Agenda Document Pack - Clyde Valley Learning and Development Joint Committee - 26/06/2023
South Lanarkshire Council · 26 June 2023
Back to Clyde Valley Learning and Development Joint Committee — 26 June 2023 and its agenda
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Council Offices South Lanarkshire Council Almada Street Hamilton ML3 0AA Thursday, 15 June 2023 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, 26 June 2023 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 Angela Campbell South Lanarkshire Lynsey Hamilton Gavin Keatt Copies to substitute members for information only 1
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BUSINESS 1 Declaration of Interests 2 Changes in Membership of the Joint Committee and Project Report dated 6 June 2023 by the Clerk of the Clyde Valley Learning and Development Joint Committee. (Copy attached) 3 - 6 3 Minutes of Previous Meeting Minutes of the meeting of the Clyde Valley Learning and Development Joint Committee held on 27 February 2023 submitted for approval as a correct record. (Copy attached) 7 - 14 Item(s) for Monitoring 4 Revenue Budget Monitoring 2023/2024 - Clyde Valley Learning and Development Joint Committee Report dated 1 June 2023 by the Treasurer of the Clyde Valley Learning and Development Joint Committee. (Copy attached) 15 - 18 Item(s) for Decision 5 Annual Governance Statement 2022/2023 Report dated 1 June 2023 by the Treasurer of the Clyde Valley Learning and Development Joint Committee. (Copy attached) 19 - 24 Item(s) for Noting 6 Clyde Valley Learning and Development Joint Committee - Annual Audit Plan 2022/2023 Annual Audit Plan dated March 2023 by Audit Scotland, External Auditor. (Copy attached) 25 - 40 7 2022/2023 Annual Report and Accounts - Clyde Valley Learning and Development Joint Committee Report dated 13 June 2023 by the Treasurer of the Clyde Valley Learning and Development Joint Committee. (Copy attached) 41 - 68 Urgent Business 8 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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Report Agenda Item Report to: Clyde Valley Learning and Development Joint Committee Date of Meeting: 26 June 2023 Report by: Clerk to the Clyde Valley Learning and Development Joint Committee Subject: Changes in Membership of the Joint Committee and Project 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] advise members of changes to the membership of the Clyde Valley Learning and Development Joint Committee and Clyde Valley Learning and Development Project [1purpose] 2. Recommendation(s) 2.1. The Joint Committee is asked to approve the following recommendation(s):- [r (1) that it be noted that Councillor Lynsey Hamilton has replaced Councillor Susan Kerr as the South Lanarkshire Council member and Convener of the Joint Committee; (2) that it be noted that Renfrewshire Council has changed its membership status of the Project from full member to participating member; (3) that it be noted that the Joint Committee is now represented by 5 full member councils (East Renfrewshire, Glasgow City, Inverclyde, North Lanarkshire and South Lanarkshire Councils); and (4) that it be noted that Dundee City Council is maintaining its participating membership status of the Project for 2023/2024. [1recs] 3. Background 3.1. As noted at the previous meeting of the Joint Committee held on 23 February 2023, Councillor Susan Kerr had replaced Councillor Lynsey Hamilton as a member and Convener of the Clyde Valley Learning and Development Joint Committee for the duration of Councillor Hamilton’s leave of absence. 3.2 As also noted at the previous meeting, Renfrewshire Council and Dundee City Council had not yet reached a decision on their membership status of the Clyde Valley Learning and Development Project for 2023/2024 and it was advised that an update would be provided to a future meeting of the Joint Committee. 4. Membership of the Joint Committee and Project 4.1. Councillor Lynsey Hamilton has now returned from her period of leave and has replaced Councillor Susan Kerr as the South Lanarkshire Council member of the Joint Committee. Also, in terms of paragraph 3.6 of the Minute of Agreement for the Clyde Valley Learning and Development Project, Councillor Lynsey Hamilton will replace Councillor Susan Kerr as the Convener of the Joint Committee. 2 3
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4.2. Renfrewshire Council has now confirmed that it has changed its membership status of the Project from full member to participating member. Consequently, in terms of paragraph 3.2 of the Minute of Agreement, Renfrewshire Council is no longer entitled to appoint 1 of its Councillors to the Joint Committee. 4.3. As a result, the number of full member councils represented on the Joint Committee is now 5 (East Renfrewshire, Glasgow City, Inverclyde, North Lanarkshire and South Lanarkshire Councils) which is the minimum number required for the Joint Committee to exist in terms of paragraph 12.2 of the Minute of Agreement. 4.4. Dundee City Council has now confirmed that it is maintaining its participating membership status of the Project for 2023/2024. 4.5. The Minute of Agreement and the Standing Orders on Procedures of the Joint Committee will require to be updated, in light of the change to the full membership, and this will be the subject of a report at the next meeting of the Joint Committee. 5. Employee Implications 5.1. None. 6. Financial Implications 6.1. The financial implications of the changes to the membership of the Clyde Valley Learning and Development Project are detailed in the Revenue Budget Monitoring report which is included on the agenda for consideration at this meeting. 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. As detailed at paragraph 4.3, there is a risk to the continuation of the Joint Committee and Project in terms of the full membership and Minute of Agreement. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Paul Manning Clerk to the Clyde Valley Learning and Development Joint Committee 6 June 2023 Previous References Changes in Membership of the Joint Committee - 27 February 2023 Update on Membership and Funding for the Clyde Valley Learning and Development Project for 2023/2024 - 27 February 2023 4
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List of Background Papers Minute of Agreement for the Clyde Valley Learning and Development Project Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Stuart McLeod, Administration Officer Ext: 4815 (Tel: 01698 454 815 / 07385 370 117) E-mail: stuart.mcleod@southlanarkshire.gov.uk 5
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CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE Minutes of meeting held via Microsoft Teams on 27 February 2023 Convener: Councillor Susan Kerr, South Lanarkshire Council Councillors Present: East Renfrewshire Council: Andrew Anderson Glasgow City Council: Anne McTaggart Inverclyde Council: Francesca Brennan (Vice Convener) North Lanarkshire Council: Angela Campbell Renfrewshire Council: Emma Rodden Attending: Clerk’s Office Stuart McLeod, Administration Officer, South Lanarkshire Council Treasurer’s Office Jackie Taylor, Head of Finance (Strategy), South Lanarkshire Council Clyde Valley Learning and Development Project Gerry Farrell, Project Manager Project Steering Group Alex Hughes, Inverclyde Council Pauline McCafferty, North Lanarkshire Council Christine MacKenzie, Renfrewshire Council Gill Bhatti (Chair), South Lanarkshire Council Also Attending: Audit Scotland Pauline Murray, Senior Audit Manager; Donna Rigby, Trainee Auditor 1 Declaration of Interests No interests were declared. 2 Changes in Membership of the Joint Committee A report dated 6 February 2023 by the Clerk to the Clyde Valley Learning and Development Joint Committee was submitted on changes to the membership of the Joint Committee. Councillor Lynsey Hamilton was on family leave and had been replaced by Councillor Susan Kerr, as a member of the Joint Committee, for the duration of Councillor Hamilton’s leave. In terms of paragraph 3.6 of the Minute of Agreement for the Clyde Valley Learning and Development Project, the Convener of the Joint Committee should be an elected representative appointed by the Lead Authority from time to time, therefore, Councillor Susan Kerr would also replace Councillor Lynsey Hamilton as the Convener of the Joint Committee for the duration of Councillor Hamilton’s leave. 3 7
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At the meeting of North Lanarkshire Council held on 115 December 2022, it was agreed that Councillor Angela Campbell replace Councillor Ann Ballinger as a member of the Joint Committee. The Joint Committee decided: (1) to note that Councillor Susan Kerr had temporarily replaced Councillor Lynsey Hamilton as a member for South Lanarkshire Council and Convener of the Clyde Valley Learning and Development Joint Committee; and (2) that it be noted that Councillor Angela Campbell had replaced Councillor Ann Ballinger as a member for North Lanarkshire Council on the Clyde Valley Learning and Development Joint Committee. 3 Minutes of Previous Meeting The minutes of the meeting of the Clyde Valley Learning and Development Joint Committee held on 3 October 2022 were submitted for approval as a correct record. The Joint Committee decided: that the minutes be approved as a correct record. 4 Revenue Budget Monitoring 2022/2023 – Clyde Valley Learning and Development Joint Committee A report dated 10 February 2023 by the Treasurer to the Clyde Valley Learning and Development Joint Committee was submitted comparing actual expenditure at 29 December 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. 5 Update on Membership and Funding for the Clyde Valley Learning and Development Project for 2023/2024 A report dated 31 January 2023 by the Chair of the Clyde Valley Learning and Development Project Steering Group was submitted providing an update on the membership and funding position for the Clyde Valley Learning and Development Project for the financial year 2023/2024. At its meeting on 11 June 2018, the Joint Committee had approved a proposal to restructure the membership of the Project by creating 3 categories of membership which would be open to all full member and associate member councils. Each member council would be required to pay a tariff based on its category of membership and a sliding scale linked to the number of persons it employed. Details of the membership categories and associated tariffs were provided in the report. It had also been agreed that, as a minimum, 5 full member councils and a level of funding of £61,000 per annum (including audit fee) would be required to maintain the viability of the Project. 8
