit obligation for Fund members is 20 years. Note 17: External Audit Costs The Board has incurred the following external audit costs: 2021/22 2020/21 £000 £000 Fees payable to Audit Scotland with regard to external audit services carried out by the appointed auditor for the year 8 8 Total 8 8 Note 18: Grant Income The following Government Grants were received during the year: 2021/22 2020/21 £000 £000 Cabinet Office Funding 0 20 Scottish Government Grant 0 31 Scottish Government Grant – Barclay Funding (2020/21 allocation of £0.594m less £0.209m underspend returned) 704 385 Total 704 436 94
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41 Note 19: Balance Sheet – Reserves Unusable Reserves 2021/22 2020/21 Capital Adjustment Account Pension Reserve Employee Statutory Adj. Account Total Capital Adjustment Account Pension Reserve Employee Statutory Adj. Account Total £000 £000 £000 £000 £000 £000 £000 £000 Opening Balance 1 April 177 (2,200) (121) (2,144) 2 (1,118) (36) (1,152) Movement in Pension Reserve - 3,473 - 3,473 - (1,082) - (1,082) Movement in Annual Leave Accrual - - 31 31 - - (85) (85) Capital Expenditure charged against the General Fund - - - - 181 - - 181 Charges for Depreciation of Non Current Assets (21) - - (21) (4) - - (4) Amortisation of Intangible Assets - - - - (2) - - (2) Closing Balance as at 31 March 156 1,273 (90) 1,339 177 (2,200) (121) (2,144) Usable Reserves 2021/22 2020/21 General Fund Reserve Total General Fund Reserve Total £000 £000 £000 £000 Opening Balance 1 April 1,127 1,127 947 947 Increase / (Decrease) in Reserve 352 352 180 180 Closing Balance as at 31 March 1,479 1,479 1,127 1,127 95
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42 Note 20: Financing and Management of Liquid Resources Liquid resources are held by South Lanarkshire Council as lead authority and are available to the Board as required. Note 21: Comprehensive Income and Expenditure Statement – financing and investment income and expenditure 2021/22 2020/21 £000 £000 Pension Interest Cost and Expected Return on Pensions Assets 51 30 Total 51 30 Note 22: Going Concern As at 31 March 2022, the Balance Sheet of the Board shows a Net Asset position of £2.818m. This is made up of a net Long Term Pension Reserve of £1.273m and net assets of £1.545m. There are statutory arrangements for funding the long-term deficit in respect of the net pension liability and the statutory accumulated absences, as detailed in the Movement in Reserves Statement on page 23, leaving a General Fund Reserve of £1.479m to be carried forward for use in future years. This will be taken into account in future years’ budget strategies. 96
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43 Audit Arrangements Under arrangements approved by the Commission for Local Authority Accounts in Scotland (“The Accounts Commission”), the auditor with overall responsibility for the audit of the accounts of the Lanarkshire Valuation Joint Board for the year ended 31 March 2022 is: Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN 97
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Treasurer to Lanarkshire Valuation Joint Board Subject: Financial Strategy 2023/2024 to 2025/2026 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide a Financial Strategy for Lanarkshire Valuation Joint Board over the medium term for years 2023/2024 to 2025/2026 provide a Reserves Strategy for Lanarkshire Valuation Joint Board [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that the Financial Strategy outlined in the report, be approved. [1recs] 3. Background 3.1. A revised medium-term financial strategy for 2021/2022 to 2023/2024 was presented to the Board in December 2020. This detailed the planned approach to managing the Board’s budget over the coming years and explained the planned use of Reserves until end 2023/2024. 3.2. This strategy was based on using £0.175 million of Reserves in its final year and acknowledged that as the reliance on the use of Reserves is not sustainable in the longer term, the Board were required to make efficiency savings of £0.175 million over the next three years, to cover the use of Reserves after 2023/2024. 3.3. Following the 2021/2022 financial year-end, there will be a balance on Reserves of £1.479 million for use in 2022/2023 and beyond. This is the position on which the Medium-Term Strategy will be based. The significant Reserves position mainly reflects the difficulties in recruitment and retention of staff, particularly across the years of the pandemic, and necessitates a review of the Strategy. 3.4. Scottish Government Barclay funding has been allocated to the Board in recent years and there is an agreed allocation for 2022/2023. Due to the timing of the confirmation, the Barclay funding was not reflected in the approved budget for 2022/2023, however, it will be added to the budget in a separate report to this meeting. The value for 2022/2023 is £0.698 million. The level of funding beyond 2022/2023 is unknown and there is still a level of uncertainty regarding the future funding of the Barclay recommendations and the timescales for these. As such, an estimation will be made regarding the spend and income associated with the Barclay implementation. This will be reflected in the Board’s Medium-Term Strategy. 10 99
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3.5. The purpose of this paper is to present a new Medium-Term Strategy for the Board’s Budget, following completion of the 2021/2022 year-end and the setting of the 2022/2023 Budget. In relation to the Board’s budget strategy, the continued increase in workload across all three key business areas of the Board (Non- Domestic Valuation, Council Tax Valuation and Electoral Registration) mean that ways of maintaining service delivery and compliance with statutory duties of the Assessor and Electoral Registration Officer, against a backdrop of budgetary pressures, continue to be reviewed and are reflected in the strategy proposed in this paper. 3.6. Section 4 provides a reminder of the 2022/2023 Budget as the starting point for the Medium-Term Strategy, including the level of Reserves available for 2022/2023 and beyond. Section 5 will detail the Strategy for the Medium Term from 2023/2024 to 2025/2026. 4. 2022/2023 Budget and Reserves Position 4.1. The Board’s budget for 2022/2023 was approved by the Board on 6 December 2021. This budget excluded the additional funding provided for the implementation of the Barclay Review and any related spend, however, this has now been notified to councils and is included in Table 1. The details of this and budget movements are included in a separate report to this meeting (Revenue Budget Monitoring 2022/2023). This will be the starting point for the Medium-Term Strategy for financial years 2023/2024 to 2025/2026. 4.2. Table 1 summarises 2022/2023 budget including the funding from Contributions and Reserves. Table 1 – 2022/2023 Budget Base £m Barclay & Budget Movement £m Total £m 2022/2023 Expenditure Budget 3.665 0.600 4.265 Funded By: 2022/23 Conbtributions 2022/23 Use of Reserves 3.472 0.193 0.733 (0.133) 4.205 0.060 2022/2023 Income Budget 3.665 0.600 4.265 4.3. As noted in Table 1, Reserves of £0.060 million are being used as part of the Board’s funding in 2022/2023. At the end of financial year 2021/2022, the balance on Reserves is £1.479 million. Taking into account the use of £0.060 million in 2022/2023 will leave £1.419 million for future years. This equates to 33% of the Board’s annual budget for 2022/2023. 5. Medium Term Financial Strategy – 2023/2024 to 2025/2026 5.1. As noted in section 4.3, following the final year end position for 2021/2022 and the use of Reserves for the 2022/2023 Budget Strategy, there is a balance of £1.419 million available in Reserves. This is a significant level of reserves, however, the strategy detailed in the paragraphs below will demonstrate how these reserves will be used, and why this level is considered appropriate. 100
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5.2. Appendix 1 shows the budget for 2022/2023 (and beyond), taking 2022/2023 as the starting point. Appendix 1 also shows the proposed Strategy for the Board over the next 3 years to the end of 2025/2026. The main principles on which the Strategy are based are:- • That the Employee Cost Budget reflects the progression of staff through pay grades, in line with agreed pay structures. • That price increases, pay awards and an estimated 1% reduction in contributions are managed by efficiencies generated by the Board in each year. • That the budget includes a staff turnover target of 4% per annum (based on prior years’ experience this is considered realistic). • That the pay award is higher than originally budgeted at 2% for 2022/2023, and then is assumed at 1% for the following 3 years. This is an area of risk. • That the transfer of Valuation Appeal Panel activities to the Scottish Courts and Tribunal Service will have no financial impact (the money will be removed from the councils’ settlements and therefore from the income the Board receives from councils). • That the Barclay funding is assumed at the same level as 2022/2023, as no information is known beyond that year. • That this position may be affected by further in-year underspends that have not yet been foreseen. 5.3. As part of the Strategy, reflecting the level of reserves held, the level of Council contributions that will be paid to LVJB have been reduced by £0.050m in 2023/2024 and a further £0.050m in 2024/2025. This means that each council’s contribution will reduce by £0.025m in 2023/2024 and a further £0.025m in 2024/25. 5.4. Table 2 summarises the impact on Reserves across the 3 years of the Strategy (full detail is shown in Appendix 1). Table 2 shows that by applying the principles noted in 5.2, the Board would have a balance of £0.502 million at the end of 2025/2026. Table 2 – Reserves Forecast and strategy 2022/23 (year 0) £m 2023/24 (year 1) £m 2024/25 (year 2) £m 2025/26 (year 3) £m Opening Balance 1.479 1.419 1.237 0.905 Proposed Utilisation of Reserves (0.060) (0.182) (0.332) (0.403) Closing Balance 1.419 1.237 0.905 0.502 5.5. Table 2 shows that at the end of the Strategy period, the Board will have a balance on Reserves of £0.502 million. This is after a reduction in councils’ contributions of £0.050m in 2023/24 and 2024/25. This still represents a significant balance. The reason it is considered appropriate to work towards holding this level of reserve relates to a risk that funding for Barclay may not be recurring. 5.6. This strategy is required because there are uncertainties for the Board in relation to the implementation of the Barclay recommendations. The Scottish Government cannot guarantee at this stage a continuation of funding beyond the current parliamentary term. There is currently £0.698m per annum of funding provided for Barclay, and this is spent mainly on staffing. This strategy assumes all in year monies for Barclay will be spent. 101
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5.7. Beyond 2025/2026, the Board will require to cover the risk of the Barclay funding being reduced or removed. Therefore a £0.502m balance of reserves is considered reasonable to mitigate this risk. 5.8. In 2025/2026, there is still a reliance on reserves (£0.403 million). We will undertake a review of this reliance in the last year of the Strategy (2025/2026). This will be presented to the Board as required 5.9. There is no prescribed minimum or maximum level of Reserves which should be held by a Joint Board. However, it is appropriate that the Board hold some monies in reserve which can be utilised as and when the need arises in any financial year. To facilitate this, notwithstanding the position as detailed in Table 2 / Appendix 1, any underspends which may arise in year, will be transferred to Reserves at the end of the financial year. This gives the Board flexibility in managing its budget across years. 5.10. As a body that is funded by contributions from councils under the direction of the Board, the Board will manage its budget in year with any risk items identified to the Treasurer as required. Any budget pressures and funding solution would be considered by the Assessor and Electoral Registration Officer and the Treasurer. 6. Employee Implications 6.1. There are no direct employee implications contained within this report. 7. Financial Implications 7.1. The Reserves balance is £1.479 million at the end of 2021/2022, as detailed in the Revenue Budget Monitoring 2021/2022 report. Of this, £0.060 million is committed to the 2022/2023 Budget, leaving a balance of £1.419 million. 7.2. The Strategy proposed in Section 5 presents the Board with a proposed approach to managing the budget over the years beyond 2022/2023. This is alongside the uncertainties facing the Board in relation to the increased workloads as a result of Barclay recommendations and future funding. 7.3. Appendix 1 demonstrates that if the Board’s expenditure is incurred in line with the budget, and includes efficiencies to cover employee costs, pay award and price increases, then the Reserves balance will be at £0.502 million at the end of 2025/2026. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 9. Other Implications 9.1. The main risk in setting this budget is that there is no additional Barclay funding and that the level of expenditure cannot be managed within the budget set. Information will be provided via COSLA and the Scottish Government regarding future funding. 9.2. An additional risk associated with the Valuation Board’s Budget Strategy is that an overspend occurs as a result of the increased workload across the three main service delivery areas. There is also a risk that efficiency savings become unachievable for the Board, and this could impact on the level of contributions from the constituent authorities. These risks are managed through four weekly Budget Monitoring Meetings at which any variance is analysed. In addition, the probable 102
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outturn exercise each year ensures early warning for corrective action to be taken where appropriate, including the reliance on a greater use of Reserves monies in any one year. 10. Equality Impact Assessment and Consultation Arrangements 10.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 10.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Paul Manning Treasurer 15 June 2022 Previous References Financial Strategy 2019/20 to 2021/22 and Longer-Term Outlook – 5 March 2018 Revenue Budget 2022/2023 – Lanarkshire Valuation Joint Board – 6 December 2021 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Lorraine O’Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk. 103
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Appendix 1 Revenue Budget Strategy 2022/2023 (year 0) 2023/2024 (year 1) 2024/2025 (year 2) 2025/2026 (year 3) £ £ £ £ Base Expenditure Budget - 4.265 4.302 4.367 Pay Strategy and Recruitment - 0.072 0.100 0.071 Pay Award - 0.060 0.030 0.030 Price Increases - 0.006 0.006 0.012 Efficiency Savings - to meet Pay Award (£0.060m), Price Increases (£0.006m) and Grant Reduction (£0.035m) - (0.101) (0.071) (0.077) Total Expenditure 4.265 4.302 4.367 4.403 Estimated Income Council Contribution Payments (incl £0.050m in 2023/24 and 2024/25) 3.507 3.457 3.372 3.337 Less Reduction in Grant pa (at 1%) - (0.035) (0.035) (0.035) Barclay Funding 0.698 0.698 0.698 0.698 Revised Council Contributions including Barclay funding 4.205 4.120 4.035 4.000 Reserves 0.060 0.182 0.332 0.403 Total Estimated Income 4.265 4.302 4.367 4.403 Reserves 2022/2023 2023/2024 2024/2025 2025/2026 £m £m £m £m Opening Balance 1.479 1.419 1.237 0.905 Transfer to / (from) Reserves (0.060) (0.182) (0.332) (0.403) Closing Balance 1.419 1.237 0.905 0.502 104
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Assessor and Electoral Registration Officer Subject: Who we are and What we do 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] Present to members of the Joint Board for information, a document titled Who we are and What we do, outlining the main undertakings of the Office of the Assessor and Electoral Registration Officer [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that the content of the report be noted. [1purpose] 3. Who we are 3.1. The document provides a brief description of the Valuation Joint Board, the members of the Board, the Assessor, and the Electoral Registration Officer. These are contained in section 1 of the document. 4. What we do 4.1 Section 2 through to 5 of the document highlights the main undertakings in relation to the three core statutory duties of the Assessor and Electoral Registration Officer, namely:- ➢ The compilation and maintenance of the Valuation Roll for Lanarkshire ➢ The compilation and maintenance of the Valuation List for Lanarkshire ➢ The compilation and maintenance of the Electoral Registers for Lanarkshire 5. Employee Implications 5.1 None. 6. Financial Implications 6.1 None. 7. Climate Change, Sustainability and Environmental Implications 7.1 There are no climate change, sustainability, or environmental implications in terms of the information contained in this report. 8. Other Implications 8.1. There are no implications for risk in terms of the information contained in this report. 11 105
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9. Equality Impact Assessment and Consultation Arrangements 9.1 This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 9.2 There is no requirement for consultation in respect of this report. 10. Privacy Impact Assessment 10.1 This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. Gary Bennett BSc MSc AEA (Cert-Scotland) MRICS IRRV (Hons) Assessor and Electoral Registration Officer 9 June 2022 Previous References None List of Background Papers None Contact for Further Information If you would like further information, please contact:- Gary Bennett, Assessor and Electoral Registration Officer Phone: 01698 476078 E-mail: assessor@lanarkshire-vjb.gov.uk 106
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Serving North & South Lanarkshire The office of the Assessor & Electoral Registration Officer Who we are & What we do 107
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LANARKSHIRE VALUATION JOINT BOARD Our Core Purpose To prepare, maintain and update an accurate Valuation Roll, Valuation List (Council Tax) & Electoral Register having regard to statutory requirements. Our Vision Our vision is to deliver quality in the work which we undertake, provide efficient services to all service users, and ensure completeness and accuracy of the Electoral Register, Valuation Roll and the Valuation (Council Tax) List. In Order That We Achieve Our Vision We Will: • Ensure that our services are delivered in accordance with all statutory requirements • Plan service development and delivery in accordance with the principles of efficient government and continuous improvement • Undertake customer care surveys to assist us in improving our service delivery • Recognise our employees as both stakeholders and our most important asset • Take individual and collective responsibility for the services provided by LVJB • Encourage innovation and recognise achievement within the organisation • Monitor and report performance levels to stakeholders • Integrate Equalities issues into all aspects of our service provision • Undertake our duties having regard to sustainability • Build on our achievements to date 108
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Index Section Page Who we are 1.0 1 The Valuation Joint Board 1.1 1 Members of the Joint Board 1.2 1 The Assessor 1.3 1 The Electoral Registration Officer 1.4 1 What we do 2.0 2 Duties of the Assessor under the Lands Valuation Acts 2.1 2 The Scottish Assessors Association 2.2 2 The Valuation Roll 3.0 3 Valuation Appeal Committee 3.1 3 Lands Tribunal for Scotland 3.2 4 Lands Valuation Appeal Court 3.3 4 Council Tax 4.0 5 The Valuation (Council Tax) List 4.1 5 Dwellings 4.2 5 Council Tax Valuation Bands 4.3 6 Statutory Assumptions Applied to Banding 4.4 6 New Houses 4.5 6 Council Tax Proposals 4.6 6 Material Reduction in Value 4.7 7 Material Increase in Value and Subsequent Sale 4.8 7 Correction of Errors 4.9 7 The Register of Electors 5.0 8 Register Updates (Rolling Registration) 5.1 8 Annual Canvass 5.2 8 The Open Register 5.3 8 Qualifying to Vote 5.4 9 Commonwealth Countries 5.5 9 British Overseas Territories 5.6 9 British Crown Dependencies 5.7 10 Overseas Electors 5.8 10 Homeless People 5.9 10 Service Electors 5.10 10 The Absent Voters’ List 5.11 11 Elections Act 2022 5.12 11 Further Information 5.13 11 Equal Opportunities 6.0 11 Summary 7.0 12 Contact Information 8.0 12 109
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-1- 1.0 Who we are Lanarkshire Valuation Joint Board is a statutory public authority which oversees and scrutinises the office of the Assessor for Lanarkshire and the Electoral Registration Officer for North Lanarkshire and South Lanarkshire. 1.1 The Valuation Joint Board Lanarkshire Valuation Joint Board was established by the Valuation Joint Boards (Scotland) Order 1995 to allow for the valuation functions of North Lanarkshire Council and South Lanarkshire Council to be discharged jointly following local government reorganisation in 1996. 1.2 Members of the Board The Order specified that the Lanarkshire VJB should have 16 members; 8 being from North Lanarkshire Council and 8 from South Lanarkshire Council. The Board also acts as a Joint Committee for the purpose of discharging the electoral registration duties of both authorities. The Board must appoint a convener and depute convener who cannot be from the same authority and must also appoint a clerk and a treasurer. Acting as a valuation authority the Board must also appoint an Assessor and as a joint electoral committee have appointed the Assessor as the Electoral Registration Officer. 1.3 The Assessor Since the enactment of the Lands Valuation (Scotland) Act 1854, Assessors have been responsible for the valuation of all heritable properties for local taxation purposes within their respective valuation areas. Assessors are statutory independent officials and are currently appointed under section 27 of the Local Government etc. (Scotland) Act 1994 for the purposes of the Valuation Acts. In the case of Lanarkshire the Non-Domestic Rating (Valuation of Utilities) (Scotland) Order 2005 designates the Assessor for Lanarkshire VJB to be responsible for the valuation of all electricity generation, transmission and distribution properties throughout Scotland where such properties are in two or more valuation areas. Although independent, the actions of the Assessor are subject to scrutiny through the Board. Additionally, there exists an independent appeals process where values for non-domestic subjects and council tax bands may be challenged. The Scottish Public Services Ombudsman also looks at complaints of most Scottish public bodies, including those for the Joint Board, as the final stage in handling complaints. 1.4 The Electoral Registration Officer The Electoral Registration Officer (ERO) is also a statutory independent official appointed by the local authority to prepare and maintain the Register of Electors. North and South Lanarkshire have appointed the Assessor as ERO for their area. The actions of the ERO are also subject to appeal to the Sheriff Court. 110
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-2- 2.0 What we do The Valuation Joint Board is essentially the vehicle for carrying out the statutory duties of the Assessor under the body of law known as the Lands Valuation Acts and the statutory duties of the Electoral Registration Officer under the Representation of the People Act and associated legislation. 2.1 Duties of the Assessor under the Lands Valuation Acts It is the duty of the Assessor to make up a Valuation Roll for his/her valuation area in respect of each year of revaluation. As noted above, for the purposes of certain electricity subjects, the Assessor for Lanarkshire’s valuation area can extend to the whole of Scotland. The Assessor is also required by the Local Government Finance Act 1992 to compile and maintain a Valuation List for each of his councils. These lists must show each dwelling which is in the council area and the valuation band applicable to it. 2.2 The Scottish Assessors’ Association The Scottish Assessors’ Association (SAA) was instituted in 1975 at the time of local government reorganisation and is the successor body to the Association of Lands Valuation Assessors of Scotland (1957) and earlier bodies extending back to The Association of Lands Valuation Assessors (1886). The SAA continued in being after the 1996 reorganisation of Scottish local government and operates in terms of a formal constitution. Although a voluntary organisation, all Assessors and their senior staff are members of the Association. One of the principal functions of the Association is to facilitate a consistency of approach in the administration of the valuation, council tax and electoral registration services. The decisions of the Association have a bearing on how individual Assessors carry out their statutory duties, but each Assessor is an independent official. The Association has an executive committee containing four Assessors (with each executive member generally holding a particular position on the executive for a period of two years before another Assessor is nominated onto the executive) and works through a series of standing committees, chaired by an Assessor, and associated Working Groups, which meet in advance of plenary sessions which are attended by representatives from all Assessors’ offices across Scotland. The SAA liaises with the Valuation Office Agency (VOA) in England and Wales, the Northern Ireland Valuation and Lands Agency (NIVLA) and the Republic of Ireland Valuation Office (RIVO) in matters of common interest. Lanarkshire Valuation Joint Board is represented on all of these committees and on the harmonisation groups with colleagues in other parts of the U.K. and Ireland. Further information, including details of interactive services provided by the SAA, can be found on its Portal at www.saa.gov.uk . 111
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-3- 3.0 The Valuation Roll The Valuation Roll is a public document which contains an entry for all non-domestic properties in the Assessor’s area except those specifically excluded by law. Each entry in the Roll includes the names of the proprietor, tenant and occupier as appropriate, the Net Annual Value which has been set by the Assessor and the Rateable Value. The Rateable Value is derived from the Net Annual value and as legislation currently stands, for the majority of properties, Rateable Value and Net Annual Value are the same. The Valuation Roll for South Lanarkshire also contains entries for the electricity subjects located throughout Scotland where the Assessor for Lanarkshire is responsible for their valuation. The Valuation Roll entry for any property in Scotland can be checked by using the search facility on the SAA’s portal website www.saa.gov.uk . Summary valuations are also available on this site for a range of properties. Values are established at a Revaluation which, in Scotland, are legislated to occur every three years commencing on 1 April 2023. A Revaluation results in the production of a new Valuation Roll which contains revised values for all non-domestic properties in the Assessor’s area. New properties are added to the Roll as they become capable of beneficial occupation and entries for demolished buildings are deleted. Typically, LVJB staff would expect to make over 1,000 such changes to the local valuation roll each year, depending on fluctuating activity in the local property market. The Assessor is required to notify relevant proprietors, tenants and occupiers of changes which he/she makes to the Valuation Roll by issuing a Valuation Notice. All of these interested parties have a right to appeal the valuation set by the Assessor to an independent local valuation appeal committee. Following the publication of the Barclay Review of Non-Domestic Rates in Scotland, the Non- Domestic Rates (Scotland) Act 2020 was implemented and introduces significant changes to Assessors’ workload, not least in moving from a five yearly revaluation with a tone date two years prior to a new valuation roll coming into force, to three yearly revaluations with a one year tone date. 3.1 Valuation Appeal Committee Most appeals are settled between Assessors’ staff and the ratepayer or appointed agent. However, if a settlement cannot be achieved the appeal is heard by an independent Valuation Appeal Committee. Members are drawn from an Appeal Panel appointed by the Sheriff Principal and are independent of the Assessor, local council, or Valuation Joint Board. Committees are assisted by a Secretary, usually a qualified solicitor (also appointed by the Sheriff) who provides advice on the law and procedure, but who takes no part in the decision making process. Members of the Panel are usually unqualified in valuation or legal matters but are appointed because they are local ratepayers or council tax payers. The proceedings are relatively formal, and witnesses can be called and placed on oath by the Committee Chairman. A Committee usually comprises between 3 and 8 members. Sometimes the Assessor will conduct his/her own case or be represented by a member of staff and at other times he/she will be represented by an Advocate or Counsel. Ratepayers (and Council Tax 112
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-4- payers) are entitled to appear in person to present their own case or can be legally represented. A surveyor, family member or friend can also appear on behalf of the appellant. The Chairman is responsible for the conduct of the hearing and will give advice and guidance as to the procedure to be followed at any time during the hearing. This committee system is due to be replaced on 1 January 2023 by a new appeal system under the Scottish Courts and Tribunals Service (SCTS). 3.2 Lands Tribunal for Scotland In general terms, where a valuation appeal is particularly complex or may set a precedent the Assessor or ratepayer can ask to have the appeal heard by the Lands Tribunal for Scotland. In such cases the Assessor will usually be represented by an Advocate or Counsel. The Lands Tribunal for Scotland is an independent civil court. It has statutory power to deal with various types of dispute involving land or property including matters of dispute in valuations for rating on non-domestic properties. The circumstances and manner in which reference of an appeal against an entry in the valuation roll may be made to the Lands Tribunal is a matter for regulations made by the Secretary of State. An application for referral to the Lands Tribunal must be made to the Valuation Appeal Committee and include representations in relation to the following matters which provide the grounds on which a referral request may be made, namely that: (a) The facts of the case are complex or highly technical; (b) The evidence to be given by expert opinion is complex or highly technical; (c) The law applicable to the case is uncertain or difficult to apply; (d) The law applicable to the case raises a fundamental or general issue likely to be used as a precedent in other cases; (e) The subjects relate to more than one valuation area and the valuation is appealed in more than one such area. Appeals heard by the Lands Tribunal for Scotland are due to be dealt with under the new set up within the Scottish Courts and Tribunals Service (SCTS) with effect from 1 January 2023. 3.3 Lands Valuation Appeal Court A decision of the Valuation Appeal Committee or the Lands Tribunal for Scotland can be appealed to the Lands Valuation Appeal Court. Such an appeal takes the form of a stated case. The case is to be stated to the judges of the Lands Valuation Appeal Court, which is a civil court in Scotland composed of 3 Court of Session judges. The procedure involves LVJB staff preparing transcripts, making representations and observations on draft stated cases, and liaising with Counsel on grounds/answers to grounds of appeal in preparation for the case being heard at the Court of Session in Edinburgh. 113
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4.0 Council Tax
The Assessor is responsible for the preparation and maintenance of the Valuation (Council
Tax) List, which places each domestic property ("dwelling") in one of eight valuation bands
(Bands A – H).
4.1 The Valuation (Council Tax) List
The Valuation (Council Tax) List is a public document and contains the addresses and
Council Tax bands of all domestic properties (“dwellings”) in the valuation area. It can be
inspected at the Joint Board’s office in Blantyre. A Valuation (Council Tax) List entry for any
domestic property in Scotland can also be checked by using the search facility on the
Scottish Assessors’ portal website www.saa.gov.uk .
4.2 Dwellings
In general terms any kind of house or flat will be determined as a dwelling if it used as such,
including second homes. Caravans count as dwellings if they are someone’s main home.
Certain properties in multiple occupation, where facilities are shared, may count as one or
more dwellings depending on the detailed occupation arrangements.
The band reflects the Assessor’s opinion of the property’s open market value as at 1 April
1991, but taking account of its physical state and its locality as at 1 April 1993 (for new
dwellings the date of valuation is still 1 April 1991 but taking account of the current physical
state and location of the property) and subject to a number of important statutory
assumptions. Assessors base their opinion of value on the actual selling prices of similar
properties which sold around the valuation date of 1 April 1991.
Prior to the introduction of Council Tax (and before the Community Charge (Poll Tax))
Assessors were responsible for domestic property rating and maintained data bases of
information about houses in their areas. This information included details of accommodation,
floor areas, outbuildings, improvements etc as well as actual selling prices recorded in the
Register of Sasines (Land Register).
The Assessor is not required to place an actual value on each dwelling but has to
demonstrate that its likely sale price would have been within the range of values in the
relevant band. Due to the range of values in each band, properties which are not identical in
terms of accommodation or size can still be in the same band. Therefore, a two or three
bedroomed flat can easily be in the same Band as a semi-detached or terraced house.
Many houses will also have been extended and/or modernised since 1993 when Council Tax
was introduced. These changes will not necessarily be reflected in their current banding since
there are restrictions on when a band can be changed. It is possible therefore that bands may
appear inconsistent with the current physical circumstances of a group of houses in an area.
This is because the bands reflect what the houses were worth in the physical state they were
in on 1 April 1993 not how they are today.
