Agenda Document Pack - Clyde Valley Learning and Development Joint Committee - 03/10/2022
South Lanarkshire Council · 3 October 2022
Back to Clyde Valley Learning and Development Joint Committee — 3 October 2022 and its agenda
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Council Offices South Lanarkshire Council Almada Street Hamilton ML3 0AA Friday, 23 September 2022 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, 03 October 2022 Time: 14:00 Venue: By Microsoft Teams, The business to be considered at the meeting is listed overleaf. Yours sincerely Paul Manning Clerk to the Joint Committee Members Council Member Substitute East Renfrewshire Andrew Anderson Glasgow City Anne McTaggart Inverclyde Francesca Brennan Jim Clocherty North Lanarkshire Ann Ballinger Renfrewshire Emma Rodden Jim Paterson 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 held on 20 June 2022 submitted for approval as a correct record. (Copy attached) 3 - 6 Item(s) for Noting 3 Audit Scotland - Clyde Valley Learning and Development Joint Committee - Proposed 2021/2022 Annual Audit Report Letter and Annual Audit Report by Audit Scotland, External Auditor. (Copy attached) 7 - 28 Item(s) for Decision 4 Audited Annual Accounts 2021/2022 Report dated 24 August 2022 by the Treasurer of the Clyde Valley Learning and Development Joint Committee. (Copy attached) 29 - 60 Urgent Business 5 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 20 June 2022 Convener: Councillor Lynsey Hamilton, South Lanarkshire Council (after item 3) Councillors Present: East Renfrewshire Council: Andrew Anderson Inverclyde Council: Francesca Brennan (Vice Convener – after item 4) North Lanarkshire Council: Ann Ballinger Renfrewshire Council: Emma Rodden Councillor’s Apology: Glasgow City Council: Anne McTaggart Attending: Clerk’s Office Stuart McLeod, Administration Officer, South Lanarkshire Council Treasurer’s Office Amanda Murray, Finance Adviser, South Lanarkshire Council Clyde Valley Learning and Development Project Gerry Farrell, Project Manager Project Steering Group Pauline Cameron, East Renfrewshire Council Gerry Mearns and Karen Sillars, Glasgow City Council Alex Hughes, Inverclyde Council Welcome and Introductions S McLeod welcomed members to the Joint Committee and appropriate introductions were made. Order of Business The Joint Committee decided: that the items of business be dealt with in the order minuted below. 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 21 February 2022 were submitted for noting. The Joint Committee decided: that the minutes be noted. 2 3
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3 Position of Convener The Joint Committee decided: that Councillor Hamilton, South Lanarkshire Council, be confirmed as the Convener of the Joint Committee. 4 Position of Vice Convener The Joint Committee decided: that Councillor Brennan, Inverclyde Council, be appointed as the Vice Convener of the Joint Committee. 5 Revenue Budget Monitoring 2022/2023 – Clyde Valley Learning and Development Joint Committee A report dated 23 May 2022 by the Treasurer to the Clyde Valley Learning and Development Joint Committee was submitted comparing actual expenditure at 20 May 2022 against budgeted expenditure for the Clyde Valley Learning and Development Joint Committee’s revenue budget. The Joint Committee decided: that the breakeven position on the revenue budget, as detailed in Appendix A to the report, be noted. 6 Annual Governance Statement 2021/2022 A report dated 23 May 2022 by the Treasurer to the Clyde Valley Learning and Development Joint Committee was submitted on the Annual Governance Statement for 2021/2022 which would be included in the Joint Committee’s 2021/2022 Annual Accounts. The Joint Committee’s Annual Governance Statement 2021/2022, which was attached as an appendix to the report, provided details of the systems for internal control which were in place to ensure a robust governance structure. For 2021/2022, 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 as an appendix to the report, which would be included in the Clyde Valley Learning and Development Joint Committee’s 2021/2022 Annual Accounts, be approved. 7 Meeting Arrangements 2022/2023 A report dated 31 May 2022 by the Clerk to the Clyde Valley Learning and Development Joint Committee was submitted on arrangements for meetings of the Joint Committee for the remainder of the financial year 2022/2023. At its meeting held on 30 November 2015, the Joint Committee had agreed that its meetings should be held 3 times in a financial year. The Joint Committee decided: that meetings of the Joint Committee for the remainder of the financial year 2022/2023 be held via Microsoft Teams at 2.00pm on the following dates:- Monday 19 September 2022 Monday 27 February 2023 4
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8 2021/2022 Annual Report and Accounts – Clyde Valley Learning and Development Joint Committee A report dated 23 May 2022 by the Treasurer to the Clyde Valley Learning and Development Joint Committee was submitted on the Annual Report and Accounts of the Joint Committee for the year ending 31 March 2022. The Annual Report and Accounts, attached as an appendix to the report, detailed the revenue account and balance sheet to 31 March 2022 for the Joint Committee. The Accounts showed that the Joint Committee’s total revenue expenditure had amounted to £0.122 million in 2021/2022 and had been met by income of £0.108 million. This had resulted in a £0.014 million deficit due to the approved expenditure of £0.025 million to extend the Learning Management System contract, which had been offset against the revenue cash balance of £0.030 million brought forward from 2020/2021. After taking account of any accruals and commitments, a balance of £0.016 million had been left to be carried forward for use in future years. The Annual Report and Accounts would be passed to the External Auditor for consideration. The Joint Committee decided: that the Annual Report and Accounts for the Clyde Valley Learning and Development Joint Committee for year ended 31 March 2022 be noted. 9 Background to the Clyde Valley Learning and Development Project A report dated 20 May 2022 by the Chair of the Clyde Valley Learning and Development Project Steering Group was submitted providing an overview on the development of the Clyde Valley Learning and Development Project. The Clyde Valley Learning and Development Group (CVLDG) was established informally in 2005 to explore the opportunities for improvement through joint working and shared delivery of learning and development. The Group comprised of the 8 local authorities located in west central Scotland as follows:- East Dunbartonshire Council North Lanarkshire Council East Renfrewshire Council Renfrewshire Council Glasgow City Council South Lanarkshire Council Inverclyde Council West Dunbartonshire Council In 2007, a formal partnership was established under a Joint Committee structure supported by grant funding from the National Board for Shared Services (NBSS). The lead authority for the Group was South Lanarkshire Council. Group members developed a set of shared objectives for working together with a business case for change which focused on the design, implementation and delivery of training and other learning and development provision within its member councils. Through a detailed analysis of costs, methods, current practice and shared experience, the Group demonstrated a robust case for change through working more efficiently and in a spirit of partnership to deliver improved learning and development practices. The key objectives of the Project were detailed in the report. The Project continued to develop relevant, high quality training to the local government workforce which demonstrated consistency in access and provision, efficiency in development, delivery and assessment and sufficient flexibility to take account of local priorities and preferences. 5
