Agenda Document Pack - Clyde Valley Learning and Development Joint Committee - 09/09/2024
South Lanarkshire Council · 9 September 2024
Back to Clyde Valley Learning and Development Joint Committee — 9 September 2024 and its agenda
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Council Offices South Lanarkshire Council Almada Street Hamilton ML3 0AA Friday, 30 August 2024 Dear Councillor Clyde Valley Learning and Development Joint Committee The Members listed below are requested to attend a meeting of the above Joint Committee to be held as follows:- Date: Monday, 09 September 2024 Time: 14:00 Venue: By Microsoft Teams, The business to be considered at the meeting is listed overleaf. Yours sincerely Jackie Taylor Clerk to the Joint Committee Members Council Member Substitute East Renfrewshire Andrew Anderson Glasgow City Anne McTaggart Inverclyde Francesca Brennan Jim Clocherty North Lanarkshire Michael McBride South Lanarkshire Lynsey Hamilton Gavin Keatt Copies to substitute members for information only 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting Minutes of the meeting of the Clyde Valley Learning and Development Joint Committee submitted for approval as a correct record. (Copy attached) 3 - 6 Item(s) for Monitoring 3 Revenue Budget Monitoring 2024/2025 - Clyde Valley Learning and Development Joint Committee Report dated 16 August 2024 by the Treasurer to the Clyde Valley Learning and Development Joint Committee. (Copy attached) 7 - 10 4 Audit Scotland - Clyde Valley Learning and Development Joint Committee - Audit of 2023/2024 Annual Accounts Letter and Annual Audit Report by Audit Scotland, External Auditor. (Copy attached) 11 - 34 Item(s) for Decision 5 Audited Annual Accounts 2023/2024 Report dated 16 August 2024 by the Treasurer to the Clyde Valley Learning and Development Joint Committee. (Copy attached) 35 - 68 Urgent Business 6 Urgent Business Any other items of business which the Chair decides are urgent. For further information, please contact:- Clerk Name: Stuart McLeod Clerk Telephone: 07385 370 117 Clerk Email: stuart.mcleod@southlanarkshire.gov.uk 2
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CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE Minutes of meeting held via Microsoft Teams on 10 June 2024 Convener: Councillor Lynsey Hamilton, South Lanarkshire Council Councillors Present: East Renfrewshire Council: Andrew Anderson Glasgow City Council: Anne McTaggart Inverclyde Council: Francesca Brennan (Vice Convener) North Lanarkshire Council: Michael McBride Attending: Clerk’s Office S McLeod, Administration Officer, South Lanarkshire Council Treasurer’s Office L O’Hagan, Finance Manager (Strategy); B Riddoch, Trainee Accountant, South Lanarkshire Council Project Steering Group T Ferguson (Chair), South Lanarkshire Council Also Attending: Audit Scotland P Murray, Senior Audit Manager 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Clyde Valley Learning and Development Joint Committee held on 12 February 2024 were submitted for approval as a correct record. The Joint Committee decided: that the minutes be approved as a correct record. 3 Revenue Budget Monitoring 2024/2025 – Clyde Valley Learning and Development Joint Committee A report dated 18 May 2024 by the Treasurer to the Clyde Valley Learning and Development Joint Committee was submitted comparing actual expenditure at 17 May 2024 against budgeted expenditure for the Clyde Valley Learning and Development Joint Committee’s revenue budget. As reported to the meeting of the Joint Committee held on 12 February 2024, 14 councils had confirmed their membership position for 2024/2025. This had taken the membership contributions to £0.072 million. The remaining membership position was confirmed at the meeting on 12 February 2024, taking the total member contributions to £0.075 million from 15 councils. 2 3
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Member council contributions formed the basis for the expenditure budget for 2024/2025 of £0.075 million. This funded the management fee to South Lanarkshire Council of £0.059 million, project work totalling £0.014 million and the external audit fee of £0.002 million. In addition to the membership contributions, estimated training expenditure of £0.025 million and the recharge to member councils of £0.025 million had been included in the budget, resulting in a total expenditure and income budget of £0.100 million for 2024/2025. As at 17 May 2024, there was a breakeven position against the phased budget, as detailed in Appendix A to the report. The Joint Committee decided: (1) that the 2024/2025 member council contributions and resultant income and expenditure budgets for the year be noted; and (2) that the breakeven position on the revenue budget, as detailed in Appendix A to the report, be noted. [Reference: Minutes of 12 February 2024 (Paragraph 4)] 4 Annual Governance Statement 2023/2024 A report dated 9 May 2024 by the Treasurer to the Clyde Valley Learning and Development Joint Committee was submitted on the Annual Governance Statement for 2023/2024 which would be included in the Joint Committee’s 2023/2024 Annual Accounts. The Joint Committee’s Annual Governance Statement 2023/2024, which was attached at Appendix 1 to the report, provided details of the systems for internal control which were in place to ensure a robust governance structure. For 2023/2024, the Treasurer’s opinion was that reasonable assurance could be placed on the adequacy and effectiveness of the Joint Committee’s framework of governance, risk management and control arrangements. The Joint Committee decided: that the Annual Governance Statement, attached at Appendix 1 to the report, which would be included in the Clyde Valley Learning and Development Joint Committee’s 2023/2024 Annual Accounts, be approved. 5 Clyde Valley Learning and Development Joint Committee – Annual Audit Plan 2023/2024 The Joint Committee considered the Clyde Valley Learning and Development Joint Committee Audit Plan for 2023/2024, dated March 2024, submitted by the Joint Committee’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 wider scope and Best Value 4
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reporting arrangements, timetable, and audit fee other matters including independence and objectivity and audit quality Details were given on key aspects of those areas. The Joint Committee decided: that the report be noted. 6 Unaudited Annual Accounts 2023/2024 A report dated 9 May 2024 by the Treasurer to the Clyde Valley Learning and Development Joint Committee was submitted on the unaudited Annual Accounts for the Joint Committee for the year ended 31 March 2024. The unaudited Annual Accounts, attached as Appendix 1 to the report, detailed the revenue account and balance sheet to 31 March 2024 for the Joint Committee. The Accounts showed that the Joint Committee’s total revenue expenditure had amounted to £0.082 million in 2023/2024 and had been met by income of £0.098 million. This had resulted in a £0.016 million surplus which would be transferred to reserves for use in future years. The balance on reserves as at 31 March 2024 was £0.049 million. The unaudited Annual Accounts for 2023/2024 would be passed to the external auditor for consideration by 30 June 2024. The Joint Committee decided: that the unaudited Annual Accounts for the Clyde Valley Learning and Development Joint Committee for year ended 31 March 2024 be noted. 7 Change in Membership of the Joint Committee A report dated 16 May 2024 by the Clerk to the Clyde Valley Learning and Development Joint Committee was submitted on a change to the membership of the Joint Committee. At a meeting of North Lanarkshire Council held on 28 March 2024, it had been agreed that Councillor Michael McBride would replace Councillor Angela Campbell as a member of the Clyde Valley Learning and Development Joint Committee with immediate effect. The Joint Committee decided: that it be noted that Councillor Michael McBride had replaced Councillor Angela Campbell as the North Lanarkshire Council member of the Clyde Valley Learning and Development Joint Committee. [Reference: Minutes of 26 June 2023 (Paragraph 2)] 8 Urgent Business There were no items of urgent business. 5
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Report Agenda Item Report to: Clyde Valley Learning and Development Joint Committee Date: 9 September 2024 Report by: Treasurer to Clyde Valley Learning and Development Joint Committee Subject: Revenue Budget Monitoring 2024/2025 - Clyde Valley Learning and Development Joint Committee 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise the Joint Committee of the forecast for the year to 31 March 2025 for the Clyde Valley Learning and Development Joint Committee, and the actual spend position for the period 1 April 2024 to 9 August 2024 [1purpose] 2. Recommendation(s) 2.1. The Joint Committee is asked to approve the following recommendation(s):- [] (1) that the projected position on the Clyde Valley Learning and Development Joint Committee revenue budget, as detailed in Appendix A of the report, be noted. [1recs] 3. Background 3.1. The running costs for the Clyde Valley Learning and Development Joint Committee are funded by contributions from the member councils. 3.2. At the February meeting of the Joint Committee, the 2024/2025 membership position was confirmed. The total member contributions amount to £0.075 million, from 15 councils. This is consistent with 2023/2024. 3.3. These member council contributions form the basis for the expenditure budget for 2024/2025 (£0.075 million). This funds the Management Fee to South Lanarkshire Council (£0.059 million), project work (£0.014 million), and the External Audit fee (£0.002 million). 3.4. In addition, an estimate of training expenditure (£0.025 million), and the recharge of this to Councils (£0.025 million) has also been added to the budget, giving a total expenditure and income budget of £0.100 million. 3.5. The report details the financial position for the Clyde Valley Learning and Development Joint Committee in Appendix A. 4. Employee Implications 4.1. None 3 7
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5. Financial Implications 5.1. As at 9 August 2024, there is a projected breakeven position against the budget. 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. 7. Other Implications 7.1. The main risk associated with the Clyde Valley Learning and Development Joint Committee Revenue Budget is that there is an overspend. The risk has been assessed as low given the detailed budget management applied within the Joint Committee. The risk is managed through four weekly Budget Monitoring when any variance is analysed. In addition, the probable outturn exercise will ensure 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. Jackie Taylor Treasurer 16 August 2024 Previous References None List of Background Papers Financial ledger and budget monitoring results to 9 August 2024 Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Head of Finance (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 8
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Appendix A CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE Revenue Budget Monitoring Report Period Ended 9 August 2024 (No.5) Annual Budget Projected Outturn Projected Outturn Variance Over/ Under % Variance YTD Actual £000 £000 £000 £000 Budget Category Employee Costs 0 0 0 - n/a 0 Property Costs 0 0 0 - n/a 0 Supplies & Services 14 14 0 - 0.0% 0 Transport & Plant 0 0 0 - n/a 0 Administration Costs 84 84 0 - 0.0% 70 Payments to Other Bodies 2 2 0 - 0.0% 1 Payments to Contractors 0 0 0 - n/a 0 Transfer Payments 0 0 0 - n/a 0 Financing Charges 0 0 0 - n/a 0 Total Controllable Exp. 100 100 0 - 0.0% 71 Total Controllable Inc. (100) (100) 0 - 0.0% (76) Net Controllable Exp. 0 0 0 - 0.0% (5) 9