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-6- 4.3 Council Tax Valuation Bands Range of values Valuation band Values not exceeding £27,000 A Values exceeding £27,000 but not exceeding £35,000 B Values exceeding £35,000 but not exceeding £45,000 C Values exceeding £45,000 but not exceeding £58,000 D Values exceeding £58,000 but not exceeding £80,000 E Values exceeding £80,000 but not exceeding £106,000 F Values exceeding £106,000 but not exceeding £212,000 G Values exceeding £212,000 H 4.4 Statutory Assumptions Applied to Banding The Assessor must make a number of statutory assumptions in determining the Council Tax band. These are: • the sale was with vacant possession • the dwelling was in a state of reasonable repair (regardless of its actual condition) • the size and layout of the dwelling and the physical state of the locality were the same as at the time when the valuation of the dwelling was made • the dwelling was sold free from any heritable security (i.e. any mortgage is assumed to be paid off) • common parts were in a state of reasonable repair (regardless of their actual condition) and the purchaser would be liable to contribute towards the cost of keeping them in such as state • use of the dwelling would be permanently restricted to use as a private dwelling; and • the dwelling had no development value other than that attributable to "permitted development". There are also special provisions applicable to the Council Tax banding of properties used in connection with agriculture, crofting or fish farming, and properties adapted for people with physical disabilities. 4.5 New Houses As part of the maintenance of the Valuation (Council Tax) List the Assessor adds new built houses to the list as soon as possible after they are completed. It is one of the Joint Board’s key performance measures to do this as efficiently as possible. 4.6 Council Tax Proposals If you are the owner of the property or the person liable to pay Council Tax for it, you can lodge an appeal (known as a "proposal") to alter the Council Tax band: • within six months of becoming the owner or the liable person • within six months of the Assessor altering the band 115
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-7- • within six months of an appeal decision, which is a relevant decision, in respect of a dwelling comparable to yours which gives you reasonable grounds to contend that the band applicable to your dwelling should be changed • at any time if there has been a “material reduction” (see below) in the value of the dwelling • at any time if there has been a “material increase” (see below) in the value of the dwelling and it, or any part of it, has subsequently been sold • at any time if the balance between domestic and business use changes (for example, in hotels or boarding houses) • at any time to add from a particular date a dwelling not shown on the list • at any time to delete from a particular date a dwelling shown on the list. The Assessors’ portal has been developed to allow Council Tax payers to lodge a proposal on-line www.saa.gov.uk. A member of the Assessor’s staff will discuss the proposal/appeal with the tax payer and if it cannot be resolved, it will be referred to the Valuation Appeal Panel to be heard by a Committee. The Committee will hear the appeal within its normal cycle of hearings and will issue formal notification of the date and time of the hearing and details of the appeal procedure. This committee system is due to be replaced on 1 January 2023 by a new appeal system under the Scottish Courts and Tribunals Service (SCTS). 4.7 Material Reduction in Value The band of a house may be reduced if there has been a material reduction in its value. A material reduction in value may result from the demolition of any part of the dwelling, any change in the physical state of its locality or any adaptation of the dwelling to suit a person who is disabled. A reduction in value caused, for example, by a downturn in the housing market, does not count for this purpose. 4.8 Material Increase in Value and Subsequent Sale The band of a house may be increased if there has been a material increase in its value and it is subsequently sold. A material increase in value may result from, for example, the building of an extension to the property. Any change in the Council Tax band following on from a material increase in value will only take effect from the date the property is sold. This means that although many properties have had material increases in their value since they were originally banded in 1993, these increases will not be reflected in the band if they have not been subsequently sold. 4.9 Correction of Errors Where the Assessor is satisfied that the band of a house is not the band which should have been set he/she may amend the Valuation (Council Tax) List to correct that error. This can lead to a band being increased or decreased depending on the circumstances. A reduction in band would be corrected effective from 1 April 1993 or from the date the dwelling entered the list, whichever is later. Any increase in banding as a result of the correction of an error may however be charged by the billing authority from the 1st of the month following the correction. 116
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-8- 5.0 The Register of Electors The Register of Electors contains details of everyone who has registered to vote. It is used to determine who can vote at elections while the Register is in force. A new Register is published at least once a year, no later than 1st December. A revised version may be published at other times if, for example, major changes are made to the Register in the course of the year. 5.1 Register Updates (Rolling Registration) The current version of the Register comes into force on or before 1st December each year and is updated on a monthly basis to reflect changes in people’s circumstances as they occur. For example, if you move house and notify the Electoral Registration Officer of the change early in March, your name could be added to the Register on 1 April. It is now possible to register online at www.gov.uk/register-to-vote. 5.2 Annual Canvass The Register is updated monthly to add new electors and to deal with address changes etc. In connection with the annual canvass of households, Canvass Reform 2020 introduced new procedures for canvassing including a data matching step which meant that there was no longer any requirement to issue reminders to households where data matched. The information obtained during the annual canvass of electors forms part of the new Register published on or before 1st December. During the annual canvass the ERO must take all steps that are necessary to ensure the he/she meets his/her duty to maintain the register in accordance with Section 9A of the Representation of the People Act 1983 (as amended by the Electoral Administration Act 2006). In practice, at each year’s canvass of electors, the ERO issues a Canvass Form (CF) to each household in Lanarkshire which was unmatched at the data matching stage, followed by at least one reminder (where no return is received) followed by a visit by a canvasser (again where no return is received). Additionally, datasets such as Housing and Council Tax records are inspected for identification of empty houses and/or new taxpayers’ names. All other properties which do match are issued with a canvass communication Letter (CCA) where there is no need to respond unless there is a change to the information. Since the introduction of Individual Electoral Registration (IER) in Scotland on 19th September 2014, Electoral Registration Officers are also required to issue Invitation to Register forms (ITRs) where he/she believes someone to be resident at an address but is not on the electoral register. 5.3 The Open Register Electors can choose to have their names excluded from the version of the Register made available for sale (the "Open Register") whilst remaining on the version used at elections (the "Full Register"). The intention behind this provision is to safeguard the privacy of electors and restrict unwanted "junk mail". In relation to the interests of the democratic process however the Full Register, which is a public document, is available for inspection throughout registration areas at some public libraries, some council offices and at the offices of the ERO. 117
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-9- 5.4 Qualifying to Vote To qualify to be registered to vote at UK elections you must be resident or deemed resident in the registration area, a British, other Commonwealth, or Irish citizen aged 18 or over (16 and 17 year-olds can register but cannot vote until they are 18) and not subject to any legal incapacity. Young persons aged 16 and over may vote at Scottish Parliamentary and Local Government elections. (14 and 15 year olds can register but cannot vote until they are 16) Scottish Elections (Franchise and Representation) Act 2021 Legislation to extend the franchise to all foreign nationals resident in Scotland came into force on 3 August 2020. This allows all foreign nationals the ability to register and vote in Scottish Parliament and local elections from that date. 5.5 Commonwealth Countries Antigua and Barbuda Jamaica St Kitts & Nevis Australia The Bahamas Kenya Kingdom of Eswatini St Lucia St Vincent & The Grenadines Bangladesh Kiribati Samoa Barbados Lesotho Seychelles Belize Malawi Sierra Leone Botswana Malaysia Singapore Brunei Darussalam Maldives* Solomon Islands Cameroon Malta2 South Africa Canada Mauritius Sri Lanka Cyprus2 Mozambique United Republic of Tanzania Dominica Namibia Tonga Fiji Islands1 Nauru Trinidad & Tobago Ghana New Zealand Tuvalu Grenada The Gambia Nigeria Pakistan Uganda United Kingdom Guyana India Papua New Guinea Rwanda Vanuatu Zambia Zimbabwe1 1 Citizens of Fiji and Zimbabwe residing in the UK retain their voting rights despite the countries having been suspended from the Commonwealth *The British Nationality (Maldives) Order 2021 came into force on 2nd June amending the British Nationality Act 1981, adding Maldives as a Commonwealth country. 5.6 British Overseas Territories Anguilla Pitcairn, Henderson, Dulcie and OenoIslands Bermuda St Helena British Antarctic Territory St Helena dependencies (Ascension Island, British Indian Ocean Territory Tristan da Cunha) British Virgin Islands Cayman Islands South Georgia & the South Sandwich Islands Sovereign base areas of Akrotiri and Dhekelia on Falkland Islands Cyprus Montserrat Turks and Caicos Islands 118
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-10- 5.7 British Crown Dependencies Isle of Man The Channel Islands (including Jersey, Guernsey, Sark, Alderney, Herm and the other inhabited Channel Islands). 5.8 Overseas Electors British citizens resident abroad can register to vote by means of an Overseas Elector’s Declaration, provided that on the date the Declaration is made: • they are not subject to any legal incapacity to vote • they were once registered to vote in the UK and less than 15 years have elapsed since the Register they were on was in force (currently being reviewed) or • a parent or guardian was so registered, if the applicant was too young to register to vote at the time. The Declaration lasts for 12 months and then lapses if not renewed by the elector. The ERO is obliged to send a reminder and a new application form to the elector between 9 and 10 months from the date on which the entry on the Register took effect. The most convenient way to vote for an overseas elector is by post or proxy. 5.9 Homeless People A person who has no fixed address can register to vote by means of a Declaration of Local Connection. The Declaration lasts for 12 months and then lapses if not renewed by the elector. The ERO is obliged to send a reminder and a new application form to the elector between 9 and 10 months from the date on which the entry on the Register took effect. This form of registration is also available to prisoners on remand awaiting trial but not yet convicted. 5.10 Service Electors The following people are entitled to register to vote as service electors: a. serving members of the armed forces and their spouses or civil partners (for whom the entitlement exists as an alternative to registering as civilian electors if resident in the UK). b. British Council staff and Crown Servants in posts abroad and their spouses or civil partners by completing and submitting the appropriate Service Declaration form, which includes the facility to apply to vote by post or proxy. The Declaration, in relation to electors in paragraph a. above, lasts for 5 years and then lapses if not renewed by the elector. The ERO is obliged to send a reminder and a new application form to the elector between 57 and 58 months from the date on which the entry on the Register took effect. For electors in paragraph b. above the declaration lasts for 12 months and then lapses if not renewed. The ERO however is obliged to send a reminder and new application form between 9 and 10 months from the effective date. 119
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-11- 5.11 The Absent Voters’ List (Postal Voters’ List) The Electoral Registration Officer also maintains a list of people who are entitled to vote by post or by proxy. This is known as the Absent Voters’ List. Postal voting is available to anyone, whatever their circumstances. Long-term proxy voting is available to people who cannot reasonably be expected to attend their polling station at elections because: • they suffer from a physical incapacity, or • their employment duties take them away from home, or • their attendance on a course of study takes them away from home. Temporary proxy voting is available to people who cannot reasonably be expected to attend their polling station at elections because they will be away from home temporarily (e.g. on holiday) on the date of the election. 5.12 Elections Act 2022 The Elections Bill was introduced in the House of Commons on 5 July 2021 (Bill 138), receiving Royal Assent on 28 April 2022. It introduces photographic identifications (voter ID) to vote at polling stations in UK Parliamentary elections, as well as removing the 15-year limit for British citizens living abroad to vote in UK Parliamentary elections. It is intended that postal vote applications for such elections will require to be re-applied for every three years, instead of the current five yearly requirement. It is intended that secondary legislation will be developed over the course of the next year with implementation of the voter ID in time for polls taking place in spring 2023. All other measures are expected to be implemented within the current lifetime of the UK Parliament. 5.13 Further Information More information on electoral registration can be found on the Electoral Commission’s website www.electoralcommission.org.uk . 6.0 Equal Opportunities Lanarkshire Valuation Joint Board is committed to achieving equal opportunities in all aspects of our business and in relationships with our service users and other stakeholders. This means ensuring that services, facilities, and employment opportunities are accessible and receptive to the values and the diversity needs within the community. In meeting this commitment, we shall aim to prevent – as well as eliminate – any form of discrimination that occurs in the workplace or in service delivery. We also aim to provide good quality services which users can access freely without prejudice, discrimination and/or harassment. Details of our Equal Opportunities policy, Mainstreaming Equalities and Equality Outcomes reports and progress reports can be viewed on our website. The equal pay statement and gender pay cap are included within the Mainstreaming report. 120
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-12- 7.0 Summary The work of Lanarkshire Valuation Joint Board is extensive and varied. It impacts on every household in the Lanarkshire area through Council Tax and Electoral Registration and on businesses, public bodies and voluntary organisations through non-domestic rating. Our primary aim is to provide excellence in the delivery of our services to the citizens and businesses of Lanarkshire. The Joint Board provides a good working example of joint service delivery in practice both in how North and South Lanarkshire Councils have combined to provide valuation and electoral registration services and in how the Assessor and staff work with other councils and Joint Boards to develop consistency and good practice in the delivery of services. Website The Board's website (www.lanarkshire-vjb.gov.uk) includes a host of useful information. There is the facility to download application forms relating to Electoral Registration. Additionally, the site contains useful information on the Assessor’s functions and the processes involved in making appeals against entries in the Valuation Roll and Council Tax List. The website is compatible with mobile devices. The website has useful links to North and South Lanarkshire Councils’ websites, and to the Scottish Assessors’ Association Portal (www.saa.gov.uk), which provides a single point access to Non-Domestic Rating, Council Tax and Electoral Registration information on a Scotland-wide basis. 8.0 Contact Information Address: Lanarkshire Valuation Joint Board David Dale House 45 John Street Blantyre Glasgow G72 0AA Telephone: 01698 476000 Fax: 01698 476010 E-mail: assessor@lanarkshire-vjb.gov.uk Website: www.lanarkshire-vjb.gov.uk 121
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Assessor and Electoral Registration Officer Subject: Lanarkshire Valuation Joint Board Public Performance Report 2021/2022 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] Present to members of the Joint Board for information, the Board’s Public Performance Report for the financial year 2021/2022 [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that the content of the report be noted. [1purpose] 3. Background 3.1. The report is titled ‘Lanarkshire Valuation Joint Board, Office of Assessor and Electoral Registration Officer, Public Performance Report 2021/2022’, and is attached as an appendix. 3.2 The report outlines Lanarkshire Valuation Joint Board’s performance in its core service delivery areas for the period 2021/2022. 3.3 The report will be posted on LVJB’s website. 4. Employee Implications 4.1. None 5. Financial Implications 5.1. None 6. Climate Change, Sustainability and Environmental Implications 6.1. There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 7. Other Implications 7.1. There are no implications for risk in terms of the information contained in this report. 8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 12 123
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9. Privacy Impact Assessment 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. Gary Bennett BSc MSc AEA (Cert-Scotland) MRICS IRRV (Hons) Assessor and Electoral Registration Officer 15 June 2022 Previous References None List of Background Papers None Contact for Further Information If you would like further information, please contact:- Gary Bennett, Assessor and Electoral Registration Officer Phone: 01698 476078 E-mail: assessor@lanarkshire-vjb.gov.uk 124
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LANARKSHIRE VALUATION JOINT BOARD Office of Assessor and Electoral Registration Officer PUBLIC PERFORMANCE REPORT 2021/2022 General Lanarkshire Valuation Joint Board (LVJB) was formed at the local government re- organisation in 1996. The Board consists of eight Members from each of North and South Lanarkshire Councils, and oversees the functions of maintaining the Electoral Registers, the Council Tax List and the Non-Domestic Valuation Rolls for the Lanarkshire area. The following report relates to the 2021/22 financial year. Coronavirus Pandemic Like all organisations, LVJB’s operations were materially affected by the pandemic. The requirement to work from home throughout 2021/2022 continued to pose challenges in ensuring that statutory undertakings could be carried out. The use of information technology solutions, supported by South Lanarkshire Council’s I.T. infrastructure, ensured that a level of service continued to be provided across all three main business areas. The main impact on LVJB’s operations of the pandemic throughout 2021/22 continued to be the disruption to carrying out site visits for council tax, non-domestic changes, and electoral matters. A variety of new working practices developed since the national lockdown in March 2020 continued to be developed in 2021/2022 to deal with business whilst such site visits were suspended. LVJB’s staff continue to embrace the new working practices and are again to be commended on their flexibility and commitment during a very challenging period. Non-Domestic Valuation Roll The Valuation Roll is a document which sets out the rateable values of all non- domestic properties in the valuation area. The rateable values shown in the Valuation Roll are used by the local authorities as the basis for the calculation of non- domestic rates bills. The Valuation Roll for Lanarkshire at the end of the period 2021/22 contained 21,310 properties with a total rateable value as at 31/3/2022 of circa £981 million. 125
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In the year 2021/22, our staff processed 976 alterations to the roll to reflect new, amended or demolished properties. This was up from 561 for the period 2020/21. The following table illustrates the performance for the period 2021/22 set against in- house targets:- The graph below illustrates LVJB performance levels from 1998/99 to 2021/22. The three monthly and six monthly targets were not met, although a significant improvement on the period 2020/21 was achieved. The pandemic continued to affect the work undertaken in relation to altering the valuation roll in line with performance targets. This appears to be, in particular, as a result of the inability to carry out site visits. Following consultation with LVJB’s valuation managers, internal targets for the period 2022/23 have been maintained at the following: Alter Valuation Roll within 3 months 77% Alter Valuation Roll within 6 months 92% Performance Targets 2021/22 Target 2021/22 Actual 2021/22 Alter Valuation Roll within 3 months 77% 68% Alter Valuation Roll within 6 months 92% 83% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of Changes Notified W ithin Tim e Year Valuation Roll Notified < 3 months Notified < 6 months 126
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Council Tax List This list shows the addresses of all domestic properties and the allocated Council Tax band, which is based on the market value of the property as at April 1991. Local Authorities use these bands to calculate annual Council Tax bills. During 2021/22, our staff added 2,818 new dwellings (2,116 for the period 2020/21) to the Council Tax List, and deleted 110 dwellings (249 for the period 2020/21). As at 31 March 2022 the list contained 335,602 entries (including domestic garages). Additionally, in accordance with The Council Tax (Alteration of Lists and Appeals) (Scotland) Regulations 1993, some 221 Council Tax entries (156 for period 2020/21) had their band increased as a result of a material increase in the value of the dwelling, essentially due to significant alterations being carried out, and the subsequent sale of the property. There were 15,894 sales of domestic properties notified to LVJB during the period 2021/22. The following table illustrates the performance for the period 2021/22 set against in- house targets:- Performance Targets 2021/22 Target 2021/22 Actual 2021/22 New houses added to Council Tax List within 3 months 87% 93% New houses added to Council Tax List within 6 months 92% 98% The graph below illustrates LVJB performance levels from 1998/99 to 2021/22:- Targets set for the period 2021/22 were again met with performance being maintained at a very good level despite the challenges posed by the pandemic. 30% 40% 50% 60% 70% 80% 90% 100% Notified of New Band W ithin Tim e Year Council Tax Valuation List Notified < 3 months Notified < 6 months 127
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Again, following consultation with LVJB’s valuation managers, internal targets for the period 2022/2023 have been maintained at the following: New houses added to Council Tax List within 3 months 87% New houses added to Council Tax List within 6 months 92% Electoral Register The Electoral Register is a list of people eligible to vote at elections and at 31 March 2022 contained over 520,000 electors. The principal activities of the period 2021/22 within our electoral registration service delivery area centred on maintaining the completeness and accuracy of the registers. All scheduled tasks associated with the Scottish Parliamentary Election on 6 May 2021 were undertaken timeously. During the period 2021/22 there were two by-elections, both in North Lanarkshire; one in Airdrie & Shotts UK Parliamentary constituency held on 13 May 2021, and a Council by-election held in ward 20, Murdostoun on 24 June 2021. The annual canvass of electors 2021 was subject to major reform with the introduction of The Representation of the People (Annual Canvass) (Miscellaneous Amendments) (Scotland) Regulations 2020. Under the reformed canvass, data matching was used at the outset of the canvass to help identify those properties where the residents are more likely to have changed. All Electoral Registration Officers in Great Britain were required to match specified data they hold on registered electors against the Department for Work and Pensions’ Customer Information System (DWP CIS) dataset. This dataset is already used in the electoral registration process to verify an applicant's identity. For the period 2021/22, circa 255,000 households were issued with the new Canvass Communication A form (CCA), which advised who was on the register and that unless there was a change in the household no return was required. A further stage to the reformed annual canvass process involved the issuing of circa 58,000 Canvass Forms (CF) to households which didn’t match during the aforementioned exercise. Furthermore, a new Canvass Communication B form (CCB) in respect of postal reminders was issued to circa 47,000 households. The household visit element of the 2021 canvass was able to proceed, with suitable precautions undertaken as a result of the pandemic, with circa 31,000 properties being canvassed. The canvass reforms also allowed for e-communications that included telephone and email contact. The canvass was concluded successfully, and the registers were published on 1 December 2021. Rolling Registration activity, introduced in 2000 to assist in maintaining the Electoral Register, continued throughout 2021/22 with the bulk of registration applications received via the central government online registration system (www.gov.uk/register-to-vote). To ensure the completeness and accuracy of the Electoral Register, the 2021 Integrity Plan was again used to identify and manage patterns of activity that might indicate potential registration integrity issues. LVJB have checks and controls in place to detect and prevent any electoral malpractice. Checks are also built into both the Annual Canvass Plan and individual Election Plans. 128
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Customer Satisfaction Users of the Joint Board’s services were sampled at random throughout 2021/22 for their comments on the service LVJB provides. The questionnaires include a section on gender, ethnicity and disability to enable service monitoring on equalities issues. If you receive such a questionnaire, please take the time to complete it and respond. The results of these questionnaire returns are important to us and your comments are used to assist development of LVJB services to meet the needs of our customers. ❖ Results from the 2021/22 Customer Satisfaction Survey are contained in the graphs below. Customer Care Analysis 1 April 2021 to 31 March 2022 Exceeded expections / Very satisfied (57.5%) Slightly better than expected / Fairly satisfied (22.5%) As expected (11.5%) Below expectation / fairly dissatisfied (8%) Very poorly / Very dissatisfied (0.5%) 129
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Website The Board's website (www.lanarkshire-vjb.gov.uk) includes a host of useful information. There is the facility to download application forms relating to Electoral Registration. Additionally, the site contains useful information on the Assessor’s functions and the processes involved in making appeals against entries in the Valuation Roll and Council Tax List. The website is compatible with mobile devices. The website has useful links to North and South Lanarkshire Councils’ websites, and to the Scottish Assessors’ Association Portal (www.saa.gov.uk) which provides a single point access to Non-Domestic Rating, Council Tax and Electoral Registration information on a Scotland-wide basis, as well as a number of user interactive services, such as lodging a proposal against a council tax entry, or an appeal against a valuation roll entry. Customer Care Analysis 1 April 2021 to 31 March 2022 ( Telephone Calls) Always got through to a person who could deal with my enquiry (73%) Usually got through to a person who could deal with my enquiry (19%) Sometimes got through to a person who could deal with my enquiry (8%) 130
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Equal Opportunities Lanarkshire Valuation Joint Board is committed to achieving equal opportunities in all aspects of our business and in relationships with our service users and other stakeholders. This means ensuring that services, facilities, and employment opportunities are accessible and receptive to the values and the diversity needs within the community. In meeting this commitment, we shall aim to prevent – as well as eliminate – any form of discrimination that occurs in the workplace or in service delivery. We also aim to provide good quality services which users can access freely without prejudice, discrimination and/or harassment. Details of our Equal Opportunities policy and our Mainstreaming Equalities report can be viewed on our website, together with our annual employee information report and our Mainstreaming Equalities progress report. To comply with our equalities duties: In April 2017 LVJB published the Mainstreaming Equalities Report and Equality Outcomes in accordance with regulation 3 of The Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012 and 2016 for the period 2017 to 2021 and this is available on our website. In accordance with The Equality Act 2010 (Specific Duties) (Scotland) Regulations 2016 LVJB, having more than 20 employees, is now required to publish gender pay gap information, a statement on equal pay, and include information on occupational segregation. This information is included in the report Mainstreaming Equalities Report and Equality Outcomes for 2017 to 2021. In November 2017 The Equality and Human Rights Commission (EHRC) published a “Measuring Up? Report 7” “Public authorities’ performance in meeting the Scottish Specific Equality Duties, 2017”. The EHRC have a statutory remit to protect, enforce and promote equality across nine protected characteristics that are set out in the Equality Act 2010. This includes regulating the Public Sector Equality Duty (PSED). The report lists the number of authorities in each sector and the number and percentage who have met each criteria such as “published equality outcomes”, “published gender pay gap information” and “publication of policies on equal pay”. LVJB are included in the “Valuation Joint Boards” sector and we met all of the criteria. In April 2019 LVJB published the Mainstreaming Equalities Report and Equality Outcomes 2017 to 2021 Progress Report in accordance with regulation 3 of The Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012 and 2016. Under the specific employment duty LVJB as a listed authority are required to publish pay gap information every two years and this is included within the April 2019 Progress Report along with information on occupational segregation. In April 2021 LVJB published the Mainstreaming Equalities Report and Equality Outcomes 2021 to 2025 in accordance with the Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012 and the Equality Act 2010 (Specific Duties) (Scotland) Amendment Regulations 2016. This includes an equal pay statement and gender pay gap information along with information on occupational segregation. A report on 131
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progress and pay gap information is required every two years and this will be published in April 2023. Contacting LVJB Address: Lanarkshire Valuation Joint Board Ground Floor David Dale House 45 John Street Blantyre G72 OAA Telephone: 01698 476000 E-mail: assessor@lanarkshire-vjb.gov.uk ero@lanarkshire-vjb.gov.uk Website: www.lanarkshire-vjb.gov.uk 132
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Assessor and Electoral Registration Officer Subject: Monitoring of Complaints (1 April 2021 to 31 March 2022) 1. Purpose of Report 1.1. The purpose of the report is to:- Provide statistics and information on all complaints received by the Lanarkshire Valuation Joint Board (LVJB) for the period 1 April 2021 to 31 March 2022 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- (1) that the content of the report be noted. 3. Background 3.1. Following the introduction of LVJB’s revised Complaints Handling Procedure, in March 2013, a record of complaints is now reported to the quarterly Board meetings. Additionally, members also receive a report covering information on complaints received by the Board on an annual basis. 3.2. The Scottish Public Sector Ombudsman (SPSO) further revised the Complaints Handling Procedure (CHP) effective from 1 April 2021. This was the subject of a report that was noted by the Board in March 2021 titled: LVJB’s Revised Complaints Handling Procedure. 3.3 In March 2022 the SPSO refreshed the Key Performance Indicators (KPI’s) Guidance and LVJB will, on data collected from 1 April 2022, comply with the guidance therein. 4. Current Position 4.1. The definition of a complaint adopted is ‘any expression of dissatisfaction about LVJB’s action or lack of action, or about the standard of service provided by LVJB or on LVJB’s behalf.’ This does not however extend to complaints about the rateable value or banding of a property or to the refusal to register an elector or grant a postal vote since in all of these areas there are rights of appeal to independent judicial bodies. The data being collected on complaints received by the Joint Board is being categorised by:- ‘Upheld’ (the complaint was upheld and action may be required as a result), ‘partially upheld’ (the complaint was only partly upheld and some action may be required as a result) and ‘not upheld’ (no further action required). 13 133
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The reason for the complaint whether upheld or not. Action taken as a result of upheld complaints. Changes made or proposed to service delivery as a result of complaints received. Equal opportunities monitoring of complaints. 4.2. Other information gathered includes response times in line with adopted standards for dealing with complaints, together with information on the area of the Board’s services where the complaint was received. 5. Summary 5.1. During 2021/2022 a total of thirteen complaints were received in the period covered by this report. Three related to Council Tax and ten related to Electoral Registration. In total nine were classified as not having been upheld, one as partially upheld and three were classified as having been upheld. 5.2. This is in comparison to 2020/2021 where a total of six complaints were received. Two related to Council Tax, three related to Non-Domestic Rating and one related to Electoral Registration. In total five were classified as not having been upheld, one as partially upheld and none were classified as having been upheld. 5.3. The breakdown of upheld and not upheld complaints by service area is as follows: Service Total No Upheld Not Upheld Partially Upheld Council Tax 3 1 2 0 Non-Domestic 0 0 0 0 Electoral Registration 10 2 7 1 Total 13 3 9 1 6. Complaints to the Ombudsman 6.1. No decisions on complaints were received by the Scottish Public Service Ombudsman for the period 1 April 2021 to 31 March 2022. 7. Employee Implications 7.1. For complaints where a member of staff has not followed office procedures further training and emphasis on good customer care and good working practice is provided. 8. Financial Implications 8.1. None. 9. Climate Change, Sustainability and Environmental Implications 9.1. There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 10. Other Implications 10.1. There are no implications for risk in terms of the information contained in this report. 11. Equality Impact Assessment and Consultation Arrangements 11.1. This report does not introduce a new policy, function or strategy or recommend a change to existing policy, function or strategy and, therefore, no impact assessment is required. 11.2. There is no requirement for a consultation in respect of this report. 134
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12. Privacy Impact Assessment 12.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. Gary Bennett BSc MSc AEA (Cert-Scotland) MRICS IRRV (Hons) Assessor and Electoral Registration Officer 9 June 2022 Previous References Report on Revised Complaints Handling Procedure approved 3 December 2012. LVJB’s Revised Complaints Handling Procedure noted 1 March 2021. List of Background Papers None Contact for Further Information If you require further information, please contact:- Gary Bennett, Assessor and Electoral Registration Officer Phone: 01698 476078 E-mail: assessor@lanarkshire-vjb.gov.uk 135
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??1 June Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 27 June 2022 Report by: Assessor and Electoral Registration Officer Subject: Progress Update 1. Purpose of Report 1.1. The purpose of the report is to:- Provide an overview of the service to members Outline current issues and service priorities Provide an update on performance Highlight issues affecting the future direction of the Joint Board [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that the content of the report be noted. [1recs] 3. Service Overview and Priorities 3.1. Electoral Registration 3.1.1. Annual Canvass Preparations for the annual canvass 2022 are underway, continuing with the progress made under canvass reform from last year’s canvass. National data matching will be conducted around 8 July, with canvass communications due to be issued on 1 August. 3.1.2. Elections Held Since Last Board Meeting The Scottish Local Government Elections were held on 5 May 2022 and all procedures were undertaken successfully. Postal vote rejection letters have been issued to all electors whose postal vote was rejected by the Returning Officer for the election. 3.2. Non Domestic Valuation A summary of information in this area can be found in Appendices 1.1 to 1.5. 3.2.1. Changes to the 2017 Valuation Roll (Running Roll) These are highlighted in Appendices 1.1 and 1.2 for the period 1 April 2022 to 1 May 2022. 3.2.2. 2005 Valuation Roll Appeals (Revaluation and Running Roll) A summary of the position with 2005 Revaluation and Running Roll appeals is contained in Appendix 1.3. 14 137