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The Project Steering Group had considered options for securing the future of the Project and the Joint Committee, at its meeting held on 11 June 2018, had approved proposals to restructure the membership of the Project, creating 3 categories of membership (full, participating and procurement) with a new associated funding model. The new funding model included a minimum level of funding of £59,000 (£61,000 including the audit fee) which was required annually to maintain the viability of the Project. A minimum number of 5 full member councils had also been agreed. Details of the benefits of the Project and shared work that had been carried out by the Project were provided in the report. The Joint Committee decided: that the report be noted. 10 Clyde Valley Learning and Development Project – Roles and Responsibilities A report dated 20 May 2022 by the Chair of the Clyde Valley Learning and Development Project Steering Group was submitted on the roles and responsibilities of the following key stakeholders associated with the Clyde Valley Learning and Development Project:- Joint Committee Clerk to the Joint Committee Treasurer to the Joint Committee Project Steering Group Social Care Group Promoting Positive Behaviour Strategic Governance Group Project Manager Project staff (secondees) Participating and procurement member councils The Joint Committee decided: that the range of stakeholders involved in the delivery of the Clyde Valley Learning and Development Project and their specific roles and responsibilities be noted. 11 Urgent Business There were no items of urgent business. 6
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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 3 October 2022 Clyde Valley Learning and Development Joint Committee Audit of 2020/21 annual accounts Independent auditor's report 1. Our audit work on the 2021/22 annual accounts is now substantially complete. We anticipate being able to issue unqualified audit opinions in the independent auditor's report on 3 October 2022 (the proposed report is attached at appendix A). Annual audit report 2. We also present for your consideration our proposed annual audit report on the 2021/22 audit. International Standard on Auditing (ISA) 260 (Communication with those charged with governance) requires auditors to report specific matters arising from the audit of the annual accounts to those charged with governance, in sufficient time to enable appropriate action. 3. The annual audit report will be issued in its final form after the annual accounts have been approved for issue and the independent auditor’s report has been signed. Unadjusted misstatements 4. 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. 5. There were no misstatements identified. Fraud, subsequent events and compliance with laws and regulations 6. In presenting this report to the Joint Committee we also seek confirmation that we have been informed of: • any instances of actual, suspected, or alleged fraud. • any events that have occurred since 31 March 2022 which could have a significant impact on the annual accounts. • any instances of non-compliance with legislation. Representations from management 7. International Standard on Auditing 580 (Management representations) requires auditors to obtain representations on certain matters from management. Accordingly, as part of the audit completion process, we seek written assurances from the Treasurer, as the "proper officer" 3 7
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appointed by virtue of section 95 of the Local Government (Scotland) Act 1973, on aspects of the annual accounts. 8. 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. 9. We would like to thank the management and staff who have been involved in our work for their cooperation and assistance during the audit. Andrew Kerr CA Senior Audit Manager Audit Scotland 4th Floor, The Athenaeum Building 8 Nelson Mandela Place Glasgow, G2 1BT 8
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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 2022 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 significant accounting policies. 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 2021/22 (the 2021/22 Code). In my opinion the accompanying financial statements: • give a true and fair view in accordance with applicable law and the 2021/22 Code of the state of affairs of the Clyde Valley Learning and Development Joint Committee as at 31 March 2022 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 2021/22 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 under arrangements approved by the Accounts Commission on 10 June 2021. The period of total uninterrupted appointment is 1 year. 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. 9
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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. 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. 10
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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: • obtaining an understanding of the applicable legal and regulatory framework and how the Clyde Valley Learning and Development Joint Committee is complying with that framework; • identifying which laws and regulations are significant in the context of the Clyde Valley Learning and Development Joint Committee; • assessing 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 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 11
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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 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 120 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. 12
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Andrew Kerr CA Senior Audit Manager Audit Scotland 4th Floor, The Athenaeum Building 8 Nelson Mandela Place Glasgow, G2 1BT 3 October 2022 13
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Appendix B: Letter of Representation (ISA 580) Andrew Kerr Senior Audit Manager Audit Scotland 8 Nelson Mandela Place Glasgow G2 1BT Dear Andrew Clyde Valley Learning and Development Joint Committee Annual Accounts 2021/22 1. This representation letter is provided in connection with your audit of the annual accounts of Clyde Valley Learning and Development Joint Committee for the year ended 31 March 2022 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view in accordance with the financial reporting framework, 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 for the year ended 31 March 2022. General 3. The Joint Committee and I have fulfilled our statutory responsibilities for the preparation of the 2021/22 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 2021/22 (2021/22 accounting code), and in accordance with 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 Clyde Valley Learning and Development Joint Committee at 31 March 2022 and the transactions for 2021/22. Accounting Policies & Estimates 7. All significant accounting policies applied are as shown in the notes to the financial statements. The accounting policies are determined by the 2021/22 accounting code where applicable. Where the code does not specifically apply, I have used judgement in developing and applying an accounting policy that results in information that is relevant and reliable. All 14
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accounting policies applied are appropriate to Clyde Valley Learning and Development Joint Committee’s circumstances and have been consistently applied. 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. The Joint Committee does not own or lease any assets. Liabilities 11. All liabilities have been provided for in the balance sheet, including the liabilities for all purchases to which title has passed prior to 31 March 2022. Accruals 12. I have assessed the method of calculating accruals and consider it appropriate and confirm that a firm obligation to expend the funds exists. Provisions and Contingent liabilities 13. There is no requirement for provisions. There are no contingent liabilities. Fraud 14. 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 • 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 15. 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. Related Party Transactions 16. All material transactions with related parties have been appropriately accounted for and disclosed in the financial statements in accordance with the 2021/22 accounting code. I have made available to you the identity of all the Clyde Valley Learning and Development Joint 15