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At the time of writing the report, 5 full member and 8 current participating member councils had confirmed their intention to continue their membership of the Project in 2023/2024. Renfrewshire Council, which was currently a full member council, and Dundee City Council, which was currently a procurement member council, had yet to confirm their membership status. The Project Manager would continue to liaise with Renfrewshire Council and Dundee City Council regarding their continued membership. There remained a commitment from member councils to sustain the work of the Project and to continue to realise the benefits of participation. On the basis that the current membership fees continued to provide the Project with funding beyond the previously agreed minimum level of £61,000 (including audit fee), it was proposed that the existing level of membership fees be retained. It was further proposed that the minimum level of funding remain at the previously agreed level. This funding level was based on the previous year’s audit fee, however, the audit fee for 2023/2024 was not yet known and an update on the audit fee and any impact on funding would be reported to a future meeting of the Joint Committee. On the basis of the confirmed membership for 2023/2024, there would be a total income of £67,000 from membership fees, resulting in a surplus of £6,000 for use by the Project. Any unspent element of the funding would be transferred to the balance sheet for use in future years. In response to a question from Councillor Anderson, the Chair of the Clyde Valley Learning and Development Project Steering Group advised that in-kind contributions referred to the time officers from the member councils, with the exception of the Project Manager who was funded by the Project, spent on Project business such as the co-ordination of learning and development needs and attending meetings. In response to a further question from Councillor Anderson, the Chair of the Clyde Valley Learning and Development Project Steering Group advised that she was not able to provide an indicative timescale for a response from Dundee City Council, however, it was anticipated that confirmation regarding membership status would be received from Renfrewshire Council imminently. The Joint Committee decided: (1) that it be noted that the model of membership and funding for the Project remained viable; (2) that the previously agreed categories and level of membership fees, as detailed in the report, be retained for 2023/2024; (3) that the minimum level of funding to allow the continuation of the Project for 2023/2024 remain at the previously agreed level of £61,000 (including audit fee); (4) that it be noted that 5 full member councils, the minimum number required in terms of the Minute of Agreement for the Clyde Valley Learning and Development Project, had confirmed their continued participation in the Project; (5) that it be noted that the current confirmed funding of £67,000 exceeded the agreed minimum level of funding by £6,000; and (6) that it be noted that Renfrewshire Council and Dundee City Council had not yet reached a decision on their continued membership of the Project. [Reference: Minutes of 21 February 2022 (Paragraph 4)] 9
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6 Meeting Arrangements 2023/2024 to 2026/2027 A report dated 6 February 2023 by the Clerk to the Clyde Valley Learning and Development Joint Committee was submitted on arrangements for meetings of the Joint Committee for the period 2023/2024 to 2026/2027. 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 period 2023/2024 to 2026/2027 be held via Microsoft Teams at 2.00pm on the following dates:- Monday 26 June 2023 Monday 11 September 2023 Monday 12 February 2024 Monday 10 June 2024 Monday 9 September 2024 Monday 10 February 2025 Monday 9 June 2025 Monday 8 September 2025 Monday 9 February 2026 Monday 8 June 2026 Monday 14 September 2026 Monday 8 February 2027 [Reference: Minutes of 30 November 2015 (Paragraph 5) and 20 June 2022 (Paragraph 7)] 7 Update on the 2022/2023 Audit of Clyde Valley Learning and Development Joint Committee The Joint Committee considered the update on the 2022/2023 audit of the Clyde Valley Learning and Development Joint Committee, dated 15 February 2023, submitted by the Joint Committee’s external auditors, Audit Scotland. The audit strategy update provided details on progress and provided information in relation to the following key audit matters:- risks audit fee audit timetable independence and objectivity The Joint Committee decided: that the update be noted. 8 Clyde Valley Learning and Development Project – Contract Renewal for Provision of e-Learning Platform (Learning Management System) A report dated 14 February 2023 by the Chair of the Clyde Valley Learning and Development Project Steering Group was submitted advising of the intention to award a contract for the provision of an integrated e-learning platform on behalf of the Clyde Valley Learning and Development Group (CVLDG). Brightwave Limited (now trading as Capita Learning) had been the preferred supplier of e- learning services to member councils since August 2009. During this period, 2 contracts had been awarded following competitive tendering processes. 10
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In June 2021, Brightwave Limited had been awarded a non-contractual extension for a period of 2 years, from 1 August 2021 until 31 July 2023, for the provision of a Learning Management System (LMS) to support and manage the delivery of online learning for the CVLDG. This extension had been for a fixed period with no opportunity to extend the contract further. Consultation had been carried out with the member councils that were utilising the current contract, details of which were provided in the report, resulting in an almost unanimous response that the member councils would like to retain their current e-learning platform (11 had previously opted for full functionality and migration to the updated Tessello e-learning platform, 1 had previously opted to retain the Tessello Go e-learning platform and 2 had opted not to continue use of either Capita Learning e-learning platform) in order to recoup the investment already incurred in its implementation, to avoid further outlay and associated risks from seeking an alternative e-learning platform provider and to fully realise the benefits arising from the additional functionality of the Tessello platform. Following further negotiations with Capita Learning, an offer had been made for a period of 1 or 2 years, the terms of which were to freeze licensing fees to the same level as 2021 prices subject to member councils signing up for a 2 year period. For the member councils that had already migrated to Tessello, there would be no set up/implementation activity or charges. Capita Learning had also agreed that the fee structure would not be increased if 2 member councils opted out of the contract. South Lanarkshire Council’s decision to opt out was due to the implementation of an integrated Human Resources and Financial Management System (Oracle Fusion) which meant that provision of a separate LMS platform beyond the term of the current agreement would no longer be required. Consequently, Capita Learning had agreed to exclude South Lanarkshire Council from the contract offer and also to provide a contingency transition period to allow for its migration to Oracle Fusion. As lead authority, South Lanarkshire Council’s Standing Orders on Contracts applied in relation to CVLDG procurement contracts. In addition, it was necessary that procurement decisions followed the regulations for Public Contracts (Scotland). For the reasons detailed in the report and summarised above, it was intended to award a contract to Capita Learning, in terms of Standing Order No 9.3.1, for the provision of an integrated e-learning platform for a period of up to 24 months, effective from 1 August 2023. The Joint Committee decided: (1) that it be noted that the extraordinary circumstances of the COVID-19 pandemic had brought increased and sustained demand for reliable online learning to be delivered to member councils; (2) that it be noted that it was the wish of the majority of the member councils to award a new contract to Capita Learning through a negotiated procurement procedure under South Lanarkshire Council’s Standing Orders on Contracts; (3) that it be noted that the decision to take this approach would allow member councils to better realise the value and return on their existing investment and to maintain continuous service and full functionality from their e-learning platforms; (4) that the intention to award a contract, in accordance with South Lanarkshire Council’s Standing Orders on Contracts, to Capita Learning, for the provision of an integrated e- learning platform for a period of up to 24 months, effective from 1 August 2023, be noted; and 11
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(5) that it be noted that the costs and pricing provided by Capita Learning to continue to provide this service would continue to offer a discounted scheme based on the number of councils opting into the contract and there would be no increase in prices from those offered in 2021. [Reference: Minutes of 14 June 2021 (Paragraph 6)] 9 Clyde Valley Learning and Development Project – Outcome of Strategic Review of the Promoting Positive Behaviour (PPB) Programme A report dated 31 January 2023 by the Chair of the Clyde Valley Learning and Development Project Steering Group was submitted advising of the outcome of the strategic review of the Promoting Positive Behaviour (PPB) Programme. In 2019, an independent evaluation of the Programme concluded that it had successfully delivered on its original objectives, was well received by both training and operational staff and was making a positive contribution to delivering services in a safe working environment. In December 2021, the PPB Strategic Governance Group had approved a proposal to conduct a full review of the PPB programme, as noted by the Joint Committee at its meeting held on 21 February 2022. The review was intended to provide the Joint Committee, the Strategic Governance Group and all stakeholders with robust evidence of the validity and effectiveness of the Programme and demonstrate that it remained fit for purpose for current and future service delivery models. The review had also considered that several councils, while still using the PPB Programme, had adopted policies which no longer promoted the use of any physical interventions in the field of children’s services. Details of the scope of the review, review methodology and a summary of the outcomes and recommendations of the review were provided in the report. In addition, the review outcomes and recommendations were detailed in Appendix 1 to the report. The Clyde Valley Social Care Group had considered the longer-term sustainability of the PPB Programme and had identified the key stakeholder groups and a set of priorities, details of which were included in the report, with a detailed action plan and summary developed with specific actions allocated to each stakeholder group. It was recognised that the sustainability of the PPB Programme was dependent on its benefits being understood by senior managers across the CVLDG and on governance structures remaining active at all levels. The full review of the PPB Programme was a complex task made more challenging by the logistical difficulties of bringing Review Groups together for consultation and analysis. Progress had been made by the decision to fine tune the scope of the review into thematic headings. Consequently, further consultation with additional stakeholders would be required before a fully robust set of recommendations would be available. The Review Groups had identified specific recommendations, which would be added to following this further consultation, and were confident that the recommended recommendations, once implemented, would ensure that the PPB Programme would remain robust, flexible and appropriate in all service settings. Those recommendations would be presented to the Strategic Governance Group for approval. 12