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102 West Port Edinburgh EH3 9DN 8 Nelson Mandela Place Glasgow G2 1BT The Green House Beechwood Business Park North Inverness IV2 3BL T: 0131 625 1500 E: info@audit-scotland.gov.uk www.audit-scotland.gov.uk Clyde Valley Learning and Development Joint Committee 09 September 2024 Clyde Valley Learning and Development Joint Committee Audit of 2023/24 annual accounts Independent auditor's report 1. Our audit work on the 2023/24 annual accounts is now complete. We anticipate being able to issue unqualified audit opinions in the independent auditor's report on 09 September 2024 (the proposed report is attached at Appendix A). Annual audit report 2. Under International Standards on Auditing in the UK, we report specific matters arising from the audit of the financial statements to those charged with governance of a body in sufficient time to enable appropriate action. We present for the Clyde Valley Learning and Development Joint Committee’s consideration our draft Annual Audit Report on the 2023/24 audit. The section headed "Significant findings and key audit matters" sets out the issues identified in respect of the annual accounts. 3. The report also sets out conclusions on the wider scope areas that frame public audit as set out in the Code of Audit Practice. 4. This report will be issued in final form after the audit of the annual accounts has been completed. Unadjusted misstatements 5. We also report to those charged with governance all unadjusted misstatements which we have identified during our audit, other than those of a trivial nature and request that these misstatements be corrected. 6. We have no unadjusted misstatements to be corrected. Fraud, subsequent events and compliance with laws and regulations 7. In presenting this report to the Clyde Valley Learning and Development Joint Committee we seek confirmation from those charged with governance of any instances of any actual, suspected or alleged fraud; any subsequent events that have occurred since the date of the financial statements; or material non-compliance with laws and regulations affecting the entity that should be brought to our attention. 4 11
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Representations from management 8. As part of the completion of our audit, we are seeking written representations from management on aspects of the annual accounts, including the judgements and estimates made. 9. Accordingly, we request these written assurances from the Treasurer, as the "proper officer" appointed by virtue of section 95 of the Local Government (Scotland) Act 1973. 10. A draft letter of representation is attached at Appendix B. This should be signed and returned to us by the Treasurer with the signed annual accounts prior to the independent auditor’s report being certified. 11. We would like to thank the management and staff who have been involved in our work for their cooperation and assistance during the audit. Pauline Murray Senior Audit Manager Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN 12
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APPENDIX A: Proposed Independent Auditor’s Report Independent auditor’s report to the members of Clyde Valley Learning and Development Joint Committee and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements I certify that I have audited the financial statements in the annual accounts of Clyde Valley Learning and Development Joint Committee for the year ended 31 March 2024 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the Movement in Reserves Statement, Comprehensive Income and Expenditure Statement, Balance Sheet, Cash Flow Statement, and notes to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 (the 2023/24 Code). In my opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the Clyde Valley Learning and Development Joint Committee as at 31 March 2024 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2023/24 Code; and • have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003. Basis for opinion I conducted my audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I was appointed by the Accounts Commission on 16 March 2023. My period of appointment is five years, covering 2022/23 to 2026/27. I am independent of the Clyde Valley Learning and Development Joint Committee in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the Clyde Valley Learning and Development Joint Committee. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Conclusions relating to going concern basis of accounting I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 13
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Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Clyde Valley Learning and Development Joint Committee’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. These conclusions are not intended to, nor do they, provide assurance on the Clyde Valley Learning and Development Joint Committee’s current or future financial sustainability. However, I report on the Clyde Valley Learning and Development Joint Committee’s arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website. Risks of material misstatement I report in my Annual Audit Report the most significant assessed risks of material misstatement that I identified and my judgements thereon. Responsibilities of the Treasurer and Clyde Valley Learning and Development Joint Committee for the financial statements As explained more fully in the Statement of Responsibilities, the Treasurer is responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the Treasurer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Treasurer is responsible for assessing the Clyde Valley Learning and Development Joint Committee’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the Clyde Valley Learning and Development Joint Committee’s operations. The Clyde Valley Learning and Development Joint Committee is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • using my understanding of the local government sector to identify that the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 14
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2014, and the Local Government in Scotland Act 2003 are significant in the context of the Clyde Valley Learning and Development Joint Committee; • inquiring of the Treasurer as to other laws or regulations that may be expected to have a fundamental effect on the operations of the Clyde Valley Learning and Development Joint Committee; • inquiring of the Treasurer concerning the Clyde Valley Learning and Development Joint Committee’s policies and procedures regarding compliance with the applicable legal and regulatory framework; • discussions among my audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and • considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Clyde Valley Learning and Development Joint Committee’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report. Reporting on other requirements Other information The Treasurer is responsible for the other information in the annual accounts. The other information comprises the Management Commentary, Annual Governance Statement and Statement of Responsibilities. My responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon except on the Management Commentary 15
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and Annual Governance Statement to the extent explicitly stated in the following opinions prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Management Commentary and Annual Governance Statement In my opinion, based on the work undertaken in the course of the audit: • the information given in the Management Commentary for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with statutory guidance issued under the Local Government in Scotland Act 2003; and • the information given in the Annual Governance Statement for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Delivering Good Governance in Local Government: Framework (2016). Matters on which I am required to report by exception I am required by the Accounts Commission to report to you if, in my opinion: • adequate accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • I have not received all the information and explanations I require for my audit. I have nothing to report in respect of these matters. Conclusions on wider scope responsibilities In addition to my responsibilities for the annual accounts, my conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in my Annual Audit Report. Use of my report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Pauline Murray CPFA Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN 16
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Appendix B: Letter of Representation (ISA 580) Pauline Murray Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN Dear Pauline Clyde Valley Learning and Development Joint Committee Annual Accounts 2023/24 1. This representation letter is provided about your audit of the annual accounts of Clyde Valley Learning and Development Joint Committee for the year ended 31 March 2024 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view and have been properly prepared, and for expressing other opinions on the Management Commentary and Annual Governance Statement. 2. I confirm to the best of my knowledge and belief and having made appropriate enquiries of the Joint Committee, the following representations given to you in connection with your audit of Clyde Valley Learning and Development Joint Committee’s annual accounts for the year ended 31 March 2024. General 3. Clyde Valley Learning and Development Joint Committee and I have fulfilled our statutory responsibilities for the preparation of the 2023/24 annual accounts. All the accounting records, documentation and other matters which I am aware are relevant to the preparation of the annual accounts have been made available to you for the purposes of your audit. All transactions undertaken by Clyde Valley Learning and Development Joint Committee have been recorded in the accounting records and are properly reflected in the financial statements. 4. I confirm that the effects of uncorrected misstatements are immaterial, individually and in aggregate, to the financial statements as a whole. I am not aware of any uncorrected misstatements. Financial Reporting Framework 5. The annual accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 (2023/24 accounting code), and the requirements of the Local Government (Scotland) Act 1973, the Local Government in Scotland Act 2003 and The Local Authority Accounts (Scotland) Regulations 2014. 6. In accordance with the 2014 regulations, I have ensured that the financial statements give a true and fair view of the financial position of the Clyde Valley Learning and Development Joint Committee at 31 March 2024 and the transactions for 2023/24. Accounting Policies and Estimates 7. All material accounting policies applied are as shown in the notes to the financial statements. The accounting policies are determined by the 2023/24 accounting code where applicable. All accounting policies applied are appropriate to Clyde Valley Learning and Development Joint Committee circumstances and have been consistently applied. 17
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8. The significant assumptions used in making accounting estimates are reasonable and properly reflected in the financial statements. Judgements used in making estimates have been based on the latest available, reliable information. Estimates have been revised where there are changes in the circumstances on which the original estimate was based or as a result of new information or experience. Going Concern Basis of Accounting 9. I have assessed Clyde Valley Learning and Development Joint Committee’s ability to continue to use the going concern basis of accounting and have concluded that it is appropriate. I am not aware of any material uncertainties that may cast significant doubt on Clyde Valley Learning and Development Joint Committee’s ability to continue as a going concern. Assets 10. Clyde Valley Learning and Development Joint Committee do not own or lease any assets. Liabilities 11. All liabilities at 31 March 2024 of which I am aware have been recognised in the financial statements. Contingent liabilities 12. There are no significant contingent liabilities, arising either under formal agreement or through formal undertakings requiring disclosure in the accounts. Litigation and Claims 13. There are no actual or possible legal claims requiring disclosure in the accounts. Fraud 14. I understand my responsibilities for the design, implementation, and maintenance of internal control to prevent fraud and I believe I have appropriately fulfilled those responsibilities. 15. I have provided you with all information in relation to: • my assessment of the risk that the financial statements may be materially misstated because of fraud • any allegations of fraud or suspected fraud affecting the financial statements, and • fraud or suspected fraud that I am aware of involving management, employees who have a significant role in internal control, or others that could have a material effect on the financial statements. Laws and Regulations 16. I have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. 18