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3.2.3. 2010 Valuation Roll Appeals (Revaluation and Running Roll) A summary of the position with 2010 Revaluation and Running Roll appeals is contained in Appendix 1.4. 3.2.4. 2017 Valuation Roll Appeals (Revaluation and Running Roll) A summary of the position with regards to 2017 Revaluation and Running Roll appeals is contained in Appendix 1.5. Table 2 includes appeals received in connection with the coronavirus pandemic. The Scottish Government continue to consider legislative plans in respect of appeals lodged as a result of the pandemic, with the Non-Domestic Rates (Coronavirus) (Scotland) Bill currently making its way through the parliamentary process. 3.3. Council Tax A summary of information in this area can be found in Appendices 2.1 to 2.4. 3.3.1. New Houses A summary of the position for the period 1 April 2022 to 1 May 2022 is contained at Appendix 2.2. 3.3.2. Proposals and Appeals Appendices 2.3 and 2.4 contain information on Council Tax proposals and appeals. Following consultations with the Chair and Secretary to the Lanarkshire Valuation Appeal Panel, additional hearings have been scheduled to help deal with the voluminous numbers of outstanding Council Tax appeals. 4. Staffing 4.1. Since the last Board meeting and following a recruitment and selection process for Valuers/Part Qualified Valuers, one Part Qualified Valuer has commenced employment with LVJB. A further recruitment and selection process has now been completed resulting in two Clerical Assistants commencing employment with the organisation. In the same period, a Valuer has tendered their resignation to take up a position in the private sector. Furthermore, a Divisional Valuer and Trainee Valuer have tendered their resignations to take up positions with other local government organisations. LVJB’s management team continue to attempt to actively recruit and retain staff within our valuation service delivery area, particularly given the anticipated workload associated with the Barclay recommendations. 4.2. Staff absence levels for the last year are summarised in Appendix 3.0. 5. Other Matters 5.1. Complaints Received and Dealt with Since Last Progress Update Report Since the last update provided to the Board, one complaint has been received, a summary of which is as follows:- 138
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Service Area Nature of Complaint Outcome Council Tax (ref: 2021/22 – 13) Complaint received in respect of an appeal against the banding of a Council Tax entry and the manner in which the appeal was handled. Letter issued advising that matter investigated and no issues found in relation to how appeal was handled. Letter also reiterated previously provided reasons for the reliance on certain comparisons used in the banding of the property. 5.2. Complaints to the Ombudsman No decisions have been received from the Scottish Public Services Ombudsman (SPSO) since the last meeting of the Board. 5.3. Barclay Review Implementation The Non-Domestic Rates (Scotland) Act 2020 is now in force, and preparatory work continues to ensure that LVJB is able to undertake all new statutory undertakings contained within the Act. The following is a summary of the progress in connection with the principal sections of the Act which affect matters relating to the Valuation Roll:- Section 2 – (amends the definition of “year of revaluation” such that, after 2022, revaluations will be carried out every three years, rather than every five years). Progress update: The Scottish Government decided, due to the pandemic, to postpone the next revaluation to 1 April 2023, with the tone date moving to 1 April 2022. Work is underway in respect of information gathering, analysis, and valuing all non-domestic subjects contained within the valuation roll, with the expectation that a draft valuation roll will be published on 30 November 2022. It is anticipated that draft valuation notices will require to be issued to all proprietors / tenants / occupiers. Section 3 – (inserts a new section into the Local Government (Scotland) Act 1975 requiring an Assessor to include a mark in appropriate entries in the Valuation Roll to show that it relates to newly built lands and heritages, or to improved lands and heritages. The local authority will be able to use this mark to identify properties which may be eligible for business growth accelerator relief). Progress update: procedures are in place and operational in order that a marker can be placed in the valuation roll where deemed appropriate. Section 5 – (amends section 19 of the Local Government (Financial Provisions) (Scotland) Act 1963 to require that certain subjects contained within parks should be entered in the Valuation Roll). The subjects to be entered are those which are occupied by a person or body other than a local authority or the Crown, or where persons may be required to pay for access to facilities or for goods or services. Progress update: LVJB appointed staff continue to identify such subjects which will enter the valuation roll, with reference to a staff guidance note which has been developed by the Scottish Assessors Association (SAA) to ensure consistent practice throughout. 139
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Scotland. Section 9 - Amends section 3 of the 1975 Act to allow Ministers to prescribe that Assessors must give ratepayers additional information at Revaluation. Progress update: Discussions continue within the SAA with regards to how best to facilitate the provision of information at the SAA Portal in respect of the forthcoming non-domestic revaluation. It is anticipated that information such as the identification of subjects used to assist in the valuation of certain subjects contained in the valuation roll will accompany draft valuations to be published on 30 November 2022. Section 10 - Makes significant changes to the appeal arrangements enabling a “proposal” to be made to the Assessor in the first instance. Where no agreement is reached as to what should be done about a proposal an appeal may be submitted to the Valuation Appeal Committee. Whilst this section sets out the basic framework, much of the detail of the procedure (including whether any fee may be charged for making a proposal or an appeal) will be contained within secondary legislation. It is anticipated that the Scottish Government will undertake a consultation exercise on the format of those Regulations. Progress update: The outcome of the recent consultation by the Scottish Government on the revised non-domestic appeal system is still awaited. Similarly, the consultation by the Scottish Government on the transfer of the work of Valuation Appeal Panels (VAPs) to a new Tribunal set up within the Scottish Courts and Tribunals Service is also awaited. The Scottish Courts and Tribunal stakeholders group, which the SAA is represented on, continue to meet and consider matters such as the transfer of appeals to the new appeals set up. The changes are scheduled to come into effect on 1 January 2023. Section 26 - Gives powers for Assessors to issue Assessors Information Notices (AINs) requiring the return of information which the Assessor may reasonably require for the purposes of exercising his/her functions in relation to non-domestic rates in respect of the lands and heritages set out in the notice. Information may be requested from the Proprietor, Tenant or Occupier or any person who the Assessor thinks has the information. Progress update: Appropriate procedures continue to be implemented in connection with AINs and, in particular, the new civil penalties regime. Section 30 - provides for civil penalties to be issued for failure to return requested information within certain time periods. Progress update: As update above regarding Section 26. 5.4. Coronavirus Pandemic LVJB’s management team’s focus continues to monitor the welfare of staff. Duties continue to be undertaken with most site visits now being resumed where deemed appropriate to do so. With regards to Valuation Appeal Committee hearings, physical hearings have now resumed also. 6. Employee Implications 6.1. See 4 above. 7. Financial Implications 7.1. None. 140
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8. Climate Change, Sustainability and Environmental Implications 8.1. There are no climate change, sustainability, or environmental implications in terms of the information contained in this report. 9. Other Implications 9.1. There are no implications for risk in terms of the information contained in this report. 10. Equality Impact Assessment and Consultation Arrangements 10.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function, or strategy and, therefore, no impact assessment is required. 10.2. There is no requirement for consultation in respect of this report. 11. Privacy Impact Assessment 11.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. Gary Bennett BSc MSc AEA (Cert-Scotland) MRICS IRRV (Hons) Assessor and Electoral Registration Officer 15 June 2022 Previous References Progress Update Report for Board meeting of 7 March 2022. List of Background Papers None Contact for Further Information If you require further information, please contact:- Gary Bennett, Assessor and Electoral Registration Officer Phone: 01698 476078 E-mail: assessor@lanarkshire-vjb.gov.uk 141
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Alterations made to the Valuation Roll (including appeal adjustments) between 01/04/2022 and 01/05/2022 Area AS AT 01/04/2022 ADDED DELETED ALTERED AS AT 01/05/2022 SUBJECTS RV SUBJECTS RV SUBJECTS RV SUBJECTS RV SUBJECTS RV North Lanarkshire 10,358 288,082,270 1 490 2 20,200 3 -10,450 10,357 288,052,110 South Lanarkshire 10,952 693,403,145 0 0 3 4,400 0 0 10,949 693,398,745 LVJB total 21,310 £981,485,415 1 £490 5 £24,600 3 -£10,450 21,306 £981,450,855 Appendix 1.1 142
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Summary of time taken to make alterations (excluding appeal adjustments) to the Valuation Roll Period: 1 April 2022 to 1 May 2022 Area Total altered altered < 3 months altered 3 to 6 months altered > 6 months No. No. %age No. %age No. %age North Lanarkshire 5 5 100.00% 0 0.00% 0 0.00% South Lanarkshire 2 1 50.00% 0 0.00% 1 50.00% LVJB totals 7 6 85.71% 0 0.00% 1 14.29% Appendix 1.2 143
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Valuation Roll Appeals: Revaluation and Running Roll 2005 1. Revaluation Appeals Area Appeals received since 2005 Valuation Roll Appeals resolved as at 1 May 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 May 2022 North Lanarkshire 3,921 3,918 0 £0 3 £76,150 3 South Lanarkshire 3,148 3,147 0 £0 1 £50,800 1 LVJB total 7,069 7,065 0 £0 4 £126,950 4 2. Running Roll Appeals Area Appeals received since 2005 Valuation Roll Appeals resolved as at 1 May 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 May 2022 North Lanarkshire 2,023 2,022 0 £0 1 £36,500 1 South Lanarkshire 1,695 1,693 0 £0 2 £90,050 2 LVJB total 3,718 3,715 0 £0 3 £126,550 3 Appendix 1.3 144
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Valuation Roll Appeals: Revaluation and Running Roll 2010 1. Revaluation Appeals Area Appeals received since 2010 Valuation Roll Appeals resolved as at 1 May 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 May 2022 North Lanarkshire 4,460 4,460 0 £0 0 £0 0 South Lanarkshire 3,103 3,102 0 £0 1 £46,500 1 LVJB total 7,563 7,562 0 £0 1 £46,500 1 2. Running Roll Appeals Area Appeals received since 2010 Valuation Roll Appeals resolved as at 1 May 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 May 2022 North Lanarkshire 5,480 5,480 0 £0 0 £0 0 South Lanarkshire 6,727 6,726 0 £0 1 £23,500 1 LVJB total 12,207 12,206 0 £0 1 £23,500 1 Appendix 1.4 145
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Valuation Roll Appeals: Revaluation and Running Roll 2017 1. Revaluation Appeals Area Appeals received since 2017 Valuation Roll Appeals resolved as at 1 May 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 May 2022 North Lanarkshire 4,728 4,623 0 £0 105 £3,517,125 105 South Lanarkshire 4,553 4,451 0 £0 102 £89,332,750 102 LVJB total 9,281 9,074 0 £0 207 £92,849,875 207 2. Running Roll Appeals Area Appeals received since 2017 Valuation Roll Appeals resolved as at 1 May 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 May 2022 North Lanarkshire 4,585 786 0 £0 15 £121,875 3,799 South Lanarkshire 4,962 818 0 £0 45 £724,443,375 4,144 LVJB total 9,547 1,604 0 £0 60 £724,565,250 7,943 Appendix 1.5 146
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Council Tax Subjects as at 01/05/2022 ENTRIES AS AT 01/04/2022 ADDITIONS DELETIONS CURRENT ENTRIES BAND 'D' EQUIVALENT BAND NORTH SOUTH TOTAL NORTH SOUTH TOTAL NORTH SOUTH TOTAL NORTH SOUTH TOTAL NORTH SOUTH TOTAL A 53037 36190 89227 1 3 4 1 2 3 53037 36191 89228 35360 24129 59489 B 37845 30751 68596 11 2 13 0 0 0 37856 30753 68609 29444 23920 53364 C 19903 26768 46671 49 2 51 1 0 1 19951 26770 46721 17734 23796 41530 D 17722 21724 39446 52 28 80 0 0 0 17774 21752 39526 17774 21752 39526 E 17158 20390 37548 15 34 49 0 0 0 17173 20424 37597 22564 26835 49399 F 10085 13307 23392 10 26 36 3 0 3 10092 13333 23425 16400 21666 38066 G 3090 6819 9909 0 2 2 0 0 0 3090 6821 9911 6051 13358 19409 H 162 579 741 0 0 0 0 0 0 162 579 741 397 1419 1816 TOTAL 159002 156528 315530 138 96 235 5 2 7 159135 156623 315718 145724 156875 302599 'D' EQIV. 145589 156751 302340 141 124 265 6 1 7 145724 156875 302599 JOINT BOARD TOTALS 01/04/2022 01/05/2022 Increase TOTAL CHARGEABLE ENTRIES North 159002 159135 133 South 156528 156623 95 Total 315530 315758 228 BAND 'D' EQUIVALENT North 145589 145724 135 South 156751 156875 124 Total 302340 302599 259 Appendix 2.1 147
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Summary of time taken to enter new houses in Valuation (Council Tax) List Period: 1 April 2022 to 1 May 2022 Area Total added added < 3 months added 3 to 6 months added > 6 months North Lanarkshire 138 123 89.13% 13 9.42% 2 1.45% South Lanarkshire 97 91 93.81% 5 5.15% 1 1.04% LVJB totals 235 214 91.06% 18 7.66% 3 1.28% Appendix 2.2 148
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Summary of Council Tax Proposals/Appeals received and dealt with as at 1 May 2022 Valid Proposals/Appeals outstanding @ 1 April 2022 Proposals/Appeals received since 1 April 2022 Proposals/Appeals completely resolved 01/04/2022 to 01/05/2022 Outstanding balance North Lanarkshire 38 4 3 39 South Lanarkshire 103 11 9 105 LVJB total 141 15 12 144 Invalid Proposals/Appeals outstanding @ 1 April 2022 Proposals/Appeals received since 1 April 2022 Proposals/Appeals completely resolved 01/04/2022 to 01/05/2022 Outstanding balance North Lanarkshire 46 8 25 29 South Lanarkshire 87 31 31 87 LVJB total 133 39 56 116 Combined Proposals/Appeals outstanding @ 1 April 2022 Proposals/Appeals received since 1 April 2022 Proposals/Appeals completely resolved 01/04/2022 to 01/05/2022 Outstanding balance North Lanarkshire 84 12 28 68 South Lanarkshire 190 42 40 192 LVJB total 274 54 68 260 Appendix 2.3 149
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Summary of resolution of Council Tax Proposals/Appeals Between 1 April 2022 and 1 May 2022 Valid Proposals/Appeals completely resolved 01/04/2022 to 01/05/2022 Number withdrawn Number abandoned Number adjusted Number dismissed by VAC Number adjusted by VAC North Lanarkshire 3 2 0 0 1 0 South Lanarkshire 9 5 0 3 1 0 LVJB total 12 7 0 3 2 0 Invalid Proposals/Appeals completely resolved 01/04/2022 to 01/05/2022 Number withdrawn Number abandoned Number adjusted Number dismissed by VAC Number adjusted by VAC North Lanarkshire 25 0 25 0 0 0 South Lanarkshire 31 2 27 0 2 0 LVJB total 56 2 52 0 2 0 Combined Proposals/Appeals completely resolved 01/04/2022 to 01/05/2022 Number withdrawn Number abandoned Number adjusted Number dismissed by VAC Number adjusted by VAC North Lanarkshire 28 2 25 0 1 0 South Lanarkshire 40 7 27 3 3 0 LVJB total 68 9 52 3 4 0 Appendix 2.4 150
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Appendix 3 ABSENCE MANAGEMENT STATISTICS Self Certified Medically Certified Unauthorised Total Total Month Absence No of Days Work days available No of Days % No of Days % No of Days % No of Days Work Days Avail % Month % April 2021 5 0.3% 49 3.4% Nil 0.0% 54 1441 3.7% April 2020 66 1355 4.9% May 2021 7 0.5% 82 6.2% Nil 0.0% 89 1317 6.8% May 2020 64 1309 4.9% June 2021 8 0.6% 80 5.8% Nil 0.0% 88 1368 6.4% June 2020 69 1375 5.0% July 2021 17 1.3% 55 4.1% Nil 0.0% 72 1358 5.3% July 2020 69 1439 4.8% August 2021 14 1.0% 60 4.4% Nil 0.0% 74 1356 5.5% August 2020 48 1317 3.6% September 2021 6 0.4% 49 3,5% Nil 0.0% 55 1383 4.0% September 2020 27 1378 2.0% October 2021 17 1,2% 48 3.5% Nil 0.0% 65 1367 4.8% October 2020 47 1374 3.4% November 2021 29 2.1% 66 4.7% Nil 0.0% 95 1404 6.8% November 2020 87 1316 6.6% December 2021 13 0.9% 83 5.7% Nil 0.0% 96 1459 6.6% December 2020 85 1442 5.9% January 2022 0 0.0% 52 3.9% Nil 0.0% 52 1344 3.9% January 2021 28 1315 2.1% February 2022 22 1.7% 44 3.5% Nil 0.0% 66 1262 5.2% February 2021 36 1252 2.9% March 2022 18 1.3% 84 6.0% Nil 0.0% 102 1402 7.3% March 2021 50 1504 3.3% Averages for 12 months 13 0.9% 63 4.6% Nil 0.0% 76 1372 5.5% 54 1356 4.0% 151
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Decision Making Arrangements and Procedures Supporting Documentation Pack To be submitted for approval to the meeting of Lanarkshire Valuation Joint Board to be held on Monday 27 June 2022 Section 1 Standing Orders on Procedures Section 2 Standing Orders on Contracts Section 3 Scheme of Delegation Section 4 Financial Regulations Section 5 Terms of Reference for Panels
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Standing Orders on Procedures Submitted to the meeting of Lanarkshire Valuation Joint Board on Monday 27 June 2022 Note: If you need this information in another language or format, please contact us to discuss how we can best meet your needs. Phone 0303 123 1015 or email equalities@southlanarkshire.gov.uk 3
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Lanarkshire Valuation Joint Board Standing Orders on Procedures Contents Page Number Interpretation 3 Definitions 3 The Board 1 The first meeting after the election 4 2 Ordinary meetings 4 3 Special meetings 4 4 Notice of meeting 4 5 Convener 5 6 Members 5 7 If there are not enough members present - Quorum 5 8 Letting in the public and press 5 9 Order of business 5 10 The powers and duties the Convener has 6 11 Adjourning meetings 6 12 Order of debate 6 13 Length of speeches 6 14 General conduct 6 15 Changing a decision 7 16 Questions 7 17 Giving notice beforehand on a matter which members want us to consider 7 18 Motions - procedures 7 19 How motions must be presented 8 4
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20 Entitlement to vote 8 21 Method of voting 8 22 Members who have an interest in any matters – declaration of interests 8 23 Voting arrangements for vacancies 9 24 Holder of the Common Seal 9 25 Receiving views from representatives 9 26 Changes to Standing Orders 10 27 Sub-Committees, Panels and Working Groups 10 28 Ending office 10 29 The powers and duties of the Sub-Committees, Panels and Working Groups 10 30 Passing on responsibilities to members and officers 10 31 Sub-committee proceedings 10 32 Councillors attending meetings 10 33 Calling meetings 11 34 Standing orders which apply to sub-committees 11 35 Finance – Planning and Budgeting 11 36 Spending, supplementary estimates and transferring funds 12 5
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Lanarkshire Valuation Joint Board Standing Orders on Procedures Interpretation The Interpretation Act 1978 will apply to these Standing Orders. Definitions The following words and expressions have the meanings shown next to them. The Board - the Lanarkshire Valuation Joint Board incorporated under The Valuation Joint Boards (Scotland) Order 1995. The main office is at the offices of South Lanarkshire Council, Almada Street, Hamilton Sub-Committee - a duly appointed committee of the Board exercising specific functions on behalf of the Board. Constituent authorities - the local authorities represented on the membership of the Board as follows:- North Lanarkshire Council - 8 members/8 substitutes South Lanarkshire Council - 8 members/8 substitutes Lead Authority - South Lanarkshire Council acting administratively on behalf of the constituent authorities Convener - the member elected from among the representatives of the constituent authorities to preside at Board meetings as chair. Depute Convener - the member elected from among the representatives of the constituent authorities to preside at Board meeting as chair in the absence of the Convener. Clerk - the chief administrative officer of the Board, being the Chief Executive of South Lanarkshire Council or any other authorised official representing him or her or acting on his or her behalf. Treasurer - the chief financial officer of the Board, being the Executive Director (Finance and Corporate Resources) of South Lanarkshire Council or any other authorised official representing him or her or acting on his or her behalf. Minutes - a summary of business at Board meetings 6
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1 The first meeting after the election In an election year for the constituent authorities, the lead authority will call the first meeting of the Board for the earliest date within normal meetings cycle (see 2 below). At this meeting, the Board will (a) elect a Convener of the Board from among members appointed by the constituent authorities; (b) elect a Depute Convener of the Board. The Depute Convener must not be a member of the same authority as the Convener. (c) appoint a chairperson and members for any sub-committee of the Board; and (d) deal with any business. 2 Ordinary meetings Unless the Convener or Depute Convener decides otherwise, ordinary meetings of the Board will be held every first Monday of every third month commencing in March of each calendar year. Recess periods within the constituent authorities and public holidays will be taken into account. 3 Special meetings A special Board meeting can be called at any time:- (a) by the Convener, or (b) if at least ¼ of the members demand a meeting on a specific urgent matter. A meeting will be held within 14 clear days from when the Clerk receives a written request from at least ¼ of the members 4 Notice of meetings (a) At least 3 clear days before a Board meeting the following must happen. The Clerk must publish the time and place of the meeting at South Lanarkshire Council’s offices. In the event that the meeting is being held on a virtual/hybrid basis, details on how to access the meeting will be included on the Lead Authority’s website. If the meeting is held at short notice, these will be published straight away. If the meeting is called by Board members, the notice must be signed by those members and must set out the business they want to deal with. Every Board member and substitute member (for information only) must be sent an electronic summons. The summons must set out the business that will be dealt with. (b) Any summons must give a note of the business and the proposed order for dealing with business at the meeting. The Board cannot deal with other business unless someone brings it before the Board as a matter of urgency under the following paragraph. If a meeting is called by Board members, the Board can only deal with the business listed in the members’ request. 7
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(c) If business has not been specified in the summons, it can only be dealt with at the meeting if the Convener of the meeting rules that there are special reasons why it is urgent. The Board must know about the item at the start of the meeting when we decide on the order of business (d) If any Board member or substitute member does not receive a summons, the meeting will still be valid. (e) Members of the public and press can get electronic copies of the agenda for the Board meeting at least 3 clear days before the meeting. Subject to any Government guidelines/restrictions or safe systems of work, hard copies will be available to view at the offices in Almada Street, Hamilton. This will not be the case if the meeting is called at short notice. If this is the case, the public and press can get copies when the meeting is called. If an item of business is added to the agenda, the public and press can get copies at that time. Copies of the notice will be formally issued to the Chief Executive of North Lanarkshire Council at the time of issue to members. 5 Convener (a) The Convener will chair the Board meeting if he or she is present. (b) If the Convener is not at the meeting, the Depute Convener will chair it. If the Convener and Depute Convener are not at the meeting, another member of the Board, chosen by the members will chair the meeting. 6 Members Those members of the constituent authorities nominated by each authority to serve on the Board shall be entitled to attend meetings. Should any member be unable to attend on the relevant day, he or she may arrange for a substitute member also nominated by each constituent authority to attend in his or her place. Only nominated substitutes may attend. Each constituent authority shall determine the length of time during which their members shall continue to serve on the Board. 7 If there are not enough members present - Quorum If, 10 minutes after the time appointed for a meeting or at any stage during the meeting, the Convener finds that there are fewer than ¼ of the members present (ie 4), the meeting will be adjourned until the time or day that the Convener decides. 8 Letting in the public and press (a) Every Board meeting will be open to the public and press unless it says otherwise anywhere in these Standing Orders. (b) Anybody may be kept out of the meeting to prevent or stop disorderly behaviour. Any member of the public may be kept out of a meeting or be forced to leave if they are preventing the Board from carrying out its work. If a member of the public interrupts any meeting, the Convener may warn that person. If they continue to interrupt, the Convener may order the person out of the meeting. If there is a disturbance in any part of the meeting room that is open to the public, the Convener may order that part of the room to be cleared. 8
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(c) The public and press will be kept out of a Board meeting if an item of business is confidential. We do not have to give out confidential information under the Local Government (Access to Information) Act 1985. (d) The Board may decide to keep the public and press out of a meeting if an item of business is defined as ‘exempt’ in the Local Government (Access to Information) Act 1985. (e) No unauthorised sound, film, videotape, digital or photographic recording of the proceedings of any meeting shall be made. 9 Order of business The business of ordinary Board meetings will take place in an order to be determined by the Clerk, in consultation with the Convener 10 The powers and duties the Convener has The Convener’s role is to ensure that the agenda business is properly dealt with and clear decisions are reached. There is a responsibility to ensure that the views and opinions of all participants at the meeting are allowed to be expressed and that they contribute to the outcomes of the meeting. Members present at the meeting share the responsibility for the proper and expeditious discharge of business and the role of the Convener requires to be supported and respected. The Convener’s decision is final. When he or she speaks, any member talking to the meeting must stop. The clerk, on the instructions of the Convener, will mute any attendee who does not cease speaking. The Convener must keep order and ensure the proper and timely conduct of the meeting which can sometimes mean expediting the business and reaching a decision on the fairness and sufficiency of debate. He or she will make a final decision on all matters that come up at meetings and the points at which conclusions should be reached. If 2 or more members want to speak, the Convener will decide who will speak first. If there is disorder, the Convener may adjourn the meeting to another time. In these circumstances, simply leaving the chair will adjourn the meeting. If the Convener raises both hands simultaneously, this shall have the same effect. All members shall cease speaking. The clerk, on the instructions of the Convener will mute any attendee who does not cease speaking. The Convener may make a statement at the start of the meeting on any Board matter. 11 Adjourning meetings (a) The meeting can be adjourned for a reasonable time. This will be done if:- the Convener says so a member proposes it, another seconds it and the members vote in favour of it. There will be no amendments or discussion, and (b) Nobody can make a second motion to adjourn the meeting within half an hour except the Convener. If he or she does this, it will be dealt with immediately. 9
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12 Order of debate A member who wants to speak will get the Convener’s attention and will talk to him or her. The member will speak directly about the motion or amendment that is being proposed, seconded or discussed. No member can speak more than once on any subject that is being discussed, except for a point of order with the Convener’s permission. However, the person who proposes a motion can reply. A member who is speaking when a question of order is raised will stop speaking until the Convener has dealt with the question of order. 13 Length of speeches If a member proposes or seconds a motion or amendment, he or she cannot speak for longer than 5 minutes. All other speakers cannot speak for more than 3 minutes. The member who proposes the original motion can speak for up to 5 minutes when he or she replies to any comments. But he or she cannot add anything new into the debate. After that, the discussion will finish and the Convener will put the question to the vote. 14 General conduct (a) Members are accountable for their own individual conduct in meetings at all times in terms of the Councillors’ Code of Conduct and associated regulations and guidance as issued by the Standards Commission for Scotland (b) The Convener may rule on the acceptability of language used during the course of the meeting and take appropriate action as necessary, including withdrawal of a remark, requiring an apology, or other action required to allow the meeting to properly proceed. In the event of persistent misconduct of a member by disregarding the ruling of the Convener, or behaving improperly or offensively or using unbecoming language, or wilfully obstructing the business of the meeting, the Convener may take any of the following courses either separately or in sequence: (1) direct the member to refrain from speaking during the remainder of the debate on the matter under discussion; (2) adjourn the meeting for such period as seems expedient to the Convener; and (3) in the event of general disturbance which in the opinion of the Convener renders the due and orderly despatch of business impossible, the Convener may, in addition to any other power vested in him/her, without the question being put, suspend the meeting for such period of time that he/she considers expedient. (c) if any member at the meeting behaves offensively or is uncooperative, a motion may be proposed and seconded to suspend the member for the rest of the meeting. If the motion is carried, the member must immediately leave the meeting. There will be no discussion of the motion and no changes to it. 15 Changing a decision A decision made by the Board cannot be changed within 6 months unless the Convener rules that there has been a material change of circumstances. 16 Questions (a) At any Board meeting, a member can ask the Convener a question about any relevant business not already on the agenda for the meeting. The member must have given the question to the Clerk 15 clear days before the meeting. 10
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(b) A member can ask the Convener a question about any matter which is on the agenda for that meeting without giving any notice. (c) If the Convener rules that the question is out of order, the question will not be answered. (d) There will be no discussion about any questions or answers brought in this way. 17 Giving notice beforehand on a matter which members want the Board to consider If a member wants the Board to consider a matter, he or she must put it in writing. They must then sign it and get another member to sign it as well. If the Clerk does not receive this at least 15 clear days before the meeting, the matter will not be on the agenda for the meeting and will not be dealt with at the meeting. The members who put the motion forward must move it at the meeting or someone must do it for them. If nobody puts the motion forward, it will be considered withdrawn. 18 Motions: procedures (a) All motions and amendments must be proposed by someone and seconded by someone else. If the Convener thinks it is appropriate, the motion must be put in writing and handed to him or her before any vote is taken. If the motion is to approve or disapprove a motion, it does not have to be put in writing. Amendments or motions that propose that a report be considered again and motions and amendments that are fully set out in the Board minutes also do not need to be in writing. (b) Every amendment must be relevant. (c) The person who proposed a motion or amendment can withdraw it if he or she gets permission from the person who seconded it. (d) A motion to approve a report or minutes before the Board will be considered as an original motion. Any motion that involves changing or rejecting a report or minutes will be treated as an amendment. (e) The chair of a sub-committee will have the right to move the approval of a report or the minutes of the sub-committee. (f) Motions or amendments that are not seconded will not be discussed or put into the minutes. But the person who proposed it can have his or her disapproval recorded in the following way “Councillor X, as the mover of a motion or an amendment which failed to find a seconder, asked that his or her dissent be recorded”. 19 How motions must be presented If a motion and two or more amendments have to be dealt with, the last amendment to be put forward will be put against the amendment immediately before it. The amendment which is successful will be put against the next amendment and so on until only one amendment is left. This amendment will be used against the original motion and a vote then taken. 11
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20 Entitlement to vote All serving members of the Board will have the right to vote on motions and amendments put before the Board. This right will also apply to all nominated substitute members. No other person attending the meeting will have a right to vote. 21 Method of voting (a) The Board may vote on any matter by:- using the electronic voting system calling the roll of members a show of hands, or a ballot. The Convener will decide which method is appropriate. Any member can object and ask for a vote to be taken by calling the roll. If at least 1/3 of the members present agree, then the vote will be taken by roll call. (b) Unless the law or these Standing Orders say otherwise, all questions will be decided by a majority of the members present and voting. (c) If there is an equal number of votes, the Convener will have the deciding vote. 22 Members who have an interest in any matters – declaration of interests (a) In line with the requirements of The Councillors’ Code of Conduct, any members with a financial or non-financial interest in any matter which is to be considered must declare the interest as soon as practicable at the meeting where that interest arises and, subject to the exception highlighted below, leave the meeting while the item of business is being considered. The fact that the member has declared an interest and left the meeting will be recorded in the minutes of the meeting. (b) The exception to the above relates to general dispensations issued by the Standards Commission for Scotland in respect of members who are:- council house tenants members of certain outside bodies It is considered that the public interest would be served if members were allowed to participate in discussion and voting on these matters in line with the criteria detailed in the Dispensations Note to Local Authorities in Respect of Financial and Non-Financial Interests. (c) The oral statement of declaration of interest should identify the item or items of business to which it relates. The statement should begin with the words “I declare an interest” and be sufficiently informative to allow those present at the meeting to understand the nature of the interest. 23 Voting arrangements for vacancies If there is a vacancy and there are only 2 candidates, a vote will be taken. The 1 with most votes will be appointed. 12
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If there are more than 2 candidates, a vote will be taken. Each member can only vote for 1 candidate. If 1 candidate receives more votes than the others put together, that candidate will be appointed. If no candidate receives a majority, the candidate with the fewest votes will drop out. In the next vote, the same procedure will apply again until 1 of the candidates has more votes than the others put together. If, on the vote between the final candidates or between 2 or more candidates at the bottom of the list, there is an equal number of votes, the Convener will have a deciding vote. 24 Holder of the Common Seal The Common Seal of the Board will be kept by the Head of Administration and Legal Services, Finance and Corporate Resources, South Lanarkshire Council, who will be responsible for it. 25 Receiving views from representatives (a) The Board and its sub-committee(s) will hear the views of representatives from organisations or groups with whom the Board deals. (b) Anyone who wants to present their view must apply in writing and it must be signed by a representative of the organisation or group. This application must include details of the matter to be discussed. The representatives must deliver the application to the Clerk at least 15 clear days before the date of the meeting. Notice about the application will be put on the agenda for the meeting. It will then be up to the meeting to decide whether to hear the representatives. (c) Unless the Board agrees otherwise, there cannot be more than 3 representatives from any organisation or group. (d) When representatives from an organisation or group are heard, members can ask them questions. Members must not give an opinion or discuss the business until the representatives have finished talking about their case. The representatives only have to leave the meeting if the matter is confidential or exempt in terms of the Local Government (Access to Information) Act 1985. 26 Changes to Standing Orders These Standing Orders can only be suspended, changed or abolished at a Board meeting if 2/3 of the members at the meeting agree. 27 Sub-Committees, Panels and Working Groups The Board can appoint sub-committee(s), Panel(s) and Working Group(s) and set out their powers and duties. The members will hold office until the next time councillors are elected. 28 Ending office Anyone who stops being a member of the constituent authorities will also stop being a member of the Board. 29 The powers and duties of the Sub-Committees, Panels and Working Groups (a) Depending on the law and these Standing Orders, the powers and duties of a sub- committee, panel or working group will be set out by decisions of the full Board. 13