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In addition, the views of service users who were involved in the PPB Programme would continue to be sought over a 2-yearly cycle and an annual Consultation Plan would be developed and agreed by the Strategic Governance Group supported by the Clyde Valley Social Care Group. Local issues arising from the consultation would be dealt with by Local Governance Groups, while wider issues affecting the broader PPB community would be addressed collectively. The Project Manager advised that there had been interest shown in the Programme from councils outwith the CVLDG and that discussions were ongoing with Orkney Islands Council in terms of the governance arrangements. The Project Manager added that it was hoped that this would trigger further interest from across the country. The Joint Committee decided: (1) that the outcome of the review of the PPB Programme, commissioned by the Clyde Valley PPB Strategic Governance Group, be noted; (2) that it be noted that the recommendations contained within the review, as detailed in the report and Appendix 1 to the report, would be presented to the PPB Strategic Governance Group for approval; (3) that it be noted that the consultation and feedback aspects of the review would continue on an ongoing basis to ensure that the PPB Programme remained robust and fit for purpose in the context of changes to policy and practice nationally and across the member councils; and (4) that it be noted that the sustainability of the PPB Programme was dependent on its benefits being understood by senior managers across the CVLDG and on governance structures remaining active at all levels. [Reference: Minutes of 21 February 2022 (Paragraph 6)] 10 Urgent Business There were no items of urgent business. 13
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Report Agenda Item Report to: Clyde Valley Learning and Development Joint Committee Date: 26 June 2023 Report by: Treasurer to Clyde Valley Learning and Development Joint Committee Subject: Revenue Budget Monitoring 2023/2024 - Clyde Valley Learning and Development Joint Committee 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide information on the actual expenditure measured against the revenue budget for the period 1 April 2023 to 19 May 2023 for Clyde Valley Learning and Development Joint Committee [1purpose] 2. Recommendation(s) 2.1. The Joint Committee is asked to approve the following recommendation(s):- [] (1) that the breakeven position on the Clyde Valley Learning and Development Joint Committee revenue budget, as detailed in Appendix A of the report, be noted. [1recs] 3. Background 3.1. This is the first revenue budget monitoring report presented to the Clyde Valley Learning and Development Joint Committee for the financial year 2023/2024. 3.2. The running costs for the Clyde Valley Learning and Development Joint Committee are funded by contributions from the member Councils. 3.3. At the February meeting of the Joint Committee, 13 Councils had confirmed their membership position for 2023/2024. This took the total membership contributions to £0.067 million with Renfrewshire and Dundee City Councils yet to confirm their membership at that time. Since then, both councils have confirmed their position as participating members, contributing £0.004 million each. This takes the total membership contributions to £0.075 million. 3.4. These membership contributions form the basis for the expenditure budget for 2023/2024, being the revised budget of £0.075 million. In addition to this, an estimate of training expenditure (£0.025 million), and the direct recharge of this to Councils (£0.025 million) has also been added to the budget, giving a total expenditure and income budget of £0.100 million. 3.5. The report details the financial position for the Clyde Valley Learning and Development Joint Committee in Appendix A. 4 15
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4. Employee Implications 4.1. None 5. Financial Implications 5.1. As at 19 May 2023, there is a breakeven position against the phased budget to date. 6. Climate Change, Sustainability and Environmental Implications 6.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Clyde Valley Learning and Development Joint Committee Revenue Budget is that there is an overspend. The risk has been assessed as low given the detailed budget management applied within the Joint Committee. The risk is managed through four weekly Budget Monitoring when any variance is analysed. In addition, the probable outturn exercise will ensure early warning for corrective action to be taken where appropriate. 8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Jackie Taylor Treasurer 1 June 2023 Previous References None List of Background Papers Financial ledger and budget monitoring results to 19 May 2023 Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk 16
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Appendix A CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE Revenue Budget Monitoring Report Period Ended 19 May 2023 (No.2) Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 19/05/2023 Actual 19/05/2023 Variance 19/05/2023 % Variance Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 0 0 0 0 0 0 - n/a Property Costs 0 0 0 0 0 0 - n/a Supplies & Services 14 14 0 0 0 0 - n/a Transport & Plant 0 0 0 0 0 0 - n/a Administration Costs 84 84 0 2 2 0 - 0.0% Payments to Other Bodies 2 2 0 0 0 0 - n/a Payments to Contractors 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 0 0 0 0 0 0 - n/a Total Controllable Exp. 100 100 0 2 2 0 - 0.0% Total Controllable Inc. (100) (100) 0 (75) (75) 0 - 0.0% Net Controllable Exp. 0 0 0 (73) (73) 0 - 0.0% 17
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Report Agenda Item Report to: Clyde Valley Learning and Development Joint Committee Date: 26 June 2023 Report by: Treasurer to Clyde Valley Learning and Development Joint Committee Subject: Annual Governance Statement 2022/2023 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide an overview of the Annual Governance Statement for inclusion in the 2022/2023 Clyde Valley Learning and Development Joint Committee Annual Accounts [1purpose] 2. Recommendation(s) 2.1. The Joint Committee is asked to approve the following recommendation(s):- [] (1) that the Annual Governance Statement, attached at Appendix 1, be approved for inclusion in the Clyde Valley Learning and Development Joint Committee 2022/2023 Annual Accounts. [1recs] The a 3. Background 3.1. Each year the Clyde Valley Learning and Development Joint Committee undertakes a review of the governance arrangements that are required to support Clyde Valley Learning and Development Joint Committee’s preparation of the Annual Governance Statement which is included in the Clyde Valley Learning and Development’s Annual Accounts. 3.2. The annual review for 2022/2023 considered guidance detailed within the Delivering Good Governance in Local Government Framework. 4. Annual Governance Statement for 2022/2023 4.1. The Annual Governance Statement for 2022/2023 is attached at Appendix 1. 4.2. The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management supervision and a system of delegation and accountability. These arrangements follow the systems of financial management in place within the lead authority, South Lanarkshire Council. 5 19
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4.3. The Clyde Valley Learning and Development Joint Committee shares financial management systems with South Lanarkshire Council (the lead authority) and is subject to the relevant controls in place which are reviewed by Internal/External Audit through a programme of audit work. The overall audit opinion for the year is informed by the assurances obtained from any system audits carried out by the Council’s Internal Audit section on these shared systems. 4.4. Although Internal Audit do not carry out specific audit work on Clyde Valley Learning and Development Joint Committee, the sharing of systems means that the assurances obtained in the Internal Audit Manager’s annual assurance report to South Lanarkshire Council can be applied to those of Clyde Valley Learning and Development Joint Committee. 4.5. For 2022/2023, the Treasurer’s opinion is that reasonable assurance can be placed on the adequacy and effectiveness of the Committee’s framework of governance, risk management and control arrangements. 5. Employee Implications 5.1. None. 6. Financial Implications 6.1. There are no financial implications directly associated with this report. 7. Climate Change, Sustainability and Environmental Implications 7.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 8. Other Implications 8.1. The statement will be subject to review by Audit Scotland as part of their audit of Clyde Valley Learning and Development Joint Committee’s Annual Accounts. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Jackie Taylor Treasurer 1 June 2023 Previous References None List of Background Papers Clyde Valley Learning and Development Joint Committee Annual Accounts Annual Governance Statement and Annual Accounts 2022/2023 20
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Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) Email: lorraine.o’hagan@southlanarkshire.gov.uk 21
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Appendix 1 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 Financial Management (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 most recently 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 2022/2023, this was Councillor Lynsey Hamilton (South Lanarkshire) (temporarily Councillor Susan Kerr (South Lanarkshire)). • 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. 22