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Related Party Transactions 17. All material transactions with related parties have been appropriately accounted for and disclosed in the financial statements in accordance with the 2023/24 accounting code. I have made available to you the identity of all the Clyde Valley Learning and Development Joint Committee’s related parties and all the related party relationships and transactions of which I am aware. Management commentary 18. I confirm that the Management Commentary has been prepared in accordance with the statutory guidance and the information is consistent with the financial statements. Corporate Governance 19. I confirm that the Clyde Valley Learning and Development Joint Committee has undertaken a review of the system of internal control during 2023/24 to establish the extent to which it complies with proper practices set out in the Delivering Good Governance in Local Government: Framework 2016. I have disclosed to you all deficiencies in internal control identified from this review or of which I am otherwise aware 20. I confirm that the Annual Governance Statement has been prepared in accordance with the Delivering Good Governance in Local Government: Framework 2016 and the information is consistent with the financial statements. There have been no changes in the corporate governance arrangements or issues identified, since 31 March 2024, which require to be reflected. Events Subsequent to the Date of the Balance Sheet 21. All events subsequent to 31 March 2024 for which the 2023/24 accounting code requires adjustment or disclosure have been adjusted or disclosed. Yours sincerely Jackie Taylor Treasurer to the Clyde Valley Learning and Development Joint Committee 19
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Prepared for the Clyde Valley Learning and Development Joint Committee and the Controller of Audit September 2024 Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT 4 21
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 2 Contents Key messages 3 Introduction 4 Part 1. Audit of 2023/24 annual report and accounts 6 Part 2. Wider Scope 10 22
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 3 Key messages 2023/24 annual accounts 1 The financial statements give a true and fair view and were properly prepared in accordance with the financial reporting framework. 2 The key audit risks were detailed in my Annual Audit Plan presented to the Joint Committee on 10 June 2024. 3 There are no significant matters from our work to draw to the attention of the Joint Committee. Wider scope 4 Through the continued support from member authorities, the Joint Committee’s financial position is sustainable for the foreseeable future. 5 Governance arrangements were effective in 2023/24. The Joint Committee’s annual governance statement is consistent with the financial statements and complies with applicable guidance. 6 The Joint Committee has appropriate arrangements in place for securing Best Value. 23
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 4 Introduction 1. This report summarises the findings from the 2023/24 annual audit of Clyde Valley learning and Development Joint Committee (the Joint Committee). The scope of the audit was set out in an Annual Audit Plan presented to the 10 June 2024 meeting of the Joint Committee. This Annual Audit Report comprises: • significant matters arising from an audit of the Joint Committee’s annual accounts • conclusions on financial sustainability and governance as required by the Code of Audit Practice 2021. 2. This report is addressed to the Joint Committee and the Controller of Audit and will be published on Audit Scotland's website www.audit-scotland.gov.uk in due course. Audit appointment 3. I, Pauline Murray, have been appointed by the Accounts Commission as auditor of the Joint Committee for the period from 2022/23 until 2026/27. The 2023/24 financial year was the second of my five-year appointment. 4. My team and I would like to thank management and staff for their cooperation and assistance this year and we look forward to working together constructively over the remainder of the five-year appointment. Responsibilities and reporting 5. The Joint Committee has primary responsibility for ensuring the proper financial stewardship of public funds. This includes preparing an annual report and accounts that are in accordance with proper accounting practices. The Joint Committee is also responsible for compliance with legislation putting arrangements in place for governance and propriety. 6. My responsibilities as the independent auditor appointed by the Accounts Commission are established by the Local Government in Scotland Act 1973, the Code of Audit Practice 2021 and supplementary guidance and International Standards on Auditing in the UK (ISAs). Auditor Independence 7. I can confirm that the audit team comply with the Financial Reporting Council’s Ethical Standard. I can also confirm that I have not undertaken any non-audit related services and therefore the audit fee of £2,410 as set out in my 2023/24 24
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 5 Annual Audit Plan remains unchanged. I am not aware of any relationships that could compromise our objectivity and independence. 8. The annual audit adds value to the Joint Committee by: • identifying and providing insight on significant risks, and making clear and relevant recommendations • sharing intelligence and good practice identified. 25
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 6 Part 1. Audit of 2023/24 annual report and accounts Public bodies are required to prepare annual accounts comprising financial statements and other related reports. These are the principal means of accounting for the stewardship of public funds. Main judgements Audit opinions on the annual accounts are unmodified. Audit opinions on the annual accounts are unmodified. The Joint Committee approved the annual accounts for the Joint Committee for the year ended 31 March 2024 on 9 September 2024. As reported in the independent auditor’s report, in my opinion as the appointed auditor: • the financial statements give a true and fair view and were properly prepared in accordance with the financial reporting framework • the management commentary and the annual governance statement were all consistent with the financial statements and properly prepared in accordance with the applicable requirements. Overall materiality was assessed on receipt of the annual report and accounts as £1,600 9. Broadly, the concept of materiality is applied by auditors to determine whether misstatements identified during the audit could reasonably be expected to influence the economic decisions of users of the accounts, and hence impact their opinion set out in the independent auditor’s report. Auditors set a monetary threshold when considering materiality, although some issues may be considered material by their nature. It is ultimately a matter of the auditor’s professional judgement. 10. My initial assessment of materiality was carried out during the risk assessment phase of the audit. This was reviewed and confirmed on receipt of the unaudited annual report and accounts and is summarised in Exhibit 1. 26
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 7 Exhibit 1 Materiality values Materiality level Amount Overall materiality £1,600 Performance materiality £1,200 Reporting threshold £80 Source: Audit Scotland 11. The overall materiality threshold was set with reference to gross expenditure, which I judged as the figure most relevant to the users of the financial statements. 12. Performance materiality is used by auditors when undertaking work on individual areas of the financial statements. It is a lower materiality threshold, set to reduce the probability of aggregated misstatements exceeding overall materiality. Performance materiality was set at 75% of overall materiality, reflecting a history of no significant errors or material adjustments made in the prior year. 13. It is my responsibility to request that all misstatements are corrected, other than those below the reporting threshold. The final decision on making the correction lies with those charged with governance. Significant findings and key audit matters 14. Under ISA (UK) 260, I communicate significant findings from the audit to the Joint Committee, including my view about the qualitative aspects of the body’s accounting practices. 15. The Code of Audit Practice also requires me to highlight key audit matters, which are defined in ISA (UK) 701 as those matters judged to be of most significance. 16. I have no significant findings or key audit matters to report from the audit. Audit work responded to the risks of material misstatement identified in the annual report and accounts 17. My team and I have obtained audit assurances over the identified significant risks of material misstatement to the annual report and accounts. Exhibit 3 sets out the significant risks of material misstatement to the financial statements identified in my 2023/24 Annual Audit Plan. It also summarises the further audit 27
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 8 procedures performed during the year to obtain assurances over these risks and the conclusions from the work completed. Exhibit 3 Identified Significant risks of material misstatement in the annual accounts Audit risk Assurance procedure Results and conclusions 1. Risk of material misstatement due to fraud caused by management override of controls As stated in ISA (UK) 240, management is in a unique position to perpetrate fraud because of management’s ability to override controls that otherwise appear to be operating effectively. • Made inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries and other adjustments. • Tested journals at the year- end and post-closing entries and focussed on significant risk areas. • Considered the need to test journal entries and other adjustments throughout the year. • Evaluated significant transactions outside the normal course of business. • Assessed the adequacy of controls in place for identifying and disclosing related party relationships and transactions in the financial statements. • Substantive testing of income and expenditure transactions around the year-end to confirm they are accounted for in the correct financial year. We found no instances of material misstatement due to fraud caused by management override of controls. Source: Audit Scotland 28
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 9 There were no identified misstatements 18. There were no material adjustments to the unaudited annual accounts arising from our audit, and the audit identified no misstatements above the reporting threshold. The unaudited annual accounts were received in line with the agreed timetable 19. The unaudited annual accounts were received in line with the agreed audit timetable on 10 June 2024. Follow up of prior year recommendations 20. There were no actions raised in our 2022/23 Annual Audit Report. 29