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Committee’s related parties and all the related party relationships and transactions of which I am aware. Management commentary 17. 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 18. I acknowledge, as Treasurer and S95 officer, my responsibility for the corporate governance arrangements. I confirm that I have disclosed to you all deficiencies in internal control of which I am aware. Events Subsequent to the Date of the Balance Sheet 19. All events subsequent to 31 March 2022 for which the 2021/22 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 16
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Prepared by Audit Scotland August 2022 Clyde Valley Learning and Development Joint Committee Proposed 2021/22 Annual Audit Report 3 17
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Clyde Valley Learning and Development Joint Committee | 2 Contents Key messages 3 Introduction 4 1. Audit of 2021/22 annual accounts 6 2. Financial sustainability and governance statement 9 18
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Key messages | 3 Key messages 2021/22 annual accounts 1 An unqualified independent auditor’s report has been issued for the 2021/22 annual accounts. Financial sustainability and governance statement 2 Through the continued support from member authorities, the Joint Committee’s financial position is sustainable for the foreseeable future. 3 Governance arrangements were effective in 2021/22. The Joint Committee’s annual governance statement is consistent with the financial statements and complies with applicable guidance. 19
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Introduction | 4 Introduction 1. The scope of our audit was set out in our 2021/22 annual audit plan presented to the February 2022 meeting of the Joint Committee. 2. This report sets out our findings from: • the audit of the annual accounts • our consideration of the Joint Committee’s financial sustainability and governance statement. Responsibilities and reporting 3. The management of the Joint Committee, has responsibility for: • preparing financial statements which give a true and fair view. • putting in place proper arrangements for the conduct of its affairs. • maintaining proper accounting records and appropriate governance arrangements. 4. Our responsibilities, as independent auditor appointed by the Accounts Commission, are established by the Local Government (Scotland) Act 1973, the Code of Audit Practice 2016 and supplementary guidance and International Standards on Auditing in the UK. We undertake our audit in accordance with International Standards on Auditing, and the auditing profession’s ethical guidance. 5. At the conclusion of our audit, we provide an independent auditor’s report for inclusion in the annual accounts. 6. Audit Scotland’s Code of Audit Practice 2016 includes provisions relating to the audit of small bodies. Where the application of the full wider audit scope is judged by auditors not to be appropriate to an audited body then annual audit work can focus on the financial sustainability of the body and the disclosures in the governance statement. In our 2021/22 annual audit plan we conveyed our intention to apply the small body provisions to the 2021/22 audit of the Joint Committee’s annual accounts. 7. Best Value is about ensuring that there is good governance and effective management of resources, with a focus on improvement, to deliver the best possible outcomes for citizens. As we have applied the Code of Audit Practice small body provisions to the audit of the Joint Committee our wider scope responsibilities do not fully apply. Our Best Value work is limited to our audit work on financial sustainability and the governance statement. 20
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Introduction | 5 8. This report raises matters from our audit. Weaknesses or risks identified are only those which have come to our attention during our normal audit work and may not be all that exist. Communicating these does not absolve management from its responsibility to address the issues we raise and to maintain adequate systems of control. Adding value through the audit 9. In addition to our primary responsibility of reporting on the annual accounts we seek to add value to the Joint Committee by identifying areas for improvement and by recommending and encouraging good practice. In so doing, we aim to help the organisation promote improved standards of governance, better management and decision making, and more effective use of resources. Appointment of external auditors 2022/23 to 2026/27 10. In March 2022, Audit Scotland wrote to the Joint Committee noting that its external auditor would remain Audit Scotland for the period 2022/23 to 2026/27. We will work closely with the new auditor to ensure a well-managed transition. New Code of Audit Practice 11. A new Code of Audit Practice applies to public sector audits for financial years starting on or after 1 April 2022. It replaces the Code issued in May 2016. 12. The Code outlines the objectives and principles to be followed by all auditors. The audit of financial statement’s is covered by auditing standards, so the Code focuses more on the wider dimension objectives and responsibilities of public sector auditors. It is a condition of their appointment by the Accounts Commission or Auditor General for Scotland that they follow it. Auditor Independence 13. Auditors appointed by the Accounts Commission or Auditor General for Scotland must comply with the Code of Audit Practice and relevant supporting guidance. When auditing the annual accounts auditors must comply with professional standards issued by the Financial Reporting Council and those of the professional accountancy bodies. 14. We can confirm that we comply with the Financial Reporting Council’s Ethical Standard. We can also confirm that we have not undertaken any non- audit related services and therefore the 2021/22 audit fee of £2,020 as set out in our annual audit plan, remains unchanged. We are not aware of any relationships that could compromise our objectivity and independence. 15. This report is addressed to both members of the Joint Committee and the Controller of Audit and will be published on Audit Scotland's website http://www.audit-scotland.gov.uk in due course. 16. We would like to thank the management and staff who have been involved in our work for their cooperation and assistance during the audit. 21
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1. Audit of 2021/22 annual accounts | 6 1. Audit of 2021/22 annual accounts Key messages An unqualified independent auditor’s report has been issued for the 2021/22 annual accounts. Our audit opinions on the annual accounts are unmodified 17. The annual accounts for the year ended 31 March 2022 were approved for issue by the Joint Committee following its meeting on 3 October 2022. 18. We reported in the independent auditor’s report that: • the financial statements give a true and fair view and were properly prepared in accordance with relevant legislation and the Code of Practice on Local Authority Accounting in the UK. • the management commentary and governance statement were consistent with the financial statements and properly prepared in accordance with relevant legislation. 19. We concluded that there were no matters upon which we are required to report, by exception, to the Accounts Commission. The unaudited annual accounts were submitted for audit in line with the agreed timetable 20. We received the unaudited annual accounts on 20 June 2022 in line with the agreed audit timetable. The annual accounts submitted for audit were of a satisfactory standard as were supporting working papers. Finance staff provided good support to the audit team which helped ensure the final accounts audit process ran smoothly. Our audit identified and addressed the risk of material misstatement reported in our 2021/22 annual audit plan 21. The concept of audit risk is of central importance to our audit approach. During the planning stage of our audit, we identified one significant risk of material misstatement which could impact on the annual accounts. Exhibit 1 sets this risk out together with the work we undertook to address it and our conclusions from this work. 22