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The system of internal controls is based on a framework of regular management information, financial regulations, administrative procedures, management and supervision and a system of delegation and accountability. These arrangements follow the systems of financial management in place within the lead authority, South Lanarkshire Council and are subject to the relevant controls in place which are reviewed by the Internal/External Audit through a programme of audit work. The overall audit opinion for the Joint Committee is informed by the assurances obtained from systems audits carried out by Internal Audit on the Council’s shared systems. The system includes:- • Centralised invoicing and re-charging administered through South Lanarkshire Council. • Financial Management arrangements through South Lanarkshire Council’s FMS Ledger system supported by Financial Regulations. • Risks are identified and managed by the Project Manager on an ongoing basis. • Preparation of financial reports that compare actual expenditure and income against budgets. • 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. 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. It is acknowledged that the principle to ensure there is a statement regarding the Joint Committee’s adequacy of reserves in the budget strategy paper, had not been fully embedded. That said, in February 2023, the 2023/2024 Membership and Funding 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 (2023/2024) 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. 23
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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 2022/2023 and I will continue to review these as appropriate during 2023/2024. COVID-19 Pandemic Governance Arrangements The pandemic impacted the way Council services were delivered with the field of Learning and Development benefitting from the use of Information Technology, specifically with online learning models. The legacy of this approach has resulted in many examples of shared good practice and joint problem solving which have continued after the height of the pandemic. The Project under the governance of the Joint Committee continues to maintain a strong presence and impact. Albeit there has been changes to the membership structure, the funding model agreed in recent years has been maintained moving into 2023/2024. 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 sixteenth year of the Clyde Valley Learning and Development Joint Committee (financial year 2022/2023), reasonable assurance can be placed on the adequacy and effectiveness of the Joint Committee’s framework of governance, risk management and control arrangements. Jackie Taylor Treasurer - Clyde Valley Learning and Development Joint Committee 26 June 2023 Councillor Lynsey Hamilton Convener - Clyde Valley Learning and Development Joint Committee 26 June 2023 24
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Prepared for Clyde Valley Learning and Development Joint Committee March 2023 Clyde Valley Learning and Development Joint Committee Annual Audit Plan 2022/23 6 25
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Clyde Valley Learning and Development Joint Committee Annual Audit Plan 2022/23 | 2 Contents Introduction 3 Financial statements audit planning 5 Wider Scope and Best Value 8 Reporting arrangements, timetable, and audit fee 9 Other matters 12 Appendix 1. Your audit team 14 26
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Introduction | 3 Introduction Summary of planned audit work 1. This document summarises the work plan for our 2022/23 external audit of Clyde Valley Learning and Development Joint Committee (the Joint Committee). The main elements of our work include: • an audit of the annual accounts, and provision of an Independent Auditor’s Report • an audit opinion on other statutory information published within the annual accounts including the Management Commentary, the Governance Statement, and the Remuneration Report. • consideration of financial sustainability and the appropriateness of the disclosures in the Governance Statement. Audit Appointment 2. We are pleased to be appointed as the external auditor of the Joint Committee for the period 2022/23 to 2026/27 inclusive. You can find a brief biography of your audit team at Appendix 1. 3. In the first year of the audit appointment, we invest significant time gaining an understanding of your business and identifying and assessing the risks of material misstatement to the financial statements. While we use our initial assessment of risk to inform our planned audit approach, we keep our assessment of risks under review as the audit progresses. We will inform you of any significant changes in assessed risks and any resulting changes in our planned audit work. 4. The audit team will actively engage with you over the course of the audit to ensure our audit work continues to be focused on risk. Adding value 5. We aim to add value to the Joint Committee through our external audit work by being constructive and forward looking, by attending meetings of the Joint Committee and by recommending and encouraging good practice. In so doing, we will help the Joint Committee promote improved standards of governance, better management and decision making and more effective use of resources. Respective responsibilities of the auditor and Audited Body 6. The Code of Audit Practice 2021 sets out in detail the respective responsibilities of the auditor and the Joint Committee. Key responsibilities are summarised below. 27
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Introduction | 4 Auditor responsibilities 7. Our responsibilities as independent auditors are established by the Local Government (Scotland) Act 1973 and the Code of Audit Practice (including supplementary guidance) and guided by the Financial Reporting Council’s Ethical Standard. Auditors in the public sector give an independent opinion on the financial statements and other information within the annual report and accounts. We also review and report on the wider scope arrangements in place at the Joint Committee In doing this, we aim to support improvement and accountability. The Joint Committee and Treasurer responsibilities 8. The Joint Committee and Treasurer is responsible for maintaining accounting records and preparing financial statements that give a true and fair view. 9. The Joint Committee and Treasurer has the primary responsibility for ensuring the proper financial stewardship of public funds, compliance with relevant legislation and establishing effective arrangements for governance, propriety and regularity that enable them to deliver their objectives. 28
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Financial statements audit planning | 5 Financial statements audit planning Introduction 10. The annual accounts are an essential part of demonstrating the Joint Committee’s stewardship of resources and its performance in the use of those resources. 11. We focus our work on the areas of highest risk. As part of our planning process, we prepare a risk assessment highlighting the audit risks relating to each of the main financial systems relevant to the production of the financial statements. Materiality 12. The concept of materiality is applied by auditors in planning and performing the audit, and in evaluating the effect of any uncorrected misstatements on the financial statements. We are required to plan our audit to obtain reasonable assurance that the financial statements are free from material misstatement. The assessment of what is material is a matter of professional judgement over both the amount and the nature of the misstatement. Materiality levels for the 2022/23 audit 13. We assess materiality at different levels as described in Exhibit 1. The materiality values for the Joint Committee are set out in Exhibit 1. Exhibit 1 2022/23 Materiality levels for the Joint Committee Materiality Amount Planning materiality – This is the figure we calculate to assess the overall impact of audit adjustments on the financial statements. Materiality has been set based on our assessment of the needs of the users of the financial statements and the nature of the Joint Committee’s operations. For the year ended 31 March 2023 we have set our materiality at 2% of gross expenditure based on the audited financial statements for 2021/22. £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 could indicate that further audit procedures should be considered. Using our professional judgement, we have assessed performance materiality at 75% of planning materiality. £1,800 29
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Financial statements audit planning | 6 Reporting threshold (i.e., clearly trivial) – We are required to report to those charged with governance on all unadjusted misstatements more than the ‘reporting threshold' amount. £120 Source: Audit Scotland Significant risks of material misstatement to the financial statements 14. Our risk assessment draws on our cumulative knowledge of the Joint Committee, its major transaction streams, key systems of internal control and risk management processes. It is informed by our discussions with management, meetings with internal audit, attendance at committees and a review of supporting information. 15. Audit risk assessment is an iterative and dynamic process. Our assessment of risks set out in this plan may change as more information and evidence becomes available during the progress of the audit. Where such changes occur, we will advise management and where relevant, report them to those charged with governance. 16. Based on our risk assessment process, we identified the following significant risks of material misstatement to the financial statements. These are risks which have the greatest impact on our planned audit procedures. Exhibit 2 summarises the nature of the risk, the sources of assurance from management arrangements and the further audit procedures we plan to perform to gain assurance over the risk. Exhibit 2 2022/23 Significant risks of material misstatement to the financial statements Significant risk of material misstatement Sources of assurance Planned audit response 1. Risk of material misstatement due to fraud caused by management override of controls As stated in International Standard on Auditing (UK) 240, management is in a unique position to Owing to the nature of this risk, assurances from management are not applicable in this instance • 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. • Substantive testing of income and expenditure transactions around the year-end to confirm they are accounted for in the correct financial year. • Evaluate significant transactions outside the normal course of business. 30