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 10 Part 2. Wider Scope For less complex bodies wider scope audit work considers the financial sustainability of the body and the services that it delivers over the medium to longer term, and the arrangements for securing Best Value. Conclusion Through the continued support from member authorities, the Joint Committee’s financial position is sustainable for the foreseeable future. Governance arrangements were effective in 2023/24. The Joint Committee’s annual governance statement is consistent with the financial statements and complies with applicable guidance. The Joint Committee has appropriate arrangements in place for securing Best Value. The Joint Committee reported a surplus on the provision of its services of £16,000 in 2023/24 21. The Joint Committee secured contributions totalling £75,000 from the member authorities towards its running costs for 2023/24. As the administering authority, South Lanarkshire Council is responsible for managing the Joint Committee’s running costs within the allocated budget. 22. Income and expenditure for the year are reported as £98,000 and £82,000 respectively, resulting in a £16,000 surplus on the provision of services. The surplus will be added to the accumulated reserves balance brought forward from 2022/2023. As at 31 March 2024, the Joint Committee’s general fund reserve is £49,000. Through the continued support from member authorities, the Joint Committee’s financial position is sustainable for the foreseeable future 23. The Joint Committee’s sustainability is dependent on participating councils’ continued support. The Joint Committee has secured contributions totalling £75,000 from 15 member authorities, five being full members, towards the running costs of the project for 2024/25. 30
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 11 24. This funding exceeds the Joint Committee’s agreed minimum level of funding required to maintain the viability of the Project (being a commitment from at least five full member councils and contributions of £59,000 in total from all members). 25. At the Joint Committee meeting in June 2024, the 2024/25 revenue budget monitoring report noted that in addition to the member contributions of £75,000, there is budgeted training expenditure of £25,000, with this recharged to councils. This gives a total expenditure and income budget of £100,000 for 2024/25. As at 17 May 2024, the budget update forecast a breakeven position for 2024/25. 26. In February 2024, the 2024/2025 Membership and Funding Paper was presented to the Joint Committee. Whilst the paper did not include a formal statement on reserves, it did assess the adequacy of the funding for 2024/25. The Joint Committee agreed that any unspent element of this funding would be transferred to reserves for use in future years. This reserve balance will be reviewed annually as part of the membership and funding contributions review. 27. After the withdrawal of one council from full membership in 2022/23, the Joint Committee membership was reduced to the minimum level for the continuation of the Project. However, it is evident from committee proceedings that participating councils will continue to support the operations and existence of the Joint Committee for the foreseeable future. The 2023/24 Management Commentary states that “…the future of the Group remains positive due to the continued success and positive outcomes arising from existing programmes and developments”. Governance arrangements were effective in 2023/24 28. The governance statement discloses the Joint Committee’s compliance with the Financial Management Code (FM Code) from CIPFA. The FM Code is designed to support good practice in financial management, with compliance against the principles helping local authorities demonstrate financial sustainability. The Joint Committee undertook a self-assessment of compliance with CIPFA’s FM Code in 2020/21, identifying that the Joint Committee had fully embedded, where appropriate, all but one of the principles of the Code in its normal business by the end of that year. The remaining principle regarding adequacy of reserves is adequately applied in the Joint Committee’s annual assessment of the adequacy of funding. 29. The information in the annual governance statement is consistent with the financial statements and our knowledge of the Joint Committee’s operations and was prepared in accordance with the CIPFA/SOLACE guidance: Delivering Good Governance in Local Government Framework (2016). 30. All Joint Committee meetings were held virtually in 2023/24, with the use of Microsoft Teams allowing for greater member participation. This virtual medium is now the preferred method for Joint Committee meetings. The increased participation at meetings helps maintain effective strategic oversight and governance of the Project. 31
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 12 The Joint Committee has appropriate arrangements in place for securing Best Value 31. The Joint Committee has a specific responsibility to ensure that arrangements have been made to secure Best Value under the Local Government in Scotland Act 2003. 32. The Joint Committee has responsibility for overseeing the Project. The overall objective of the Project is to establish and deliver multiple shared approaches to training, learning and development between the Clyde Valley Councils (South Lanarkshire, North Lanarkshire, Glasgow City, East Renfrewshire, Inverclyde and Renfrewshire Councils) which will result in: • greater efficiency due to shared working rather than a Council-by-Council approach • reduced duplication of effort • the identification, development and sharing of best practice • setting, achieving and maintaining the highest standards of service delivery • modernising service delivery by improving practice and making best use of information technology • a consistent approach to training, learning and development • ensuring equality of opportunity for all Clyde Valley employees in accessing appropriate learning and development • developing centres of excellence from which to deliver models suitable for replication nationally. 33. The Joint Committee is committed to identifying further projects to capitalise on the successes delivered by the Project, however, is dependent on the continued support from Members. 34. The Joint Committee continues to keep its membership funding structure under review and recognises the need to achieve Best Value for its Member Councils. This is particularly significant given the scale and uncertainty around the financial challenges facing all councils at present. 35. Overall, the Joint Committee has appropriate arrangements in place for securing Best Value. 32
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Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT | 13 Clyde Valley Learning and Development Joint Committee 2023/24 Annual Audit Report – DRAFT Audit Scotland’s published material is available for download on the website in a number of formats. For information on our accessibility principles, please visit: www.audit-scotland.gov.uk/accessibility Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN T: 0131 625 1500 E: info@audit-scotland.gov.uk www.audit-scotland.gov.uk AS.4.0 33
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Report Agenda Item Report to: Clyde Valley Learning and Development Joint Committee Date of Meeting: 9 September 2024 Report by: Treasurer to Clyde Valley Learning and Development Joint Committee Subject: Audited Annual Accounts 2023/2024 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] ♦ advise Members of the outcome of the audit by the Joint Committee’s external auditor, Audit Scotland ♦ advise Members of the requirement to approve the Annual Accounts for 2023/2024 for signature [1purpose] 2. Recommendation(s) 2.1. The Joint Committee is asked to approve the following recommendation(s):- ♦ [recs] ♦ that it be noted that the Annual Accounts for 2023/2024 received a clean audit certificate (section 4.2); and ♦ that the audited Annual Accounts for 2023/2024, be approved for signature (Appendix 1). o [1recs] 3. Background 3.1. The auditor, Audit Scotland, is required to supply an audit certificate outlining the findings of the audit process undertaken in relation to the Annual Accounts 2023/2024. 3.2. Following the publication of The Local Authority Accounts (Scotland) Regulations 2014 and the Local Authority (Capital Finance and Accounting) (Scotland)(Coronavirus) Amendment Regulations 2022, the members of the Board are required to meet to consider whether to approve the audited Annual Accounts for signature. The members are also required to have regard to any report made or advice provided on the Annual Accounts by the auditor. 4. Audited Accounts 4.1. As noted in Section 3.2 above, Members are required to approve the audited Annual Accounts for signature. A copy of the Annual Accounts is attached in Appendix 1 for Members’ consideration and will also be available on the Council’s website. There are no changes to the financial position reported in June 2024 with only a few minor format changes noted. 5 35
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4.2. The Joint Committee’s external auditors, Audit Scotland, have completed an audit which extends across the 2023/2024 Annual Accounts and related matters. In summary, the audit report provides a clean audit certificate with no audit actions identified. A full copy of the report has been provided to members at this meeting. 5. Employee Implications 5.1. None 6. Financial Implications 6.1. The Accounts show that the Joint Committee’s total revenue expenditure amounted to £0.082 million in 2023/2024 and was met by income of £0.098 million. This resulted in a £0.016 million surplus. The majority of this surplus is because no expenditure was required in terms of supplies and services, which had a budget of £0.014 million. 6.2. After taking account of any accruals and commitments, this leaves a revenue cash balance of £0.049 million to be carried forward for use in future years. 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. The main risk associated with the Clyde Valley Learning and Development Joint Committee Revenue Budget is failure to manage the budget resulting in expenditure exceeding available funding. The risk has been assessed as low given the detailed budget management applied within the Joint Committee. The risk is managed through four weekly Budget Monitoring when any variance is analysed. In addition, the probable outturn exercise ensured early warning for corrective action to be taken where appropriate. 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. Jackie Taylor Treasurer to Clyde Valley Learning and Development Joint Committee 16 August 2024 Previous References None List of Background Papers ♦ Clyde Valley Learning and Development Joint Committee Annual Accounts 2023/2024 and External Auditor’s report 36
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Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Lorraine O’Hagan, Head of Finance (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 37
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1 CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE ANNUAL ACCOUNTS 2023/2024 38
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2 CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE ANNUAL ACCOUNTS 2023/2024 CONTENTS 3 Introduction by the Convener of Clyde Valley Learning and Development Joint Committee 4-10 Management Commentary 11-13 Annual Governance Statement 14 Movement in Reserves Statement 15 Comprehensive Income and Expenditure Statement 16 Balance Sheet 17 Cash Flow Statement 18-20 Notes to the Financial Statements 21-22 Statement of Accounting Policies 23 Statement of Responsibilities for the Annual Accounts 24-28 Independent Auditor’s Report 29 Glossary of Terms 30 Clyde Valley Learning and Development Joint Committee Members 39