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(b) The Board may deal with any matter included in the terms of reference of a sub- committee, panel or working group if the Board thinks it appropriate. (c) The Board may change any terms of reference of a sub-committee, panel or working group. 30 Passing on responsibilities to members and officers (a) Depending on the law and these Standing Orders, the Board will pass responsibilities as it determines to a sub-committee, Panel or working group as appropriate. (b) Officers are authorised to take decisions on matters under the powers set out in the Scheme of Delegation. (c) If there is an emergency, the Clerk can talk to the Convener or Depute Convener to decide on the matter and report on the action taken to the next Board meeting for information. 31 Sub Committee proceedings The Board will consider decisions made by the sub-committee on matters referred to it but not actually delegated for the sub-committee’s own decision. The sub-committee can, without reference to the Board, decide:- (a) on any urgent matter, or (b) routine matter that does not involve a policy change. 32 Councillors attending meetings (a) Unless Standing Order No 6 of these standing orders applies, any member of the constituent authorities may go to a Board meeting even if he or she is not a member. The member cannot take part in the proceedings and cannot vote on any issue. However, the Convener may decide the member can speak on any issue of local interest. (b) If a Council member is not a member of the Board he or she cannot go to a meeting if either of the following apply and it is also decided that the item is exempt of confidential:- the meeting is about a matter which may affect the interests of one particular person; or the decision is made after a hearing and the person or their representative has a right to put their case (c) If the Board, sub-committee, Panel or working group has a hearing:- 14
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on a matter where the decision may affect the interest or rights of any person as an individual, and where the person has a right to be heard in person or through a representative members of the Board, sub-committee, Panel or working group can only take part or vote on the matter if they have been at the whole of the hearing 33 Calling meetings As far as ordinary Board meetings are concerned, they will be held at fixed times. Sub- committee’ Panel and working group meetings will be called whenever a matter requires to be dealt with. The Clerk will fix the date, time and location after consultation with the Convener and Depute Convener. However, the chairperson can change the date and time of meetings if he or she wants. But the chairperson must give a reason why he or she changed the date and time of that meeting. 34 Standing orders which apply to sub-committees The terms of Standing Order numbers 3-15, 18-23 and 25-26 apply to a sub-committee in the same way as they apply to the Board. 35 Finance – Planning and Budgeting (a) In each financial year, the Board will consider:- any guidelines that are suitable to follow in preparing Budgets for revenue spending and for developing services; and any detailed arrangements that are suitable for preparing the budget. (b) The Board will set its budget once the levels of General Revenue Grant are known from within the Council settlement. (c) The Board will continue, throughout the financial year, to operate within the set budget and monitoring and budget control reports will be put before each Board meeting. (d) The appropriate officers of the lead authority can act on behalf of the Board in supervising and approving expenditure of the fixed annual budget. 36 Spending, supplementary estimates and transferring funds (a) The Board cannot let its spending go over its financial allowance. (b) No Board member or official can run up any expense unless the Board has approved it under Standing Order No 35. (c) No expense will be undertaken unless the Board has approved it under Standing Order No 35 and, if necessary, a tender or quotation has been received and approved either by the Board, the relevant sub-committee or under the Scheme of Delegation and if government permission is required. 15
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(d) The Board may transfer money within its revenue budget to current or new projects. (e) If the Board is obliged to spend revenue that is not included in the budget approved under Standing Order No 35 or to reduce income provided from the budget and will not meet the additional expenditure by transfer of funds, a supplementary estimate must be prepared. 16
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Section 1 Standing Orders on Contracts Submitted to the meeting of Lanarkshire Valuation Joint Board on Monday 27 June 2022 Note: If you need this information in another language or format, please contact us to discuss how we can best meet your needs. Phone 0303 123 1015 or email equalities@southlanarkshire.gov.uk 17
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LANARKSHIRE VALUATION JOINT BOARD CONTENTS STANDING ORDERS ON CONTRACTS Standing Order Description 1 Definitions 2 General 2.1 Extent 2.2 Internal arrangements 2.3 Form of contract and Scots Law 2.4(a) Calculation of Contract Values 2.4(b) Prohibition on Division of Contract Values 2.4(c) Calculation of Contract Value – Match Funding 2.4(d) Calculation of Contract Value – Funding in Kind 2.4(e) Mixed Procurement 2.4(f) Franchises/Concessions 2.5 Signing 2.6 Best Value 2.7 Guidance 2.8 Practice Notes 2.9 Prohibition on Anti-competitive Contract Terms 2.10 Compliance with General Principles 2.11 Conflict of Interest 3 Exempt and Partially Exempt Contracts 3.1 Estimated Value Below £5,000 3.2 Estimated Value Between £5,000 and £50,000 for supplies and provision of services and between £5,000 and £2million for execution of works 3.3 Conditions of Funding 3.4 Employment 3.5 Land 3.6 Special Circumstances 3.7 Contracts between Public Sector Entities – ‘Teckal’ and ‘Hamburg’ exemptions 4 Pre-Tender Requirements 4.1 Approval of Estimates of Contract Values 4.2 Contract Reference Number 4.3 Sourcing Strategy 4.4 Board Authority 4.5 Selection and Award Criteria 4.6 Reserved Contracts 4.7 Preliminary Market Testing/Advice 4.8 Time Limits 4.9 Variant Bids 4.10 Division of Contracts into Lots 4.11 Use of PINs 4.12 Examining Tenders Before Checking Compliance with the Selection Criteria 4.13 Sustainable Procurement Duty 4.14 Community Benefit Requirement 4.15 Compliance with the Procurement Strategy 4.16 Procurement of Recycled and Recyclable Products 18
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5 Competition Requirement 5.1 Contracts over £50,000 for goods and services and £2million for works subject to competition 5.2 Exceptions to the competition requirement 5.3 Publication of Notices 6 Restricted Tendering 6.1 Period for seeking expressions of interest 6.2 Obtaining Assurances 6.3 Invitation to Tender 7 Open Tendering 7.1 Time limit 7.2 Obtaining Assurances 8 Negotiated Tendering Procedure 8.1 Use of the Negotiated Tendering Procedure 8.2 Conditions for using Negotiated Procedure 8.3 Circumstances where Negotiated Procedure is Permitted (Below Higher Value Thresholds) 8.4 Reporting to Board 8.5 Keeping Records 9 Competitive Dialogue Procedure 9.1 Board Approval 9.2 Use of Competitive Dialogue 9.3 Prizes/Payments 9A Innovation Partnership 9A.1 Board Approval 9A.2 Use of Innovation Partnership 10 Competitive Procedure with Negotiation 10.1 Approval 10.2 Use of Competitive Procedure with Negotiation 11 Framework Agreements - internal 11.1 Framework Agreements - General 11.2 Framework Agreements - Conditions 11.3 Framework Agreements - Procedures for Calling Off 11.4 Framework Agreements – Access by other Contracting Authorities 11A DPS - internal 11A.1 DPS - General 11A.2 DPS - Conditions 11A.3 DPS - Calling Off 11A.4 DPS – Access by other Contracting Authorities 12 Framework Agreements - external 12.1 Framework Agreements - General 12.2 Framework Agreements - Conditions 12.3 Framework Agreements - Procedures for Calling Off 12A DPS - external 12A.1 DPS - General 12A.2 DPS - Conditions 12A.3 DPS - Procedures for Calling Off 19
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13 Collaborations 13.1 Application 13.2 Non Partnership Clause 13.3(a) Tendering 13.3(b) Trading Operations 13.3(c) European Procurement Regulations 13.4 Joint Responsibility 14 European Procurement Regulations 14.1 Application 14.1.1 Application post Brexit 14.1.2 Application – Transitional Procurements and EU funded programmes 14.2 Tendering Processes 14.3 Light Touch Regime 15 Assurances – Tendering 15.1 As part of Assessment Process 15.2 Supporting Evidence and Signing 15.3 Selection Criteria – Obtaining Assurances 16 Compliance with Data Protection Laws 16.1 To be in compliance with the Data Protection Laws 17 Confidentiality and Requests for Information 17.1 Giving out of Information not to be unreasonably excluded 17.2 Procurement/Contracting Toolkits 18 E-Procurement 18.1 Use of e-procurement 18.2 Verification and Authentication 18.3 Receipt and Custody 18.4 Late Submissions 18.5 Opening of Procurement Documents 18.6 Electronic Auctions 18.7 Electronic Catalogues 19 Selection of Tenderers 19.1 Application 19.2 Mandatory Exclusion 19.3 Discretionary Exclusion 19.4 Limits on Exclusion 19.5 Self Cleansing 19.6 SPD 20 Checking of Pre-Qualification documents/Tenders and Reporting 20.1 Assessor to check Pre-Qualification Responses/Tenders 20.2 Evaluation 20.3 Clarification of Pre-Qualification Responses/Tenders 20.4 No Fundamental Changes to Tender Conditions Permitted 20.5 Report on Pre-Qualfication Responses/Tenders 20.6 Exclusion of Tenderers before Submission of Tenders 21 Acceptance of Tenders 21.1 £200,000 and Below – Assessor 21.2 Over £200,000 – Assessor in consultation with Members 21.3 Not accepting the Lowest Tender (in a price only tender for works where value is less than £2million) or where Costs exceed the financial provision 20
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21.3A Abnormally Low Tenders 21.4 No Tender Being Accepted 21.5 Issue of Letters 21.6 General Conditions 21.7 Compliance with the Standstill Period 21.8 Notification of Award to Joint Board 21.9 Debrief 21.10 Giving of Reasons – Regulated Procurement 21.11 Provision of Further Information – Regulated Procurement 21.12 Contract Award Notices 22 Extensions to Contracts 22.1 Extension of Contracts subject to European Procurement Regulations 22.2 Authorisation of a Contractual Extension 22.3(a) Non-Contractual Extensions 22.3(b) Conditions to be Applied to a Non-Contractual Extension 22.4 Authorisation of a Non-Contractual Extension 22.5 Notification to Joint Board 22.6 Keeping Records 23 Nomination of Sub-Contractors 23.1 Tendering for Sub-Contactors 24 Responsible Third Parties 24.1 Obligations of third parties 24.2 To be a Contract Condition 25 Contract Performance Security 25.1 General right to require security 26 Contract Term – Sub-Contractors 26.1 Obligation on Sub-Contractors 27 Contract Terms – Insurance 27.1 Contractor must have Insurance to specified levels 27.2 Proof of Insurance – Contract Term 27.3 Dealing with Claims - Contract Term 28 Contract Terms – Illegal Practices 28.1 Cancellation of Contract 28.2 Remedies 29 Contract Terms – Assignation/Sub-Contracting 29.1 No Assignation/Sub-Contracting Permitted 29.2 Approval 30 Contract Terms – Equalities Legislation 30.1 To be in compliance with Equalities Legislation 30.2 Undertaking in relation to Equalities 31 Contract Terms – Human Rights Act 1998 31.1 To be in compliance with Human Rights Act 1998 32 Contract Terms – Compliance with Environmental, Social and Employment Law 32.1 Conditions for Performing Contract 21
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33 Contract Terms – Termination of Contracts 33.1 Express Term of Contract 33.2 Implied Term of Contract 33.3 Approval 34 Contract Modifications 34.1 Application 34.2 Approval 35 Retention of Contract Documents 35.1 Retention of contracts awarded 35.2 Retention of documents relevant to awarded contracts 36 Procurement Strategy 36.1 Preparation of the Procurement Strategy 36.2 Publication of the Procurement Strategy 37 Annual Procurement Report 37.1 Preparation of the Annual Procurement Report 37.2 Publication of the Annual Procurement Report 22
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STANDING ORDERS ON CONTRACTS 1 Definitions The following words and expressions used in these Standing Orders shall have the meanings hereby assigned to them:- ‘Assessor’ ‘Call-Off Contract’ means the Assessor and Electoral Registration Officer appointed under Section 27 of the Local Government etc (Scotland) Act 1994 for the time being and shall be taken to include any corresponding office known by any other description or any substitute(s) authorised in terms of the Joint Board’s Scheme of Delegation except in cases where it is stated that substitutes cannot act means the terms and conditions under which specific purchases can be made under a Framework Agreement and/or a DPS and/or an arrangement established in terms of the light touch regime ‘Competitive Dialogue’ means such a tendering procedure as defined in the European Procurement Regulations ‘Community Benefit Requirement’ means that contractual requirement as defined in the Reform Act and any guidance published by the Scottish Government under the Reform Act ‘Concession’ means a works or services concession as defined in the Concession Contracts (Scotland) Regulations 2016 or such other Regulations amending, substituting or replacing those Regulations ‘Contracting Authorities’ means the authorities or bodies as defined in the European Procurement Regulations and includes the Joint Board ‘Data Protection Laws’ means the General Data Protection Regulation (or any law incorporating the same into UK domestic law with or without amendments and any subsequent legislation amending it) and the Data Protection Act 2018 (or any legislation replacing or amending it) ‘DPS’ means a dynamic purchasing system as defined in the European Procurement Regulations ‘E-procurement’ means the carrying out of the procurement of a contract for the supply of goods, carrying out of works or provision of services by electronic means ‘Electronic Auction’ means a repetitive process, involving an electronic device for the presentation of new prices, revised downwards and/or new values concerning certain elements of tenders, which occurs after an initial full evaluation of the tenders, enabling them to be ranked using the stated evaluation methods 23
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‘Equal Opportunities’ means the prevention, elimination, or regulation of discrimination between persons on grounds of sex or marital status, on racial grounds or on grounds of disability, age, sexual orientation, language or social origin, or other personal attributes including religion (or lack thereof), beliefs or opinions, such as religious beliefs or political opinions or lack of such religious or philosophical beliefs as detailed in the Equalities Legislation ‘Equalities Legislation’ means the Equality Act 2010 and all other relevant statutory obligations in relation to equalities which apply in the UK ‘European Procurement Regulations’ means the Public Contracts (Scotland) Regulations 2015 or such other Regulations amending, substituting or replacing those Regulations ‘Framework Agreement’ means an agreement which sets out terms and conditions under which specific purchases (Call-Off Contracts) can be made throughout the term of the agreement ‘General Principles’ means the overarching principles of transparency, openness, non-discrimination and equal treatment ‘Higher Value Regulated Procurement’ means a procurement exercise subject to the European Procurement Regulations ‘Higher Value Threshold’ means the financial thresholds for Higher Value Regulated Procurements which must be reviewed by the Scottish Ministers every 2 years and will apply from 1 January in the relevant year ‘Innovation Partnership’ means that procurement process as specified in the European Procurement Regulations ‘Life-Cycle Costing’ means such costs as are specified in the European Procurement Regulations ‘Joint Board’ means Lanarkshire Joint Valuation Board constituted by the Valuation Joint Boards (Scotland) Order 1995 and having its principal offices at David Dale House, 45 John Street, Blantyre, G72 0AA ‘Lead Authority’ means South Lanarkshire Council established in terms of the Local Government etc (Scotland) Act 1994 and having its main offices at Council Offices, Almada Street, Hamilton, ML3 0AA ‘Legal Advisor’ means the Head of Administration and Legal Services (Finance and Corporate Resources) of the Lead Authority for the time being and shall be taken to include any corresponding office known by any other description or any person to whom authority is delegated in terms of the Lead Authority’s Scheme of Delegation except in cases where it is stated that substitutes cannot act ‘PCS System’ means the Public Contracts Scotland system 24
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‘PIN’ means a prior information notice ‘Practice Notes’ means all practice notes, toolkits, briefing notes and/or documents issued pursuant to Standing Order 2.8 ‘Procurement Process’ means a procurement process approved by the Lead Authority’s Procurement Network in relation to the conduct of a procurement exercise ‘Procurement Strategy’ means the strategy which the Joint Board must prepare in accordance with Standing Order 36 ‘Reform Act’ means the Procurement Reform (Scotland) Act 2014 and any new legislation amending, substituting or replacing that Act ‘Reform Act Regulations 2016’ means The Procurement (Scotland) Regulations 2016 or such other Regulations amending, substituting or replacing those Regulations ‘Regulated Procurement’ has the meaning defined in the Reform Act and excludes a Higher Value Regulated Procurement unless stated otherwise ‘Scottish Public Authority’ means any body which is listed in Schedule 1 to or is designated by order under Section 5(1) of the Freedom of Information (Scotland) Act 2002 or is a publicly owned company as defined in Section 6 of that Act “SME” means a business or company as defined by the European Commission ‘Social and other Specific Services’ means those services specified in Schedule 3 to the European Procurement Regulations “SPD” means the Single Procurement Document (Scotland) as specified in the European Procurement Regulations ‘Supported Business’ means such businesses as defined in the European Procurement Regulations ‘Supported Employment Programme’ means such programmes as defined in the European Procurement Regulations ‘Sustainable Procurement Duty’ means such duty as specified in the Reform Act and any guidance published by the Scottish Government under the Reform Act 25
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‘Treasurer’ means the Executive Director (Finance and Corporate Resources) of the Lead Authority for the time being and shall be taken to include any corresponding office known by any other description or any person to whom authority is delegated in terms of the Lead Authority’s Scheme of Delegation except in cases where it is stated that substitutes cannot act who is the treasurer to the Joint Board 2 General These Standing Orders shall apply to the entering into by the Joint Board or on its behalf of contracts (as appropriate) including but not limited to the award of contracts, the establishment of Framework Agreements, a DPS or an arrangement established in terms of the light touch regime or the award of any Call Off 2.1 Extent These Standing Orders apply to all Joint Board contracts (as appropriate) including but not limited to the award of contracts, the establishment of Framework Agreements, a DPS or an arrangement established in terms of the light touch regime and the award of Call Off Contracts 2.2 Internal Arrangements (a) Any action taken on the Joint Board’s behalf must also be in terms of the Joint Board’s Scheme of Delegation, Financial Regulations and the Standing Orders on Procedures (b) These Standing Orders are intended to comply with and be subject to the Code of Corporate Governance made by the Joint Board from time to time. If there is a discrepancy between the terms of these Standing Orders and those of the Code, the provisions of the Code in force at the time shall take precedence 2.3 Form of contract and Scots Law (a) Unless otherwise authorised by the Assessor in consultation with the Legal Advisor in special circumstances and subject to Standing Order 2.3 (b) all contracts, the establishment of Framework Agreements, the establishment of DPS or an arrangement established in terms of the light touch regime and the award of Call Off Contracts entered into in terms of and in accordance with these Standing Orders shall be:- (i) in writing; (ii) in the name of the Joint Board; and (iii) subject to the law of Scotland and the exclusive jurisdiction of the Scottish Courts (b) Approval under Standing Order 2.3(a) shall not be required for the award of:- (i) contracts where the estimated value is less than £50,0000; and (ii) Call Off Contracts irrespective of value which will be subject to to the law of England and the exclusive jurisdiction of the English Courts where they do not allow for a change in the applicable law and legal jurisdiction. 26
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2.4a Calculation of Contract Values (i) Any value of a contract stated in these Standing Orders shall be the estimated aggregated value of the contract for the full life of the contract (including any potential contractual extension) and not the estimated annual value of the contract. Where a contract is for the supply of works, goods or services for a continual basis over a number of years then the estimated aggregated value of that contract shall be calculated by multiplying the estimated annual value by the number of years of the duration of the contract. All prizes and/or payments to be made to tenderers must be taken into account in calculating the estimated value. (ii) For the purposes of determining whether the European Procurement Rules apply to the procurement exercise VAT (if payable) must be included when calculating the estimated value. (iii) For the purposes of determining whether the Reform Act applies to the procurement exercise the estimated value should be calculated exclusive of VAT. 2.4b Prohibition on Division of Contract Values It is not permitted to deliberately divide any procurement exercise into two or more contracts if the intention for doing so is to reduce the estimated aggregated value of the contract in order to avoid the application of any financial thresholds set out in these Standing Orders, the application of the Higher Value Thresholds or the effect of the European Procurement Regulations. 2.4c Calculation of Contract Value – Match Funding If the cost of a contract is only being met in part by the Joint Board the total value of the contract including the funding from a third party shall be, for the purposes of these Standing Orders, calculated by totalling all the contributions to be made towards the cost. 2.4d Calculation of Contract Value - Funding in Kind Where a contract includes the provision of services or other funding in kind to the Contractor by either the Joint Board or a third party, the value of the contract shall be calculated by including the value of the services being provided or the funding in kind in addition to any monetary consideration. 2.4e Mixed Procurement The following rules will apply when determining how to treat a mixed procurement of any contract for the supply of goods, provision of services and the carrying out of works:- (i) Services/Supplies Determining factor is the main subject matter identified by reference to the element which has the highest estimated value i.e. if the value attributed to services exceeds that attributable to supplies then it will be treated as a services contract. (ii) Services/Social and other Specific Services Determining factor is the main subject matter identified by reference to the element which has the highest estimated value i.e. if the value attributed to services exceeds that attributable to the Social and Specific Services then it will be treated as a services contract. (iii) Concession/ Works, Services and/or Supplies If the estimated value of the works/services/supplies element 27
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exceeds the relevant Higher Value Thresholds it will be treated as a public contract for works/services/supplies and not a Concession contract (iv) Works/ Services or Supplies Determining factor is the main subject of the contract in question regardless of the relative values of the elements and then the relevant Higher Value Threshold applies to determine the applicable rules 2.4f Franchises /Concessions Where a Contract relates to the provision of services to the public under which the Joint Board gives to the Contractor the right to exploit the provision of the services, the total value of that Contract shall be taken as including the value of that right to exploit the provision and monetary payments made by the Joint Board to the Contractor. All sums paid by the Contractor to the Joint Board shall be disregarded in connection with the calculation of the value of the Contract. 2.5 Signing All contracts entered into in terms of and in accordance with these Standing Orders shall be signed by either the Assessor or an officer of the Joint Board authorised to sign contracts on behalf of the Joint Board. 2.6 Best Value All contracts must secure Best Value and maintain an appropriate balance among:- the quality of the performance of the Joint Board’s functions the cost to the Joint Board of that performance; and the cost to persons of any Joint Board service provided for them on a wholly or partly rechargeable basis having regard to:- a) efficiency b) effectiveness c) economy d) the need to meet equal opportunity requirements; and e) the need to ensure sustainable development. 2.7 Guidance When entering into a contract, due regard must be given to any guidance issued by the Scottish Ministers in terms of the Local Government in Scotland Act 2003 and/or Reform Act. 2.8 Practice Notes Practice Notes on tendering procedures for any contract or type of contract entered into by or on behalf of the Joint Board may be issued by the Legal Advisor. Any Practice Notes shall form part of these Standing Orders. 2.9 Prohibition on anti- competitive contract terms In preparation of any contract terms and in the award of any contract, there must be no terms, which are either:- (a) anti-competitive as defined in the Competition Act 1998 (where applicable); or (b) non-compliant with any other legal requirement. 28
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2.10 Compliance with General Principles All contracts, regardless of value and/or applicable procurement rules, must be awarded in compliance with the General Principles. 2.11 Conflict of Interest In carrying out all procurement exercises employees must comply with the measures introduced by the Joint Board to prevent, identify and remedy conflicts of interest as specified in the relevant Procurement Process. 3 Exempt and Partially Exempt Contracts 3.1 Estimated Value Below £5,000 These Standing Orders shall not apply to any contract for the supply of goods, the provision of services and the carrying out of works where the estimated aggregated value does not exceed £5,000 including items of a recurring nature the total value of which is no more than that amount, subject always when entering into such contracts:- (a) to the need to demonstrate Best Value (as set out in Standing Order 2.6); (b) compliance with the Joint Board’s Code of Corporate Governance; (c) ordered using the Joint Board’s official Purchase Order and the i- procurement system (unless otherwise exempted by the Lead Authority’s Certified Payment Policy); (d) seeking at least 3 quotes (including one from SME having their place of business within the local government area of North and/or South Lanarkshire). Place of business does not require it to be their registered or principal office; and (e) keeping records of the process. 3.2 Estimated Value Between £5,000 and £50,000 for supplies and provision of services and £5,000 and £2million for execution of works (a) All contracts for the supply of goods or provision of services, where the estimated aggregated value does not exceed £50,000, and for carrying out of works where the estimated aggregated value does not exceed £2million shall be exempted from these Standing Orders with the exception of:- (i) Standing Order 2 (General) (ii) Standing Order 4.2 (Contract Reference Number) (iii) Standing Order 4.3 (Sourcing Strategy) (if, in the opinion of the Assessor, the contract is of high risk and/or there are special circumstances) (iv) Standing Order 4.14 (Community Benefit Requirement) but only for works contracts where the estimated value exceeds £50,000 and is being awarded on the basis of most economically advantageous tender (v) Standing Order 15 (Assurances – Tendering) (as appropriate) (vi) Standing Order 16 (Compliance with Data Protection Laws) (as appropriate) (vii) Standing Order 17 (Confidentiality and Requests for Information) (viii) Standing Order 18 (E-Procurement) (ix) Standing Order 19 (Selection of Tenderers) but only for works contracts where the estimated value exceeds £50,000 (x) Standing Order 20 (Checking of Pre-Qualification Documents/Tenders and Reporting) but only for works contracts where the estimated value exceeds £50,000 (xi) Standing Order 21 (Acceptance of Tenders) but only for 29
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works contracts where estimated value exceeds £200,000 (xii) Standing Order 25 (Contract Performance Security); and (xiii) All Standing Orders relating to contract conditions. (b) Immediately prior to entering into a contract referred to in Standing Order 3.2(a) at least 5 competitive quotes/bids in writing (including 4 quotes/bids from SMEs having their place of business within the local government area of North and/or South Lanarkshire if such SMEs are available and place of business does not require to be their registered or principal office) must be obtained by the Assessor using Quick Quote via Public Contracts website (Route 1A - lowest price) or PCS System (Route 1B - most economically advantageous) unless the Assessor is satisfied that:- (i) good reasons exist for not doing so. Such good reasons may include but are not limited to the circumstances justifying the use of the negotiated tendering procedure as set out in Standing Order 8 (Negotiated Tendering Procedure; and (ii) the contract secures Best Value (as set out in Standing Order 2.6). (c) The contract awarded must include a condition which allows for it to be reviewed as a minimum annually to ensure Best Value (as set out in Standing Order 2.6) (d) The Assessor shall ensure that the persons invited to submit quotations are selected on a fair, transparent and non- discriminatory basis, and in a manner that is at all times compliant with the General Principles following a selection process approved by the Legal Advisor. 3.3 Conditions of Funding Where a public authority or similar body provides funding for a particular project (including the provision of services by the Joint Board to others) and that funding is subject to conditions which specify:- (i) particular contractors or a particular class of contractors with whom/which the Joint Board are required to or restricted to contract within the provision of the services or carrying out of the works as part of the project, or (ii) specific goods or materials which must be used in the project or specific services which must be delivered as part of the project such contracts may be excluded from these Standing Orders with the exception of:- (i) Standing Order 2 (General); (ii) Standing Order 4.2 (Contract Reference Number); (iii) Standing Order 4.3 (Sourcing Strategy); (iv) Standing Order 15 (Assurances - Tendering) (as appropriate); (v) Standing Order 16 (Compliance with the Data Protection Laws) (if appropriate); (vi) Standing Order 17 (Confidentiality and Requests for Information); (vii) All Standing Orders relating to contract conditions in so far as the said funding condition makes, in the view of the 30
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Assessor, the tendering processes set out in these Standing Orders impracticable or impossible, subject always to the requirements of the Reform Act, the Reform Act Regulations and/or the European Procurement Regulations 3.4 Employment These Standing Orders do not apply to any contract of employment. 3.5 Land These Standing Orders do not apply to any contract for the acquisition, disposal or rental of heritable property (including leases and licences) or any right, servitude or other interest in or over heritable property. However, this does not exempt any acquisition or disposal from the European Procurement Regulations or any other requirements set out in law or from the Joint Board’s Scheme of Delegation, Financial Regulations or Standing Orders on Procedures in relation to the acquisition or disposal of land or buildings. 3.6 Special Circumstances The Joint Board may exempt from the terms of these Standing Orders, or any part of them as the case may be, any contract if, subject to any requirements in terms of the European Procurement Regulations and following consultation with the Legal Advisor they are satisfied that the exemption is justified by special circumstances. 3.7 Contracts between public sector entities – ‘Teckal’ and ‘Hamburg’ exemptions (a) These Standing Orders do not apply to the procurement for the award of contracts on the basis of the ‘Teckal’ exemption (where a contract is awarded by a Contracting Authority to a controlled legal person (as defined in the European Procurement Rules) or the ‘Hamburg’ exemption (where a contract is awarded exclusively between 2 or more Contracting Authorities) with the exception of:- (i) Standing Order 2.5 (Signing) (ii) Standing Order 4.2 (Contract Reference Number) (iii) Standing Order 4.3 (Sourcing Strategy) (b) The approval of the Joint Board will be required to award contracts in the circumstances referred to in Standing Order 3.7 (a). 4 Pre-Tender Requirements 4.1 Approval of estimates of contract values No tender shall be invited or offer made or accepted for any contract for the supply of goods, or the carrying out of works or the provision of services unless either:- (a) appropriate financial provisions have been made and approved by the Joint Board in terms of the Joint Board’s Financial Regulations or (b) where funding is provided by a third party for a specific purpose involving the award of contracts of whatever nature, that purpose has been approved by the Joint Board 31
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4.2 Contract Reference Number No tender shall be invited or offer made or accepted for any contract for the supply of goods, or the carrying out of works or the provision of services where the estimated aggregated value exceeds £5,000 without a contract reference number having been obtained using the template approved by the Treasurer. 4.3 Sourcing Strategy (a) A Sourcing Strategy using the template approved by the Treasurer must be created for all:- (i) tender opportunities including the setting up of a Framework Agreement in accordance with Standing Order 11 (Framework Agreement – internal); a DPS under Standing Order 11A (DPS – Internal) or an arrangement established in terms of the light touch regime under Standing Order 14.3 (Light Touch Regime); and (ii) Call Off Contracts from a Framework Agreement permitted in terms of Standing Order 12 (Framework Agreement – External) or a DPS permitted in terms of Standing Order 12A (DPS – External) where the estimated aggregated value exceeds £50,000 for the supply of goods or the provision of services and exceeds £2million for the execution of works. A Sourcing Strategy may be created for contracts where the estimated aggregated value is below £50,000 for the supply of goods or the provision of services and below £2million for the execution of works, where in the opinion of the Assessor the contract is of high risk and/or there are special circumstances. (b) However a Sourcing Strategy will not require to be created for:- (i) Call Off Contracts from a Framework Agreement established by the Board in accordance with Standing Order 11 (Framework Agreement - internal) unless, in the opinion of the Assessor, that Call Off Contract is of high value and/or high risk; or (ii) Call Off Contracts from a DPS established by the Board in accordance with Standing Order 11A (DPS – Internal) unless, in the opinion of the Assessor, that Call Off Contract is of high value and/or high risk.; or (iii) Call Off Contract under an arrangement established in terms of the light touch regime in accordance with Standing Order 14.3 (Light Touch Regime) unless, in the opinion of the Assessor, that Call Off Contract is of high value and/or high risk; or (iv) the procurement of a contract using the negotiated tendering procedure in accordance with Standing Order 8 (Negotiated Tendering Procedure) 4.4 Board Authority Where, in the opinion of the Assessor, a contract for the supply of goods, the carrying out of works or the provision of services is of high value and/or high risk no tender shall be invited for such a contract without approval from the Joint Board. 32
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4.5 Selection and Award Criteria 4.5.1 Selection Criteria (a) The Assessor will set the selection criteria for a procurement exercise taking account of the applicable requirements of the Reform Act Regulations; any other Regulations made or guidance issued by the Scottish Government under the Reform Act the European Procurement Regulations any such guidance as the Legal Advisor and/or the Treasurer consider appropriate; and any relevant Procurement Process (b) The selection criteria must be:- proportionate taking account of the nature, scope and size of the contract and ♦ related to the subject matter of the contract (c) The selection criteria must be stated in the contact notice or the invitation to confirm interest and the procurement documents to enable the bidder to complete and submit an SPD (refer to Standing Order 19.6) 4.5.2 Award Criteria (a) The procurement documents will state the award criteria that will apply to the procurement exercise as follows:- (i) The award of a contract for services and supplies with an estimated value above £50,000 shall be made on the basis of the most economically advantageous tender; (ii) The award of a contract for works with an estimated value above £50,000 and below £2,000,000 shall be made, at the discretion of the Assessor, on the basis of lowest price or most economically advantageous tender; (iii) The award of a works contract where the estimated value exceeds £2,000,000 shall be on the basis of the most economically advantageous tender; and (iv) The award of all contracts which exceed the relevant Higher Value Thresholds shall be made on the basis of the most economically advantageous tender. (b) The most economically advantageous tender must be identified on the basis of the best – price quality ratio assessed on the basis of criteria linked to the subject matter of the contract and include price or cost. This requirement applies even if the cost element takes the form of a fixed price or cost. The cost element may also at the discretion of the Assessor include Life-Cycle Costing. (c) In determining the award criteria the Assessor must take account of the requirements of the European Procurement Regulations, any such guidance as the Legal Advisor and/or the Treasurer consider appropriate and any relevant Procurement Process 33