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Financial statements audit planning | 7 Significant risk of material misstatement Sources of assurance Planned audit response perpetrate fraud because of management’s ability to override controls that otherwise appear to be operating effectively. • Assess the adequacy of controls in place for identifying and disclosing related party relationship and transactions in the financial statements. Source: Audit Scotland 17. As set out in International Standard on Auditing (UK) 240: The auditor’s responsibilities relating to fraud in an audit of financial statement, there is a presumed risk of fraud over the recognition of revenue. There is a risk that revenue may be misstated resulting in a material misstatement in the financial statements. There is a risk that revenue may be misstated resulting in a material misstatement in the financial statements. We have rebutted this risk for the Joint Committee because all funding is received from Local Government member authorities. This income stream is deemed to represent a low fraud risk. 18. In line with Practice Note 10: Audit of financial statements and regularity of public sector bodies in the United Kingdom, as most public-sector bodies are net spending bodies, the risk of material misstatement due to fraud related to expenditure recognition may in some cases be greater than the risk relating to revenue recognition. We have rebutted this risk for the Joint Committee because there is no history of fraud in this area, and most of the expenditure relates to a recharge to the administrating authority. This expenditure stream is deemed to represent a low risk of being materially misstated due to fraud. 19. We have not, therefore, incorporated specific work into our audit plan in these areas over and above our standard audit procedures. Our audit testing will maintain an oversight of any unusual transactions or accounting entries. 31
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Wider Scope and Best Value | 8 Wider Scope and Best Value Introduction 20. The Code of Audit Practice sets out the four areas that frame the wider scope of public sector audit. The Code of Audit Practice requires auditors to consider the adequacy of the arrangements in place for the wider scope areas in audited bodies. 21. The Code of Audit Practice includes a provision relating to the audit of small audited bodies. In the light of the limited volume and lack of complexity of the financial transactions and its low-risk nature, we plan to apply the small audited body provision of the Code to the 2022/23 audit of the Joint Committee. 22. Where the application of the full wider audit scope is judged by auditors not to be appropriate to an audited body then the annual audit work can focus on the appropriateness of the disclosures in the annual governance statement and the financial sustainability of the body and its services. We will report on these areas in our 2022/23 Annual Audit Report. Wider scope risks 23. Our risk assessment has not identified any audit dimension risks for 2022/23. Best Value 24. Auditors have a duty to be satisfied that bodies that fall within section 106 of the 1973 Act have made proper arrangements to secure Best Value. We will consider how the Joint Committee demonstrates that it is meeting its Best Value responsibilities and we will report our findings as part of our Annual Audit Report. 32
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Reporting arrangements, timetable, and audit fee | 9 Reporting arrangements, timetable, and audit fee Reporting arrangements 25. Audit reporting is the visible output for the annual audit. All Annual Audit Plans and the outputs, as detailed in Exhibit 3, and any other outputs on matters of public interest will be published on our website: www.audit-scotland.gov.uk. 26. Matters arising from our audit will be reported on a timely basis and will include agreed action plans. Draft management reports will be issued to the relevant officers to confirm factual accuracy. 27. We will provide an independent auditor’s report to the Joint Committee and Accounts Commission setting out our opinions on the annual report and accounts. We will provide the Joint Committee and Accounts Commission with an annual report on the audit containing observations and recommendations on significant matters which have arisen during the audit. 28. Exhibit 3 outlines the target dates for our audit outputs, and we aim to issue the independent auditor’s report by the statutory deadline of 30 September 2023. Exhibit 3 2022/23 Audit outputs Audit Output Target date Joint Committee Date Annual Audit Plan 31 March 2023 To be circulated to members prior to 31 March 2023 Independent Auditor's Report 30 September 2023 11 September 2023 Annual Audit Report 30 September 2023 11 September 2023 Source: Audit Scotland 33
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Reporting arrangements, timetable, and audit fee | 10 Timetable 29. To support an efficient audit, it is critical that the timetable for producing the annual report and accounts for audit is achieved. We have included a proposed timetable for the audit at Exhibit 4 that has been discussed with management. 30. Covid-19 has had a considerable impact on the conduct and timeliness of the audit. We recognise that it is in the best interests of public accountability to get the reporting of audited accounts back to pre-pandemic timelines. We are identifying ways to work more efficiently to expedite the 2022/23 audits whilst at the same time maintaining high standards of quality. 31. We intend to take a hybrid approach to the 2022/23 audit with a blend of onsite and remote working. We will continue to work closely with management to identify the most efficient approach as appropriate and will keep timeframes and logistics for the completion of the audit under review. Progress will be discussed with management and finance officers over the course of the audit. Exhibit 4 Proposed annual report and accounts timetable Key stage Provisional Date Consideration of the unaudited annual report and accounts by those charged with governance 26 June 2023 Latest submission date for the receipt of the unaudited annual report and accounts with complete working papers package. By 30 June 2023 Latest date for final clearance meeting with the Treasurer 25 August 2023 Issue of draft Letter of Representation and proposed Independent Auditor’s Report 01 September 2023 Agreement of audited and unsigned annual report and accounts 11 September 2023 Issue of Annual Audit Report to those charged with governance. 11 September 2023 Signed Independent Auditor’s Report By 30 September 2023 Source: Audit Scotland Audit fee 32. In determining the audit fee, we have taken account of the risk exposure of the Joint Committee and the planned management assurances in place. The proposed audit fee for 2022/23 is £2,270 (2021/22: £2,020) as set out in Exhibit 5. 34
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Reporting arrangements, timetable, and audit fee | 11 33. Our fees have increased in 2022/23 and this reflects the current audit market and the rising costs in delivering high quality audit work. There are increased regulatory expectations and risks placed on audit and its quality, as well as a widening in the scope of work audit must cover. Exhibit 5 Audit fees (including VAT) Fee component Fees (£) External Auditor Remuneration 13,830 Contribution to Audit Scotland costs 520 Sectoral Cap Adjustment 12,080 2022/23 Audit fee 2,270 Source: Audit Scotland 34. In setting the fee for 2022/23 we have assumed that the Joint Committee has effective governance arrangements and will prepare comprehensive and accurate accounts for audit in line with the agreed timetable for the audit. The audit fee assumes there will be no major change in respect of the scope of the audit during the year and where our audit cannot proceed as planned, a supplementary fee may be levied. 35
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Other matters | 12 Other matters Independence and objectivity 35. Auditors appointed by the Auditor General for Scotland or Accounts Commission must comply with the Code of Audit Practice and relevant supporting guidance. When auditing the financial statements, auditors must also comply with professional standards issued by the Financial Reporting Council and those of the professional accountancy bodies. These standards impose stringent rules to ensure the independence and objectivity of auditors. 36. Audit Scotland has robust arrangements in place to ensure compliance with these standards including an annual ‘fit and proper’ declaration for all members of staff. The arrangements are overseen by the Executive Director of Innovation and Quality, who serves as Audit Scotland’s Ethics Partner. 37. The appointed auditor for the Joint Committee is Pauline Murray, Senior Audit Manager. Auditing and ethical standards require the appointed auditor to communicate any relationships that may affect the independence and objectivity of audit staff. We are not aware of any such relationships pertaining to the audit of the Joint Committee. Audit Quality 38. Quality is at the core of public audit in Scotland and is the foundation for building consistency and confidence across all audit work. High quality audits provide assurance, add value, and can support public bodies to achieve their objectives. 39. Until 2021/22, the applicable audit quality standard was International Standard on Quality Control 1 (ISQC (UK) 1). This set out an audit practice’s responsibilities for its system of quality control for audits. 40. ISQC(UK) 1 has been replaced by two new audit quality standards: Internal Standards on Quality Management (ISQM (UK) 1) applicable from 15 December 2022 and (ISQM(UK) 2) effective for the 2023/24 audits. Work is underway at Audit Scotland to meet the requirements of these quality standards. 41. Audit Scotland is committed to delivering high quality audits. The foundation of our quality framework is our Audit Guide, which incorporates the application of professional auditing, quality and ethical standards and the Code of Audit Practice (and supplementary guidance) issued by Audit Scotland and approved by the Auditor General for Scotland. To ensure that we achieve the required quality standards, Audit Scotland conducts peer reviews and internal quality reviews. Additionally, the Institute of Chartered Accountants of England and Wales (ICAEW) have been commissioned to carry out external quality reviews. 36
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Other matters | 13 42. As part of our commitment to quality and continuous improvement, Audit Scotland will periodically seek your views on the quality of our service provision. We welcome feedback at any time, and this may be directed to the engagement lead. 37
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Appendix 1. Your audit team | 14 Appendix 1. Your audit team 43. The audit team involved in the audit of the Joint Committee have significant experience in public sector audit. Pauline Murray Senior Audit Manager pmurray@audit-scotland.gov.uk Pauline has over 14 years of public sector audit experience and has delivered external audit services to a range of bodies including local authorities, health boards and central government bodies. Karla Graham Senior Auditor kgraham@audit-scotland.gov.uk Karla has considerable experience in planning and delivering audits. Karla will manage the team and work alongside the Senior Audit Manager to deliver the audit. Donna Rigby Auditor drigby@audit- scotland.gov.uk Donna has 3 years of experience in delivering audits. Donna will complete the majority of the audit work, and work alongside the Senior Auditor and Senior Audit Manager to deliver the audit. 44. The local audit team is supported by a specialist technical accounting team, all of whom have significant experience of public bodies and work with accounting regulatory bodies. 38