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3 Introduction by the Convener of Clyde Valley Learning and Development Joint Committee As the Clyde Valley Councils at last returned to some form of normality following the most challenging years of the Covid-19 pandemic, 2023-2024 was another productive year for the Clyde Valley Learning and Development Group (CVLDG). In fact, it would be reasonable to observe that many of the lessons learned from maintaining service delivery over that period have been adopted and retained across our Councils. As a result, the Clyde Valley Group’s partnership approach continues to deliver the best learning and development programmes to meet our shared goals. Looking back at some of the highlights of the past year, the Joint Committee was particularly encouraged to witness Orkney Islands Council, one of the Project’s Participating Members, adopting the Promoting Positive Behaviour (PPB) model – one of our flagship programmes. Overcoming the logistics of establishing the programme on the islands was no small feat, but the way the Social Care Group achieved this through the support and collaboration of many different individuals from our Member Councils was a shining example of the success of our partnership. Reports to the Joint Committee have highlighted that the Group is characterised by numerous examples of Group Members providing advice, guidance, and support both individually and collectively to each other. Once again, the enthusiastic attendance and participation in online Clyde Valley working groups and meetings by officers from all Member Councils demonstrates the value placed on the Project in sharing best practice. This is an achievement to be proud of and which I am confident will be present once again as we face the challenges of the coming year. In last year’s Annual Accounts, it was noted that the CVLDG was originally envisaged to last for a maximum of five years, yet 2023-2024 saw the completion of the Project’s seventeenth year in existence. It is a tribute to everyone involved that this has been sustained through the continued support of our Member Councils. To all the Elected Members on the Clyde Valley Learning and Development Joint Committee I would like to extend my thanks and appreciation for your continued support. Similarly, I would like to recognise the hard work and commitment of the officers who consistently deliver the Project’s outputs and benefits year after year. I believe we can continue to look forward optimistically to the coming year for the CVLDG and would like to take the opportunity to encourage all Joint Committee Members, and the officers from the Member Councils to continue to take an active role in ensuring the continued success of the Project. Councillor Lynsey Hamilton Convener Clyde Valley Learning and Development Joint Committee 40
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4 Management Commentary 2023/2024 Introduction The Management Commentary of the Clyde Valley Learning and Development Joint (CVLDJC) Committee provides details of the environment in which the Joint Committee operates and on the Joint Committee’s performance, both operationally and financially. The following commentary relates to the 2023/2024 financial year. Whilst many services have returned to a more traditional model of delivery, Learning and Development across the Clyde Valley has continued to benefit from delivery through use of Information Technology (IT) and specifically with online learning models. Whilst every transaction and learning event is different, the legacy of this approach has resulted in improved skills, more sophisticated delivery and many examples of shared good practice and joint problem solving. Because of this, the work of the project, overseen by Clyde Valley Learning and Development Joint Committee, continues to maintain a strong presence and impact. Objectives The overall objective of the project remains to establish and deliver multiple shared approaches to training, learning and development between the Clyde Valley Councils (South Lanarkshire, North Lanarkshire, Glasgow City, East Renfrewshire, and Inverclyde Councils) which will result in: Greater efficiency due to shared working rather than a Council-by-Council approach, Reduced duplication of effort, The identification, development and sharing of best practice, Setting, achieving and maintaining the highest standards of service delivery, Modernising service delivery by improving practice and making best use of information technology, A consistent approach to training, learning and development, Ensuring equality of opportunity for all Clyde Valley employees in accessing appropriate learning and development, and Developing centres of excellence from which to deliver models suitable for replication na- tionally. Financial Statements The purpose of the financial statements is to demonstrate stewardship of the public monies which fund the work of the Committee. The financial statements have been prepared in accordance with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2023/2024, supported by International Financial Reporting Standards (IFRS) which ensures a set of statements is produced, each statement with a single clear objective. The cumulative underspend at the end of the year will be held by the Committee for utilisation in future years. These monies are reflected as a General Fund Reserve on the Balance Sheet. 41
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5 Performance Review The Clyde Valley Councils continue to monitor the benefits and outcomes they achieve through their involvement in the project on an ongoing basis. As the project’s stability is maintained and the achievements are considered each year, the collaborative approach to learning and development continues to demonstrate added value to the Member Councils. In the financial year 2023/2024, benefits have been realised through making cost savings and developing best practice in the following areas: Ongoing contracts achieved through joint procurement, E-Learning development, improvements, and content sharing, Individual Councils demonstrating new skills and techniques and sharing these with all Councils, Developing skills capacity through investment in new e-learning authoring skills (future- proofing content), Investigating the use of artificial intelligence (AI) in learning and development, Savings in delivery of Scottish Vocational Qualifications, Learning and training for Social Care, Maintaining the delivery and practice of Promoting Positive Behaviour (PPB), Reviewing the content and delivery of PPB to ensure it remains current and appropri- ate in all contexts, Building and maintaining internal capacity in delivering PPB, Establishing PPB in Orkney Islands Council, the first Council outside the original Clyde Valley Group, and Accredited Front Line Management training (CMI). Although the established infrastructure, culture, and practice within the Clyde Valley Project continues to promote and facilitate opportunities for networking and sharing best practice, this remains a function of the individuals representing each Member Council. Once again, a significant number of key Council employees who had played a pivotal role in facilitating Clyde Valley activities have retired or moved on to new responsibilities. This includes Project staff, lead representatives from Member Councils and other stakeholders in specific projects. The challenge remains for Member Councils to replicate the individual and collective contributions made by previous employees to ensure the success and outcomes achieved to date is sustained. The established infrastructure and networks within the Group have allowed collaborative work to continue through virtual meetings and learning events, shared content for front line and redeployed services and the delivery of online learning in unprecedented numbers across the Clyde Valley Group. Attendance at Clyde Valley meetings online using Teams remains high as this medium is now the recognised and preferred method. For the Group’s more distantly located Members, this has allowed attendance at every meeting. The project governance structure of a Steering Group guiding corporate initiatives and the Social Care Group managing the Health and Social Care agenda continues to work well in terms of providing governance and strategic direction. This approach continues to reflect the scope of influence over each dimension of the project as well as the resourcing implications of delivering the Project’s programmes. In addition, the specific governance structure for the PPB programme functions effectively through three tiers of governance. 42
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6 The membership categories and fee structure for membership were retained for 2023/2024. This approach provides a viable basis to contribute project running costs as well as providing a suitable fund to enable additional key Project support activities to be commissioned. There are three categories of membership made available to Councils for the project, these include full, participating and procurement membership. For the year 2023/2024 the project had five full members, ten participating members and no procurement members. This was brought about by one of the full members changing its membership to a participating member. This leaves the Project with little room for manoeuvre moving forward as five full members is the stated minimum number. The income of £0.075 million met the designated minimum level to support a contribution to running costs for South Lanarkshire Council as lead authority (this amount included the external audit fee) and left a residual sum of £0.014 million for Project funds. Existing Programmes and Project Activity The primary focus has continued to be on consolidation of established Project work implemented by the Group. These reflect those activities which were initiated through the Clyde Valley Project, and which are now integrated into standard business practice for the Councils. These include e-learning, Promoting Positive Behaviour, Social Care training and accredited management and leadership training. The e-Learning Group The CVLDG e-Learning Group is one of the longest established and most productive networks within the Clyde Valley Group. It meets regularly on a six-weekly cycle via Microsoft Teams. Since the pandemic and lockdown, the meetings have been hosted exclusively online and are now regularly attended by between 15 and 18 members. It is a good example of adapting to the requirements of lockdown and creating a sustainable and productive working environment. At the start of 2023, a survey was conducted amongst all the members of the Group seeking views, and suggestions for the development agenda. The survey results provided many suggestions which were consistent with the Group’s overall objectives and as a result the following was agreed: • presentations from Group members focused on developing skills through demonstrating techniques, highlighting products, and exploring new concepts; • investigating opportunities for a common approach to delivering mandatory training online; and • seeking solutions to the widespread problem of engaging with hard-to-reach groups of employees and the digitally excluded. To address the other topics identified, two short life sub-groups were established, led by volunteer Councils. Clackmannanshire Council took the lead on the Mandatory Training, and Renfrewshire Council led the investigation into Digital Exclusion. Other members of the e- Learning Group self-nominated to join one or other of the sub-groups. Significant progress has been achieved by both sub-groups. The Mandatory Training sub- group has conducted surveys, examined ways of sharing course materials and updates, and 43