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1. Audit of 2021/22 annual accounts | 7 Exhibit 1 Significant risks of material misstatement reported in the 2021/22 annual audit plan Description of Risk Audit response to risk Results and conclusion 1. Risk of management override of controls As stated in International Standard on Auditing (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. Make inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries and other adjustments. Test journals at the year- end and post-closing entries and focus on significant risk areas. We will assess any changes to the methods and underlying assumptions used to prepare accounting estimates compared to the prior year. Substantive testing of income and expenditure transactions around the year-end to confirm they are accounted for in the correct financial year. Results: Journal adjustments were tested, and no indications of management override of controls were found. We tested accruals and confirmed that expenditure was properly accounted for in the financial year. We reviewed transactions during the year. No significant transactions outside the normal course of business were identified. Judgements and estimations applied were tested to confirm they were appropriate and reasonable. Conclusion: No instances of management override of controls were identified. Source: Audit Scotland Our audit testing reflected the calculated materiality levels 22. Materiality can be defined as the maximum amount by which auditors believe the annual accounts could be misstated and still not be expected to affect the perceptions and decisions of users of the annual accounts. The assessment of what is material is a matter of professional judgement. A misstatement or omission, which would not normally be regarded as material by value, may be important for other reasons (for example, an item contrary to law). 23. Our initial assessment of materiality for the annual accounts is undertaken during the planning phase of the audit. On receipt of the unaudited annual accounts, and following completion of audit testing, we reviewed our original materiality calculations and concluded that they remained appropriate. Our materiality levels are set out at exhibit 2. 23
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1. Audit of 2021/22 annual accounts | 8 Exhibit 2 Materiality levels Materiality level Amount Overall materiality: This is the figure we use in assessing the overall impact of potential adjustments on the financial statements. It has been set at 2% of gross expenditure for the year ended 31 March 2022. £2,400 Performance materiality: This acts as a trigger point. If the aggregate of errors identified during the financial statements audit exceeds performance materiality this would indicate that further audit procedures should be considered. Using our professional judgement, we calculated performance materiality at 75% of planning materiality. £1,800 Reporting threshold: We are required to report to those charged with governance on all unadjusted misstatements more than the ‘reporting threshold' amount. This has been set at £120. £120 Source: Audit Scotland No misstatements were identified 24. There were no material adjustments to the unaudited annual accounts arising from our audit. In addition, we have no unadjusted misstatements to report. We have no significant findings to report on the annual accounts 25. International Standard on Auditing (UK) 260 requires us to communicate significant findings from the audit to “those charged with governance”. 26. There are no significant findings to report. 27. The qualitative aspects of the Joint Committee’s accounting practices, accounting policies, accounting estimates and accounts disclosures are satisfactory and appropriate to the Joint Committee. 28. In accordance with normal audit practice, a number of presentational and disclosure amendments were discussed and agreed with management. Follow up of prior year recommendations 29. There were no actions raised in our 2020/21 annual audit report. 24
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2. Financial sustainability and governance statement | 9 2. Financial sustainability and governance statement Key messages Through the continued support from member authorities, the Joint Committee’s financial position is sustainable for the foreseeable future. Governance arrangements were effective in 2021/22. The Joint Committee’s annual governance statement is consistent with the financial statements and complies with applicable guidance. The Joint Committee reported a deficit on the provision of its services of £14,000 in 2021/22. This was covered by its accumulated reserves 30. The Joint Committee secured contributions totalling £84,000 from the member authorities towards its running costs for 2021/22. As the administering authority, South Lanarkshire Council is responsible for managing the Joint Committee’s running costs within the allocated budget. 31. Income and expenditure for the year are reported as £108,000 and £122,000 respectively, resulting in a £14,000 deficit on the provision of services. This deficit position is arrived at through an in-year underspend of £11,000 on the original budget together with additional in year costs being incurred. At the Joint Committee meeting in September 2021, members agreed to extend the contract for the Learning Management System (LMS) contract. This had a cost of £25,000. 32. The £14,000 deficit has been offset against the Joint Committee’s accumulated reserve balance. As at 31 March 2022 the Joint Committee’s general fund reserve is £16,000. Through the continued support from member authorities, the Joint Committee’s financial position is sustainable for the foreseeable future 33. The Joint Committee’s sustainability is dependent on participating councils’ continued support. The Joint Committee has so far secured contributions totalling £78,000 from 15 member authorities, six being full members, towards the running costs of the project for 2022/23. 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 members councils and contributions of £61,000 in total from all members). 25
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2. Financial sustainability and governance statement | 10 34. At the Joint Committee meeting in June 2022, the 2022/23 revenue budget monitoring report notes that in addition to the member contributions of £78,000, there is budgeted training expenditure of £25,000, with this recharged to councils. This gives a total expenditure and income budget of £103,000 for 2022/23. As at May 2022, the budget update forecasts a breakeven position for 2022/23. 35. There is evidence that participating councils will continue to support the operations and existence of the Joint Committee for the foreseeable future. Governance arrangements were effective in 2021/22. The Joint Committee’s annual governance statement is consistent with the financial statements and complies with applicable guidance 36. In its annual governance statement, the Joint Committee has made appropriate disclosure of the impact Covid-19 has had on its governance arrangements. The statement provides assurance that there have been no changes to the governance arrangements in place except for the required changes made in response to the pandemic. All Joint Committee meetings were held virtually in 2021/22, 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 retain effective strategic oversight and governance of the Project. 37. The governance statement discloses the Joint Committee’s compliance with the Financial Management Code (FM Code) from CIPFA. The FM Code applies from 2021/22 and 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 against the Code during the shadow implementation year, 2020/21. The only outstanding action noted last year was in relation to a statement regarding the Joint Committee’s adequacy of reserves to be included in its budget strategy paper. 38. In February 2022, the 2022/2023 budget 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 2022/23. The Project fund available is very much dependent on the final overall income from the membership. The funding secured so far in 2022/23 (£78,000) exceeds the minimum level required (£61,000) for the Project to continue. Members noted that the current committed funding exceeded the minimum level. They 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. 39. 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). 26