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Appendix 1. Your audit team | 15 Clyde Valley Learning and Development Joint Committee Annual Audit Plan 2022/23 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 follow us on social media or subscribe to our email alerts. Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 Email: info@audit-scotland.gov.uk www.audit-scotland.gov.uk AS.4.0 39
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Report Agenda Item Report to: Clyde Valley Learning and Development Joint Committee Approval requested by: 26 June 2023 Report by: Treasurer to Clyde Valley Learning and Development Joint Committee Subject: 2022/2023 Annual Report and Accounts - Clyde Valley Learning and Development Joint Committee 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] ♦ advise of the Clyde Valley Learning and Development Joint Committee final accounts position as at 31 March 2023 [1purpose] 2. Recommendation(s) 2.1. The Joint Committee is asked to approve the following recommendation(s):- [recs] (1) that the Annual Report and Accounts for the Clyde Valley Learning and Development Joint Committee for the year ended 31 March 2023 be noted; and (2) that it be noted that the Annual Report and Accounts would be submitted to the external auditor by 30 June. 3. Background 3.1. The Annual Report and Accounts, as detailed at Appendix 1 to the report, shows the Income and Expenditure Account and Balance Sheet to 31 March 2023 for the Clyde Valley Learning and Development Joint Committee. These accounts will be passed for external audit to Audit Scotland. 3.2. The Annual Report and Accounts, as detailed at Appendix 1 to the report, comprises:- Introduction by the Convener Management Commentary Annual Governance Statement Movement in Reserves Statement Comprehensive Income and Expenditure Account for the year ended 31 March 2023 Balance Sheet as at 31 March 2023 Cash Flow Statement for year ended 31 March 2023 Notes to the Financial Statements Statement of Accounting Policies Statement of Responsibilities for the Statement of Accounts Audit Arrangements 7 41
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4. Employee Implications 4.1. None 5. Financial Implications 5.1. The Accounts show that the Joint Committee’s total revenue expenditure amounted to £0.081 million in 2022/2023 and was met by income of £0.098 million. This resulted in a £0.017 million surplus, this is because no expenditure occurred in the supplies and services line, which had a budget of £0.017 million. 5.2. After taking account of any accruals and commitments, this leaves a revenue cash balance of £0.034 million to be carried forward for use in future years. 6. Climate Change, Sustainability and Environmental Implications 6.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Clyde Valley Learning and Development Joint Committee Revenue Budget is failure to manage the budget resulting in expenditure exceeding available funding. The risk has been assessed as low given the detailed budget management applied within the Joint Committee. The risk is managed through four weekly Budget Monitoring when any variance is analysed. In addition, the probable outturn exercise ensured early warning for corrective action to be taken where appropriate. 8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function, or strategy and therefore no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Jackie Taylor Treasurer to Clyde Valley Learning and Development Joint Committee 13 June 2023 Previous References None List of Background Papers Clyde Valley Learning and Development Committee Annual Report and Accounts 2022/2023 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Jackie Taylor, Head of Finance Ext: 4532 (Tel: 01698 454532) E-mail: jackie.taylor@southlanarkshire.gov.uk 42
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CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE ANNUAL ACCOUNTS 2022/2023 43
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CLYDE VALLEY LEARNING AND DEVELOPMENT JOINT COMMITTEE ANNUAL ACCOUNTS 2022/2023 CONTENTS 3 Introduction by the Convener of Clyde Valley Learning and Development Joint Committee 4-9 Management Commentary 10-12 Annual Governance Statement 13 Movement in Reserves Statement 14 Comprehensive Income and Expenditure Statement 15 Balance Sheet 16 Cash Flow Statement 17-19 Notes to the Financial Statements 20-21 Statement of Accounting Policies 22 Statement of Responsibilities for the Annual Accounts 23 Audit Arrangements 24 Glossary of Terms 25 Clyde Valley Learning and Development Joint Committee Members 44
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Introduction by the Convener of Clyde Valley Learning and Development Joint Committee In a year where the shadow of the Covid-19 pandemic continued to impact on the Clyde Valley councils we can look back with some pride at the resilience of all our staff in maintaining our services and priorities. For the Clyde Valley Group our robust partnership has been fundamental to delivering the best learning and development programmes to meet our shared goals. It is clear from the enthusiastic attendance and participation in online working groups learning events and Clyde Valley meetings by officers from all Member Councils that the Clyde Valley Learning and Development Project is still an important strategy in sharing best practice. Time and time again staff from our Member Councils cite the confidence, reassurance and good ideas that participating in Project activities brings. This is something to be proud of and which I am confident will be maintained as we face the challenges of the coming year. For a Project originally envisaged to last for five years it is astonishing to reflect that last year was the sixteenth year of the Project’s existence. As the membership structure established four years ago continues to demonstrate the continued support of our Member Councils, a healthy number of councils continue to retain membership as Full or Participating Members. I remain 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. To all the Elected Members on the Clyde Valley Learning and Development Joint Committee I would like to extend my thanks and appreciation for your continued support. Similarly, I would like to recognise the hard work and commitment of the officers who consistently deliver the Project’s outputs and benefits year after year. In the face of the challenges facing our communities and our councils, I believe we can continue to look forward optimistically to the coming year for the Clyde Valley Learning and Development Group and would like to take the opportunity to encourage all Joint Committee Members, and the officers from the Member Councils to continue to take an active role in ensuring the continued success of the Project. Councillor Lynsey Hamilton Convener Clyde Valley Learning and Development Joint Committee 45
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Management Commentary 2022/2023 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 2022/2023 financial year. Whilst the impact and effect of the global pandemic Covid-19 diminished somewhat during the past year, it has continued to influence the way Council services are delivered across the Clyde Valley. Whilst some services have returned to a more traditional model of delivery, the field of Learning and Development has continued to benefit from delivery through use of Information Technology (IT) and specifically with online learning models. Whilst this has brought additional challenges for the partnership, the legacy of this approach has resulted in many examples of shared good practice and joint problem solving. Because of this, the work of the Project, overseen by Clyde Valley Learning and Development Joint Committee, continues to maintain a strong presence and impact. Objectives The overall objective of the Project remains to establish and deliver multiple shared approaches to training, learning and development between the Clyde Valley Councils (South Lanarkshire, North Lanarkshire, Glasgow City, East Renfrewshire, 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 Joint Committee. The financial statements have been prepared in accordance with the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2022/2023, supported by International Financial Reporting Standards (IFRS) which ensures a set of statements is produced, each statement with a single clear objective. 46
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The cumulative underspend at the end of the year will be held by the Joint Committee for utilisation in future years. These monies are reflected as a General Fund Reserve on the Balance Sheet. Performance Review The Clyde Valley Councils continue to monitor the benefits and outcomes they achieve through their involvement in the Project on an ongoing basis. As the Project’s stability is maintained and the achievements are considered each year, the collaborative approach to learning and development continues to demonstrate added value to the Member Councils. In the financial year 2022/2023, benefits have been realised through making cost savings and developing best practice in the following areas:- Ongoing contracts achieved through joint procurement E-Learning development, improvements and content sharing Individual Councils showcasing new skills and techniques and sharing these with all Councils 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 Maintaining the delivery and practice of Promoting Positive Behaviour (PPB) Reviewing the content and delivery of PPB to ensure it remains current and appropriate in all contexts Building and maintaining internal capacity in delivering PPB Laying the groundwork for other Councils to introduce PPB outwith the Clyde Valley Group 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. For a second 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. The challenge remains for Member Councils to replicate the individual and collective contributions made by previous employees to ensure the success and outcomes achieved to date is sustained. The established infrastructure and networks within the Group particularly those which were developed out of necessity during the Covid-19 pandemic have allowed collaborative work to continue through virtual meetings and learning events, shared content for front line and redeployed services and the delivery of online learning in unprecedented numbers across the Clyde Valley Group. Attendance at Clyde Valley meetings online using Teams remains very high as this medium is now the recognised and preferred method. For the Group’s more distantly located Members, this has allowed attendance at every meeting. The project governance structure of a Steering Group guiding corporate initiatives and the Social Care Group managing the Health and Social Care agenda continues to work well in terms of providing governance and strategic direction. This approach continues to reflect 47