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7 started work on producing a Guidance Framework for use by Councils to address standards, approvals, governance, accountability and monitoring. The sub-group focusing on Hard to Reach Groups and Digital Exclusion have carried out a benchmarking exercise to establish the nature and complexity of this issue; compile information on approaches that have been tried or are currently in place to address the problem; identified the barriers of access and addressed these through sharing existing practice or developing innovative ideas. Further research has also been conducted on how other Councils, the private sector, central government and the third sector have addressed the topic and identified successes and best practice. The sub-group will now produce a generic paper for internal use by the e-Learning Group members to state the business case and seek senior management support and commitment to addressing the problem and introducing some of the approaches that have been successful elsewhere. The skills development activities provide opportunities to share the skills and knowledge that members of the Group possess. It is encouraging that as many as six different Council representatives have made presentations so far and that these sessions will continue over the next tranche of meetings. The Social Care Group The CVLDG Social Care Group drives and delivers the Project’s collaborative activities under the Social Work and Social Care agenda. As the originators of the flagship programme Promoting Positive Behaviour (PPB), the Social Care Group also assumes a crucial role in the programme’s governance and management. The PPB Programme has been used across the Clyde Valley Group for more than ten years with the first pilot programme running in June 2013. During the past year, the review of the programme commissioned by the PPB Strategic Governance Group was completed and the action plan to address the recommendations were addressed and implemented as required. The primary purpose of the review was to safeguard the future of the programme by ensuring it continues to move with the times while addressing the implications and impact of changes to Social Care policy as they arise. For this reason, it was agreed that the programme review would continue as a continuous and dynamic process whereby the PPB programme will be scrutinised in real time, to ensure a rapid response to strategic and policy changes as Councils introduce them. Specific consideration was given to the impact of Trauma Informed Practice and the consultation document on the Promise (the Scottish Government strategy in response to the Independent Care Review, commissioned in 2016), as well as other methods and approaches being used in care settings alongside PPB (e.g. Stress and Distress, Positive Behaviour Support (PBS). Considering the above priorities, the core course materials have now been amended and reviewed by subject matter experts to ensure greater emphasis on legislation e.g. Adult Support and Protection, Adults with Incapacity, Regulation of Care and Health and Safety legislation references. In the context of Children’s Services, it was acknowledged that elements of PPB have always been trauma informed and also reflect the ethos of the Promise. For example, the 44
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8 emphasis on relationship-based practice. Nonetheless as this thinking develops, the group will ensure that PPB continues to develop in parallel with both these strategies. The review group concluded that if used correctly and for the right reasons, PPB safe holds are consistent with the ethos of the Promise (which advocates an aspiration for no restraint of children in any circumstances) Indeed evidence considered in the review indicates that the use of safe holds is so rare across the Clyde Valley Councils as a result of PPB’s nurturing and de-escalation approach that PPB can provide the circumstances to achieve this objective. Establishment and Implementation of PPB in Orkney Islands Council At the beginning of 2023 Orkney Islands Council (OIC), a Participating Member of the CVLDG, made some initial enquiries about the feasibility of introducing PPB to the Council across its Education, Children and Adult Care Services. This was formally authorised by the PPB Strategic Governance Group on 16th May 2023, subject to providing the following information and commitments. Following due process and under guidance from the Social Care Group, OIC established a local governance group with membership from senior managers and stakeholders from participating services, as well as a plan to run a pilot implementation programme to cover initial roll out in each service area and thereafter the roll out of the programme for all services. During the summer months, trainers from the Clyde Valley Councils travelled to Orkney to deliver the initial training for OIC. A full group of 16 delegates attended the training including two members of staff who had been nominated to be part of OIC’s internal PPB training team. This approach to capacity building is a fundamental principle of the PPB delivery model and allows each Council to be self-sufficient in delivering each Council’s PPB training. A similar exercise was conducted in Adult Services where the training was delivered for a group of 16 Adult Services Day Care staff. Once again this included two delegates who had been nominated to be future PPB trainers. This model of establishing the programme in a new Council setting through skills development and training the trainer follows the prescribed route developed by the CVLDG, which builds capacity and sustainability for the organisation adopting PPB. Financial Performance The Comprehensive Income and Expenditure Statement and its accompanying notes and statements summarise the costs and sources of funding in carrying out the Joint Committee’s activities. For 2023/2024, the Revenue Expenditure results for the Committee are shown on page 15. This shows a net surplus position of £0.016m on the Comprehensive Income and Expenditure Statement, representing Member contributions not utilised for project work in- year. This net surplus will be added to the accumulated reserves balance brought forward from 2022/2023. Support expenses of £0.059m were paid to South Lanarkshire Council. The Project also incurred expenditure on Training Costs incurred on behalf of Member Councils (£0.021m). 45
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9 This is an increase of £0.001m compared to 2022/2023. The training costs relate to accredited management training which is provided to employees across Member Councils by the Chartered Management Institute, and annual City and Guilds subscriptions. These costs are incurred by Clyde Valley and recharged to individual Member Councils at the end of the financial year. Costs associated with other streams of Clyde Valley activity are incurred directly by individual authorities. The audit fee for 2023/2024 was £0.002m. The Committee's income is mainly made up of contributions from Member Councils (£0.075m in 2023/2024), with the remaining amount representing recharged expenditure on training activities. There is a General Fund Balance comprising accumulated underspends since the inception of the Project in 2007/2008. The surplus of £0.016m for 2023/2024 will be added to this General Fund balance and the remaining monies will be used for future progress on the project. This reflects the practical arrangement that exists between the Joint Committee and South Lanarkshire Council where the Council’s Loans Fund lends or borrows according to the required cash flow and activities of the Committee. The Statement of Accounting Policies has been included which details the policies implemented when compiling and presenting the Comprehensive Income and Expenditure Account, Balance Sheet and related statements. The accounting policies are those recommended by the Code of Practice on Local Authority Accounting in the United Kingdom, as supported by the International Financial Reporting Standards. The Statement of Responsibilities advises that the Executive Director of Finance and Corporate Resources for South Lanarkshire Council is the designated Treasurer to the Committee and is responsible for the proper administration of the Committee's financial affairs. Full details of the Treasurer's responsibilities are included in the statement. Outlook Maintaining membership and commitment to the Clyde Valley Learning and Development is an ongoing challenge, particularly with the pressure on diminishing resources for Member Councils. With Renfrewshire Council changing their membership category from Full Membership to Participating Membership the number of full member Councils represented on the Joint Committee during this year dropped to five (East Renfrewshire, Glasgow City, Inverclyde, North Lanarkshire and South Lanarkshire Councils) which is the minimum number required for the Joint Committee to exist as a going concern (paragraph 12.2 of the Minute of Agreement). Despite this, the future of the Group remains positive due to the continued success and positive outcomes arising from existing programmes and developments. Working remotely and meeting online, the Clyde Valley Councils have continued to demonstrate great resilience and an appetite for collaboration that bodes well for the future. Attendances at online meetings and development groups during the past year was one again consistently high and the workload on project activities is shared out well across member Councils. Priorities will remain the delivery of online learning to all Councils and ensuring that the infrastructure is in place to support this effectively. Plans are in place to maintain continuity 46
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10 at the end of the current procurement contract for this service ensuring the benefits realised to date from our shared approach continues. Existing project work will continue to be managed prudently and as the changes precipitated by the PPB review come to fruition, the programme will remain one of the Joint Committee’s flagship programmes. The Joint Committee will continue to seek out opportunities to deliver innovation in learning and development through collaborative working and maintain the continuity and quality of our online products. The membership funding structure will continue to be monitored and evaluated in terms of achieving best value for the Member Councils. Further projects will be identified to maximise the benefits achieved from the Project fund. For this to happen the goodwill, time and resources allocated to the work by Members remains central to the success of the Project. Jackie Taylor Treasurer – Clyde Valley Learning and Development Joint Committee Councillor Lynsey Hamilton Convener – Clyde Valley Learning and Development Joint Committee 47
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11 Annual Governance Statement The Joint Committee is responsible for putting in place proper arrangements for the governance of its activities in order to facilitate the effective operation of its functions. This includes ensuring that there are appropriate arrangements in place for the management of risk and that appropriate systems of internal control are in place. While the Joint Committee’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 Joint Committee’s governance framework and meets legislative requirements to include the Annual Governance Statement within the Annual Accounts. A self-assessment of compliance with CIPFA’s FM Code was carried out previously. The principles are incorporated into the Annual Governance Statement. Scope of Responsibility In delivering its aims and objectives, the Joint Committee is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded, properly accounted for and used economically, efficiently and effectively. The Joint Committee also has a statutory duty to make arrangements to secure best value under the Local Government in Scotland Act 2003. In discharging this responsibility, the Joint Committee’s Members, and senior officers of the lead authority (SLC) 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 Joint Committee 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 assurance and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Joint Committee’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised. The main features of our governance arrangements are:- • All Full Member Councils continue to be represented on the Joint Committee. • The scheme of delegation, terms of reference, financial regulations and stakeholder roles and responsibilities defined in 2007/2008 remain in place and have been reviewed for relevance and to determine if they are still appropriate. The standing orders were most recently updated and approved in 2023. • Meetings of the Joint Committee are held three times a year chaired by the Convener of the Joint Committee. For 2023/2024, this was Councillor Lynsey Hamilton (South Lanarkshire). • Scheme of Delegation allows for Clyde Valley Project Steering Group to manage, direct and prioritise the work programme. • The previous Minute of Agreement approved by each of the participating Councils, reflecting the changes in membership and fee structure for 2019/2020 onwards still stands. • Effective risk management arrangements are embedded within the Member Councils. 48