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4.6 Reserved Contracts (a) The Assessor may in respect of a Regulated Procurement or a Higher Value Regulated Procurement:- (i) reserve the right to participate in a procurement exercise to a Supported Business; or (ii) provide for a contract to be performed in a Supported Employment Programme and the decision must be recorded in the Sourcing Strategy. 4.7 Preliminary Market Testing/Advice (a) Preliminary market consultation may be carried out at the discretion of the Assessor before carrying out any procurement exercise. (b) Advice may be sought or accepted from an independent expert or authority or from persons operating in the particular market relevant to the subject matter of the contract to be procured. That advice may be used in the planning and conduct of the procurement exercise provided that it does not distort competition or breach the General Principles. (c) Employees involved in a procurement exercise where preliminary market consultation has been conducted and/or preliminary advice obtained must comply with the provisions of the relevant Procurement Process and ensure that the information is disclosed in the tender documents issued for the procurement process. 4.8 Time limits (a) For all procurement exercises other than those subject to the European Procurement Regulations the time limits for the receipt of tenders or requests to participate shall be determined taking account of the following factors:- (i) the complexity of the contract; and/or (ii) the time required for preparing a tender; and/or (iii) whether a site visit is required (b) The time limit for receipt of tenders must be extended in a proportionate manner where:- (i) the Joint Board supplies additional information to a bidder (whether or not it was requested in good time) less than 6 days before the expiry of the tender return date; and (ii) significant changes had been made to the procurement documents (c) An extension to the tender return date is not required in the following circumstances:- (i) where additional information has not been requested in good time; or (ii) where the additional information requested is of insignificant importance to the tender response (d) For any procurement exercise where the estimated value is below the relevant Higher Value Thresholds the Assessor can decide as good practice to follow the time limits provided in the European Procurement Regulations 34
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4.9 Variant Bids The Assessor in consultation with the Legal Advisor must authorise the allowing or seeking of variant bids in a procurement exercise and the decision must be recorded in the Sourcing Strategy. 4.10 Division of Contracts into Lots (1) Where the Assessor decides not to divide a contract into lots the main reasons for that decision must be indicated in the Sourcing Strategy, procurement document and the Report on Tenders. (2) Where the Assessor has decided to divide the contract into lots the Contract Notice or invitation to confirm interest must indicate:- (i) whether tenders may be submitted for one, several or all lots; (ii) where a decision to limit the number of lots that may be awarded to one tender has been taken by the Assessor, the maximum limit of all lots that may be awarded to one bidder; (iii) the criteria that will apply to determine how lots will be awarded where the award criteria would result in one tenderer being awarded more lots than the maximum number; and (iv) whether the Joint Board reserves the right to award the contract combining several or all lots if a tenderer can be awarded more than one lot and if so indicate that the lots are groups of lots that may be combined 4.11 Use of PINs (a) The Assessor may, subject to the prior approval of the Legal Advisor, use a PIN as a call for competition in a restricted tendering procedure or competitive procedure with negotiation. (b) The use of a PIN as a call for competition shall be subject to the European Procurement Regulations and any such guidance and requirements as the Legal Advisor and/or the Treasurer considers appropriate. 4.12 Examining tenders before checking compliance with the selection criteria (a) In an open tendering procedure the Assessor may, subject to the prior approval of the Legal Advisor, decide to evaluate tenders before checking the absence of the exclusion grounds and checking a tenderer’s compliance with the selection criteria (b) If the option referred to in Standing Order 4.12(a) is approved:- (i) the decision must be recorded in the Sourcing Strategy; and (ii) the procurement exercise must comply with the European Procurement Regulations and such guidance and requirements as the Legal Advisor and/or the Treasurer considers appropriate 4.13 Sustainable Procurement Duty (a) From 1 June 2016 in carrying out any Regulated Procurements (other than Call Offs) or Higher Value Regulated Procurement the Assessor will comply with the Sustainable Procurement Duty (b) In complying with the Sustainable Procurement Duty the Assessor must comply with the Reform Act, any guidance issued by the Scottish Government under the Reform Act, any guidance and requirements as the Legal Advisor and/or the Treasurer considers appropriate and any relevant Procurement Process 35
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(c) In complying with the Sustainable Procurement Duty the Assessor will so far as possible within the law encourage fair work practices and payment of the living wage and discourage use of exploitative ‘zero hours’ contracts. 4.14 Community Benefit Requirement (a) From 1 June 2016 in carrying out any Regulated Procurement or Higher Value Regulated Procurement (including any Call Off Contract) where the estimated value of the contract is equal to or exceeds £4million the Assessor will comply with the Community Benefit Requirement. (b) In complying with the Community Benefit Requirement the Assessor must comply with the Reform Act, any guidance issued by the Scottish Government under the Reform Act, any guidance and requirements as the Legal Advisor/or Treasurer considers appropriate and any relevant Procurement Process. 4.15 Compliance with Procurement Strategy The Assessor shall carry out all Regulated Procurements and Higher Value Regulated Procurements, so far as reasonably practicable, in accordance with the Procurement Strategy applicable to the financial year during which the procurement exercise commenced. 4.16 Procurement of Recycled and Recyclable products The Assessor shall comply with requirements to procure recycled and recyclable products as contained in any Regulations made by the Scottish Government under the Reform Act, any such guidance as the Legal Advisor and/or the Treasurer consider appropriate and any relevant Procurement Process 5 Competition Requirement 5.1 Contracts over £50,000 for goods and services and over £2million for works subject to competition All contracts for the supply of goods or the provision of services where the estimated aggregated value is equal to or in excess of £50,000 and contracts for the execution of works where the estimated aggregated value is equal to or in excess of £2million but in all cases below the Higher Value Thresholds (refer to Standing Order 14 (European Procurement Regulations) may only be awarded after steps have been taken for the purpose of ensuring genuine competition by seeking from tenders by public advertisement in accordance with the relevant requirements of these Standing Orders. 5.2 Exceptions to the competition requirement The requirement in Standing Order 5.1 does not apply where the use of the negotiated tendering procedure under Standing Order 8 (Negotiated Tendering Procedure) is justified. 5.3 Publication of Notices All PINs, contract notices and contract award notices must be published via the Public Contracts website Find a Tender system and OJEU (if applicable) in accordance with applicable provisions of the European Procurement Regulations, the Reform Act, the Reform Act Regulations 2016, any other Regulations made by the Scottish Government under the Reform Act and any guidance issued by the Scottish Government under the Reform Act. 36
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6 Restricted Tendering 6.1 Period for seeking expressions of interest The requirements of Standing Order 4.11 shall be complied with in determining the period allowed in the PIN (when used a call for competition) or the contract notice to express an interest in tendering for a proposed contract. 6.2 Obtaining Assurances Prior to issuing any invitations to tender, the Assessor shall seek the assurances as required by Standing Order 15 but only insofar as they relate to the subject matter of the contract 6.3 Invitation to Tender Invitations to tender shall be sent to at least five persons selected from those who have expressed an interest in tendering for the proposed contract or, if fewer than five persons have expressed an interest to all such persons who have done so. However no person shall be invited to tender unless:- (a) they have provided the assurances required in terms of Standing Order 6.2; (b) the technical capability and financial standing of such persons has been satisfactorily investigated; (c) the requirements of Standing Order 19 (Selection of Tenderers) have been complied with; and (d) the Joint Board has complied with the requirements of Standing Order 16 (Compliance with the Data Protection Laws). 7 Open Tendering 7.1 Time Limit The requirements of Standing Order 4.8 shall be complied with in determining the period allowed in the contract notice. 7.2 Obtaining Assurances All documents detailing the selection criteria will specify that selection will include the obtaining by the Joint Board of satisfactory assurances in terms of Standing Order 15 (Assurances – Tendering) and comply with the requirements of Standing Order 16 (Compliance with the Data Protection Laws). 8 Negotiated Tendering Procedure – General 8.1 Use of the Negotiated Tendering Procedure This Standing Order shall apply to all Regulated Procurements which are conducted without advertisement and contracts for carrying out works where the estimated value is less than £2million. 8.2 Conditions for using Negotiated Procedure The negotiated tendering procedure may only be used if:- (a) the circumstances set out in Standing Order 8.3 exist; (b) it is in the Joint Board’s interest to use the negotiated tendering procedure; (c) the contract will secure Best Value (as set out in Standing Order 2.6); and (d) all relevant requirements of these Standing Orders have been complied with including but not limited to:- (i) Standing Order 2 (General) (ii) Standing Order 4.2 (Contract Reference Number) (iii) Standing Order 15 (Assurances – Tendering) (v) Standing Order 19.1 to 19.6 (Selection of Tenderers) (vi) Standing Order 21.1, 21.2, 21.3, 21.5, 21.6 (as appropriate), 21.8 and 21.12 (Acceptance of Tenders) 8.3.1 Circumstances where Negotiated Procedure is The Assessor in consultation with the Convener (or in his/her absence) the Depute Convener of the Joint Board must approve the existence of the following circumstances:- 37
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Permitted (Below Higher Value Thresholds) (a) Where as a result of the publication of a contract notice no tender, no suitable tenders, no requests to participate or no suitable requests to participate has been received provided that the initial conditions of the contract are not substantially altered; or (a) Where the works, services or supplies can be supplied only by one suitable contractor for any of the following reasons:- (i) the aim of the procurement is the acquisition of a unique work of art or artistic performance; or (ii) competition is absent for technical reasons; or (iii) the protection of exclusive rights including intellectual property rights; but in the cases of (ii) and (iii) no alternative or substitute exists and the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement; or (b) Where in the case of a supplies contract for additional deliveries by the original supplier intended as a partial replacement of supplies or installations or as the extension of existing supplies or installations that a change of supplier would oblige the Joint Board to acquire supplies having different technical characteristics which would result in incompatibility or disproportionate technical difficulties in operation and maintenance subject to the duration of the contract not exceeding 3 years unless exceptional circumstances exist; or (c) Where in the case of a contract for the supply of goods, the goods are manufactured purely for the purpose of research, experiment, study or development, but the contract awarded shall not include quantity production to establish their commercial viability or to recover research and development costs; or (d) Where in the case of a supplies contract, it is in the interests of the Joint Board to take advantage of particularly advantageous terms from a supplier which is definitively winding up its business activities or from a liquidator in an insolvency procedure, an arrangement with creditors or a similar procedure under national laws or regulations; or (e) Where in the case of a supplies contract the supplies are quoted and purchased on a commodity market; or (f) Where in the case of a services contract it follows a design contest organised in accordance with the European Procurement Regulations and is to be awarded under the rules provided for in the design contest to the winner or one of the winners of the design contest; or (g) Where:- (i) it is new works, services or both consisting of the repetition of similar works or services entrusted to the original contractor provided such works or services are in conformity with the project for which the original contract was awarded; (ii) project indicated the extent of the possible works or services and the conditions under which they would be awarded; (iii) the possible use of this procedure was disclosed in the procurement documents and the total estimated cost of the additional works or services was taken into account in determining if the procurement exercise would be a Regulated Procurement; and 38
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(iv) no more than 3 years has passed from the conclusion of the original contract. 8.3.2 In the view of the Assessor (but only if it is strictly necessary) for reasons of extreme urgency either brought about by events outwith the control of the Joint Board or to prevent danger to life, serious risk to health or damage to property, the contract must be awarded without delay. 8.4 Reporting to Board Where the negotiated tendering procedure has been used, the requirements of Standing Order 21.8 shall be met. 8.5 Keeping Records In all cases where the negotiated procedure has been used in terms of this Standing Order, a full written record of all contacts, discussions and communications with the prospective contractors shall be kept by the Assessor together with a full explanation as to why the Assessor considered it appropriate to use the negotiated procedure and confirming that the contract secures Best Value (as set out in Standing Order 2.6) 9 Competitive Dialogue Procedure 9.1 Board Approval The Competitive Dialogue Procedure provided for in the European Procurement Regulations may only be used where the prior approval of the Joint Board has been given to its use 9.2 Use of Competitive Dialogue Procedure The use of the Competitive Dialogue Procedure in any contract approved by Joint Board shall be subject to the European Procurement Regulations and such guidance and requirements as the Treasurer and the Legal Advisor consider appropriate. 9.3 Prizes/Payments The provision of prizes and/or the making of payments to participants in a Competitive Dialogue Procedure shall be subject to the prior approval of the Treasurer and the Legal Advisor. 9A Innovation Partnership 9A.1 Board Approval An Innovation Partnership provided for in the European Procurement Regulations may only be used where the prior approval of the Joint Board has been given to its use. 9A.2 Use of Innovation Partnership The use of an Innovation Partnership shall be subject to the European Procurement Regulations and such guidance and requirements as the Treasurer and/or Legal Advisor considers appropriate. 39
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10 Competitive Procedure with Negotiation 10.1 Approval The Competitive Procedure with Negotiation provided for in the European Procurement Regulations may only be used when the prior approval of the Legal Advisor has been given to its use. 10.2 Use of the Procedure The use of the Competitive Procedure with Negotiation in any contract shall be subject to the European Procurement Regulations and such guidance and requirements as the Treasurer and Legal Advisor consider appropriate. 11 Framework Agreements – Internal 11.1 Framework Agreements - General Framework Agreements established by the Joint Board must be formed on the basis of these Standing Orders and the applicable provisions of the Reform Act, the Reform Act Regulations 2016, any other Regulations made or Guidance issued by the Scottish Government under the Reform Act and/or the European Procurement Regulations (if appropriate). 11.2 Framework Agreements – Conditions All Framework Agreements established by the Joint Board in terms of this Standing Order must set out:- (i) the terms and conditions that will apply to any Call Off Contract awarded from the Framework Agreement; (ii) the procedures to be followed in awarding a Call Off Contract either via direct award from or carrying out a mini-competition under the Framework Agreement; (iii) the maximum period for the Framework Agreement (which must not exceed four years except in exceptional circumstances which relate to the subject matter of the Framework Agreement); and (iv) the maximum period for any Call Off Contract awarded under the Framework Agreement. 11.3 Framework Agreements – Calling Off Any Call Off Contract to be made under a Framework Agreement established under this Standing Order (either as a direct award or following a mini-competition) must comply with:- the procedures specified in the Framework Agreement for the making of such a Call Off Contract; be awarded using the criteria used to establish the Framework Agreement or as laid down in the Framework Agreement; and where the estimated aggregated value of a Call Off Contract exceeds £50,000 the following requirements must be complied with:- (i) Standing Order 4.2 (Contract Reference Number); (ii) Standing Order 4.3 (Sourcing Strategy) (if in the opinion of the Assessor the Call Off Contract is of high value and/or high risk); (iii) Standing Order 4.14 (Community Benefit Requirement); (iv) Standing Order 18 (E-Procurement) (where carrying out a mini-competition); 40
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(v) Standing Order 20 (Checking of Pre-Qualification documents/Tenders and Reporting); (vi) Standing Order 21 (Acceptance of Tenders) unless a direct award is being placed via the i-procurement system or from an electronic catalogue on an i-procurement system; (vii) Standing Order 21.12 (Acceptance of Tenders – Contract Award Notices) (for Regulated Procurements); and (viii) Standing Order 25 (Contract Performance Security) (as appropriate). 11.4 Framework Agreements – access by other contracting authorities A Call Off Contract under a Framework Agreement established in terms of this Standing Order may only be made by those Contracting Authorities clearly identified for that purpose in the PIN/contract notice. 11A DPS – Internal 11A.1 DPS – General A DPS established by the Joint Board must be formed on the basis of these Standing Orders and the applicable provisions of the Reform Act, the Reform Act Regulations 2016, any other Regulations made or Guidance issued by the Scottish Government under the Reform Act, and/or the European Procurement Regulations (if appropriate). 11A.2 DPS conditions A DPS established by the Joint Board in terms of this Standing Order must set out:- (i) the terms and conditions that will apply to any Call Off Contract awarded from the DPS; and (ii) the procedures to be followed in carrying out a mini-competition and awarding a Call Off Contract under the DPS. 11A.3 DPS – Calling Off Any Call Off Contract to be made under a DPS established under this Standing Order must comply with:- the procedures specified in the DPS for the making of such a Call Off Contract, be awarded using the criteria used to establish the DPS or as laid down in the DPS; and where the estimated aggregated value of a Call Off Contract exceeds £50,000 the following requirements must be complied with:- (i) Standing Order 4.2 (Contract Reference Number); (ii) Standing Order 4.3 (Sourcing Strategy) (if in the opinion of the Assessor the Call Off Contract is of high value and/or high risk); (iii) Standing Order 4.14 (Community Benefit Requirement); (iv) Standing Order 18 (E-Procurement); (v) Standing Order 20 (Checking of Pre-Qualification documents/Tenders and Reporting); (vi) Standing Order 21 (Acceptance of Tenders); (vii) Standing Order 21.12 (Acceptance of Tenders – Contract Award Notices) (for Regulated Procurements); and, (viii) Standing Order 25 (Contract Performance Security) (as appropriate). 11A.4 DPS – access by other contracting A Call Off Contract under a DPS established in terms of this Standing Order may only be made by those Contracting Authorities clearly 41
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authorities identified for that purpose in the PIN/contract notice. 12 Framework Agreements – External 12.1 Framework Agreements - General (a) The Standing Orders do not apply to Call Off Contracts to be awarded by the Joint Board using Framework Agreements made by other organisations, including but not restricted to the Scotland Excel, Procurement Scotland, the Crown Commercial Service or any other public sector organisation who have made specific provision for collaboration with or allow their use by the Joint Board in their Framework Agreements, subject to Standing Order 12.2 and 12.3. (b) The Joint Board shall not seek offers for contracts which these organisations are entitled to seek on the Joint Board’s behalf, except in such cases as the Joint Board deems it likely that Best Value (as set out in Standing Order 2.6) will be obtained by seeking tenders by other means, or as otherwise permitted by the Framework Agreements. All such Framework Agreements must permit the Joint Board to obtain tenders independent of the Framework Agreement if it is likely to be in the interests of Best Value (as set out in Standing Order 2.6) to do so. 12.2 Framework Agreements – Conditions Standing Order 12.1 only applies to Framework Agreements which have been formed on the basis of competitive tenders and in full compliance with any legal requirements such as the duty to promote Equal Opportunities, the General Principles, the requirements of the Reform Act, Reform Act Regulations and/or European Procurement Regulations (if applicable) and provided that the Framework Agreement contains or allows any Call Off Contract awarded under this Standing Order 12 to contain the following matters:- (i) Standing Order 2.3 (Form of Contract and Scots Law); (ii) Standing Order 2.6 (Best Value); (iii) Standing Order 16 (Compliance with the Data Protection Laws); (iv) Standing Order 17 (Confidentiality and Requests for Information); (v) Standing Order 18 (E-Procurement); and (vi) where appropriate, all Standing Orders relating to contract conditions. 12.3 Framework Agreements – Procedure for Calling Off Any Call Off Contract to be made under an external Framework Agreement (either as a direct award or following a mini-competition) must comply with:- (a) the procedures specified in the Framework Agreement for the making of such a Call Off Contract; (b) be awarded using the criteria used to establish the Framework Agreement or as laid down in the Framework Agreement; and (c) where the estimated aggregated value of a Call Off Contract exceeds £50,000 the following requirements must be complied with:- (i) Standing Order 4.2 (Contract Reference Number); (ii) Standing Order 4.3 (Sourcing Strategy) (if in the opinion 42
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of the Assessor the Call Off Contract is of high value and/or high risk); (iii) Standing Order 4.14 (Community Benefit Requirement); (iv) Standing Order 18 (E-Procurement); (v) Standing Order 20 (Checking of Pre-Qualification documents/Tenders and Reporting); (vi) Standing Order 21 (Acceptance of Tenders) unless a direct award is being placed via an i-procurement Purchase Order or from an electronic catalogue on an i-procurement system; (vii) Standing Order 21.12 (Acceptance of Tenders – Contract Award Notices) (for Regulated Procurements); and (viii) Standing Order 25 (Contract Performance Security) (as appropriate). 12A DPS – External 12A.1 DPS- General (a) The Standing Orders do not apply to Call Off Contracts to be awarded by the Joint Board using a DPS established by other organisations, including but not restricted to the Scotland Excel, Procurement Scotland, the Crown Commercial Service or any other public sector organisation who have made specific provision for collaboration with or allow their use by the Joint Board in their DPS, subject to Standing Order 12A.2 and 12A.3. (b) The Joint Board shall not seek offers for contracts which these organisations are entitled to seek on the Joint Board’s behalf, except in such cases as the Joint Board deems it likely that Best Value (as set out in Standing Order 2.6) will be obtained by seeking tenders by other means, or as otherwise permitted by the DPS. Any such DPS must permit the Joint Board to obtain tenders independent of the DPS if it is likely to be in the interests of Best Value (as set out in Standing Order 2.6) to do so. 12A.2 DPS – Conditions Standing Order 12.1 only applies to a DPS which has been formed on the basis of competitive tenders and in full compliance with any legal requirements such as the duty to promote Equal Opportunities, the General Principles, the requirements of the Reform Act, Reform Act Regulations and/or European Procurement Regulations (if applicable) and provided that the DPS contains or allows any Call Off Contract awarded under this Standing Order 12 to contain the following matters:- (i) Standing Order 2.3 (Form of Contract and Scots Law); (ii) Standing Order 2.6 (Best Value); (iii) Standing Order 16 (Compliance with the Data Protection Laws); (iv) Standing Order 17 (Confidentiality and Requests for Information); (v) Standing Order 18 (E-Procurement); and (vi) where appropriate, all Standing Orders relating to contract conditions. 43
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12A.3 DPS – Procedure for Calling Off Any Call Off Contract to be made under an external DPS must comply with:- (a) the procedures specified in the DPS for the making of such a Call Off Contract; (b) be awarded using the criteria used to establish the DPS or as laid down in the DPS; and (c) where the estimated aggregated value of a Call Off Contract exceeds £50,000 the following requirements must be complied with:- (i) Standing Order 4.2 (Contract Reference Number); (ii) Standing Order 4.3 (Sourcing Strategy); (iii) Standing Order 4.14 (Community Benefit Requirement); (iv) Standing Order 18 (E-Procurement); (v) Standing Order 20 (Checking of Pre-Qualification documents/Tenders and Reporting); (vi) Standing Order 21 (Acceptance of Tenders); (vii) Standing Order 21.12 (Acceptance of Tenders – Contract Award Notices) (for Regulated Procurements); and (viii) Standing Order 25 (Contract Performance Security) (as appropriate). 13 Collaborations 13.1 Application This Standing Order applies where the Joint Board is entering into Category C collaborative arrangements. The prior approval of the Treasurer and/or the Legal Advisor will be required to enter into any collaborative arrangement. 13.2 Non-partnership Clause It shall be an essential express condition in every such collaborative arrangement that it is not intended that there is a legal partnership being created. 13.3(a) Tendering Where in terms of the collaborative arrangements consultants/specialists or other third parties are to be appointed by either the Joint Board or by the other lead partner then such appointment is to be awarded subject to competitive tendering procedures the same as those procedures specified in Standing Orders 6 (Restricted Tendering), 7 (Open Tendering) or the negotiated procedure if permitted in terms of Standing Order 8 (Negotiated Tendering Procedure). 13.3(b) Trading Operations Despite the terms of Standing Order 13.3(a), where the collaborative arrangement allows for the other lead organisation to offer to provide the service in-house, then that service may be viewed as to be treated as if they are a trading operation, in which case it must comply with the Local Authorities (Goods and Services) Act 1970 and/or Local Government in Scotland 2013 (as applicable) or any statutory modification or re-enactment thereof and any Regulations made and/or Guidance issued by the Scottish Ministers. 44
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13.3(c) European Procurement Regulations However, Standing Order 13.3(b) will not apply if the estimated aggregated value of the works/goods or services would exceed the relevant Higher Value Thresholds. In that case any contract to be awarded shall need to be awarded in terms of Standing Order 14 (European Procurement Regulations) regardless of whether it is the Council or another lead organisation seeking to award the contract in terms of the collaborative arrangements. 13.4 Joint responsibility Contracting Authorities will be jointly responsible for ensuring compliance with the European Procurement Regulations where:- (i) the procurement exercise is carried out in its entirety in the name of and on behalf of all the Contracting Authorities involved; or (ii) one of the Contracting Authorities manages the procurement exercise as lead and on behalf of all the Contracting Authorities involved 14 European Procurement Regulations 14.1 Application 14.1.1 Application - post Brexit The European Procurement Regulations amended following the UK’s exit from the European Union on 30 December 2020 apply to all procurement exercises commenced after 30 December 2020 where the contract value exceeds the relevant Higher Value Thresholds. 14.1.2 Application – transitional procurements and EU funded programmes Higher Value Procurements which commenced before 30 December 2020, Call Off Contracts awarded under a Framework or DPS established before 30 December 2020 or following a procurement process commenced before 30 December 2020 pursuant to the European Procurement Rules and Higher Value Procurements receiving European funding will be subject to the European Procurement Regulations and the following additional requirements:- (a) publication of all relevant notices on OJEU; and (b) continued use of the European Single Procurement Document not SPD. 14.2 Tendering Processes The procedures set out in the European Procurement Regulations are to be followed in relation to the setting up of a Framework Agreement or a DPS, the award of a contract, the award of a Call Off Contract and/or extension of a contract and the following Standing Orders shall be complied with:- (i) Standing Order 2 (General); (ii) Standing Order 4 (Pre-Tender Requirements); (iii) Standing Order 5.3 (Publication of Notices); (iv) approvals in terms of Standing Order 8 (Negotiated Tendering Procedure), 9 (Competitive Dialogue Procedure), 9A (Innovation Partnerships), 10 (Competitive Procedure with Negotiation) or 13 (Collaborations); (v) Standing Order 15 (Assurances – Tendering); (vi) Standing Order 16 (Compliance with the Data Protection Laws) (if appropriate); (vii) Standing Order 17 (Confidentiality and Requests for Information); 45
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(viii) Standing Order 18 (E-Procurement); (ix) Standing Order 19 (Selection of Tenderers); (x) Standing Order 20 (Checking of Pre-Qualification documents/Tenders and Reporting); (xi) Standing Order 21 (Acceptance of Tenders); (xii) Approvals in terms of Standing Order 22 (Extension of Contracts); (xiii) Standing Order 24 (Responsible Third Parties); (xiv) Standing Order 25 (Contract Performance Security) (if appropriate); (xv) Standing Order 34 (Contract Modifications); (xvi) Standing Order 35 (Retention of Contract Documents); and (xvii) All Standing Orders relating to contract conditions. 14.3 Light Touch Regime The procurement of Social and Other Specific Services shall be subject to:- (a) the light touch regime as detailed in the European Procurement Regulations which comprises:- (i) publishing a contract notice (unless procuring without advertisement) and contract award notice (ii) complying with the process for the selection of tenderers as set out in Standing Order 19 (Selection of tenderers); (iii) complying with the General Principles; and (iv) determining a procurement procedure taking account of the specificities of the services and the requirements and needs of the service user. Declaring that any procurement procedure which is not one of the standard procurement procedures provided for in the Reform Act, Reform Act Regulations and/or the European Procurement Regulations will require the prior approval of the Assessor in consultation with the Legal Advisor and Treasurer which approval will be secured via their signing of the Sourcing Strategy; (b) the requirements of these Standing Orders as set out in Standing Order 14.2 above (as appropriate); (c) the following requirements of the Reform Act and the Reform Act Regulations 2016; (d) complying with the Sustainable Procurement Duty (refer to Standing Order 4.13); and (e) complying with any such guidance as the Legal Advisor and/or Treasurer consider appropriate. 15 Assurances – Tendering 15.1 As part of Assessment Process As part of any tendering process, the Joint Board shall obtain from tenderers or have confirmed via another tender process satisfactory assurances in writing in the form determined by the Legal Advisor, that:- (a) the tenderer has complied with all statutory requirements in respect of observing the Equalities Legislation; (b) where the contract is for the provision of services of a public nature the tenderer has complied with the terms of the Human Rights Act 1998 in relation to the previous provisions of such services; (c) the tenderer has not practised collusion in tendering for any 46
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contract with the Joint Board or offered, promised or given any financial or other advantage to the Joint Board or any person employed by or on behalf of the Joint Board in connection with the obtaining or carrying out of any contract with the Joint Board; (d) the tenderer has not engaged in serious and organised criminal activities; (e) where the contract is for the carrying out of works and/or the provision of construction services and/or supplies the tenderer has not engaged in blacklisting activities in the employment of their staff; (f) the tender commits to prompt payment of subcontractors; (g) the tenderer has complied with the requirements of the Modern Slavery Act 2015; and (h) the tenderer has complied with such other requirements as are relevant to the contract being procured. 15.2 Supporting Evidence and signing (a) Such assurances as may be required for a particular contract in terms of Standing Order 15.1 must be supported by satisfactory evidence (if required). (b) Where the contractor is a corporate body then the assurances must be provided by a director of the corporate body or other person authorised to bind the corporate body personally. (c) Reference should be made to the relevant Practice Notes or Procurement Processes and guidance sought from the Legal Advisor on the appropriate requirements (if required) on the appropriate requirements (if required) in relation to Equal Opportunities 15.3 Selection Criteria - Obtaining Assurances All documents detailing the selection criteria will specify that selection will include the obtaining by the Joint Board of satisfactory assurances in terms of Standing Order 15.1 16 Compliance with the Data Protection Laws 16.1 To be in compliance with the Data Protection Laws The Assessor must comply with the Data Protection Laws including where appropriate:- (a) the carrying out of a Data Protection Impact Assessment; and/or (b) ensuring where the contractor will be a Data Processor (as defined in the Data Protection Laws that a written contract is entered into. 17 Confidentiality and Requests for Information 17.1 Giving out of Information not to be unreasonably excluded All tender documentation, agreements or contracts shall not prohibit disclosure of information which would otherwise be disclosed in compliance with the Freedom of Information (Scotland) Act 2002 or the Environmental Information (Scotland) Regulations 2004 or any other legislation amending or replacing it or any guidance and/or codes of practice issued by the Scottish Information Commissioner in relation to such legislation 47
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No tender documentation, agreement or contract should contain a condition that restricts unjustifiably the disclosure of information held by the Joint Board as a Scottish Public Authority in relation to the tender documentation, agreement or contract 17.2 Procurement/ Contracting Toolkits Reference should be made to any Practice Notes and/or Toolkits issued by the Joint Board for guidance on the appropriate requirements. 18 E-Procurement 18.1 Use of E- Procurement All procurement exercises where the estimated value of the contract exceeds £5,000 must be conducted using the E-procurement system approved by the Joint Board or by another secure electronic system as approved by the Legal Advisor or Treasurer (Call Off Contracts only). 18.2 Verification and Authentication (a) Where E-procurement is being used the following requirements regarding the verification and authentication of the submission and the signature of the person making the submission must be complied with:- (i) the signature of the person making the submission must be an authorised signatory of the applicant/tenderer (b) Any document issued using electronic means must state the Joint Board’s requirements relating to authentication or verification of the submission or of the signature of the person making the submission 18.3 Receipt and Custody (a) No procurement documents submitted using E-procurement will be considered unless:- (i) it is received in the format specified in the documents; (ii) at the electronic address specified by the Joint Board; and (iii) the electronic submission has been received by the time and date specified as the pre-qualification documents/tender deadline (in all cases being 12 noon). 18.4 Late Submissions The electronic mailbox identifies pre-qualification documents/tenders received after the date and time deadline specified for return as being late. Pre-qualification documents/tenders received after the date and time deadline specified for return cannot be considered under any circumstances 18.5 Opening of procurement documents (a) All procurement documents including quotes, pre-qualification documents and tenders submitted using E-procurement shall be opened and be made available for download at the same time via the Joint Board’s approved e-procurement system. (b) Sequential opening must be adopted for all procurement exercises, irrespective of value, where the contract will be awarded on the basis of most economically advantageous tender. 48