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2. Financial sustainability and governance statement | 11 High-level systems of internal control operated effectively during 2021/22 40. South Lanarkshire Council, as host authority, provides support in some key areas of business. These include finance, legal and information technology, with the council’s systems used to produce the Joint Committee’s annual accounts. The council’s internal audit function did not carry out specific audit work on the Joint Committee in 2021/22. However, the sharing of systems means that the “reasonable” level of assurance provided to the council, by the Internal Audit Manager, provides a degree of assurance to the Joint Committee given the level of shared systems and services. 41. The appointed external auditor of South Lanarkshire Council considered whether the council’s key accounting and internal financial controls were adequate to prevent material misstatements in the annual accounts. These are the same systems used to produce the Joint Committee’s annual accounts. 42. We have reviewed the council’s external auditor’s findings. They concluded that the key controls within its main financial systems were operating satisfactorily. As such, we are satisfied there is no significant risk to the Joint Committee’s annual accounts. The Joint Committee’s 2021/22 management commentary provides a reasonable picture of its financial performance and operational activity for the year 43. The management commentary is intended to expand upon and provide clarity and context to the information in the financial statements. Guidance emphasises that each body has scope for innovation and variation on how it “tells its story.” The general principle is that it should provide “a fair, balanced and understandable” analysis of a body’s performance to meet the needs of members and other stakeholders, including members of the public. 44. We concluded that the 2021/22 management commentary is consistent with our knowledge and experience of the organisation and presents a reasonable picture of the Joint Committee’s financial performance and operational activity for the year. National performance reports 45. Audit Scotland carries out a national performance audit programme on behalf of the Accounts Commission and the Auditor General for Scotland. National performance reports, published in 2021/22, which may be of interest to members, can be found on Audit Scotland’s website. 27
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2. Financial sustainability and governance statement | 12 Clyde Valley Learning and Development Joint Committee Annual Audit Report 2021/22 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 For the latest news, reports and updates, follow us on: 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 28
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Report Agenda Item Report to: Clyde Valley Learning and Development Joint Committee Date of Meeting: 3 October 2022 Report by: Treasurer to Clyde Valley Learning and Development Joint Committee Subject: Audited Annual Accounts 2021/2022 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 2021/2022 for signature [1purpose] 2. Recommendation(s) 2.1. The Joint Committee is asked to approve the following recommendation(s):- [] (1) that it be noted that the Annual Accounts for 2021/2022 received a clean audit certificate (section 4.2); and (2) that the audited Annual Accounts for 2021/2022, be approved for signature (Appendix 1). [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 2021/2022. 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, no later than 31 November 2022. Audit Scotland have set this date at 31 October 2022. 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 3.2 above, members are now required to approve the audited Annual Accounts for signature. Appendix 1 attached provides a copy of the Annual Accounts for members’ consideration. 4.2. The Joint Committee’s external auditors, Audit Scotland, have completed an audit which extends across the 2021/2022 Annual Accounts and related matters. In summary, the 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. 4 29
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4.3. Copies of the audited Annual Accounts are attached at Appendix 1 to this report and will be available on South Lanarkshire Council’s website. 5. Employee Implications 5.1. None 6. Financial Implications 6.1. The Accounts show that the Joint Committee’s total revenue expenditure amounted to £0.122 million in 2021/2022 and was met by income of £0.108 million. This results in a £0.014 million deficit due to the approved expenditure of £0.025 million on the Brightwave contract extension, which can be offset against the revenue cash balance of £0.030 million brought forward from 2020/2021. 6.2. After taking account of any accruals and commitments, this leaves a revenue cash balance of £0.016 million to be carried forward for use in future years. 6.3. This position has been confirmed by the Joint Committee’s external auditors, Audit Scotland. 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 Annual Accounts was a qualified audit report. The risk was assessed as low due to the detailed preparation in relation to the year end process, technical training undertaken by key finance staff and the roll out of this to Resource finance staff as appropriate. Finance Services and the Project Steering Group work together to achieve key deadlines and actions set from timetables. 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 24 August 2022 Previous References Clyde Valley Learning and Development Joint Committee, 20 June 2022 30
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List of Background Papers Clyde Valley Learning and Development Joint Committee Annual Accounts 2021/2022 and External Auditor’s report. Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Jackie Taylor, Head of Finance (Strategy) Ext: 5637 (Tel: 01698 455637) E-mail: jackie.taylor@southlanarkshire.gov.uk 31
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1 Appendix 1 CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE ANNUAL ACCOUNTS 2021/2022 32
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2 CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE ANNUAL ACCOUNTS 2021/2022 CONTENTS 3 Introduction by the Convener of Clyde Valley Learning and Development Joint Committee 4 Management Commentary 10 Annual Governance Statement 13 Movement in Reserves Statement 14 Comprehensive Income and Expenditure Statement 15 Balance Sheet 16 Cash Flow Statement 17 Notes to the Financial Statements 20 Statement of Accounting Policies 22 Statement of Responsibilities for the Annual Accounts 23 Audit Opinion 27 Glossary of Terms 28 Clyde Valley Learning and Development Joint Committee Members 33
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3 Introduction by the Convener of Clyde Valley Learning and Development Joint Committee Once again, a reflection of our shared experiences over the past year is dominated by the continued challenges brought about by the Covid-19 pandemic and the impact it has had on all our lives. Many of us have grown used to working from home as we meet the challenges of maintaining and delivering our services in ever more creative ways. It has been most encouraging therefore to note that the prudent strategic planning and particularly the implementation of online learning systems by the Clyde Valley Group has provided the solution to meeting our councils’ continuing learning and development needs during this period. As we progressed through the fifteenth year of the Project’s existence it is encouraging to observe that the membership structure and funding model established three years ago has been maintained and a healthy number of councils have retained membership in each of the categories on offer. Each of the Group’s programmes have continued to operate effectively and despite the challenges of moving onto new technology platforms for many of our member councils, it has been clear that the collaborative approach which remains the Group’s principal strength has helped to make these transitions take place smoothly. I am confident that the exceptional networks established through the Project will continue to provide opportunities for mutual support and shared delivery of learning and development as we move on from the worst impacts of the pandemic. The local government elections in May 2022 brought new administrations for all our member councils, and it is therefore appropriate to note that this year marked the milestone of the fifth and final year of governance for the current Joint Committee. I would like to recognise and thank all the partner Councils involved for maintaining the Project’s unique partnership, particularly in the current circumstances. It is now more important than ever that the Project should continue to develop and deliver value to Members. To all the Elected Members who have served on the Clyde Valley Learning and Development Joint Committee over these past five years I would like to extend my thanks and appreciation for your continued support during this period. 