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12 The system of internal controls is based on a framework of regular management information, financial regulations, administrative procedures, management and 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 and are subject to the relevant controls in place which are reviewed by the Internal/External Audit through a programme of audit work. The overall audit opinion for the Joint Committee is informed by the assurances obtained from systems audits carried out by Internal Audit on the Council’s shared systems. The system includes:- • Centralised invoicing and re-charging administered through South Lanarkshire Council. • Financial Management arrangements through South Lanarkshire Council’s FMS Ledger system supported by Financial Regulations. • Risks are identified and managed by the Project Manager on an ongoing basis. • Preparation of financial reports that compare actual expenditure and income against budgets. • Staff employed by the lead authority (SLC), adhere to the range of policies including the Counter Fraud, Bribery and Corruption Policy Statement and Strategy, Fraud Response Plan, Whistleblowing for Third Parties and Confidential Reporting procedures operated by South Lanarkshire Council. These continue to be updated to reflect best practice and support a culture of ethical behaviour amongst employees and Councillors. 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 Joint Committee is required to state whether it complies with the statement, and if not, to explain how their governance arrangements deliver the same impact. The Joint Committee’s financial management arrangements comply with the principles set out in CIPFA’s statement on the Role of the Chief Financial Officer. CIPFA FM 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 principles of the FM Code were reviewed as part of the Joint Committee’s internal governance regime. In 2020/2021, a self-assessment was carried out during the year which identified that the Joint Committee, where appropriate, had fully embedded all but one of the principles of the Code in its normal business by the end of that year. It was acknowledged that the principle to ensure there is a statement regarding the Joint Committee’s adequacy of reserves in the budget strategy paper, had not been fully embedded. In February 2024, the 2024/2025 Membership and Funding paper was presented to the Joint Committee. Whilst the paper did not include a formal statement, the 49
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13 paper assessed the adequacy of the funding for the coming year (2024/2025) and determined that the funding in-year was sufficient to operate the Project as a going concern, with reserves available to help with other Project Work. Continuous Improvement As the work of the Clyde Valley Learning and Development Joint Committee develops, I am aware of our governance duties and will continue my commitment to transparency and openness in our governance arrangements. No issues have been identified during 2023/2024 and I will continue to review these as appropriate during 2024/2025. Assurance The system of internal control can provide only reasonable and not absolute assurance that assets are safeguarded, that transactions are properly recorded, and that material errors or irregularities are either prevented or would be detected within a timely period. It is my view that in the seventeenth year of the Clyde Valley Learning and Development Joint Committee (financial year 2023/2024), reasonable assurance can be placed on the adequacy and effectiveness of the Committee’s framework of governance, risk management and control arrangements. Jackie Taylor Treasurer - Clyde Valley Learning and Development Joint Committee Councillor Lynsey Hamilton Convener - Clyde Valley Learning and Development Joint Committee 50
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14 Movement in Reserves Statement The Movement in Reserves Statement shows the movement in the year on the different reserves held by the Joint Committee, analysed into useable reserves and other reserves. This gives a summary of the changes that have taken place in the funding section of the Balance Sheet over the financial year. 2023/2024 General Fund Balance Total Usable Reserves Total Unusable Reserves Total Reserves £000 £000 £000 £000 Balance at 31 March 2023 33 33 - 33 Movement in Reserves during 2023/2024 Surplus on the provision of services 16 16 - 16 Other comprehensive income and expenditure - - - - Total comprehensive income and expenditure 16 16 - 16 Adjustments between accounting basis and funding basis - - - - Net increase before transfers to / from other statutory reserves - - - - Transfers to / from other statutory reserves - - - - Increase / (Decrease) in 2023/2024 16 16 - 16 Balance as at 31 March 2024 49 49 - 49 2022/2023 General Fund Balance Total Usable Reserves Total Unusable Reserves Total Reserves £000 £000 £000 £000 Balance at 31 March 2022 16 16 - 16 Movement in Reserves during 2022/2023 Surplus on the provision of services 17 17 - 17 Other comprehensive income and expenditure - - - - Total comprehensive income and expenditure 17 17 - 17 Adjustments between accounting basis and funding basis - - - - Net increase before transfers to / from other statutory reserves - - - - Transfers to / from other statutory reserves - - - - Increase / (Decrease) in 2022/2023 17 17 - 17 Balance as at 31 March 2023 33 33 33 51
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15 Comprehensive Income and Expenditure Statement For the Year Ended 31 March 2024 The Comprehensive Income and Expenditure Statement gives a summary of resources generated and consumed by the Joint Committee in the year. 2022/2023 £000 2023/2024 £000 Notes 59 Support Expenses paid to South Lanarkshire Council 59 20 Training Costs for Member Councils 21 0 Project Work 0 2 Payments to Other Bodies 2 1 81 Total Expenditure 82 (98) Income (98) (17) (Surplus) / Deficit on Provision of Service (16) (17) Total Comprehensive Income and Expenditure (16) 52
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16 Balance Sheet as at 31 March 2024 The Balance Sheet summarises the assets and liabilities of the Joint Committee at the Balance Sheet date. 31 March 2023 £000 31 March 2024 £000 Notes Current Assets 69 Short Term Investments 91 2 69 Total Current Assets 91 Current Liabilities (36) Creditors (42) 3 33 Net Current Assets 49 Represented By: 33 General Fund Balance 49 33 49 The notes on pages 17-19 form part of the financial statements. The unaudited accounts were approved for issue by the Board on 10 June 2024, and the audited accounts were authorised for issue on 9 September 2024. Jackie Taylor Treasurer – Clyde Valley Learning and Development Joint Committee 53
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17 Cash Flow Statement For the year ended 31 March 2024 The Cash Flow Statement shows the changes in cash and cash equivalents held by the Clyde Valley Learning and Development Joint Committee during the reporting year. The statement shows how the Joint Committee generates and uses cash and cash equivalents by classifying cash flows as operating and investing activities. 2022/2023 £000 2023/2024 £000 (17) Net (surplus) on the provision of services (16) 0 Adjust net surplus or deficit on the provision of services for non- cash movements (6) (17) Net cash flows from Operating Activities (22) 17 Investing Activities (note below) 22 0 Net increase or decrease in cash and cash equivalents 0 0 Cash and cash equivalents at the beginning of the reporting year 0 0 Cash and cash equivalents at the end of the reporting year 0 Cash Flow Statement Note - Non Cash Movements 2022/2023 £000 Description 2023/2024 £000 0 Movement in Debtors 0 0 Movement in Creditors (6) 0 (6) Cash Flow Statement Note – Investing Activities 2022/2023 £000 2023/2024 £000 (17) Purchase or (Sale) of short-term and long-term investments (22) (17) Net cash flows (generated from)/used in investing activities (22) 54
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18 Notes to the Accounts 1 Auditors’ Remuneration The auditors’ remuneration is included in the Payments to Other Bodies’ expenditure. 2023/2024 £000 2022/2023 £000 Auditors’ Remuneration: Fees payable to Audit Scotland with regard to external audit services carried out by the appointed auditors 2 2 2 2 In 2023/2024, Clyde Valley Learning and Development Joint Committee has incurred fees of £2,410 for the statutory audit of the financial statements by Audit Scotland. The comparable figure for 2022/2023 was £2,270. Fees payable in respect of other services provided by the appointed auditor were £nil. (2022/2023: £nil) 2 Financial Instruments The following category of financial instrument is carried in the balance sheet: 31 March 2024 £000 31 March 2024 £000 31 March 2024 £000 31 March 2023 £000 31 March 2023 £000 31 March 2023 £000 Investments Long Term Current Total Long Term Current Total Loans and Receivables 0 91 91 0 69 69 Total Investments 0 91 91 0 69 69 3 Creditors The Creditors figure is analysed as follows: 2023/2024 £000 2022/2023 £000 Audit fee 2 2 Training Invoices 3 0 Prepaid Contributions from Local Authorities 37 34 42 36 55
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19 4 Related Parties The Clyde Valley Learning and Development Joint Committee is required to disclose material transactions with related parties – bodies or individuals that have the potential to control or influence the Joint Committee. Disclosure of these transactions allows readers to assess the extent to which the Joint Committee might have been constrained in its ability to operate independently or might have secured the ability to limit another party’s ability to bargain freely with the Joint Committee. All transactions with Councils were entered into under the terms of the Joint Committee and, where appropriate, reported through the Joint Committee. During the year the Joint Committee transacted with the following Councils: Local Authorities Receipts 2023/2024 £000 Payments 2023/2024 £000 Receipts 2022/2023 £000 Payments 2022/2023 £000 South Lanarkshire 13 59 13 59 North Lanarkshire 11 0 12 0 Glasgow City 12 0 12 0 Renfrewshire 0 0 15 0 East Renfrewshire 7 0 7 0 Inverclyde 6 0 6 0 Total 49 59 65 59 Renfrewshire Council changed their membership for the year 2023/2024 to a participating member, and are therefore not included in the full member transactions above. However, they are included in the full member transactions for 2022/2023 as they were a full member at that time. At the year end the Joint Committee held Short Term Investments and creditor balances with the Local Authorities detailed below: Local Authorities Short Term Investment Balances 2023/2024 £000 Creditors Balances 2023/2024 £000 Short Term Investment Balances 2022/2023 £000 Creditors Balances 2022/2023 £000 South Lanarkshire 91 50 69 34 North Lanarkshire 0 10 0 10 Total 91 60 69 44 5 Financing and Management of Liquid Resources Liquid Resources are held by South Lanarkshire Council as lead authority and are available to Clyde Valley Learning and Development Joint Committee as required. 56