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18.6 Electronic Auctions (a) The Assessor and the Treasurer, in consultation with and the Legal Advisor, may authorise the carrying out of an Electronic Auction where satisfied that:- (i) it is in the interests of the Joint Board to do so and where they are satisfied that the electronic auction is in accordance with the European Procurement Regulations; and (ii) that the likely benefit of an Electronic Auction will outweigh the costs of undertaking the Electronic Auction (b) An Electronic Auction may only be carried out where the possibility of the use of an Electronic Auction has been stated in the Contract Notice and the tender documents issued to tenderers. (c) Before proceeding with an Electronic Auction the Assessor shall make a full initial evaluation of the tenders in accordance with the award criteria set and with the weighting fixed for them. All tenderers who have submitted admissible tenders shall be invited simultaneously by electronic means to submit new prices (downwards) and/or new values (d) Prior to the commencement of any Electronic Auction, the Joint Board shall intimate to all tenderers involved the date and time fixed for the carrying out of the electronic auction and the proposed duration of the Electronic Auction together with any proposals for the extension of the duration of the Electronic Auction. An Electronic Auction must not start sooner than 2 working days from the date on which the invitations are sent out (e) Throughout each phase of an Electronic Auction the Joint Board shall instantaneously communicate to all tenderers involved at least sufficient information to enable them to ascertain their relative rankings at any moment. During the Electronic Auction information relating to all tenderer’s new prices and their ranking on price will be instantaneously available to all tenderers electronically (where this has been previously indicated). The Joint Board may also, at any time, announce the number of participants in that Electronic Auction. In no case may the Joint Board disclose the identities of the tenderers during any phase of an Electronic Auction (f) Any Electronic Auction will be subject to the European Procurement Regulations and such additional procedural requirements as the Assessor and Treasurer, in consultation with the Legal Advisor, consider necessary 18.7 Electronic Catalogues (a) The Assessor may require tenders to be presented as an electronic catalogue or to include an electronic catalogue (b) The requirement to provide electronic catalogues shall be subject to the European Procurement Regulations and such additional procedural requirements as the Assessor, Treasurer and/or the Legal Advisor consider necessary. 49
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19 Selection of Tenderers 19.1 Application This Standing Order shall apply to all contracts apart from Call Off Contracts where the estimated value exceeds £50,00. The Assessor must have regard to any guidance issued by the Scottish Government under the Reform Act in relation to the selection of tenderers. 19.2 Mandatory Exclusion (a) The Assessor must apply the mandatory exclusions as are applicable to a Regulated Procurement or Higher Value Regulated Procurement as are set out in the European Procurement Regulations, Reform Act, the Reform Act Regulations and guidance issued by the Scottish Government under the Reform Act to exclude a bidder from a procurement exercise. (b) The Assessor may in exceptional circumstances for overriding reasons relating to the public interest disregard any of the mandatory exclusion grounds when making a decision on the selection of a bidder. 19.3 Discretionary Exclusion (a) The Assessor may apply any of the discretionary exclusions as are applicable to a Regulated Procurement or Higher Value Regulated Procurement as are set out in the European Procurement Regulations, Reform Act, the Reform Act Regulations 2016 and any guidance issued by the Scottish Government under the Reform Act to exclude a bidder from a procurement exercise. 19.4 Limits on Exclusion (a) A bidder must not be indefinitely excluded from participating in a procurement exercise. The Assessor must apply the maximum periods for excluding as set out in the European Procurement Regulations, Reform Act, the Reform Regulations and guidance issued by the Scottish Government under the Reform Act. 19.5 Self Cleansing (a) Where a bidder is in a situation which may result in its exclusion from a procurement process, the Assessor must give the bidder the opportunity to provide evidence that it has taken sufficient and appropriate remedial action to demonstrate its reliability i.e. self cleansed. (b) When considering any self-cleansing measures provided by a bidder the Assessor must consider all relevant factors including the gravity and particular circumstances of the criminal offence or misconduct (c) If the Assessor is not satisfied that the self-cleansing measures are sufficient for a bidder to demonstrate its reliability, it must provide a written statement of reasons as soon as is reasonably practicable. The statement of reasons must allow the bidder to understand why the self-cleansing measures taken were insufficient and the basis for the decision (d) All decisions taken by the Assessor will be recorded in the Report on Tenders 50
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19.6 SPD (a) The Joint Board must accept an SPD as preliminary evidence in the form of a self declaration that:- none of the mandatory or discretionary exclusion grounds apply to a tenderer; if any of the mandatory or discretionary grounds apply the self- cleansing measures that have been taken; and ♦ the tenderer meets the relevant selection criteria (b) The Assessor must set out the specific requirements and minimum standards in the contract notice and tenderers will respond using the SPD. (c) The documents in support of the information provided in the SPD can be requested by the Assessor at any time during a procurement exercise but in any event:- in an open tendering procedure must be requested and checked prior to award; in a restricted tendering procedure, competitive procedure with negotiation, competitive dialogue or innovation partnership must be requested and checked prior to issuing invitations to submit tenders; and in any procurement exercise where the Assessor has a genuine concern that there is a risk to effective conduct of the procurement procedure or ensure the integrity and proper conduct of the procurement process (d) Where the capability or capacity of a sub-contractor or members of a consortia will be relied on to meet the selection criteria in respect of economic and financial standing or technical and professional ability in any procurement process the Assessor must request a separate SPD from those parties. 20 Checking of Pre Qualification Documents/Tenders and Reporting 20.1 Assessor to Check pre-qualification responses/Tenders All pre-qualification documents/tenders received shall, after opening in accordance with Standing Order 18.5, be returned to the Assessor for checking 20.2 Evaluation (a) The procurement documents shall state the selection and contract award criteria applicable to the procurement exercise. All pre- qualification responses and tenders shall be evaluated strictly in accordance with the evaluation criteria set out in the procurement documents. (b) If during the evaluation process any communication is necessary prior to selecting bidders to be invited to tender/participate or contract award in order to clarify or supplement any aspect of their pre-qualification response/tender such communication shall be conducted via the relevant e-procurement system in accordance with Standing Order 20.3 20.3 Clarification of Pre (a) Between the last date and time for the receipt of pre-qualification 51
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qualification Responses/Tenders responses/tenders and the date on which a decision is taken as to which, if any, tenderer will be invited to submit a bid/tender is to be accepted, contact may be made using the e-procurement system adopted for the procurement exercise with a person who has submitted a pre-qualification response/tender in respect of any contract in cases where it may be necessary to validate or clarify the terms of the pre-qualification response/ tender or to make any necessary arithmetical adjustments to a tender, but not for any other reason. (b) All discussions should be conducted in accordance with the following additional rules:- (i) all tenderers must be treated equally and in a fair and transparent manner; (ii) tenderers must not be allowed to change their tenders in a way that allows them to improve their offer; (iii) all matters of clarification (other than arithmetic adjustments which should be dealt with in accordance with Standing Order 20.3 (c) or clarification of a matter specific to an individual tender must be notified to all persons submitting a pre-qualification response/tender; (iv) where there is a need for clarification with more than one person those discussions should not be confined to the tenderer most likely to win the contract; (v) there must be no discussions on fundamental aspects of tender changes to which are likely to distort competition including but not limited to prices; (vi) no material change to the specification and/or the criteria on which the tenders are to be assessed; and (vii) clarification process is carried out using the e-procurement system adopted for the relevant procurement exercise with a full written record shall be kept by the Assessor of all contacts, discussions, communications and meetings with the tenderer and the outcome of these discussions including any adjustments made as a consequence. (c) Where having checked all the price bids opened that examination reveals obvious errors or discrepancies which would affect the tender rates/price in any of those price bids opened, these errors will be dealt with in the following manner:- (i) any obvious arithmetic errors will be rectified by the Assessor and the amount of the tender shall be held to be the amount of the documents so rectified and the tenderer informed in writing of the corrected amount; and (ii) where there is an obvious and genuine error in the rates quoted, the tenderer will be given the opportunity of either confirming that they agree to their tender being considered with the error remaining or withdrawing their tender. This procedure must be undertaken in writing. If the tenderer decides to withdraw their tender, it will not be considered for acceptance. The tenderer must not be given the opportunity to submit an amended tender. 52
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(d) Under no circumstances should a procuring officer re-open an SPD/ITT on PCS-T following the return date to allow for clarification by a bidder. All clarifications should be dealt with via the messaging area on PCS-T. 20.4 No fundamental Changes to Tender Conditions Permitted Standing Order 20.3 does not permit the making of fundamental changes to the tender specifications and/or the award criteria as a result of any post tender discussions with a person(s) making a tender. Where changes to the specification and/or the award criteria are required and/or would be advantageous to the Joint Board, the tendering process must be cancelled by the Assessor. If the tendering process is cancelled, it shall be re-started from the beginning in relation to the seeking of tenders. 20.5 Report on Pre Qualification Responses/Tenders Following the checking and assessment of all pre qualifications/tenders received in relation to a particular contract (including a Call Off Contract) a Report on Tenders in a format approved by the Legal Advisor shall be prepared and approved by the Assessor. 20.6 Exclusion of Tenderers before submission of tenders (a) As soon as reasonably practicable after deciding to exclude a tenderer from participating in a procurement exercise in terms of Standing Order 19 at any stage before submitting a tender the Assessor must notify the tenderer of that decision in accordance with the requirements of the Reform Act Regulations 2016 and any guidance and requirements as the Legal Advisor considers appropriate (b) The letter must be in a format approved by the Legal Advisor and should be issued in accordance with Standing Order 21.5. 21 Acceptance of Tenders 21.1 £200,000 and Below – Assessor Where the estimated aggregated value of any contract for the supply of any goods, the carrying out of any works or the provision of any services does not exceed £200,000:- ♦ the lowest priced tender (in a price only tender for a works contract where the estimated value is less than £2million); or ♦ the most economically advantageous tender may be accepted by the Assessor and a letter of acceptance issued to the successful contractor. A copy of the contract acceptance must be sent to the Treasurer. 21.2 Over £200,000 – Assessor in Consultation with members (a) Where the estimated aggregated value of any contract for the supply of any goods, carrying out of any works or the provision of any services exceeds £200,000:- ♦ the lowest tender (in a price only tender for a works contract where the estimated value is less than £2million); or ♦ the most economically advantageous tender may be accepted by the Assessor, following consultation and agreement with the Convener or (in his/her absence) Depute Convener of the Joint Board and a letter of acceptance issued to 53
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the successful tenderer (b) Where no such agreement can be reached then the tender can only be accepted on the authority of the Joint Board following consideration of a written report specifying reasons for the failure to agree and the details of the relevant tenders (c) copy of the contract acceptance must be sent to the Treasurer. 21.3 Not accepting the Lowest Tender (in a price only tender for works where the estimated value is less than £2million) or where the Cost of the tender exceeds the Financial provision Where it is proposed to accept a tender (i) which is either:- (a) not the lowest priced tender submitted (in a price only tender for a works contract where the estimated value is less than £2million); or (b) the cost of the tender is in excess of the financial provisions which have been made and approved by the Joint Board in terms of the Joint Board’s Financial Regulations; or (ii) where funding is provided by a third party which has been approved by the Joint Board, then such tender shall only be accepted by the Assessor and a letter of acceptance issued to the successful tenderer on the authority of the Joint Board following consideration by them of a written report advising of that fact, the likely additional costs and where applicable, the reason(s) for not accepting the lowest tender submitted. 21.3A Abnormally Low Tenders (a) Where a tender appears, in the opinion of the Assessor, to be abnormally low having considered all factors which may affect price or costs and the effective delivery of the contract he must require a tenderer to explain (b) A tender must be rejected as being abnormally low if:- the Assessor is not satisfied that the evidence supplied explains the low level of the tender or it has been established that the tender is abnormally low because it does not comply with environmental, social or labour law (c) A tender must not be rejected solely on the basis of low price or cost (d) In deciding whether to exclude an abnormally low tender the appropriate Assessor must comply with any guidance issued by the Scottish Government under the Reform Act and any guidance and requirements as the Legal Advisor and/or the Treasurer considers appropriate 21.4 No Tender Being Accepted If the Assessor decides that none of the tenders submitted should be accepted, then the Assessor shall notify all persons making tenders accordingly. 54
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21.5 Issue of Letters (a) Letters to the unsuccessful tenderer will be issued at the same time as the letter to the successful tenderer. (b) Letters to be issued under the Standing Orders shall be in a format approved by the Legal Advisor. (c) Letters to be issued under this Standing Order shall be issued electronically via the Joint Board’s approved e-procurement system and may be followed up by the posting of a hard copy at the discretion of the Assessor. 21.6 General Conditions No tender shall be accepted unless:- (a) (i) the Assessor is satisfied as to the current technical and professional ability of the tenderer and (ii) the Assessor in consultation with the Treasurer is satisfied with the economic and financial standing of the tenderer in question (other than for contracts being procured using the urgency ground of the negotiated tendering procedure in accordance with Standing Order 8.3.2); (b) where the tender is not within the financial provisions which have been made and approved by the Joint Board in terms of the Joint Board’s Financial Regulations or funding is provided by a third party which has been approved by the Joint Board, the additional cost has received prior approval from the Joint Board; (c) the tenderer and any sub-contractor/consultant who will be used to deliver the contract agrees to comply with the terms of:- (i) Standing Order 17 (Confidentiality and Requests for Information); (ii) all Standing Orders relevant to contract terms; and (iii) Standing Order 25 (Contract Performance Security); (d) the tenderer has provided the appropriate assurances as required in terms of Standing Order 15 (Assurances – Tendering); (e) where the contractor will be a Data Processor (as defined in the Data Protection Laws) the requirements of Standing Order 16 (Compliance with the Data Protection Laws) have been complied with; (f) where a contract is of a type referred to in the Local Government Contracts Act 1997 (a contract of services lasting or intended to last for a period of 5 years or longer or a financial arrangement relating to such a contract) the contract shall not be entered into by the Joint Board until a certificate in compliance with the Act is issued by the Joint Board where it is requested by the tenderer; and (g) the Assessor is satisfied with the documentary evidence or certificates produced by the tenderer in support of the information provided in the SPD 55
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21.7 Compliance with the Standstill Period (a) Where the European Procurement Regulations apply to any contract (other than a contact for Social and other Specific Services) no acceptance of a successful tender shall be made by the Joint Board unless and until the standstill procedure set out in the European Procurement Regulations has been followed. (b) The standstill period referred to in the standstill procedure depends on the method by which the standstill letter is sent. If the standstill letter is sent by fax or email the standstill period is a minimum of 10 calendar days from the date on which the last standstill letter for the particular tender is sent and if sent by any other means the standstill period is a minimum of 15 calendar days. In calculating the standstill period the date the standstill letter is sent must be disregarded and if the last day is not a working day the standstill period must be extended to the next working day. (c) The standstill letters must be in a format approved by the Legal Advisor and signed by the Assessor or other person authorised by the Joint Board. (d) At the option of the Assessor a voluntary standstill period can be observed in relation to the award of any contract and/or setting up of a Framework Agreement, DPS or arrangement established in terms of the light touch regime and/or the award of a Call Off Contract and the provisions of this Standing Order 21.7 will apply. 21.8 Notification of Award to the Joint Board (a) Any contract awarded with an estimated aggregated value in excess of £50,000 shall be reported by the Assessor to the Joint Board on a six monthly basis. (b) The report shall contain the following information:- (i) the name of the successful tenderer(s) (ii) the value of the contract awarded; (iii) the date of award and (iv) the brief description of the contract and such other information as may be specified from time to time by the Treasurer. 21.9 Debrief The Joint Board will offer all unsuccessful tenderers an opportunity for a debrief. 21.10 Giving of Reasons – Regulated Procurements (a) In relation to all Regulated Procurements the Assessor must notify its decision to award to all unsuccessful bidders (b) The notification must be in a format approved by the Legal Advisor and signed by the Assessor. 21.11 Provision of Further Information – Regulated Procurements Where a written request for further information is received from a person in relation to a Regulated Procurement the Joint Board must comply with the requirements of the Reform Act and seek advice and assistance as required from the Legal Advisor 56
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21.12 Contract Award Notices (a) The Assessor shall ensure that Contract Award Notices are published for all Regulated Procurements (including Call Off Contracts) and Higher Value Regulated Procurements (other than Call Off Contracts) as soon as possible after acceptance of the successful tender/appointment to a Framework or DPS and no later than 30 days after the issue of the letter of award of the contract/conclusion of the Framework or DPS in accordance with Standing Order 5.3 (b) Where a contract has been awarded based upon a DPS the contract award notices can be aggregated on a quarterly basis and published within 30 days after the end of each quarter 22 Extension to Contracts 22.1 Extension of Contracts subject to the European Procurement Regulations (a) The extension of a contract which was originally procured under the European Procurement Regulations and includes an option to extend, may be extended under Standing Order 22.2 even if the estimated aggregated value of the extension is above the relevant Higher Value Thresholds (b) Where a contract was not originally procured under the European Procurement Regulations and the estimated aggregated value of the proposed extension is above the relevant Higher Value Thresholds, then the proposed extension (whether or not the extension was provided for in the original contract) cannot be made under this Standing Order and Standing Order 14 (European Procurement Regulations) will apply. 22.2 Authorisation of a Contractual Extension (a) Where the Assessor considers that an existing contract should be extended and the option to extend was disclosed in the original contract notice and procurement documents for that contract, the Assessor may authorise the exercise of that option provided the Assessor is satisfied:- (i) the extension secures Best Value (as set out in Standing Order 2.6); (ii) the period of the extension does not exceed the original period of the original contract (iii) the original contract has not been extended previously in terms of this Standing Order 22.2 (unless the contractual extension can be exercised in instalments in terms of Standing Order 22.2(b)) (iv) with the financial standing of the contractor; and (v) that the performance of the contractor in the original contract period has been satisfactory in that an average performance rating of 70% or above has been achieved in the performance appraisal(s) carried out during the original contract period. (b) A contractual extension can be exercised in instalments provided that the period of those instalments are stated in the contract notice, procurement documents and any subsequent separate contract document. 22.3(a) Non-contractual (a) Where the contract does not make provision for the extension of 57
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extensions the contract or the contract has already been extended in terms of Standing Order 22.2, the Assessor shall not extend the contract unless:- (i) the use of the negotiated procedure can be justified in terms of Standing Order 8 (Negotiated Tendering Procedure) and (ii) the conditions set out in Standing Order 22.3(b) are satisfied. 22.3(b) Conditions to be Applied to a Non- contractual Extension (b) A contract for the supply of goods, the carrying out of works or the provision of services may be extended without fresh competition for further goods, works or services of a similar description provided that:- (i) the original contract was won in competition; (ii) the unit costs in respect of the supply of further goods, or the costs in carrying out the particular works or providing those particular services have not increased by more than 10% (after making allowance for the rate of inflation by use of the Consumer Price Index) over those contained in the original contract; (iii) the extension proposed is reasonable in all the circumstances; (iv) the period of extension does not exceed the original period of the original contract; (v) the original contract has not been extended previously in terms of this Standing Order 22.3; (vi) the Treasurer is satisfied with the financial standing of the contractor; and (vii) the performance of the contractor in the original contract period has been satisfactory in that an average performance rating of 70% or above has been achieved in the performance appraisal(s) carried out during the original contract period. 22.4 Authorisation of a Non-Contractual Extension No contract shall be extended in accordance with Standing Order 22.3 except with the prior written authorisation of the Assessor in consultation with the Treasurer or with his/her agreement (if agreement is required in compliance with Section 17.2 of the Joint Board’s Financial Regulations) and the and the Convener (or in his/her absence) the Depute Convener of the Joint Board. 22.5 Notification to Board Any contract extended under Standing Order 22 shall be reported by the Assessor to the Joint Board on a six monthly basis in a format approved by the Legal Advisor. 22.6 Keeping records In all cases where a contract is extended in accordance with this Standing Order 22, a full written record of all contacts, discussions and communications with the contractor shall be kept by the Assessor together with a full explanation as to why the Assessor considered it appropriate to extend the contract and confirming that the extension secures Best Value (as set out in Standing Order 2.6). 58
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23 Nomination of Sub- Contractors 23.1 Tendering for Sub- Contractors Where a contract provides for the nomination by the Assessor of a sub-contractor for the supply of goods, carrying out of works or provision of services as the case may be, the following provisions shall apply:- (a) tenders shall be invited by the Assessor from not less than five persons whom he/she considers competent (having regard to the technical capability and financial standing of such persons) for the purpose unless, in consultation with the Convenor (or in his/her absence) Depute Convenor of the Joint Board, he/she considers that less than five persons are competent in which case he/she may invite tenders from such lesser number of persons; and (b) all tenders shall then be submitted, opened, checked and accepted in accordance with Standing Orders 18 (E-procurement), 20 (Checking of Pre-Qualification documents/Tenders and Reporting) and 21 (Acceptance of Tenders). 24 Responsible Third Parties 24.1 Obligations of third parties Any third party or person (not being an Official of the Joint Board) who is responsible to the Joint Board for a contract on its behalf shall in relation to that contract:- (i) comply with these Standing Orders as though he were an official of the Joint Board; (ii) at any time during the carrying out of the contract produce on request to the Assessor all records maintained by him in relation to that contract; and (iii) on completion of the contract, transmit to the Assessor all such records relating to that contract including information relevant to the Transfer of Undertaking Regulations or amending legislation, where appropriate or applicable 24.2 To be a contract Condition A condition to this effect shall be included in any contract /documentation appointing the third party. 25 Contract Performance Security 25.1 General right to require security The Joint Board may ask for security on any contract for the carrying out of works, supply of goods or the provision of services (including any Call Off Contract) where it is in the opinion of the Assessor and/or Treasurer considered to be appropriate. Such security could include, but not be limited to, a parent company guarantee, performance bond (if the estimated value of the single contract or Call Off Contract is more than £500,000). The terms of any security will be in a form approved by the Legal Advisor. 26 Contract Term - Sub- Contractors 59
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26.1 Obligations on Sub- Contractors It shall be a condition of every contract entered into by the Joint Board that all conditions to be observed by contractors in terms of these Standing Orders and in the contract itself shall equally apply to sub- contractors, and all contractors shall be responsible for the observance of such conditions by such sub-contractors 27 Contract Terms – Insurance 27.1 Contractor must have Insurance to specified level All specifications issued by and contracts entered into with the Joint Board in connection with the carrying out of works or the provision of services or supplies shall provide that the contractor shall be insured with an Insurance Company approved by the Joint Board or shall demonstrate self insurance to the satisfaction of the Treasurer against:- (i) liability at common law and/or under any legislation including but not restricted to liability under Employer’s Liability Compulsory Insurance; (ii) liability to third parties; (iii) any relevant professional indemnity cover; and (iv) any other matters relevant to the contract being entered into to such levels as may be specified from time to time by the Assessor or by law 27.2 Proof of Insurance – Contract Term It shall be a condition of every contract entered into with the Joint Board for the carrying out of works for, or the provision of services or supplies to, the Joint Board, that (a) current certificates of insurance shall be exhibited to the Joint Board prior to the commencement of every contract; (b) any new policy of insurance (under which circumstances Standing Order 27.1 shall apply to that new insurance policy) shall be exhibited to the Joint Board prior to or at its commencement; and (c) on demand any renewal receipts shall be exhibited during the period of the contract. 27.3 Dealing with Claims – Contract Term It shall be a condition of every contract entered into with the Joint Board for the carrying out of works for, or the provision of services or supplies to the Joint Board, that the contractor shall require to deal with any claim, potential claim or complaint arising from the carrying out of said works or the provision of said services or supplies, made by the Joint Board, any of its tenants or any other person deriving right or benefit there from:- (a) by providing in writing within fourteen calendar days of such claim, potential claim or complaint first having been intimated to the contractor, details of the name and address of their Insurance Company, together with the relevant policy number, to enable such claim, potential claim or complaint to be intimated to their Insurance Company by the Joint Board, any such tenant or any such other person; (b) declaring that the contractor shall be obliged thereafter to provide 60
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timeously to their Insurance Company all relevant details to enable such claim, potential claim or complaint to be processed with the minimum of delay and (c) binding the contractor to update the Joint Board on the progress and outcome of any claim submitted by any of its tenants or any other person deriving right or benefit from the Joint Board 28 Contract Terms - Illegal Practices 28.1 Cancellation of Contract Every contract entered into by the Joint Board shall contain a clause entitling the Joint Board to cancel the contract and to receive from the contractor the amount of any loss resulting from such cancellation if the contractor or any of their representatives (whether with or without the knowledge of the contractor) shall have practised collusion in tendering for the contract or any other contract with the Joint Board or shall have offered, promised or given to the Joint Board or any other public body or any person employed by or on behalf of the Joint Board or any other public body any financial or other advantage to induce a person to perform improperly or to reward a person for the improper performance of a relevant function of activity in relation to the obtaining or carrying out the contract or any other contract with the Joint Board or any other public body 28.2 Remedies Where a contract is cancelled in terms of Standing Order 28.1:- (a) the contractor shall be liable for any loss or damage which the Joint Board may thereby sustain; and/or (b) where the contractor is included in any list of persons who will be considered for tenders the Assessor shall immediately remove or require the removal of the contractor from that list; and/or (c) where the Contractor is appointed to any Framework, DPS or arrangement established in terms of the light touch regime, the Assessor shall immediately remove or require the removal of the contractor from that Framework, DPS or arrangement established in terms of the light touch regime. 29 Contract Terms – Assignation/Sub- Contracting 29.1 No Assignation/Sub- Contracting Permitted Unless specifically permitted in a contract, a contractor shall not assign or sub-contract the contract or any part thereof except with the prior written consent of the Joint Board. 29.2 Approval The Assessor shall approve any request to sub-contract or assign the contract or any part thereof which meets:- (a) the requirements of the contract conditions in relation to sub- contractors and assignation; and (b) the following requirements of Standing Orders:- (i) Standing Order 15 (Assurances - Tendering) (as appropriate); (ii) Standing Order 19.1 to 19.6 (Selection of Tenderers); and (iii) Standing Order 21.6 (a) and (d) to (g) (General Conditions – Acceptance of Tenders). 30 Contract Terms - 61
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Equalities Legislation 30.1 To be in compliance with Equalities Legislation Where the contract relates to the discharge of a Joint Board function, the contractor shall be bound to discharge that function in a manner which encourages the observance of the Equalities Legislation 30.2 Undertaking in relation to Equalities Where a contractor is undertaking a function of the Joint Board on its behalf the contract must contain an undertaking by the contractor, when carrying out that function, not to do any act which constitutes discrimination on the grounds of sex, marital status, race, disability, age, gender, sexual orientation, language or social origin, or other personal attributes (including religion or lack thereof) such as religious beliefs or political opinions (or lack of such beliefs or opinions). Further the contract must contain such provision(s) as is/are necessary, having due regard to the need to:- ♦ eliminate unlawful discrimination; ♦ eliminate harassment; ♦ promote equality of opportunity; ♦ take steps to take account of persons disabilities etc, even where that involves treating disabled persons etc more favourably than other persons; ♦ promote positive attitudes; and ♦ encourage participation in public life, to ensure that the Joint Board can comply with its statutory duties, and where appropriate to ensure that the contractor will comply with its statutory duties, under the Equalities Legislation 31 Contract Terms - Human Rights Act 1998 31.1 To be in compliance with the Human Rights Act 1998 Where appropriate, any contract must contain an assurance in writing, in the form determined by the Legal Advisor, that the contractor will comply with the requirements of the Human Rights Act 1998, if applicable and/or subsisting, in so far as they are carrying out a function for the Joint Board and that the contractor will indemnify the Joint Board against any and all claims that may be made against the Joint Board due to a breach of the Act which is caused by, or arises out of, the contract or any actions or omissions of the contractor under the contract. 32 Contract Terms – compliance with Environmental, Social and Employment Law 32.1 Conditions for Performing Contract The Assessor must include in a contract or Framework Agreement or DPS or arrangement established in terms of the light touch regime conditions relating to the performance of that contract, Framework Agreement, DPS, arrangement established in terms of the light touch regime and Call Off Contract that:- (i) are linked to the subject matter of the contract, Framework Agreement, DPS, arrangement established in terms of the light touch regime or Call Off Contract; (ii) are indicated in the call for competition or procurement documents; and (iii) are reasonably necessary to ensure that the successful bidder 62
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complies with environmental, social and employment law. 33 Contract Terms – Termination of Contracts 33.1 Express Term of contract It shall be a condition of every contract entered into by the Joint Board, all Framework Agreements, any DPS established by the Joint Board, all arrangements established in terms of the light touch regime and any Call Off Contracts that the Joint Board has the right to terminate the contract, Framework Agreement, DPS, arrangement established in terms of the light touch regime or Call Off Contract where:- (i) the contract or Framework Agreement, DPS, arrangement under the light touch rules or Call Off Contract has been subject to substantial modification which would have required a new procurement exercise; and (ii) the contractor at the time of the award was subject to one of the mandatory grounds of exclusion in the European Procurement Regulations or the Reform Act Regulations and should have been excluded from the procurement exercise. 33.2 Implied Term of Contract Even if there is no express term in a contract allowing the Joint Board to terminate the contract or Framework Agreement or DPS or arrangement established in terms of the light touch regime or Call Off Contract on any of the grounds mentioned in Standing Order 33.1 a term will be implied giving the Joint Board the right to terminate on giving notice. 33.3 Approval The decision to terminate any contract, Call Off Contract or a contractor’s appointment to a Framework Agreement, DPS or arrangement established in terms of the light touch regime shall be authorised by the appropriate Assessor in consultation with the Treasurer/Legal Advisor. 34 Contract Modifications 34.1 Application (a) A contract, Framework Agreement, DPS, arrangement established in terms of the light touch regime or Call Off Contract may be modified during its term without a new procurement exercise being carried out provided the requirements of Regulation 72 of the European Procurement Regulations are met. (b) This Standing Order will apply to all contracts, Framework Agreements, DPS, arrangements established in terms of the light touch regime or Call Off Contracts where the estimated value exceeds £50,000 and includes all Higher Value Regulated Procurements. 34.2 Approval The decision to modify in accordance with this Standing Order shall be authorised by the Assessor in consultation with the Treasurer/Legal Advisor. 35 Retention of Contract Documents 35.1 Retention of contracts awarded (a) The Assessor must ensure that copies of all contracts awarded are kept in accordance with the Joint Board’s retention policy for 63