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 look forward optimistically to the coming year for the Clyde Valley Learning and Development Group and would like to take the opportunity to encourage the incoming 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 34
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4 Management Commentary 2021/2022 Introduction The Management Commentary of the Clyde Valley Learning and Development Joint 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 2021/2022 financial year. For a second year the effect of the global pandemic Covid-19 has continued to influence the way all council services are delivered, and this has brought additional challenges for the partnership. Despite this the 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 a number of 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 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 2021/2022, 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. 35
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5 Performance Review 2021/2022 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 2021/2022, 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 Developing skills capacity through investment in new e-learning authoring skills (future-proofing content) Savings in delivery of Scottish Vocational Qualifications Learning and training for Social Care Food hygiene online training and award Maintaining the delivery and practice of Promoting Positive Behaviour despite the compromises of Covid-19 Building internal capacity in delivering Promoting Positive Behaviour 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. During the past year a significant number of key council employees who have 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. Their individual and collective contributions were critical to the success and outcomes achieved to date through the project. The specific challenges brought upon by the Covid-19 pandemic during the past year have affected the whole of society. Local government remains at the centre of the response and recovery from this crisis and it is our challenge both to maintain service delivery and to develop new and innovative ways of working through the partnership. The established infrastructure and networks within the Clyde Valley Learning and Development 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 to council employees across the Clyde Valley Group. Attendance at Clyde Valley meetings online using Teams has significantly increased as this medium is now the recognised and preferred method. For the Group’s more distantly located members this has allowed attendance at each meeting for the first time in the Group’s history. 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. 36
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6 The membership categories and fee structure for membership were retained for 2021/2022. This approach provides a viable basis to contribute to project running costs as well as providing a suitable fund to enable additional key Project support activities to be commissioned. The membership for 2021/2022 comprised:- • 6 Full Members • 10 Participating Members • 1 Procurement Member The income met the designated minimum level to support a contribution to running costs for South Lanarkshire Council as lead authority, (£0.061m including allocated external audit fees). 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. Continuity in Online Learning Provision In the exceptional circumstances brought upon by the pandemic, the Group took the decision to seek approval for the non-contractual extension to the existing provision of a Learning Management System for the Councils. This resulted in a two-year extension to guarantee that the high priority to meet learning needs online was addressed without loss of service. A more modern offering was provided with improved functionality, a new look and feel and the ability to access content on personal mobile devices. This has resulted in a programme of staggered migration to the new platform by the eleven member councils who opted in. In addition, one participating member council continued to use the older technology through the extension. Subsidy to Learning Management System Migration Costs and Authoring Software As the new Learning Management System platform and portal incurred unanticipated set up and configuration costs the Joint Committee approved a proposal to use a proportion of the Clyde Valley Project fund to subsidise some of these costs. The sum of £23,000 was approved for this purpose. In recognition that North Lanarkshire Council was unable to access the subsidy for this purpose, the Committee approved the funding of two authoring software licences (Articulate) for a period of one year. This amounted to a further approved expenditure of £2,150 from project funds. The total approved use of brought forward accumulated funds was £25,150. Futureproofing Existing Online Content Throughout the duration of the Clyde Valley Learning and Development Group project online content was developed and shared using the Brightwave Interactive Learning Developer proprietary authoring tool provided by Brightwave. As this software had reached the end of its lifetime and was no longer supported by Brightwave it was necessary to convert the existing courses into a more modern format using authoring software which can be used in all online learning environments. In preparation for the migration to the new 37
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7 platform the Clyde Valley Councils used the Articulate product to create new versions of the content which continues to provide opportunities for Councils to share within the Group. Maintaining and Increasing Capacity to Deliver Promoting Positive Behaviour (PPB) Due to staff turnover, changing job responsibilities and retirements, the pool of trainers available to deliver PPB is constantly in flux and under review. During the year, the PPB Strategic Governance Group appealed to the member councils who co-own the PPB programme to nominate additional Principal Trainers to support and sustain the ‘Train the Trainer’ internal model of delivery. This has resulted in at least two Principal Trainers being nominated from each council making a total pool of twenty-three trainers. On completion of the induction programme and meeting the additional Principal Trainer criteria, this group will share the responsibility for meeting capacity requirements in training for PPB across the CVLDG Councils. Commissioning of a Review of Promoting Positive Behaviour Feedback from stakeholders involved in the PPB programme has remained consistently positive since the programme was first implemented seven years ago. Nonetheless the PPB Strategic Governance Group remains aware that, with changes to modes of working, structures and policy regarding the management of challenging behaviour, it is essential that the language, ethos and methods employed within the programme remain fit for purpose in all contexts. For this reason, a wide-ranging review of all aspects of the programme was commissioned and approved to confirm this to be the case, and make recommendations for further improvements if necessary. The report and recommendations will be delivered this calendar year and subject to the endorsement of the PPB Strategic Governance Group, improvements and changes will be integrated into the programme at the earliest possible opportunity. 