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20 6 Remuneration Report The Local Authority Accounts (Scotland) Amendment Regulations 2014 require local authorities in Scotland to prepare a Remuneration Report as part of the Financial Statements. In accordance with the Regulations, and the relevant definition of individuals that are to be disclosed in this report, Clyde Valley Learning and Development Joint Committee has no employees that require to be disclosed. Clyde Valley Learning and Development Joint Committee makes no payment of salary, allowances or pension contributions to any of the Councillors who are appointed as Members of the Joint Committee. 7 Date of Signing of the Accounts The audited accounts were authorised for issue on 9 September 2024 by the Treasurer to the Clyde Valley Learning and Development Joint Committee. 8 Post Balance Sheet Events No events occurred between 1 April 2024 and 9 September 2024 that would have an impact on the 2023/2024 financial statements. The later date is the date on which the audited accounts were authorised for issue by the Treasurer to the Clyde Valley Learning and Development Joint Committee. 9 Going Concern The accounts have been prepared on the going concern basis on the basis that funding from Local Authorities has been received for 2024/2025. 57
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21 Statement of Accounting Policies (a) General The general policies adopted in compiling and presenting the financial statements are those required 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. These practices primarily comprise Code of Practice on Local Authority in the United Kingdom 2023/2024, 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 accounts have been prepared under the historic cost convention and accounting policies have been applied consistently. (b) Accruals basis The Comprehensive Income and Expenditure Statement is compiled on an accruals basis. Income and expenditure activities are accounted for in the year which they take place, not simply when payments are made or received. Where services have been provided but the income not received by end 31 March 2024 or services have been received but not paid for by end 31 March 2024, then the income and expenditure account has been amended to reflect the outstanding amounts and a debtor or creditor for the relevant amount is recorded in the balance sheet. (c) Debtors and Creditors All specific and material sums payable to and paid by the Clyde Valley Learning and Development Joint Committee have been brought into account. (d) Allocation of Support Expenses The allocation of Support Expenses is the cost of those South Lanarkshire employees who provide a direct service to the Clyde Valley Learning and Development Joint Committee. The individual support department is Personnel Services where employees are directly involved in the operations of the Clyde Valley Learning and Development Joint Committee. The recharge is made on a consistent basis. (e) Borrowing Facilities The Clyde Valley Learning and Development Joint Committee 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 Joint Committee and consequently lends or borrows according to the required cash flow and activities of the Joint Committee. (f) Financial Instruments For investments due within 12 months, prevailing benchmark rates have been used to provide the fair value. 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. 58
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22 (g) Reserve – General Fund Balance The Joint Committee Members agreed that any surplus on the Income and Expenditure Account at the end of the financial year will be carried forward and held in a General Fund Reserve for use on Clyde Valley projects in future financial years. The value of the funding being carried forward will be reviewed on an annual basis. 59
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23 Statement of Responsibilities for the Annual Accounts The Clyde Valley Learning and Development Joint Committee’s responsibilities: The Clyde Valley Learning and Development Joint Committee is required to: • make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. For the Joint Committee, that officer is the Executive Director of Finance and Corporate Resources designated as Treasurer of the Joint Committee; • 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), in accordance with proper accounting practices (section 12 of the Local Government in Scotland Act 2003); and • approve the Annual Accounts for signature. I confirm that these accounts were approved for signature by the Joint Committee at its meeting on 10 June 2024. Signed on behalf of Clyde Valley Learning and Development Joint Committee Convener – Clyde Valley Learning and Development Joint Committee The Treasurer’s responsibilities: The Treasurer is responsible for the preparation of the Clyde Valley Learning and Development Joint Committee’s Annual Accounts in accordance with proper practices set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (the Code). In preparing the Annual Accounts, the Treasurer has: • selected suitable accounting policies and then applied them consistently; • made judgements and estimates that were reasonable and prudent; • complied with the local authority Code. The Treasurer has also: • kept proper accounting records which were up to date; • taken reasonable steps for the prevention and detection of fraud and other irregularities. I certify that the Annual Accounts give a true and fair view of the financial position of the Joint Committee at 31 March 2024 and its income and expenditure for the year ended 31 March 2024. Jackie Taylor Treasurer – Clyde Valley Learning and Development Joint Committee 60
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24 Independent auditor’s report to the members of Clyde Valley Learning and Development Joint Committee and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements I certify that I have audited the financial statements in the annual accounts of Clyde Valley Learning and Development Joint Committee for the year ended 31 March 2024 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the Movement in Reserves Statement, Comprehensive Income and Expenditure Statement, Balance Sheet, Cash Flow Statement, and notes to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 (the 2023/24 Code). In my opinion the accompanying financial statements: • give a true and fair view of the state of affairs of the Clyde Valley Learning and Devel- opment Joint Committee as at 31 March 2024 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2023/24 Code; and • have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003. Basis for opinion I conducted my audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I was appointed by the Accounts Commission on 16 March 2023. My period of appointment is five years, covering 2022/23 to 2026/27. I am independent of the Clyde Valley Learning and Development Joint Committee in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the Clyde Valley Learning and Development Joint Committee. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Conclusions relating to going concern basis of accounting I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 61
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25 Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Clyde Valley Learning and Development Joint Committee’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. These conclusions are not intended to, nor do they, provide assurance on the Clyde Valley Learning and Development Joint Committee’s current or future financial sustainability. However, I report on the Clyde Valley Learning and Development Joint Committee’s arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website. Risks of material misstatement I report in my Annual Audit Report the most significant assessed risks of material misstatement that I identified and my judgements thereon. Responsibilities of the Treasurer and Clyde Valley Learning and Development Joint Committee for the financial statements As explained more fully in the Statement of Responsibilities, the Treasurer is responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the Treasurer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Treasurer is responsible for assessing the Clyde Valley Learning and Development Joint Committee’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the Clyde Valley Learning and Development Joint Committee’s operations. The Clyde Valley Learning and Development Joint Committee is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: 62
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26 • using my understanding of the local government sector to identify that the Local Gov- ernment (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003 are significant in the context of the Clyde Valley Learning and Development Joint Committee; • inquiring of the Treasurer as to other laws or regulations that may be expected to have a fundamental effect on the operations of the Clyde Valley Learning and Devel- opment Joint Committee; • inquiring of the Treasurer concerning the Clyde Valley Learning and Development Joint Committee’s policies and procedures regarding compliance with the applicable legal and regulatory framework; • discussions among my audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and • considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Clyde Valley Learning and Development Joint Committee’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report. Reporting on other requirements Other information The Treasurer is responsible for the other information in the annual accounts. The other information comprises the Management Commentary, Annual Governance Statement and Statement of Responsibilities. My responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material 63
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27 misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon except on the Management Commentary and Annual Governance Statement to the extent explicitly stated in the following opinions prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Management Commentary and Annual Governance Statement In my opinion, based on the work undertaken in the course of the audit: • the information given in the Management Commentary for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with statutory guidance issued under the Local Government in Scotland Act 2003; and • the information given in the Annual Governance Statement for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Delivering Good Govern- ance in Local Government: Framework (2016). Matters on which I am required to report by exception I am required by the Accounts Commission to report to you if, in my opinion: • adequate accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • I have not received all the information and explanations I require for my audit. I have nothing to report in respect of these matters. Conclusions on wider scope responsibilities In addition to my responsibilities for the annual accounts, my conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in my Annual Audit Report. Use of my report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. 64
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28 Pauline Murray CPFA Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN 65
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29 Glossary of Terms Much of the terminology used in this Report is intended to be self-explanatory, however, the following additional definition and interpretation of terms used may be helpful: 1. Borrowing Facilities and Temporary Interest on Revenue Balances The loans fund of South Lanarkshire Council lends or borrows according to the cash flow of the Clyde Valley Learning and Development Joint Committee. This temporary interest credited / debited to the Clyde Valley Learning and Development Joint Committee’s Income and Expenditure Account reflects the interest earned or charged to the Committee for funds lent to or borrowed from the loans fund of South Lanarkshire Council. 66
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30 Clyde Valley Learning and Development Joint Committee Members (2023/2024) Council Member East Renfrewshire Council Councillor Andrew Anderson Glasgow City Council Councillor Anne McTaggart Inverclyde Council Councillor Francesca Brennan (Vice Convener) North Lanarkshire Council Councillor Michael McBride (effective from 28 March 2024) (Previously Councillor Angela Campbell) South Lanarkshire Council Councillor Lynsey Hamilton (Convener) Councillor Susan Kerr (Temporary) 67
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