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contract documents (b) This Standing Order applies to all contracts where the estimated value exceeds £50,000 and includes all Higher Value Regulated Procurements 35.2 Retention of documents relevant to awarded contracts (a) The Assessor must ensure that the progress of all procurement exercises where the contract value exceeds £50,000 (including all contracts where the value exceeds the relevant Higher Value Thresholds) is documented and that those documents are kept for a period in line with the Joint Board’s retention policy for contract documents. (b) The documentation retained must justify decisions taken in all stages of the procurement exercise and comply with the requirements of any relevant Procurement Process 36 Procurement Strategy 36.1 Preparation of the Procurement Strategy Before the start of each new financial year the Joint Board must review its Procurement Strategy and, if appropriate, revise that Procurement Strategy in accordance with the requirements specified in the Reform Act and guidance published by the Scottish Government under the Reform Act. 36.2 Publication of the Procurement Strategy The Joint Board must publish the Procurement Strategy and any revised Procurement Strategy on its website and in any other manner as indicated by the Joint Board. 37 Annual Procurement Report 37.1 Preparation of the Annual Procurement Report Within four months of the end of the financial year for which a Procurement Strategy or revised Procurement Strategy was prepared the Joint Board must prepare an annual procurement report in accordance with the requirements specified in the Reform Act and guidance published by the Scottish Government under the Reform Act. 37.2 Publication of the Annual Procurement Report The Joint Board must publish the annual procurement report on its website and in any other manner as determined by the Joint Board. 64
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Scheme of Delegation Submitted to the meeting of Lanarkshire Valuation Joint Board on Monday 27 June 2022 Note: If you need this information in another language or format, please contact us to discuss how we can best meet your needs. Phone 0303 123 1015 or email equalities@southlanarkshire.gov.uk 65
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Lanarkshire Valuation Joint Board Scheme of Delegation and Recognition by the Lanarkshire Valuation Joint Board in respect of the Assessor and Electoral Registration Officer Introduction The powers/functions detailed within this document are those delegated by Lanarkshire Valuation Joint Board to the Assessor and Electoral Registration Officer, or Assistant Assessor and Electoral Registration Officer(s), or, in appropriate cases, powers/functions, recognised by the Joint Board as powers/functions exercised by the Assessor and Electoral Registration Officer under statutory authority. General Without prejudice to the statutory functions and duties of the Assessor and Electoral Registration Officer, the delegations approved by the Lanarkshire Valuation Joint Board are subject to:- appropriate provisions for financial outlays having been made in the estimates for the current year, and the approved Standing Orders on Contracts and the Financial Regulations of the Joint Board. Powers/Functions Delegated or Recognised The Assessor and Electoral Registration Officer is empowered or is recognised by the Joint Board as having the authority:- 1 to deploy resources as he/she thinks fit for the best execution of functions under his/her management. 2 to organise working processes safely. 3 to maintain proper security for employees, building, stocks, stores, furniture, equipment and similar items under his/her control. Where special arrangements are considered necessary, he/she shall consult with the Treasurer to the Joint Board. 4 to ensure that all activities are within the legal powers of the Joint Board and/or of the Assessor and Electoral Registration Officer and, in the event of doubt, to consult with the Clerk to the Board and/or independent legal adviser as appropriate. 5 where he/she thinks it is in the interest of the Joint Board or to be of assistance in carrying out his/her statutory functions, to approve the provision of reasonable hospitality to representatives of other authorities, organisations, officers of the Board and to others up to a maximum of £500 in relation to any one occasion. 6 where he/she thinks it is in the interest of the Joint Board or to be of assistance in carrying out his/her statutory functions, to approve the attendance of staff at relevant courses, conferences and seminars up to a maximum cost of £1,000 in relation to any one person attending one event. 7 to authorise attendance of employees on full-time, part-time or correspondence courses of study and the payment of appropriate fees. 8 to issue orders for the supply of goods and services required for normal working and for which there is adequate provision in the estimates all in accordance with any Standing Orders on Contracts, purchasing policy and financial regulations adopted by the Joint Board. 66
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9 to authorise the payment of accounts due by the Joint Board or by the Assessor and Electoral Registration Officer for goods and services properly supplied and for which there is adequate provision in the estimates. 10 to appoint all employees up to but not including Chief Officer grade within the authorised establishment. 11 to make, in consultation with the Clerk and Head of Personnel Services for the lead authority (South Lanarkshire Council), such changes to the authorised establishment up to but not including Chief Officers, as he/she considers necessary to meet the requirements of efficient service delivery subject to the proviso that any changes can be funded from the approved budget. 12 to exercise the powers given to the Chief Officers in various Conditions of Service so far as discipline and efficiency of the Office of the Assessor and Electoral Registration Officer is concerned. 13 to apply the Conditions of Service adopted by the Joint Board as affecting employees within the Office of the Assessor and Electoral Registration Officer. 14 to authorise the working of ordinary overtime by the appropriate grades of officers. In addition, the Assessor and Electoral Registration Officer is empowered to authorise the payment of overtime to certain officers whose salary exceeds the normal overtime limit subject to the proviso that the basic overtime rate will not exceed any grading level or spinal column point approved by the lead authority (South Lanarkshire Council) as the maximum basic overtime rate payable and provided that the prior agreement of the Head of Personnel Services of the lead authority (South Lanarkshire Council) has been requested and obtained. The delegated authority is also subject to the proviso that the payments in respect of overtime can be met from the approved revenue budget. 15 to take all necessary action of a routine nature in terms of his/her appointment to implement policies, practices and procedures previously agreed by the Joint Board and also to take such action implicitly in all matters ancillary thereto, including the incurring of expenditure of a minor or recurring nature and for which adequate provision has been made in the estimates. 16 to sign and issue (a) authorisation to officers within the Office of the Assessor and Electoral Registration Officer to exercise statutory powers (including the right to enter land and premises in connection with the discharge of their duties) and (b) identity cards. 17 in addition to signing documents on his/her own behalf under his/her own authority and in connection with the exercise of his/her statutory functions, to sign documents on behalf of the Joint Board relevant to any other functions which Assessors and Electoral Registration Officers in Scotland have traditionally carried out on behalf of their valuation authorities. 18 to advise the Treasurer to the Board about any extraordinary financial obligation which will affect the Joint Board. 19 to advise the Treasurer to the Board about any extraordinary risk which will affect the insurances held on behalf of the Joint Board. 67
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20 to adopt any special leave scheme approved by the lead authority (South Lanarkshire Council) and to permit any member of his/her staff to absent themself occasionally and temporarily during business hours to attend to duties or service of a civic, honorary, charitable, academic or social nature provided that these do not interfere with the efficient discharge of the functions of the Assessor and Electoral Registration Officer or of the Valuation Board. 21 to terminate, on behalf of the Joint Board, any contract which the Joint Board is entitled to terminate under the appropriate conditions of contract, after consultation with the Clerk to the Board, if satisfied that it is in the interest of the Joint Board to do so. 22 to engage private legal firms and/or legal counsel in respect of judicial or quasi-judicial proceedings or in connection with questions relating to the statutory powers or functions of the Assessor and Electoral Registration Officer and to take appropriate action including initiating, entering, defending and withdrawing from such proceedings or engagements. 23 to appoint consultants, specialists and parliamentary agents where appropriate. 24 subject to any necessary consultation with the Clerk and Treasurer, to place contracts for the production and printing of the valuation roll, council tax list, the register of electors and electoral registration documentation/forms at such reasonable cost as may be necessary to ensure the timeous procurement of these documents in the discharge of statutory functions. 25 to authorise that the salary of an officer should progress over/beyond a salary bar point in the circumstances where the Assessor and Electoral Registration Officer is satisfied that the officer has attained the qualification and/or experience generally recognised as necessary/ appropriate for such progression and provided that the agreement of the Head of Personnel Services of the lead authority (South Lanarkshire Council) has been requested and obtained. 26 to deal with any operational matter not otherwise delegated in the period between the last meeting of an administration and prior to the setting up of a new Board following statutory elections. 27 to employ temporary staff for electoral registration canvass work or in the discharge of the statutory duties of the Assessor and Electoral Registration Officer on such terms and conditions as may be appropriate subject to the proviso that any payments can be met from the approved budget. 28 in consultation with the Head of Personnel, or an authorised employee of the lead authority, to appoint temporary staff as replacements for established employees on long-term absence through long-term sickness, maternity or special leave or where appointments are fully funded by external agencies. 29 to set fees for the sale of the valuation roll, other documents and services where the level of such fees is not prescribed by statute. 30 to take such measures as may be required in emergency situations on any matter for which the Valuation Joint Board’s approval would normally be necessary subject to advising the Convener or Depute Convener of the Joint Board where possible and reporting to the Joint Board as soon as practicable thereafter 68
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Financial Regulations Submitted to the meeting of Lanarkshire Valuation Joint Board on Monday 27 June 2022 Note: If you need this information in another language or format, please contact us to discuss how we can best meet your needs. Phone 0303 123 1015 or email equalities@southlanarkshire.gov.uk 69
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LANARKSHIRE VALUATION JOINT BOARD FINANCIAL REGULATIONS Section 1 Interpretation Section 2 General Section 3 Financial Administration Section 4 The Revenue Budget and Budgetary Control Section 5 Emergency Expenditure Section 6 Legality of Expenditure Section 7 Control of Income Section 8 Treasury Management Section 9 Tax Management Section 10 Banking Arrangements and Cheques Section 11 Asset Register, Title Deeds and Property Section 12 Inventories Section 13 Insurance Section 14 Stocks and Stores Control Section 15 Orders for Works, Goods and Services Section 16 Payment of Invoices Section 17 Contracts for Works and Services Section 18 Accounting Systems and Records Section 19 Internal Audit Section 20 Petty Cash Imprest Accounts Section 21 Payment of Wages and Salaries Section 22 Travelling, Subsistence, etc. Allowances Section 23 Security Section 24 Risk Management Section 25 Observance of Financial Regulations 70
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1. INTERPRETATION 1.1 The Interpretation Act 1978, or any amending legislation, will apply to the interpretation of these Regulations as it applies to the interpretation of an Act of Parliament. 1.2 Any matter requiring legal interpretation shall be referred to the Head of Administration and Legal Services, South Lanarkshire Council as Legal Adviser to the Board or to an independent legal adviser as necessary. 1.3 Any matter requiring Personnel advice shall be referred to the Head of Personnel Services, South Lanarkshire Council. 1.4 Treasurer to be the Executive Director (Finance and Corporate Resources), South Lanarkshire Council. 1.5 Clerk to the Board to be the Chief Executive South Lanarkshire Council. 1.6 “Assessor” means the Assessor and Electoral Registration Officer for Lanarkshire Valuation Joint Board area appointed under Section 27 of the Local Government etc (Scotland) Act 1994. 2. GENERAL 2.1 Matters Affecting Materially the Finances of the Board 2.1.1 The Assessor shall consult the Treasurer with respect to any matter that is liable materially to affect the finances of the Board before any provisional or other commitment is incurred or before reporting thereon to the Board. 2.2 New Policy Proposals Affecting the Board's Finances 2.2.1 Where the Board proposes a new policy, a variation of an existing policy or a variation of the means or timescale of implementing an existing policy, which affects or may affect the Board's finances, a report will be submitted to the Board for consideration. 2.3 Cross reference to Scheme of Delegation 2.3.1 It should be noted that the Financial Regulations should be read in conjunction with the Scheme of Delegation. 3. FINANCIAL ADMINISTRATION 3.1 Responsibility of the Treasurer 3.1.1 Subject to the terms of reference of the Board, the Treasurer shall be the Proper Officer of the Board for the purposes of Section 95 of the Local Government (Scotland) Act 1973 for the administration of the financial affairs of the Board and the legislation in force from time to time to regulate the way in which the Board operates its financial affairs. 71
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3.1.2 The Treasurer shall be responsible for making and revising from time to time such Financial Regulations as is considered necessary for the supervision and control of the finances, accounts, income, expenditure and assets of the Board. 3.2. Treasurer as Adviser 3.2.1 The Treasurer shall act as Financial Adviser to the Board. 3.2.2 The Treasurer shall report to the Board with respect to the level of financial resources proposed to be utilised in each financial year by the Board and shall keep the Board informed as to the detailed administration and application of such resources. The Treasurer is charged with ensuring that adequate arrangements exist whereby the Board is informed with respect to the financial implications of its activities. 3.3 Responsibility of Board 3.3.1 The Board shall at all times endeavour to secure value for money, make full use of all common supplies and services provided by the Council and encourage the use throughout the service of best management techniques. 3.3.2 The Board shall at all times be responsible for complying with Standing Orders and these Regulations in relation to all manner of contractual arrangements and other arrangements in relation to income, expenditure falling within its area of responsibility. 3.4 Responsibility of Assessor 3.4.1 Except in an emergency, and as authorised by Standing Orders relating to Contracts (SO 5 – Competition Requirement as it relates to the circumstances set out in SO 8 – Negotiated Tendering Procedure) or the Scheme of Delegation of Powers, the Assessor shall consult with the Treasurer with respect to any matter affecting the office which is liable to affect materially the finances of the Board before any provisional or other commitment is incurred or before reporting thereon to the Board. 3.4.2 The Assessor should at all times endeavour to secure the best value for expenditure incurred, and monitor said expenditure incurred, with the objective of achieving the policies of the Board on the most economically advantageous terms to the Board in terms of securing the best price for the required quality / standard and should be prepared to demonstrate their compliance with this regulation to the Treasurer. The Assessor should comply with the Standing Orders relating to Contracts where applicable. 4. THE REVENUE BUDGET AND BUDGETARY CONTROL 4.1 Revenue Estimates 4.1.1 The detailed procedures for and form of Revenue Estimates shall be determined by the Treasurer in accordance with the general directions of the Board. 72
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4.2 Planning for Revenue Expenditure 4.2.1 It will be the duty of the Assessor, in conjunction with the Treasurer, to prepare Annual Estimates of Income and Expenditure on the Revenue Account in respect of the Board and in accordance with the guidelines laid down and to a timetable set by the Treasurer with the approval of the Board. The Revenue Estimates will be submitted to the Board for approval. 4.2.2 The Assessor shall, therefore, provide timeously to the Treasurer all relevant information regarding the office’s requirements and such details as may be required for the purpose of reporting to the Board on the financial planning of revenue expenditure including data on the levels of existing services. 4.3. Board Approval 4.3.1 Each member of the Board will be provided with a copy of the proposed Revenue Estimates together with a statement by the Treasurer of the effect on the Board’s finances at least three working days before the meeting of the Board at which such matters will be considered. 4.3.2 Any proposal to the Board that would involve Board approval as above will be accompanied by a report from the Assessor and the Treasurer as to the sufficiency or otherwise of the financial provision thereof in the Revenue Estimates. All reports presented to the Board must specifically identify the extent of any financial implications. Any such implications must be clearly stated in the reports to the Board, identifying cost and income in the current and future years, the impact on revenue spending and whether or not, and exactly where, such resources are included in the Budget or, if not, how and from where it is proposed that such financial resources be obtained. 4.3.3 No proposal that has financial implications will be submitted to the Board without first consulting with the Treasurer. 4.4. Authorisation Procedure 4.4.1 The inclusion of an item of expenditure in the Revenue Estimates will confer authority upon the Assessor to incur that expenditure, subject to the contractual provisions of Standing Orders and these Regulations, unless inclusion of the item is subject to further Board consideration and approval. 4.5. Budgetary Control Statements 4.5.1 In liaison with the Assessor and under arrangements approved by the Treasurer, the Board will be provided with Budgetary Control Statements to allow a valid comparison of actual results with the estimated income and expenditure of the service. 4.5.2 It will be the responsibility of the Assessor to provide such information as may be required for this purpose and to ensure that the approved Annual Revenue Estimates are not overspent and that income and expenditure conforms to the requirements of Standing Orders and these Regulations subject to any variations which may have been agreed with the Treasurer due to special or unforeseen circumstances (See Financial Regulation 5). 73
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4.5.3 The Assessor will also provide the Treasurer with whatever assistance and information considered necessary in order to ensure the effectiveness of the budgetary control system. This will include the allocation of budget to cost centres and subjective/sub-analysis codes, the phasing of budgets over accounting periods, the explanation of budgetary variances and the determination of probable outturns. 4.5.4 Under the heading of Other Implications, each financial report will contain a paragraph in respect of the main risks associated with the financial information contained within the report. 4.6. Monitor and Review Performance 4.6.1 It shall be the duty of the Board to monitor or regulate its financial performance during each reporting period, throughout the financial year. 4.7 Variances 4.7.1 Where it appears that the amount of any approved revenue income or expenditure budget estimate has or may significantly deviate from that included in the Revenue Estimates resulting in a significant change to the Board’s overall financial position, or impacting upon the policy of the Board or revenue implications for future years, it will be the duty of the Assessor to consult with the Treasurer timeously. 4.7.2 If the Treasurer is advised that significant change is likely to affect the Board’s overall financial position, the deviation involves a change of policy of the Board or results in revenue implications for future years, a report will be provided for the Board in good time, detailing the financial consequences, to enable appropriate action to be taken timeously. 4.8 Exemptions 4.8.1 The Assessor shall not incur, and the Board shall not cause or allow to be incurred, expenditure chargeable to the Revenue Account unless it has been included in the Revenue Estimates except:- (i) in emergency situations in consultation with the Convener and Treasurer and thereafter reported to the Board. (ii) as authorised by the Scheme of Delegation. (iii) as authorised by Standing Orders 4.9 Virement 4.9.1 Any proposal for virement shall be discussed and agreed with the Treasurer or any officer appointed by the Treasurer in advance. 4.9.2 Unless excepted by a scheme of devolved management approved by the Treasurer, virement shall be permitted only after consultation with the Treasurer in the following circumstances:- 74
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(i) where the proposal for virement is less than £100,000 and does not involve a change in the policy of the Board, the transfer will be agreed between the Treasurer and the Assessor, with the proviso that there are no ongoing revenue consequences and the transfer would not involve a change of policy of the Board. (ii) where the cumulative amount exceeds £100,000 and/or involves a change in the policy of the Board the transfer will be approved by the Board. (iii) if the transfer has revenue implications for future years then the approval of the Board must be obtained. 4.10 Additional Expenditure 4.10.1 Subject to Section 5 Emergency Expenditure, no expenditure may be incurred for an individual revenue project estimated to cost above £100,000 unless and until the project has been the subject of a report to the Treasurer as to the estimated annual income and expenditure which will arise from the project. The report should include a reference to the extent to which the project has been included in the Revenue Estimates for that year and shall seek permission to go to tender, where appropriate. 4.10.2 Any Item of expenditure of an ‘emergency’ nature is subject to Section 5 Emergency Expenditure. 4.11 Capital Expenditure 4.11.1 It is entirely possible that elements of expenditure incurred within the Board’s approved Revenue expenditure budget, is deemed Capital spend in accounting terms. If this is the case, the Assessor must advise the Treasurer, and the expenditure will be accounted for appropriately. 4.11.2 If the Board requires to undertake any significant Capital Projects, then this must be done in conjunction with the Treasurer and with the approval of the Board. 5. EMERGENCY EXPENDITURE 5.1. Procedures for Incurring Expenditure of an “Emergency” Nature 5.1.1 Where financial provision has not been made in the budget, nothing in these Financial Regulations shall prevent the Treasurer from incurring, or allowing to be incurred, expenditure which is essential to meet any immediate needs arising from a statutory requirement or which is referrable to Section 84 of the Local Government (Scotland) Act 1973 subject to such action being approved by the Board (power to incur expenditure in time of emergency). 5.1.2 Where it is not practicable for action to be deferred pending Board approval, the Treasurer may incur, or allow to be incurred, such expenditure subject to the estimated cost not exceeding £100,000. 5.1.3 Where such expenditure exceeds £100,000, the agreement of the Convener to such expenditure must be sought. 75
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5.1.4 In all cases where the Board has not approved such expenditure, a report must be made as soon as possible after such expenditure has been incurred and thereafter reported to the Board. 6. LEGALITY OF EXPENDITURE 6.1 It shall be the duty of the Assessor to ensure that no expenditure is incurred unless it is within the Legal Powers of the Board. In particular, the Assessor must be satisfied that expenditure on existing service developments including public/private sector arrangements, contributions to existing client organisations and responses to existing emergency situations are within the Legal Powers of the Board. Clarification as to legality should, if necessary, be obtained from the Legal Adviser prior to expenditure being incurred. 6.2 In case of doubt, the Assessor must consult the Legal Adviser before incurring expenditure. 6.3 Expenditure on new service developments, initial contributions to new client organisations and responses to new emergency situations which require expenditure must be clarified as to legality prior to being incurred. Similarly, public/private sector arrangements and initiatives should also be subject to the legality of the proposed arrangement being clarified prior to expenditure being incurred. 7. CONTROL OF INCOME 7.1 Responsibility of the Treasurer 7.1.1 It is the duty of the Treasurer to make adequate financial and accounting arrangements to ensure the proper and prompt recording of all monies due to the Board and the proper and prompt collection, custody, control and disposal of all cash of the Board. 7.1.2 All accounts for income due to the Board will be rendered by, or under arrangements approved by, the Treasurer in consultation with the Legal Adviser, to ensure proper and prompt collection. 7.2 Notification of all Income to the Treasurer 7.2.1 The Assessor will ensure that particulars of all charges to be made for work done, services rendered or goods supplied by the Board and of all other amounts due to the Board shall be promptly notified to the Treasurer in a form approved by the Treasurer. 7.2.2 At a date as may be required by the Treasurer, the Assessor will provide the Treasurer with details of all accounts relating to goods and services provided to 31 March in each year and which have still to be rendered. 7.2.3 The Treasurer will also be notified without delay of all contracts, leases and other agreements and arrangements entered into which involve the receipt of money by the Board. The Treasurer will have the right to inspect any documents or other evidence relating to such matters. 76
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7.3 Determination and Review of Charges 7.3.1 The Assessor will, in consultation with the Treasurer and, where necessary, the Legal Adviser, review in line with the revenue budget exercise, all charges for goods or services provided by the Service and, except where the charge is fixed externally, will submit proposals to the Board for consideration and approval unless otherwise provided for in the Scheme of Delegation. In order to preserve the real value of such income, increases recommended to the Board by the Assessor should have regard to the current rate of inflation and should highlight the impact of any change in the rate of value added tax. Increases, where practicable, should be applied from the 1st April co terminus with each financial year. Where this is not practicable due to contractual constraints, a mutually acceptable revision date will be agreed between the Assessor and Treasurer. 7.3.2 The Assessor will also, in consultation with the Legal Adviser, regularly give consideration to activities or services provided by the office for which a charge could be made. 7.4 Treatment of Monies Collected 7.4.1 All monies received on behalf of the Board by any employee of the service will be recorded and deposited without delay with the Treasurer or the Board’s bankers in accordance with arrangements made by the Treasurer. Sums in excess of £500 must be banked within 24 hours of receipt unless the establishment has an uplift by a security carrier agreed by the Treasurer. Sums of money should not be retained within safes in excess of existing insurance cover. 7.5 Transfer of Cash, Cheques etc 7.5.1 All transfers of cash, cheques (pre-signed), and Investment Certificates etc from one member of staff to another will be evidenced in the records of the offices concerned by the signature of the receiving employee. 7.6 Forms, Books and Tickets 7.6.1 All official receipts, forms, books, tickets and other such items for the disbursement and collection of monies will be in a form approved by the Treasurer and will be ordered, controlled and issued to services by, or under arrangements agreed by, the Treasurer who will be satisfied as to the arrangements for effective control. 7.6.2 It will be the requirement that all such records, forms etc. aforementioned shall be retained by each office for a period of five years or in line with statutory regulations. Appropriate advice can be obtained from the Treasurer. 7.7 Deductions, Discounts and Write-offs 7.7.1 No deduction may be made from all monies received on behalf of the Board except under the authorisation of the Treasurer, in consultation with the Legal Adviser. 7.7.2 Cash discount will not be offered to any debtor. 7.7.3 Sums due to the Board will not be written off except with the prior consultation of the Treasurer and Legal Adviser and after consideration and approval by the Board. 77
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7.8 Personal Cheques 7.8.1 Personal cheques will not be cashed out of the Board’s monies or monies held on behalf of the Board. 7.9 Grants 7.9.1 The Treasurer will be advised timeously of all relevant information necessary to submit or certify applications for grants, including Exchequer grants, due to the Board. All grants are to be paid direct to the Treasurer. 7.9.2 The Treasurer will be advised timeously of all relevant information necessary to submit or certify applications for grants due to the Board. 8. TREASURY MANAGEMENT 8.1. General 8.1.1 The Treasury management function of the Board will be carried out by the Lead Authority in accordance with Financial Regulations. 9. TAX MANAGEMENT 9.1 Responsibility of Treasurer 9.1.1 The Treasurer is responsible for the taxation procedures necessary to ensure that all reasonable steps have been taken to properly report and account for tax liabilities and obligations ensuring avoidance of any losses. 9.1.2 In particular, the Treasurer is responsible for:- (i) ensuring that the transactions comply with all relevant statutory requirements and authorities. (ii) minimising the Board’s tax liability (iii) maximising the Board’s cash flow. 9.1.3 In carrying out such responsibilities the Treasurer will:- (i) define and allocate duties in relation to taxation and tax management. (ii) ensure that financial control systems are operating effectively to produce the necessary information and minimise the risk of error. (iii) secure an appropriate level of knowledge and financial awareness amongst staff involved in processing transactions involving elements of tax. (iv) ensure that proper assistance is given to any routine or special investigation undertaken by a Collection Agency, under arrangements approved by the Treasurer in consultation with the Legal Adviser, and that justification for any assessment made as a result of an investigation is properly reviewed. (v) make such arrangements as necessary to monitor the discharge of these responsibilities. 78
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(vi) report periodically on the Board’s tax affairs to the Board. (vii) report any significant changes relating to the Board’s tax affairs to the Board. 9.2 Appointment of External Professional Advisers 9.2.1 The Treasurer may appoint external professional advisers who are specialists in tax matters in order to assist the Treasurer in carrying out tax management responsibilities, subject to the terms of Standing Orders. 9.3 Dissemination of Information on Tax Matters 9.3.1 The Treasurer shall be responsible for the dissemination of information on tax matters as appropriate and the Assessor will be responsible for implementing any guidelines laid down by the Treasurer with regard to any particular aspect of tax. 9.4 Consultation with the Treasurer 9.4.1 No transaction that has tax implications will be conducted without first consulting the Treasurer. 9.4.2 Information should be passed to the Treasurer to allow the calculation of employees’ Personal Tax Liability as requested. 10. BANKING ARRANGEMENTS AND CHEQUES 10.1 Arrangements with Bankers 10.1.1 All arrangements with the Board’s Bankers concerning the Board’s bank accounts and the issue of cheques will be made by or under arrangements approved by the Treasurer who is authorised to operate such banking accounts where considered necessary. 10.1.2 The Treasurer shall be responsible for arranging any payments through the Bankers Automated Clearing System (BACS) and Clearing House Automated Payment System (CHAPS) and shall ensure that proper security control procedures are effected and reviewed. 10.2 Opening and Closing of Bank Accounts 10.2.1 Official bank accounts bearing the Board’s name will only be opened or closed by the Treasurer. 10.3 Payments into Bank Accounts 10.3.1 All monies received shall be paid into the Board’s bank accounts daily or at such other intervals as may be approved by the Treasurer. 10.3.2 Each employee banking money shall enter a reference to the source of the income on the bank pay-in slip. The reference should include the establishment, location or office name and sundry debtor account number where appropriate. 79
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10.3.3 It is the responsibility of any employee handing over the custody of monies to a security firm, approved by the Board to deliver such monies to the bank on behalf of the Board, to ensure that such monies are properly and satisfactorily secured in a sealed receptacle and the security firm employee displays an authorised identity card. The seal on such receptacles must not be broken or damaged in any manner when handed over to the authorised personnel of the security firm and ensure that the list is updated at regular intervals as approved by the Treasurer. 10.4 Cheque Control 10.4.1 All cheques shall be ordered only on the authority of the Treasurer who will make the appropriate arrangements for their safe custody. 10.4.2 Any arrangements for controlling and signing of cheques on behalf of the Board will be made by the Treasurer. 10.4.3 Cheques on the Board’s main bank accounts shall bear the facsimile signature of the Treasurer or be signed only by the Treasurer or the Head of Finance (Strategy), South Lanarkshire Council. 11. ASSET REGISTER, TITLE DEEDS AND PROPERTY 11.1 Requirement for Asset Register and Capital Accounting 11.1.1 The Assessor will be required to maintain a register of all assets within the Board in such form as required by or agreed with the Treasurer. The information maintained within the Asset Register will be required to support the requirements of Capital Accounting legislation. 11.1.2 The care, custody and control of assets owned by or used within the office will be the responsibility of the Assessor who will comply with all instructions as directed by the Treasurer, in particular with the year end certification procedures. 11.2 Title Deeds 11.2.1 The Legal Adviser shall have the custody of all title deeds held by the Board under secure arrangements agreed by the Treasurer. 11.3 Register of Heritable Property 11.3.1 The Assessor will maintain a register of all Heritable Property owned or leased by the Board. The details recorded should, as far as practicable, include the locational address, description, plan reference, purchase details, particulars and nature of interest and any rents payable and particulars of tenancies of rents granted. The register shall be cross-referenced to Title Deed references. 12. INVENTORIES 12.1 Control and Custody of Inventory 12.1.1 Arrangements made by the Assessor for inventory control shall be subject to the approval of the Treasurer. 80
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12.1.2 The care, custody and control of furniture, fittings and equipment owned by or used within the office will be the responsibility of the Assessor who will comply with all instructions as directed by the Treasurer, in particular with the year end certification procedures. 12.2. Recording of Inventory 12.2.1 Such inventories as, in the opinion of the Assessor and the Treasurer, are necessary, shall be maintained and therein shall be recorded an adequate description of furniture, fittings and equipment and on official inventory forms. 12.2.2 The extent to which the property of the Board shall be so recorded and the form in which the inventories shall be kept shall be determined by the Assessor in consultation with the Treasurer. Official inventory forms, guidelines and procedures will be subject to regular update and be agreed by the Treasurer. 12.2.3 The Assessor will be responsible for maintaining an annual check of all items on the inventory and for taking action in relation to surpluses, deficiencies and/or discrepancies and noting the inventory accordingly. 12.2.4 All discrepancies will be reported without delay to the Treasurer for further action as appropriate. 12.2.5 The Assessor shall, at a date determined by the Treasurer, prepare and make available, if required, inventories of furniture, fittings and equipment as at 31 March preceding. 12.3 Use of Inventory 12.3.1 The Board’s property will not be removed otherwise than in accordance with the ordinary course of the Board’s normal business or used elsewhere otherwise than for the Board’s purposes except in accordance with the specific directions and approval of the Assessor and in accordance with the Code of Conduct for Employees. 12.3.2 If inventory is to be removed from the premises in the course of this business then the insured status of the inventory should be checked with the Lead Authority’s Risk Management Section and the issue of the item recorded in line with the appropriate guidelines. 12.4 Surplus Inventory 12.4.1 Subject to Standing Orders, the Scheme of Delegation, all surplus plant, equipment, furnishings, materials, vehicles, commodities or supplies to be disposed of by the Assessor shall be advertised for sale which sale shall be affected either by competitive tender or by public auction unless otherwise approved by the Treasurer and reported thereon to the Board. 12.4.2 Any method of disposal should demonstrate Value for Money to the satisfaction of both the Assessor and the Treasurer and comply with South Lanarkshire Council recycling arrangements. 81