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 Committee’s activities. For 2021/2022, the Revenue Expenditure results for the Committee are shown on page 14. This shows a net deficit position of £0.014m on the Comprehensive Income and Expenditure Statement. The deficit position reflects an in-year underspend of £0.011m, offset by the approved costs of the Brightwave contract extension of £0.025m, resulting in an overall in-year deficit of £0.014m. This net deficit will be offset against the accumulated reserves balance brought forward from 2020/2021. 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 (£0.024m, 19.67%). This is an increase of £0.010m compared to 2020/2021, reflecting a position more in line with spend before the pandemic. 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 remainder of the expenditure relates to Project Work undertaken in 2021/2022 (£0.037m), which includes the £0.025m of costs in respect of the extension of the Brightwave contract. 38
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8 The Committee's income is mainly made up of contributions from Member Councils (£0.084m in 2021/2022). There is a General Fund Balance comprising accumulated underspends since the inception of the Project in 2007/2008. The deficit of £0.014m for 2021/2022, which includes the approved expenditure of £0.025m for Brightwave, will be offset against 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 Head of Finance (Strategy) 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 The impact of the Covid-19 pandemic and successive lockdowns imposed for a second year has continued to dominate events for all of the Clyde Valley Group. From necessity however, new skills and methods have been developed to maintain service delivery and collaborative working. It is anticipated that these changes will continue to play a major part in the work of the Clyde Valley Group over the coming years. Priorities will remain in the areas of delivering online learning to all councils and ensuring that the infrastructure is in place to support this effectively. For this reason the Group will plan for the end of the current procurement contract for this service and seek a mutually beneficial approach to build on the successes achieved to date. Existing project work will continue to be managed prudently and it is anticipated that the recommendations of the PPB review will be implemented in the coming year to ensure that this remains one of the Clyde valley Group’s flagship programmes. The Clyde Valley Learning and Development Group 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. 39
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9 Jackie Taylor Treasurer - Clyde Valley Learning and Development Joint Committee 3 October 2022 Councillor Lynsey Hamilton Convener - Clyde Valley Learning and Development Joint Committee 3 October 2022 40
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10 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 new FM Code has been carried out as appropriate with the results feeding 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 elected members and senior officers are responsible for putting in place proper arrangements for its affairs and facilitating the effective exercise of its functions, which includes arrangements for the management of risk. Governance Framework The 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 updated and approved in 2019/2020. • Meetings of the Joint Committee are held three times a year chaired by the elected Convener of the Joint Committee. For 2021/2022, this was Councillor Katy Loudon (South Lanarkshire Council). • Scheme of delegation allows for Clyde Valley Implementation Steering Group to manage, direct and prioritise the work programme. • Minute of agreement has been produced and signed by each of the participating Councils, with a revised Minute of Agreement being approved to reflect the changes in membership and fee structure for 2019/2020 onwards. • Effective risk management arrangements are embedded within the Member Councils. 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. 41
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11 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. • Employees 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. During 2021/2022, ‘shared system’ audits and reviews were undertaken in relation to COVID-19 emerging fraud risks for areas provided to the Joint Committee under agreement with the Council, such as accounts payable and IT security. In these areas, there was reasonable assurance around the effectiveness of controls and no significant issues were identified that should be separately reported to the Joint Committee. 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 have been 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. 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 2022, the 2022/2023 budget paper was presented to the Joint Committee. Whilst the paper did not include a formal statement, the paper assessed the adequacy of the funding for the coming year (2022/2023), including the approved use of the 42
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12 accumulated reserves to assist with the costs of a contract extension in 2021/2022, 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 2021/2022 and I will continue to review these as appropriate during 2022/2023. COVID-19 Pandemic Governance Arrangements While there was initial disruption to the ability to undertake training courses in-person as a result of the ongoing pandemic, the work of the Clyde Valley Learning and Development Joint Committee was able to continue to progress in a number of areas virtually during 2021/2022, with an increased demand on e-learning services. South Lanarkshire Council staff continued to have access to IT systems and have been able to provide ongoing support to the Joint Committee in the normal way. While the Joint Committee has continued to deliver services virtually where possible during the various phases of the pandemic, there has been no changes to the governance arrangements in place except for the changes made in response to the pandemic. Information technology has been at the forefront of the transition to home working for everyone, and the Joint Committee’s e-learning infrastructure has actively assisted in delivering online services, learning and communications for the member authorities. The membership structure and funding model agreed in recent years has been maintained with a healthy number of councils retaining their membership in each of the categories available. 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 fifteenth year of the Clyde Valley Learning and Development Joint Committee (financial year 2021/2022), 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 3 October 2022 Councillor Lynsey Hamilton Convener - Clyde Valley Learning and Development Joint Committee 3 October 2022 43
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13 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. 2021/2022 General Fund Balance Total Usable Reserves Total Unusable Reserves Total Reserves £000 £000 £000 £000 Balance at 31 March 2021 30 30 - 30 Movement in Reserves during 2021/2022 Deficit on the provision of services (14) (14) - (14) Other comprehensive income and expenditure - - - - Total comprehensive income and expenditure (14) (14) - (14) 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 2021/2022 (14) (14) - (14) Balance as at 31 March 2022 16 16 - 16 2020/2021 General Fund Balance Total Usable Reserves Total Unusable Reserves Total Reserves £000 £000 £000 £000 Balance at 31 March 2020 28 28 - 28 Movement in Reserves during 2020/2021 Surplus on the provision of services 2 2 - 2 Other comprehensive income and expenditure - - - - Total comprehensive income and expenditure 2 2 - 2 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 2020/2021 2 2 - 2 Balance as at 31 March 2021 30 30 - 30 44