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the scope of influence over each dimension of the Project as well as the resourcing implications of delivering the Project’s programmes. In addition, the specific governance structure for the PPB programme functions effectively through three tiers of governance. The membership categories and fee structure for membership were retained for 2022/2023. This approach provides a viable basis to contribute Project running costs as well as providing a suitable fund to enable additional key Project support activities to be commissioned. There are three categories of membership made available to Councils for the Project, these include full, participating and procurement membership. For the year 2022/2023 the Project had 6 full members, 9 participating members and no procurement members – overall, there was a reduction of two members from the previous year, one being a participating member and the other being a procurement member. The income of £0.061 million met the designated minimum level to support a contribution to running costs for South Lanarkshire Council as lead authority (this amount included the external audit 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. Review of Promoting Positive Behaviour (PPB) PPB was established over ten years ago, during which period there have been numerous changes in the social work and social care landscape. Similarly, there have been many developments and revised thinking in research and learning in service provision and support. In recent years several Councils have adopted policies which no longer promote the use of any physical interventions in the field of children’s services. The Councils are still using PPB but there remains the potential for conflict between the methods being taught on the Programme and the policies now being adopted by the Councils. Given the elapsed time and the changes to current policy and research and the impact of Covid-19, the PPB Strategic Governance Group commissioned a strategic review of the Programme. The purpose was to provide the Joint Committee, the Strategic Governance Group and all stakeholders with robust evidence of the validity and effectiveness of the Programme and demonstrate that it remains fit for purpose for current and future service delivery models. The scope covered changes in social work and social care practice, practice research, national and local enquiries into services, policy papers and national practice drivers such as The Promise, the National Care Review and the national strategy for Trauma Informed Practice. The report and recommendations arising from the review are currently being implemented with changes to course content, more flexible delivery and improvements to workforce capacity to deliver the programme. 48
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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 Promoting Positive Behaviour (PPB) is constantly in flux and under review. This issue requires constant attention to ensure the future of the programme is assured. Councils were asked to seek nominations for potential Principal Trainers throughout the year, and an ongoing programme of development for these trainers is provided for all. The current pool is twenty-two trainers, however, with demand for the programme increasing, the number of new trainers recruited and trained continues to challenge the Social Care Group. This remains an ongoing priority across the Clyde Valley Councils. Continuity in Online Learning Provision The non-contractual extension to the existing Learning Management System introduced an upgraded and more sophisticated learning platform for the Councils. The two-year extension allowed a continuous uninterrupted service to be available even when migrating to the new version of the platform. The Clyde Valley Councils facilitated the migration to the new platform along with the technical integration of data structures, content and learner activity. By early summer all 11 councils had completed their migration and each incidence of the platform (Tessello) was functioning effectively. This maintained the high priority accorded to meeting learning needs online without loss of service. As intended the new platform provides improved functionality, a new look and feel and the ability to access content on personal mobile devices. Financial Performance The Comprehensive Income and Expenditure Statement and its accompanying notes and statements summarise the costs and sources of funding in carrying out the Joint Committee’s activities. For 2022/2023, the Revenue Expenditure results for the Committee are shown on page 13. This shows a net surplus position of £0.017m on the Comprehensive Income and Expenditure Statement, representing Member contributions not utilised for Project work in- year. This net surplus will be added to the accumulated reserves balance brought forward from 2021/2022. 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 (£0.020m, 24.44%). This is a decrease of £0.004m compared to 2021/2022. The training costs relate to accredited management training which is provided to employees across Member Councils by the Chartered Management Institute, and annual City and Guilds subscriptions. These costs are incurred by Clyde Valley and recharged to individual Member Councils at the end of the financial year. Costs associated with other streams of Clyde Valley activity are incurred directly by individual authorities. The audit fee for 2022/2023 was £0.002m. The Joint Committee's income is mainly made up of contributions from Member Councils (£0.078m in 2022/2023). There is a General Fund Balance comprising accumulated underspends since the inception of the Project in 2007/2008. The surplus of £0.017m for 2022/2023, will be added to this General Fund balance and the remaining monies will be used for future progress on the Project. 49
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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 Joint 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 Joint Committee and is responsible for the proper administration of the Joint Committee's financial affairs. Full details of the Treasurer's responsibilities are included in the statement. Outlook Maintaining membership and commitment to the Clyde Valley Learning and Development Group is an ongoing challenge, particularly with the pressure on diminishing resources for Member Councils. Renfrewshire Council have indicated that, as of April 1 2023, their membership will change from Full Membership to Participating Membership. As a result, the number of full Member Councils represented on the Joint Committee is now 5 (East Renfrewshire, Glasgow City, Inverclyde, North Lanarkshire and South Lanarkshire Councils) which is the minimum number required for the Joint Committee to exist as a going concern, in terms of paragraph 12.2 of the Minute of Agreement. Despite this, the future of the Group remains positive due to the continued success and positive outcomes arising from existing programmes and developments. Whilst the impact of the Covid-19 pandemic had many negative effects, the Clyde Valley Councils have continued to demonstrate great resilience and an appetite for collaboration that bodes well for the future. Unprecedented attendances at online meetings and development groups during the past year indicates that the new ways of working will continue to deliver the most effective programmes for Clyde Valley employees. Priorities will remain the delivery of online learning to all councils and ensuring that the infrastructure is in place to support this effectively. Plans are in place to maintain continuity at the end of the current procurement contract for this service ensuring the benefits realised to date from our shared approach continues. Existing project work will continue to be managed prudently and as the changes precipitated by the PPB review come to fruition, the programme will remain one of the Joint Committee’s flagship programmes. The Joint Committee will continue to seek out opportunities to deliver innovation in learning and development through collaborative working and maintain the continuity and quality of our online products. 50
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The membership funding structure will continue to be monitored and evaluated in terms of achieving best value for the Member Councils. Further projects will be identified to maximise the benefits achieved from the Project fund. For this to happen the goodwill, time and resources allocated to the work by Members remains central to the success of the Project. Jackie Taylor Treasurer – Clyde Valley Learning and Development Joint Committee 26 June 2023 Councillor Lynsey Hamilton Convener – Clyde Valley Learning and Development Joint Committee 26 June 2023 51
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Annual Governance Statement The Joint Committee is responsible for putting in place proper arrangements for the governance of its activities in order to facilitate the effective operation of its functions. This includes ensuring that there are appropriate arrangements in place for the management of risk and that appropriate systems of internal control are in place. While the Joint Committee’s governance arrangements have not been consolidated in a formal Code of Corporate Governance, the Annual Governance Statement has been prepared within the context of the Joint Committee’s governance framework and meets legislative requirements to include the Annual Governance Statement within the Annual Accounts. A self-assessment of compliance with CIPFA’s FM Code 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 most recently 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 2022/2023, this was Councillor Lynsey Hamilton (South Lanarkshire) (temporarily Councillor Susan Kerr (South Lanarkshire)). • 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. 52
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The system of internal controls is based on a framework of regular management information, financial regulations, administrative procedures, management and supervision and a system of delegation and accountability. These arrangements follow the systems of financial management in place within the lead authority, South Lanarkshire Council and are subject to the relevant controls in place which are reviewed by the Internal/External Audit through a programme of audit work. The overall audit opinion for the Joint Committee is informed by the assurances obtained from systems audits carried out by Internal Audit on the Council’s shared systems. The system includes:- • Centralised invoicing and re-charging administered through South Lanarkshire Council. • Financial Management arrangements through South Lanarkshire Council’s FMS Ledger system supported by Financial Regulations. • Risks are identified and managed by the Project Manager on an ongoing basis. • Preparation of financial reports that compare actual expenditure and income against budgets. • 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. 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. It is acknowledged that the principle to ensure there is a statement regarding the Joint Committee’s adequacy of reserves in the budget strategy paper, had not been fully embedded. That said, in February 2023, the 2023/2024 Membership and Funding 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 (2023/2024) and 53