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13. INSURANCE 13.1 Responsibility for Insurance 13.1.1 Subject to Standing Orders, the Scheme of Delegation and the general supervision of the Board and except as authorised by them, the Treasurer shall make appropriate insurance arrangements for all aspects of the Board’s activities. As directed by the Treasurer, the negotiation of all insurance claims shall also be arranged by or for the Board, in consultation with the Assessor, and, where necessary, in consultation with the Legal Adviser and/or the Head of Personnel Services or other officers. 13.2 Notification of Risks and Losses 13.2.1 The Assessor shall give prompt notification to the Treasurer of all new or increased risk, properties or vehicles or significant changes to operations that should be covered by insurance or of any alterations affecting existing insurances within the office. 13.3 Notification of Claims 13.3.1 The Assessor shall notify the Treasurer immediately in writing of any loss, liability or damage or any event likely to lead a claim and, in consultation with the Treasurer and Legal Adviser, inform the Police where appropriate. Thereafter the Treasurer will be responsible, where applicable, for advising the Insurance Company concerned where appropriate. 13.4 Fidelity Guarantee Insurance 13.4.1 All appropriate employees of the Board shall be included in suitable fidelity guarantee insurance. 13.5 Review of Insurance Cover 13.5.1 The Treasurer shall annually or at such other period as is considered necessary review all insurance in consultation with the Assessor as appropriate. 13.6 Indemnities 13.6.1 The Assessor will consult with the Treasurer respecting the terms of any indemnity which the Board is requested to give. 14. STOCKS AND STORES CONTROL 14.1 Costing Systems and Stores Control 14.1.1 Arrangements made by the Assessor for costing systems and stock and stores control shall be subject to the approval of the Treasurer. 14.1.2 Stocks and stores shall not be in excess of normal operational requirements except in special circumstances with the prior approval of the Board. 82
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14.2 Custody of Stores and Stocktaking 14.2.1 The care, custody and level of stores in the office shall be the responsibility of the Assessor who will ensure that:- (i) stocktaking is carried out at regular intervals throughout the financial year under arrangements approved by the Treasurer. (ii) stocktaking is, as far as practicable, carried out by persons other than Stores Persons. (iii) all obsolete or excess stock or scrap material is identified and disposed of in accordance with Standing Orders, Financial Regulation (12.4) and the Scheme of Delegation. (iv) the Treasurer shall, at a date determined and in a form prescribed by the Treasurer, be furnished with an inventory of stock and stores on hand as at 31 March preceding. The Assessor should ensure appropriate systems are in place to control and record transactions and balances. 14.2.2 Inventories of stock shall be maintained by the service in a form determined by the Assessor in consultation with the Treasurer. 14.2.3 Duly authorised certificates of stock valuations at 31 March shall be submitted by the Assessor to the Treasurer as soon as possible after the year end and valued in accordance with the principles agreed with the Treasurer. 14.3 Write-offs or Surpluses of Stores 14.3.1 No adjustment shall be made to write off stock or stores deficiencies or bring surpluses into account unless, in consultation with the Assessor, agreed by the Treasurer who will then determine Board reporting requirements. 14.4 Use of Stock 14.4.1 The Board’s stock shall not be removed otherwise than in accordance with the ordinary course of the Board’s normal business or used elsewhere otherwise than for the Board’s purposes except in accordance with the specific directions and approval of the Assessor and in accordance with the Code of Conduct for Employees. 15. ORDERS FOR WORKS, GOODS AND SERVICES 15.1. Official Orders and Exemptions 15.1.1 Official orders or written acceptances of tenders or offers shall be in a form approved by the Treasurer and Legal Adviser and shall be approved only by officers authorised by the Assessor who shall be responsible for official orders, tenders or offers issued from the Service. All official orders or acceptances of tenders of offers shall conform to the Scheme of Delegation, the Standing Orders and all statutory requirements as well as the Financial Regulations of the Board. 83
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15.1.2 The Assessor or appropriately nominated officers shall issue / approve official orders for works, goods or services only in accordance with any relevant requirements of Standing Orders (Nos: 18 E-procurement; 20 Checking of Pre-qualification documents/Tenders and Reporting; 21 Acceptance of Tenders; 13 Collaborations; 23 Nomination of Sub-Contractors, 8 Negotiated Tendering Procedure and 22 Extensions to Contracts) and the relevant requirements imposed by Statute, regulation or EU public procurement directives. In the absence of a physically signed document/form, the authorising signature should be backed up with an authorising statement sent via email from the authoriser’s account. If future developments implement an electronic signature solution this will supersede any previous requirement for email backup. 15.1.3 Except for petty cash purchases, supplies of Public Utility Services and periodic payments such as rent and rates or such other exceptions as the Treasurer may from time to time approve and, subject to the provisions of Standing Orders and the Scheme of Delegation, all goods, materials or services supplied to or work executed for the Board shall be ordered or confirmed in writing by means of an official order or by a formal written acceptance of a tender or offer. 15.1.4 A copy of each official order, tender, offer or formal written acceptance thereof; shall, if so required, be supplied to the Treasurer. 15.2 Authorised Signatories / Persons 15.2.1 A current list of authorised signatories for persons authorised to place orders shall be maintained by the Assessor in a form determined by the Treasurer, together with the specimen signatures, initials and the approved level of purchasing power of the persons authorised. 15.2.2 Persons authorised to purchase by electronic means must have the specific approval in writing of the Treasurer before being added to the aforesaid list. Maximum buying power, types of goods and services, and range of suppliers, must be noted in such an approval. 15.2.3 Some organisations accept orders and services via the Internet. The fact that Internet access has been granted does not authorise a user to place orders in the name of the Board. No orders will be placed via the Internet without proper authorisation through the normal corporate procedures. Failure to comply with this would be regarded as a breach of the Financial Regulations. 15.2.4 Additions or deletions to the list shall be notified to the Treasurer as they occur without delay and the currency of the list shall be reviewed annually by the Assessor. 15.3 Central Purchasing and Standardisation 15.3.1 Each official order for works, goods and services shall conform to the directions of the Board with respect to central purchasing and the standardisation of goods, materials and services. 84
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Segregation of Duties 15.3.2 Procedures which are to be followed regarding the ordering/receiving of goods/services and the subsequent approval of invoices for payment should be arranged to ensure all tasks are completed by separate officers. 16. PAYMENT OF INVOICES Certified Payments 16.1 Certification by Assessor 16.1.1 It will be the duty of the Assessor to ensure that all goods, materials and services received following the placing of official orders by the Assessor or an authorised employee within the Service, are as ordered, in respect of price, quantity and quality. 16.1.2 After issuing an official order, the Assessor will be responsible for examining, verifying, certifying and coding the related invoices and similarly for any other payment, vouchers or accounts arising from the Service. 16.1.3 Such certification shall be in manuscript, or in an electronic form approved by the Treasurer, by or on behalf of the Assessor. 16.1.4 The Assessor will, therefore, arrange for the certification in manuscript by an employee of the Service that all payment vouchers, supported by invoices, etc., comply with the following:- (i) the expenditure is on items or services that it is within the Board’s legal powers to incur and that provision for that expenditure is included within the Revenue Estimates (subject to exemptions as detailed at Section 5, Emergency Expenditure). (ii) the works, goods, materials or services to which the invoice relates have been received or carried out as the case may be and have been examined and approved and are in accordance with the official order (iii) the prices, extensions, calculations, trade discounts, other allowances, credits and taxes are correct (iv) the relevant expenditure has been properly incurred and is within the relevant estimate provision (v) appropriate entries have been made in inventories, stores records or stock books as required (vi) the appropriate expenditure code numbers are entered on the document for payment (vii) the invoice has not previously been passed for payment and is a proper liability of the Board 16.1.5 Persons authorising invoices for payment should not be the officers who approved the purchase order or who received the goods/services. (See Section 15.3.2 Segregation of Duties). 85
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16.2 Cash Discounts 16.2.1 After the receipt of the goods has been properly certified as above, the Assessor, or other authorised employee intimated to the Treasurer, shall pass all relevant and necessary details expeditiously to the Treasurer for payment to ensure that any offer of cash discount for early payment is received and that creditors are timeously paid. 16.3 Advance Payments 16.3.1 Any circumstance, under which It is necessary to pay part or full value of the goods and services in advance, must be approved by the Treasurer and adhere to the current procedures of the Board. 16.4 Payment of Invoices 16.4.1 Details of payments required, duly certified, shall be passed without delay to the Treasurer and the Assessor must ensure that this is carried out with a view to avoiding exposure to late payment penalties as chargeable under the Late Payment of Commercial Debt (Scotland) Act 1998. 16.4.2 The Treasurer will instruct whatever examinations with regard to the payment of accounts are deemed necessary for which purpose the Treasurer, or a nominated representative, shall be entitled to obtain whatever information and explanations as may be required. 16.4.3 The Treasurer will, on receipt of authorisation from the Assessor, have full authority to pay such invoices. 16.4.4 Apart from petty cash and other payments from the imprest accounts, the normal method of payment of money due from the Board shall be by electronic transfer, cheque or other instrument such as direct debit drawn on the Board’s bank accounts by the Treasurer or any person or persons so authorised. A Direct Debit policy has been created and states that the only bank account where direct debits are permitted to be drawn from is from the Board’s Expenditure account. The policy also details the approval process and the responsibilities in setting up direct debits and that all documentation will be retained by the Treasurer. 16.4.5 The Assessor shall, at a date determined by the Treasurer provide a certified list of all outstanding expenditure relating to transactions in the preceding financial year, for which no copy accounts have previously been passed to the Treasurer. 16.5 Duplicate Invoices 16.5.1 Payment shall not be made on duplicate invoices or photocopy invoices unless the Assessor or other authorised employee certifies in writing that the amounts in question have not previously been paid. 16.6 Amendments 16.6.1 Any amendments to payment vouchers shall be made in ink and initialled by the officers making them, stating briefly the reasons for the amendment where this is not self evident. Alterations must not be made using correcting fluids. 16.6.2 No amendment to an invoice shall be made. 86
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16.6.3 All invoices or credit notes where alteration or amendments are found necessary must be returned to the supplier and a replacement invoice or credit note must be submitted. 16.7 Authorised Signatories 16.7.1 A list of authorised signatories for certifying accounts shall be supplied by the Assessor to the Treasurer and specimen signatures and initials shall be required from the persons authorised. 16.7.2 Additions or deletions shall be notified to the Treasurer without delay as they occur and the currency of the list shall be reviewed annually by the Assessor. 16.7.3 In the case of remote working, any documents requiring authorisation must be supported by an authorising statement from the Board email account of the authorising signatory. If future developments implement an electronic signature solution this will supersede any previous requirement for email backup. 17. CONTRACTS FOR WORKS AND SERVICES 17.1 Record of Contracts 17.1.1 The Assessor or nominated officer will ensure that a condition of the awarding of a contract for works or services will be that the contractor is verified with HMRC and the subcontractors Employment Status is established in line with the Construction Industry Deduction Scheme (2007) and that no contract for works or services can be awarded in the absence of such evidence. 17.1.2 The Assessor or an authorised employee within the Service will maintain a record of all relevant contracts and payments made on contracts. The Treasurer shall have access to such records and use whatever information is considered necessary. 17.1.3 Where contracts provide for payments to be made by instalments, a contract register or registers shall be kept to show the state of account on each contract between the Board and the Contractor together with any other payments and professional fees. These arrangements must meet with the approval of the Treasurer. 17.2 Variations to Contracts 17.2.1 Subject to the provisions of the Contract in each case every extra or variation shall, unless otherwise evidenced to the Assessor’s satisfaction, be authorised in writing by the Assessor or by any other employee nominated by the Assessor in writing for that purpose. All instructions to contractors on major revenue projects shall be issued by the responsible employee using the appropriate official variation order procedure. 17.2.2 Any such extra variation, to the contract, the estimated additional cost of which exceeds £100,000 or 5% of the total contract figure, whichever is the greater, will be reported to the Treasurer for approval as soon as practicable prior to the variation being instructed. Standing Order 22, relating to the extension of contracts also applies. 87
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17.3 Interim Payments 17.3.1 Interim payments to contractors shall be certified by the authorised officers responsible for the control and supervision of work. The Treasurer shall both approve and be provided with specimen signatures of the authorised signatories by the Assessor. Any amendment to the list of authorised signatories should be notified to the Treasurer as they occur and without delay. 17.4 Payment Procedures 17.4.1 Payments to Contractors of the Board shall be made only on a certificate issued by the Assessor or by another employee nominated by the Assessor in writing for that purpose. The officers so authorised shall be determined jointly in agreement with the Treasurer. 17.5 Claims from Contractors 17.5.1 Claims from contractors in respect of matters not clearly within the terms of an existing contract shall be referred to the Legal Adviser for the consideration of the Board’s legal liability and, where necessary, to the Treasurer for financial consideration before a settlement is reached. 17.5.2 The Assessor, if offering works of new construction or works of maintenance to the Trading Services of the constituent authorities shall do so only in compliance with all relevant statutory provisions that are in force and in accordance with the relevant requirements of Standing Orders. 17.6 Delay of Contract 17.6.1 Where completion of a contract is delayed beyond the agreed period or any agreed extension of time for the contract it shall be the duty of the Assessor to consult the Treasurer and/or Legal Adviser prior to taking appropriate action in respect of any claims for liquidate or other damages and to report on the matter where necessary. 17.7 Contractor’s Insurance 17.7.1 The Assessor or his Technical Advisor will ensure that each contractor’s or sub- contractor’s insurance cover complies with the requirements laid down in the Board’s Conditions of Contract or as specified by the Treasurer, in consultation with the Legal Adviser. In particular, insurance cover will require to be exhibited to the Assessor prior to the contract being awarded. 17.7.2 When sub-contractors are appointed, liability for loss or damage resulting from their negligence should be transferred to them in terms of the Conditions of Contract. It is the responsibility of the Assessor to: ensure that this is done; that procedures exist for checking the validity and adequacy of sub-contractors’ insurance documents; and for claims to be processed. The Board should not be liable to tenants or other third parties for the negligent acts of contractors. 17.7.3 Copies of all essential insurance policy details must be passed to the Risk Management section for inclusion on the Register of Contractor’s Insurance. 88
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17.8 Contract Management Guidelines 17.8.1 Once a contract is awarded, the management and monitoring is crucial to the success of that contract. 17.8.2 Whilst it is important for both parties to the contract to understand their obligations, it is vital that mechanisms are put in place for the monitoring of the contract. This can be done via regular meetings, monthly progress reports and site visits to the contractor’s premise. The type of information required will be dependent of the type of contract. 17.8.3 It is essential that for all contracts, accurate records are maintained. After the award of a contract, a file should be created which will contain all information relating to the contract. 17.8.4 If a problem occurs, the contractor should be notified as soon as possible to ensure that any problems do not escalate. Communication and good working relationships are also crucial to a successful contract. 17.8.5 Full guidelines on contract management can be found on the Strategic Procurement intranet site. http://intranet.southlanarkshire.gov.uk/info/20378/e-procurement 18. ACCOUNTING SYSTEMS AND RECORDS 18.1 Accounting Systems. Procedures and Records 18.1.1 The Treasurer will determine all accounting systems, procedures and records of the Board and its Services and all accounts and accounting records of the Board shall be compiled by, or under the direction of, the Treasurer. Where such systems and records are maintained other than by the Treasurer, the Treasurer shall, before making any determination, consult the Assessor. 18.2 Principles of Internal Control 18.2.1 It is the duty of the Treasurer to ensure that adequate financial and accounting systems and records are designed and maintained in accordance with the recognised principles of internal control to ensure as far as possible:- (i) that all income due to the Board is properly recorded and collected. (ii) that all expenditure of the Board is properly incurred, authorised and checked. (iii) the safe custody and control of all cash, stocks and other assets of the Board. 18.3 Segregation of Duties 18.3.1 Officers charged with examining and checking the accounts of cash transactions shall not themselves be engaged in any of these transactions. 89
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18.3.2 Procedures to be followed regarding the calculation, checking and recording of sums due by or to the Board, or the provision of information regarding sums due to or from the Board, are arranged in such a way whereby the work of one person is proven independently or is complementary to the work of another and these operations are separated from the duty of collecting or disbursing such sums where such aggregation of duties is practicable given the staff resources available. 18.4 Accounts and Annual Report 18.4.1 The Accounts and Annual Report of the Board will be compiled by, or under the direction of the Treasurer. 18.4.2 The Treasurer will advise the Assessor of the timescales and deadlines set in order to complete the Annual Report by the statutory deadline. 18.4.3 The Assessor will submit to the Treasurer all information necessary to close the Accounts as detailed in the Guidance Notes and Procedures issued annually. 18.4.4 It is the responsibility of the Assessor to provide the External Auditor with supporting documentation and any information required in connection with the closure of the Board’s accounts. 19. INTERNAL AUDIT 19.1 Responsibility for Internal Audit 19.1.1 A continuous Internal Audit, under the independent control and direction of the Treasurer, shall be arranged for the purpose of carrying out an examination of the accounting, financial and other operations and systems of the Board to ensure that the interests of the Board are protected. 19.1.2 This should be done in accordance with Internal Audit’s published Internal Audit Charter and in compliance with the Public Sector Internal Audit Standards 19.1.3 Officers engaged in Internal Audit will report directly to the Treasurer. All Internal Audit reports shall be submitted to the Treasurer, the Assessor and to the External Auditor. 19.2 Authority of Audit 19.2.1 The Treasurer or an authorised representative shall have authority, on production of identification, to:- (i) enter at all reasonable times on any Board premises or land (ii) have access to all records, computer files, documents and correspondence relating to any financial and other transactions of the Board (iii) require and receive such explanations as are necessary concerning any matter under examination (iv) require any employee of the Board to produce when required, cash, stores or any other Board property under his/her control 90
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(v) require any explanation which he/she considers necessary regarding any contract or transaction (vi) while investigating a contract, request the assistance of a professional person within the office concerned with such assistance being given promptly (vii) and will make any recommendations to changes in procedures as appropriate. 19.3 Irregularities 19.3.1 Any evidence or reasonable suspicion of an irregularity relating to funds, stores or other property of the Board, or any suspected irregularity in the exercise of the functions of the Board including breaches of the Code of Corporate Governance will be reported immediately by the Assessor to the Treasurer or a nominated employee or vice versa, in line with the Fraud Response Plan. 19.3.2 Such irregularities will be dealt with by the Treasurer as is considered necessary by way of investigation, action and report in accordance with the Board’s Anti Fraud Strategy and Fraud Response Plan, Counter Fraud, Bribery and Corruption Statement and Strategy and Fraud Response Plan. 19.3.3 The Assessor will make arrangements to ensure that any actual or suspected irregularities relating to funds, payments, stores, equipment or other Board property, or any breaches of the Code of Corporate Governance are reported to them immediately in line with the Fraud Response Plan. 19.3.4 The Treasurer will approve any necessary investigations arising from incidents of whistle blowing by third parties. 20. PETTY CASH IMPREST ACCOUNTS 20.1 Provision of Petty Cash Imprest Accounts 20.1.1 An appointed officer of Finance and Corporate Resources of the lead authority (as appointed by the Treasurer) will, in consultation with the Assessor or an authorised employee within the Service, advance a sum of money intended to be used for the purposes of defraying petty cash and other minor expenses. 20.1.2 The Treasurer only will open an imprest bank account in the name of the Board to be used in the operation of the petty cash imprest account. 20.1.3 The Assessor will supply a list of authorised signatories for the operation of the imprest bank account. A minimum of two signatories will be required to withdraw money or make payment from an imprest bank account. 20.1.4 It shall be the responsibility of the imprest bank account holder to ensure the account is not overdrawn under any circumstances. Any charges for being overdrawn must be borne by the establishment concerned. 20.1.5 Any bank interest earned on imprest accounts will be remitted separately and immediately to the Treasurer and will not be left in the imprest bank balance. 91
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20.1.6 Petty cash imprest accounts will be reconciled at least once in each calendar month, the reconciliation should be signed by the imprest holder and retained for inspection. 20.1.7 Claims for re-imbursement of a petty cash imprest account should be made where appropriate, taking into consideration the size of the claim and the expected demands on the petty cash account. 20.1.8 All claims for re-imbursement should be submitted to the Treasurer. Re- imbursement will be made electronically by bank transfer. No re-imbursements will be made in cash. 20.1.9 An employee responsible for a petty cash imprest account will, if so requested, give to the Treasurer a certificate as to the balance of the petty cash imprest account. 20.1.10 Payments from petty cash imprest accounts are limited to minor items of expenditure not exceeding £100 per item and to only such other items as the Treasurer may approve. 20.1.11 Payments from the petty cash imprest accounts will be supported by a receipted voucher to the satisfaction of the Treasurer. 20.1.12 Petty cash imprest accounts must not be used to pay major expense claims or any suppliers’ invoices. 20.2 Exclusion of Payments to the Board 20.2.1 No income received on behalf of the Board will be paid into an imprest bank account or used to replenish an imprest petty cash account but shall be lodged in a bank or be paid to the Board as provided for in Section 10 hereof (Banking Arrangements). 20.3 Termination as Imprest Holder 20.3.1 On leaving the employment of the Board or otherwise ceasing to be entitled to hold a Petty Cash Imprest Account, the employee will account to the Treasurer for the amount advanced to the employee. A formal record of this accounting shall be prepared and retained in the service for inspection. 20.4 Review of Provision of Imprest Accounts 20.4.1 The Treasurer will be entitled to review the use made of Imprest accounts and reduce or close them as considered appropriate. 21. PAYMENT OF WAGES AND SALARIES 21.1 Information Regarding Appointments, etc 21.1.1 The Assessor shall notify the Treasurer without delay and keep records of all matters affecting the payment of wages, salaries and other emoluments, in particular:- 92
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(i) appointments, promotions, regradings, resignations, dismissals, suspensions, secondments and transfers (ii) changes in remuneration, other than normal increments and pay awards and agreements of general application (iii) absences from duty for sickness, career break or other reasons (iv) information necessary to maintain records of service for superannuation, income tax, national insurance and social security purposes. 21.1.2 This information may be provided by the Assessor via the Council’s self-service system People Connect. 21.2 Implementation of Agreements 21.2.1 The Assessor shall be responsible for the application of all appropriate wages and salary agreements to employees of the Board. 21.3 Form and Certification of Records 21.3.1 All time records or other pay documents will be in a format prescribed or approved by the Treasurer and will be certified in manuscript where appropriate, by or on behalf of the Assessor. Electronic submission of data must be password protected and will only be accepted from authorised personnel. 21.3.2 The names of the employees authorised to certify such documents should be sent to and approved by the Treasurer from the Assessor together with specimen signatures and initials. Any amendments to the list of authorised signatories should be notified to the Treasurer as they occur without delay. 21.4 Submission of Timesheets 21.4.1 The Assessor shall adhere to the timetable laid down by the Treasurer for the submission of timesheets and staff reports. 21.5 Arrangements for Payments 21.5.1 The payment of all salaries, wages, pensions, compensation and other emoluments to all employees, former employees, elected Members or beneficiaries shall be made by the Treasurer or under arrangements approved and controlled by the Treasurer. 21.5.2 All transfers of money from one member of staff to another will be evidenced in the records of the Services by the signature of the receiving employee. 21.5.3 Electronic transfers of payroll information shall be supported by documentation certified by an authorised signatory. 93
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22. TRAVELLING SUBSISTENCE etc. ALLOWANCES 22.1 Arrangements for Claims 22.1.1 The Treasurer will be responsible for making arrangements for the administration, regulation and payment of claims for expenses of and allowances to Members and employees of the Board subject always to the statutory provisions from time to time in force. 22.2 Regulations 22.2.1 The Treasurer, in consultation with the Assessor, will make available the current Regulations on expenses and allowances to Members and employees of the Board and to other approved bodies. 22.3 Submission of Employees’ Claims 22.3.1 All claims for payment of car allowances, subsistence allowances, travelling and incidental expenses must be submitted through People Connect or duly certified in manuscript on the appropriate official form approved by the Treasurer. Reimbursement of mileage expenses will only be made on presentation of a relevant VAT receipt detailing a fuel purchase. Reimbursement of other expenses will only be made on presentation of a relevant receipt, where appropriate. Claims must be submitted no later than eight weeks after the end of the month during which expenses are incurred. 22.3.2 Anything beyond this will require specific authorisation by both Assessor and Treasurer or an appointed officer of Finance and Corporate Resources of the lead authority (as appointed by the Treasurer). 22.3.3 The Assessor must ensure that, as far as practically possible, employees’ claims applicable to a financial year are submitted by 15 April of the following financial year. 22.4 Payment of Employees’ Claims 22.4.1 All such expenses shall as far as practicable be paid via the payroll system. 22.4.2 Such payments will not be made out of imprest accounts without the express authority of the Treasurer. 22.5 Certification of Employees’ Claims 22.5.1 The certification by or on behalf of the Assessor will be taken to mean that the certifying employee is satisfied that the journeys were authorised, the expenditure was wholly, exclusively and necessarily incurred in the performance of employment, and that any allowances are properly payable by the Board. 22.5.2 The names of employees authorised to certify such claims not entered on People Connect shall be sent to the Treasurer by the Assessor together with specimen signatures and initials. Any amendment to the list of authorised signatories should be notified to the Treasurer as they occur without delay. 22.5.3 An annual review of such authorisations shall be carried out by the Service to ensure that the list of names submitted to the Treasurer is complete and up-to-date. 94
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22.5.4 No employee authorised to certify such claims would certify a personal claim. Personal claims must be certified by a separate authorised signatory who should be senior to the employee making the claim. 22.6 Scheme of Members’ Allowances 22.6.1 The payment of Members’ allowances and expenses shall be in accordance with the Board’s approved Scheme, or any amending legislation and made under delegated powers of the Treasurer. 22.7 Submissions of Members’ Claims 22.7.1 Payments to Members, including co-opted members of the Board who are entitled to claim attendance and other allowances, mileage or other expenses approved through the Local Governance (Scotland) Act 2004 (Remuneration) Regulations 2007, the Local Government (Allowances and Expenses) (Scotland) Regulations 2007 and the Local Governance (Scotland) Act 2004 (Allowances and Expenses) Regulations 2007, or any amending Regulations shall be made by the Treasurer upon receipt of the prescribed form duly completed and certified in manuscript. 22.7.2 Reimbursement of mileage expenses will only be made on presentation of a relevant VAT receipt detailing a fuel purchase. Reimbursement of other expenses will only be made on presentation of a relevant receipt, where appropriate. Members’ claims should be submitted on a four weekly basis or more frequently if required. 22.7.3 The payment of Members’ expenses will be in accordance with the Board’s approved Scheme, or any amending legislation. 22.7.4 As far as is practically possible, Members’ claims applicable to a financial year should be submitted by 15 April in the following financial year. 23. SECURITY 23.1 Responsibility for Security 23.1.1 The Assessor shall be responsible for maintaining proper security, custody and control at all times for all plant, buildings, materials, stores, furniture, equipment, cash, etc, under the Assessor’s control. The Assessor shall also consult the Treasurer as appropriate in any case where security is thought to be defective or where it is considered special security arrangements may be needed. The Assessor will apply, as a minimum, standards for property protection as defined by Risk Management guidance. 23.2 Limits to Cash Holdings 23.2.1 As noted in Section 7.4.1., sums in excess of £500 must be banked within 24 hours of receipt unless the establishment has an uplift by a security carrier agreed by the Treasurer. The Treasurer shall agree with the Assessor the maximum amount of cash to be held in the premises under the Assessor’s control and the agreed amount shall not be exceeded except with the written agreement of the Treasurer and confirmation that appropriate insurance arrangements are in place. 95
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23.3 Safe Keys 23.3.1 Keys to safes and similar receptacles for cash, stocks or valuable documents or articles shall be the responsibility of the person(s) given charge of such safes or similar receptacles at all times and shall be carried on the person(s) of those responsible. The loss of any such keys shall be reported immediately to the Treasurer. The Assessor will keep a register of all such key holders. The Assessor is tasked with the responsibility and should follow the guidance as detailed in any Risk Management guidance notes and General Security. 23.3.2 All valuables such as insignia of office or other items of a similar nature which are in active use shall be deposited with the Treasurer for safe custody. 23.4 Pre-printed/Pre-signed Cheques etc 23.4.1 The Treasurer will be responsible for ensuring that secure arrangements are made for the preparation and holding of pre-printed/pre-signed cheques, stock certificates, bonds and other financial documents. 23.5 Security/Retention of Documents 23.5.1 The Assessor shall be responsible for maintaining proper security, custody and control of all documents within the Office. The retention period for all books, forms and records related to financial matters shall be determined by the Treasurer in consultation with the Legal Adviser. 23.5.2 The Assessor will be responsible for ensuring that proper systems exist for password identification control both in the case of accessing the Board’s computers, all Board’s IT systems and in the use of personal computers. Nominated Officers will be responsible for ensuring that passwords are properly secured and regularly reviewed. 23.5.3 Flexible and remote working increases risks around cyber and information security. All employees and officers remain bound by and must comply with the policies that the Board has in place to protect sensitive Board data and information. Employees are routinely reminded of their responsibilities to comply with corporate policies and its incumbent on management to monitor compliance. 23.6 Data Protection Act 23.6.1 The Assessor shall be responsible for the use and security within the Office of all personal data held by or output from Computer Systems within the office. Personal data output from such systems must not be used by any other person, office or organisation in contravention of the authority’s registration under the Data Protection Act or the Freedom of Information Act. 23.6.2 The Treasurer will be responsible for the use and security within the lead authority Finance and Corporate Resources’ of all personal data held by or output from computer Systems. Personal data output from lead authority Finance and Corporate Resources’ systems must not be used by any other person, office or organisation without the prior approval of the Treasurer or in contravention of the Board’s registration under law relating to the Data Protection Act. 96
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24. RISK MANAGEMENT 24.1 It is the responsibility of the Assessor to maintain a register of Key Risks and associated Risk Control Plans. 24.2 It is the responsibility of the Assessor to ensure that the register of Key Risks and associated Risk Control Plans are aligned to the Board Service Plans and are consistent with the approved Risk management methodology and systems. 24.3 The register of Key Risks and associated Risk Control Plans are to be available for inspection. 25. OBSERVANCE OF FINANCIAL REGULATIONS 25.1 Responsibility of the Assessor 25.1.1 It is the duty of the Assessor to ensure that these Regulations are made known to the appropriate persons within the Office and to ensure that the Regulations are adhered to. 25.2 Breach of Regulations 25.2.1 Any Breach or non-compliance with these Regulations must on discovery be reported immediately or as soon as is practically possible to the Treasurer who will discuss the matter with the Legal Adviser and the Assessor as may be appropriate in order to determine the proper action to be taken. 97
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Terms of Reference Appeals Panel Grievance and Disputes Panel Submitted to the meeting of Lanarkshire Valuation Joint Board on Monday 27 June 2022 Note: If you need this information in another language or format, please contact us to discuss how we can best meet your needs. Phone 0303 123 1015 or email equalities@southlanarkshire.gov.uk 99
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TERMS OF REFERENCE Lanarkshire Valuation Joint Board Appeals Panel 1 Powers and Responsibilities 1.1 To determine appeals against final written warning and punitive action. 2 Membership 2.1 Membership of individual panels to be 3 members, comprising the Convener or Depute Convener and 1 member from each constituent Council to be drawn in rotation from the membership of the Board. 2.2 Quorum – 2 3 Meeting Arrangements and Practice 3.1 To meet as required. Lanarkshire Valuation Joint Board Grievance and Disputes Panel 1 Powers and Responsibilities 1.1 To determine grievances, either individual or collective, from all employees. 1.2 To hear representations from trade unions on matters not agreed at officer level by consultation and negotiation 2 Membership 2.1 Membership of individual panels to be 3 members, comprising the Convener or Depute Convener and 1 member from each constituent Council to be drawn in rotation from the membership of the Board. 2.2 Quorum 2 3 Meeting Arrangements and Practice 3.1 To meet as required 100