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14 Comprehensive Income and Expenditure Statement For the Year Ended 31 March 2022 The Comprehensive Income and Expenditure Statement gives a summary of resources generated and consumed by the Joint Committee in the year. 2020/21 £000 2021/22 £000 Notes 59 Support Expenses paid to South Lanarkshire Council 59 14 Training Costs for Member Councils 24 20 Project Work 37 2 Payments to Other Bodies 2 1 95 Total Expenditure 122 (97) Income (108) (2) (Surplus) / Deficit on Provision of Service 14 (2) Total Comprehensive Income and Expenditure 14 45
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15 Balance Sheet as at 31 March 2022 The Balance Sheet summaries the assets and liabilities of the Joint Committee at the Balance Sheet date. 31 March 2021 £000 31 March 2022 £000 Notes Current Assets 0 Debtors 0 62 Short Term Investments 52 2 62 Total Current Assets 52 Current Liabilities (32) Creditors (36) 3 30 Net Current Assets 16 Represented By : 30 General Fund Balance 16 30 16 The notes on pages 17-21 form part of the financial statements. The unaudited accounts were approved for issue by the Treasurer on 20 June 2022 and the audited accounts were authorised for issue on 3 October 2022. Jackie Taylor Treasurer – Clyde Valley Learning and Development Joint Committee 3 October 2022 46
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16 Cash Flow Statement For the year ended 31 March 2022 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. 2020/21 £000 2021/22 £000 (2) Net (surplus) on the provision of services 14 20 Adjust net surplus or deficit on the provision of services for non cash movements (4) 18 Net cash flows from Operating Activities 10 (18) Investing Activities (note below) (10) 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 2020/21 £000 Description 2021/22 £000 0 Movement in Debtors 0 20 Movement in Creditors (4) 20 (4) Cash Flow Statement Note – Investing Activities 2020/21 £000 2021/22 £000 (18) Purchase or (Sale) of short-term and long-term investments (10) (18) Net cash flows generated from/(used in) investing activities (10) 47
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17 Notes to the Accounts 1 Auditors’ Remuneration The auditors’ remuneration is included in the Payments to Other Bodies’ expenditure. 2021/22 £000 2020/21 £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 2021/2022, Clyde Valley Learning and Development Joint Committee has incurred fees of £2,020 for the statutory audit of the financial statements by Audit Scotland. The comparable figure for 2020/2021 was £1,960. Fees payable in respect of other services provided by the appointed auditor were £nil. (2020/2021: £nil) 2 Financial Instruments The following category of financial instrument is carried in the balance sheet: 31 March 2022 £000 31 March 2022 £000 31 March 2022 £000 31 March 2021 £000 31 March 2021 £000 31 March 2021 £000 Investments Long Term Current Total Long Term Current Total Loans and Receivables 0 52 52 0 62 62 Total Investments 0 52 52 0 62 62 3 Creditors The Creditors figure is analysed as follows: 2021/22 £000 2020/21 £000 Audit fee 2 2 Prepaid Contributions from Local Authorities 34 30 36 32 48
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18 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 2021/22 £000 Payments 2021/22 £000 Receipts 2020/21 £000 Payments 2020/21 £000 South Lanarkshire Council 15 59 0 0 11 59 0 0 North Lanarkshire Council 12 0 13 0 Glasgow City Council 11 0 10 0 Renfrewshire Council 15 0 12 0 East Renfrewshire Council 7 0 7 0 Inverclyde Council 6 0 5 0 Total 66 59 58 59 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 2021/22 £000 Creditors Balances 2021/22 £000 Short Term Investment Balances 2020/21 £000 Creditors Balances 2020/21 £000 South Lanarkshire Council 52 16 62 30 North Lanarkshire Council 0 10 0 10 Renfrewshire Council 0 0 0 7 Total 52 26 62 47 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. 49
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19 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 3 October 2022 by the Treasurer to the Clyde Valley Learning and Development Joint Committee. 8 Post Balance Sheet Events No events occurred between 1 April 2022 and 3 October 2022 that would have an impact on the 2021/2022 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 2022/2023. 50
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20 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 2021/2022, 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 2022 or services have been received but not paid for by end 31 March 2022, 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. 51
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21 (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. 52
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22 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 Head of Finance (Strategy) 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) and the Coronavirus (Scotland) Act 2022 and is compatible with that legislation, in accordance with proper accounting practices (section 12 of the Local Government in Scotland Act 2003; and • approve the Annual Accounts for signature I confirm that these accounts were approved for signature by the Joint Committee at its meeting on 3 October 2022. Signed on behalf of Clyde Valley Learning and Development Joint Committee Convenor – 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 2022 and its income and expenditure for the year ended 31 March 2022. Jackie Taylor Treasurer – Clyde Valley Learning and Development Joint Committee 3 October 2022 53
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23 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 2022 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 significant accounting policies. 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 2021/22 (the 2021/22 Code). In my opinion the accompanying financial statements: • give a true and fair view in accordance with applicable law and the 2021/22 Code of the state of affairs of the Clyde Valley Learning and Development Joint Committee as at 31 March 2022 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 2021/22 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 under arrangements approved by the Accounts Commission on 10 June 2021. The period of total uninterrupted appointment is 1 year. 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. 54
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24 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: 55
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25 • obtaining an understanding of the applicable legal and regulatory framework and how the Clyde Valley Learning and Development Joint Committee is complying with that framework; • identifying which laws and regulations are significant in the context of the Clyde Valley Learning and Development Joint Committee; • assessing 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 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 and Annual Governance Statement to the extent explicitly stated in the following opinions prescribed by the Accounts Commission. 56
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26 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 120 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. Andrew Kerr CA Senior Audit Manager Audit Scotland 4th Floor, The Athenaeum Building 8 Nelson Mandela Place Glasgow, G2 1BT 3 October 2022 57
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27 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. 58
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28 Clyde Valley Learning and Development Joint Committee Members (2021/2022) Council Member East Renfrewshire Council Councillor Colm Merrick (Vice Convener) Glasgow City Council Councillor Annette Christie Inverclyde Council Councillor Martin Brennan North Lanarkshire Council Councillor Angela Campbell Renfrewshire Council Councillor Andy Steel South Lanarkshire Council Councillor Katy Loudon (Convener)* *Following the May 2022 Local Government elections, the new Convener, Councillor Lynsey Hamilton will be signing off the audited accounts on behalf of the Joint Committee 59
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