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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 2022/2023 and I will continue to review these as appropriate during 2023/2024. COVID-19 Pandemic Governance Arrangements The pandemic impacted the way Council services were delivered with the field of Learning and Development benefitting from the use of Information Technology, specifically with online learning models. The legacy of this approach has resulted in many examples of shared good practice and joint problem solving which have continued after the height of the pandemic. The Project under the governance of the Joint Committee continues to maintain a strong presence and impact. Albeit there has been changes to the membership structure, the funding model agreed in recent years has been maintained moving into 2023/2024. 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 sixteenth year of the Clyde Valley Learning and Development Joint Committee (financial year 2022/2023), reasonable assurance can be placed on the adequacy and effectiveness of the Joint Committee’s framework of governance, risk management and control arrangements. Jackie Taylor Treasurer - Clyde Valley Learning and Development Joint Committee 26 June 2023 Councillor Lynsey Hamilton Convener - Clyde Valley Learning and Development Joint Committee 26 June 2023 54
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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. 2022/2023 General Fund Balance Total Usable Reserves Total Unusable Reserves Total Reserves £000 £000 £000 £000 Balance at 31 March 2022 16.4 16.4 - 16.4 Movement in Reserves during 2022/2023 Surplus on the provision of services 17.2 17.2 - 17.2 Other comprehensive income and expenditure - - - - Total comprehensive income and expenditure 17.2 17.2 - 17.2 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 2022/2023 17.2 17.2 - 17.2 Balance as at 31 March 2023 33.6 33.6 33.6 2021/2022 General Fund Balance Total Usable Reserves Total Unusable Reserves Total Reserves £000 £000 £000 £000 Balance at 31 March 2021 30.4 30.4 - 30.4 Movement in Reserves during 2021/2022 Deficit on the provision of services (14.0) (14.0) - (14.0) Other comprehensive income and expenditure - - - - Total comprehensive income and expenditure (14.0) (14.0) - (14.0) 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 (14.0) (14.0) - (14.0) Balance as at 31 March 2022 16.4 16.4 - 16.4 55
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Comprehensive Income and Expenditure Statement For the Year Ended 31 March 2023 The Comprehensive Income and Expenditure Statement gives a summary of resources generated and consumed by the Joint Committee in the year. 2021/22 £000 2022/23 £000 Notes 59 Support Expenses paid to South Lanarkshire Council 59 24 Training Costs for Member Councils 20 37 Project Work 0 2 Payments to Other Bodies 2 1 122 Total Expenditure 81 (108) Income (98) 14 (Surplus) / Deficit on Provision of Service (17) 14 Total Comprehensive Income and Expenditure (17) 56
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Balance Sheet as at 31 March 2023 The Balance Sheet summarises the assets and liabilities of the Joint Committee at the Balance Sheet date. 31 March 2022 £000 31 March 2023 £000 Notes Current Assets 0 Debtors 0 52 Short Term Investments 69 2 52 Total Current Assets 69 Current Liabilities (36) Creditors (36) 3 16 Net Current Assets 34 Represented By: 16 General Fund Balance * 34 16 34 The notes on pages 17-19 form part of the financial statements. The unaudited accounts were approved for issue by the Treasurer on 26 June 2023. Jackie Taylor Treasurer – Clyde Valley Learning and Development Joint Committee 26 June 2023 * The movement on the Balance Sheet is £17,200 – the Balance Sheet is impacted by rounding. 57
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Cash Flow Statement For the year ended 31 March 2023 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. 2021/22 £000 2022/23 £000 14 Net (surplus) on the provision of services (17) (4) Adjust net surplus or deficit on the provision of services for non- cash movements 0 10 Net cash flows from Operating Activities 17 (10) Investing Activities (note below) 17 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 2021/22 £000 Description 2022/23 £000 0 Movement in Debtors 0 (4) Movement in Creditors 0 (4) 0 Cash Flow Statement Note – Investing Activities 2021/22 £000 2022/23 £000 (10) Purchase or (Sale) of short-term and long-term investments 17 (10) Net cash flows generated from/(used in) investing activities 17 58
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Notes to the Accounts 1 Auditors’ Remuneration The auditors’ remuneration is included in the Payments to Other Bodies’ expenditure. 2022/23 £000 2021/22 £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 2022/2023, Clyde Valley Learning and Development Joint Committee has incurred fees of £2,270 for the statutory audit of the financial statements by Audit Scotland. The comparable figure for 2021/2022 was £2,020. Fees payable in respect of other services provided by the appointed auditor were £nil. (2021/2022: £nil) 2 Financial Instruments The following category of financial instrument is carried in the balance sheet: 31 March 2023 £000 31 March 2023 £000 31 March 2023 £000 31 March 2022 £000 31 March 2022 £000 31 March 2022 £000 Investments Long Term Current Total Long Term Current Total Loans and Receivables 0 69 69 0 52 52 Total Investments 0 69 69 0 52 52 3 Creditors The Creditors figure is analysed as follows: 2022/23 £000 2021/22 £000 Audit fee 2 2 Prepaid Contributions from Local Authorities 34 34 36 36 59
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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 2022/23 £000 Payments 2022/23 £000 Receipts 2021/22 £000 Payments 2021/22 £000 South Lanarkshire Council 13 59 0 0 15 59 0 0 North Lanarkshire Council 12 0 12 2 0 Glasgow City Council 12 0 11 0 Renfrewshire Council 15 0 15 0 East Renfrewshire Council 7 0 7 0 Inverclyde Council 6 0 6 0 Total 65 59 66 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 2022/23 £000 Creditors Balances 2022/23 £000 Short Term Investment Balances 2021/22 £000 Creditors Balances 2021/22 £000 South Lanarkshire Council 69 34 52 16 North Lanarkshire Council 0 10 0 10 Total 69 44 52 26 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. 60
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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 unaudited accounts were authorised for issue on 26 June 2023 by the Treasurer to the Clyde Valley Learning and Development Joint Committee. 8 Post Balance Sheet Events No events occurred between 1 April 2023 and 26 June 2023 that would have an impact on the 2022/2023 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 2023/2024. 61
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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 2022/2023, 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 2023 or services have been received but not paid for by end 31 March 2023, 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. 62
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(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. 63
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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), 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 26 June 2023. Signed on behalf of Clyde Valley Learning and Development Joint Committee Convener – Clyde Valley Learning and Development Joint Committee The Treasurer’s responsibilities:- The Treasurer is responsible for the preparation of the Clyde Valley Learning and Development Joint Committee’s Annual Accounts in accordance with proper practices set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (the Code). In preparing the Annual Accounts, the Treasurer has:- • selected suitable accounting policies and then applied them consistently; • made judgements and estimates that were reasonable and prudent; • complied with the local authority Code. The Treasurer has also:- • kept proper accounting records which were up to date; • taken reasonable steps for the prevention and detection of fraud and other irregularities. I certify that the Annual Accounts give a true and fair view of the financial position of the Joint Committee at 31 March 2023 and its income and expenditure for the year ended 31 March 2023. Jackie Taylor Treasurer – Clyde Valley Learning and Development Joint Committee 26 June 2023 64
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Audit Arrangements Under arrangements approved by the Commission for Local Authority Accounts in Scotland (“The Accounts Commission”), the auditor with overall responsibility for the audit of the accounts of the Clyde Valley Learning and Development Project – Joint Committee for the year ended 31 March 2023 is: Audit Scotland 4th Floor, 102 West Port Edinburgh EH3 9DN 65
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Glossary of Terms Much of the terminology used in this Report is intended to be self-explanatory, however, the following additional definition and interpretation of terms used may be helpful: 1. Borrowing Facilities and Temporary Interest on Revenue Balances The loans fund of South Lanarkshire Council lends or borrows according to the cash flow of the Clyde Valley Learning and Development Joint Committee. This temporary interest credited / debited to the Clyde Valley Learning and Development Joint Committee’s Income and Expenditure Account reflects the interest earned or charged to the Committee for funds lent to or borrowed from the loans fund of South Lanarkshire Council. 66
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Clyde Valley Learning and Development Joint Committee Members (2022/2023) Council Member East Renfrewshire Council Councillor Andrew Anderson Glasgow City Council Councillor Anne McTaggart Inverclyde Council Councillor Francesca Brennan (Vice Convener) North Lanarkshire Council Councillor Angela Campbell (effective from 15 December 2022) (Previously Councillor Ann Ballinger) Renfrewshire Council Councillor Emma Rodden South Lanarkshire Council Councillor Lynsey Hamilton (Convener) Councillor Susan Kerr (Temporary) 67
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